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Home Business News

MultiChoice in another pay-as-you-view tussle with Reps

Abiola Odutola by Abiola Odutola
June 27, 2020
in Business News
MultiChoice in another pay-as-you-view tussle with Reps

Mr.John Ugbe Managing Director, Multichoice Africa.

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This is indeed a difficult time for the management of MultiChoice Nigeria, owner of DStv and GOtv, as the Pay TV may be forced to answer the same questions for the umpteenth time.

In few days, the House of Representatives, which has begun an investigation of cable and satellite television service providers in Nigeria over their high tariffs and monopolised bouquets, will invite the company to answer questions over the much talked-about ‘pay as you earn.’

Though, it is an industry probe, the House is specifically probing Digital Satellite Television, a South Africa-based provider owned by MultiChoice, for allegedly cheating its Nigerian subscribers by restricting them to prepaid plans.

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Chairman of the committee, Unyime Idem, at an investigative hearing held in Abuja on Thursday, said that the National Broadcasting Commission (NBC) had been summoned to explain why DSTV and other service providers refused to introduce pay-per-view.

READ MORE: DStv plans to go “dishless” as it introduces streaming product come 2020 

Idem said, “Today, we want to hear from you and your team, how the industry can be properly managed so that beneficiaries who are Nigerians can smile at the end of the day. I am sure you must have been hearing of the yearnings of Nigerians for years now, who are the subscribers to these services, that they are not happy with the current services they are getting from the providers.

“They have been crying on a daily basis that they are not satisfied with the services they are getting from the providers in terms of high charges, price hike and, most importantly, considering what is obtainable in other countries of the world, that is pay-per-view offer that other countries are giving to their subscribers.

“Why is it not implemented in Nigeria? We want to know your position as the regulator of this service providers. What are the bottlenecks? What are the constraints? What are the implications? Why are we not enjoying ‘pay as you go’ as subscribers to these service providers?”

READ ALSO: Airtel Nigeria launches “Airtel TV”

MultiChoice says …

Meanwhile, MultiChoice has explained that there are some misconceptions about what Pay per View means.

The company’s spokesperson, Caroline Oghuma, told Nairametrics in an email interview a few months ago that it was not a service that enabled one to match consumption to subscription as was the case with a meter or mobile phone.

She said, “It is a type of pay television service by which a subscriber of a television service provider can purchase events to view via private broadcast. It usually applies to a one-off broadcast of high stakes games such as football, boxing and even wrestling matches.

“Pay per View service can be purchased via a cable or satellite TV provider as a non-refundable separate package in addition to a pre-existing subscription. An example of pay per view in action was the Mayweather vs. McGregor fight, aptly dubbed ‘The Money Fight’. In this case, subscribers had to each pay up to $100 for the bout in the US, and watch or not, the subscription ended with the 10 round fight.

“We broadcast the same boxing match to our Premium subscribers at no extra cost, and those who have Exploras were able to record the match and re-watch at another time. It is important to state that it is an expensive service to subscribe to. To date, no pay TV operation globally has a model based solely on pay as you view, as it is not a viable business model.”

READ ALSO: All Tech Companies eventually became Fintechs- Google to launch new debit card

She added that the company urged its customers to download DStv Now where they could watch all the content on their current subscription on the go, via phone or tablet. DStv Box-Office, a service available on the Explora decoder, enabled them to rent a movie at N400, for 2 days.

Previous probe

Meanwhile, members of the House had, on March 17, 2020, taken turns to criticise DSTV for refusing to introduce pay-per-view.

Consequently, the House had resolved to set up the committee to probe into the matter, with the mandate to invite Federal Government agencies regulating the industry, including the Federal Ministry of Communications and Digital Economy, and the Nigerian Communications Commission.

Again, on June 2, 2020, the House inaugurated an ad hoc committee to investigative the increment of subscription rates by Multichoice and other cable television service providers.

The committee, which the Speaker, Femi Gbajabiamila, constituted and inaugurated, assured Nigerians of justice and fairness, saying that it would work towards making the providers adopt ‘pay per view’ system.


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Tags: dstvGOTVHouse of RepresentativesMultichoice NigeriaNational Broadcasting CommissionNBC
Abiola Odutola

Abiola Odutola

For further inquiries about this article, contact: Email: abiola.odutola@nairametrics.com Twitter: @AbiolaOdutola @nairametrics

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Comments 5

  1. Bimbo says:
    June 27, 2020 at 3:27 pm

    Hmmmm will be interested in the final outcome of this debate. Multichoice owners of dstv have always had the upper hand in this matter from day 1 , if you watch dstv or not ince you pay for that month thats it the consumer has no say to what happens to there viewing during that month…living in Nigeria where light is a big issue,if for instance you paid for a month or months and the power to that area is affected you’ve paid for your dstv and thats that. They make all the money we are left with consequences. If this pay as you go thing can be introduced it will help us save cash

    Reply
  2. Emmanuel says:
    June 27, 2020 at 3:54 pm

    This is not the first time this pay per view is being investigated by House of Reps. It will yield no results and the investigation won’t change anything. I have not seen any investigation or probe by Senate of HoR that brought any meaningful results. All Multichoive need do is to dole out a few millions and that will end the probe

    Reply
  3. Segun says:
    June 28, 2020 at 10:46 am

    We are tired of Dstv. They should borrow a leave from Startime. Startime operating pay as you View if you like and at the same time they operate monthly subscription which ever you want. If this is the only one thing house will do to help massess of this country, this shall be remembered forever.

    Reply
  4. Ayeni Olubunmi says:
    June 29, 2020 at 2:05 am

    I pray something good comes out this time around. Nigerians are being short changed daily. One pays for this service and electricity providers will make it impossible for you to watch. In order not to lose your subscription for the month, you have to buy fuel to power your generator, double expenses! Come to think of it, how many hours a day do we watch programs on DStv. We need HELP!

    Reply
  5. Pippo Inzaf says:
    July 3, 2020 at 12:40 am

    It’s sickening to know that nothing will happen to the address the rip off Nigerians are suffering at the hands of these monopolized satellite TV provided called multi choice.
    The new tariffs is a clear form of day light robbery, and our government don’t seem to give a rats ass…

    Reply

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