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

Pay-per-view usually applies to a one-off broadcast of high stakes games like football, boxing and wrestling matches.

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

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.

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 

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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?”

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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.

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“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.

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“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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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

5 Comments

5 Comments

  1. Bimbo

    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

  2. Emmanuel

    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

  3. Segun

    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.

  4. Ayeni Olubunmi

    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!

  5. Pippo Inzaf

    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…

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Economy & Politics

Senate rules out the use of unclaimed dividends to fund 2021 Budget

The Senate has ruled out the Federal Government’s proposed plan to use unclaimed dividends to fund the 2021 Budget.

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The Nigerian Senate has ruled out the use of unclaimed dividends to fund the 2021 Budget.

The objection was raised by Senator Suleiman Kwari, the lawmaker representing Kaduna North District Zone I, at today’s senate plenary in Abuja.

While speaking on the creation of an unclaimed dividend and unutilised bank balance trust fund where dividends declared and unclaimed will be held, as stipulated in the 2020 Finance Bill, Kwari said the subsequent request of these dividends by the owners would deter the government’s activities if relied on.

Kwari called on the Federal Government to rule out the use of unclaimed dividends to fund the 2021 budget and consider a more sustainable and relatively option like the Pension Fund Administrative instead.

What they are saying

Speaking at the Senate plenary today, Senator Suleiman Kwari said: “I wish to commend some of the ways the Executive has put before us, measures to fund the 2021 budget. Some of them are really commendable. But Some of the ways here might be counter-productive.

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“I want to single out the use of unclaimed dividend to fund the 2021 budget. I think it should be reviewed by the Executive because if eventually, the owner of these funds come up to claim them, the fund will not be readily available for use.

“I urged the Federal Government to look at something like the Pension Fund Administrative instead of hoping on the unclaimed fund.”

What you should know

  • The Securities and Exchange Commission earlier this year disclosed that the total value of unclaimed dividend in the Nigerian capital market closed 2019 at N158.44 billion, with over N100 billion of the dividend from unclaimed shares.
  • However, the House Committee on Capital Markets and Institutions raised an alarm over the growing unclaimed dividends in the capital market, which was projected to cross the N200 billion mark at the close of 2020.
  • Following this projection, Mrs Zainab Ahmed, Nigeria’s Minister of Finance at a webinar organised by KPMG in collaboration with the Ministry of Finance, Budget and National Planning, disclosed that the Federal Government was considering the creation of an unclaimed dividend and unutilised bank balance trust fund where dividends declared and unclaimed will be held.
  • Through this, the unclaimed dividends would be handed over to the government, as trustee, in the perpetual fund created under the supervision of the CBN & DMO, with private sector involvement in the governance of the fund.

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Tech News

WorldRemit and The Nest partner to empower entrepreneurs in Nigeria, 3 others

WorldRemit has partnered with The Nest to empower entrepreneurs in Nigeria, Kenya, Ghana, and Zimbabwe.

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WorldRemit, a global fintech platform, has partnered Nigeria’s tech innovation hub, The Nest, to empower entrepreneurs in Nigeria, Kenya, Ghana, and Zimbabwe.

This was disclosed by the company via a statement issued on Wednesday, and seen by Nairametrics.

According to the statement, the partnership is to build scalable business models across Africa via the WorldRemit Entrepreneurs Program.

In its quest to go beyond digitalizing payment methods across the globe, strengthen its renewed commitment to creating opportunities, and facilitate development in Africa, WorldRemit will now equip African entrepreneurs with effective skill sets and tools to build, innovate, and scale their businesses.

Country Manager (Nigeria and Ghana), WorldRemit, Gbenga Okejimi, explained that the partnership came right in time for impact, as many small businesses had taken a hit in the course of the tumultuous year.

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He lauded the efforts of the team at The Nest Hub for their resolve at ensuring continuous education, and enabling a thriving environment for start-ups and small businesses.

He said, “Much of what Africa is today is due to its entrepreneurship, which is a key driver for socio-economic progress through significant job creation and innovation.

“At WorldRemit, we want to be known for fostering the African entrepreneurship spirit. We want to be a part of Africa’s future prosperity. By helping build entrepreneurs across our African markets, we are enabling growth and development.”

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Co-founder, The Nest, Oluwajoba Oloba, explained that the Entrepreneurs Program will serve as a catalyst in building scalable business models across Africa as the continent enters into a new wave of business revolution.

He said, “The entrepreneurs will be equipped with effective skills and tools required to build and scale their businesses. The Nest definitely plays a big role in this important partnership, as the project partner leads the designing of the digital business course, otherwise known as the learning modules, that would be used in training selected entrepreneurs while also mentoring them on innovative ways to manage and scale their businesses.”

He added that beyond training and mentoring, The Nest provides entrepreneurs, creatives, start-ups, and small businesses with dynamic facilities and workspaces.

What you should know

  • The WorldRemit Entrepreneurs Program will run simultaneously in Nigeria, Ghana, Kenya, and Zimbabwe, from November 2020 through January 2021.
  • It is expected to empower 50 aspiring and budding entrepreneurs.

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Energy

FG says vehicle owners to pay N250,000 to convert from petrol to autogas

FG says owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.

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FG says vehicle owners to pay N250,000 to convert from petrol to autogas

The Federal Government has revealed that vehicle owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.

This disclosure was made on Wednesday, December 2, 2020, by the Technical Adviser on Gas Business and Policy Implementation to Minister of State for Petroleum, Justice Derefaka, while on Channels Television’s Sunrise Daily, which was monitored by Nairametrics.

READ: FEC okays N5.4 billion for gas parks, airport security project 

While stating that the conversion of vehicles from petrol to autogas will take at least 7 hours at the various conversion centres, Derefaka also pointed out that vehicle owners will have different payment plans to perform the conversion.

What they are saying

Derefaka, who is also the Programme Manager, Nigerian Gas Flare Commercialization Project, said:

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The cost varies. So, in terms of cost implication, it depends on the cylinder of the vehicle and of course, for a typical SUV cylinder, it is a bit higher. On the average, it is around N200,000 to N250,000 and this is for a four-cylinder vehicle, but it becomes a little bit higher for a six-cylinder SUV vehicle.”

READ: Ikeja Electric tops with 10.7% approved meter allocation – NERC

Nairametrics earlier reported that the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed that the corporation is going to provide free conversion services in some selected NNPC retail filling stations across the country.

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Derefaka further explained that there will be different payment plans for making the conversion, adding that vehicle owners can have agreement with commercial banks to get the conversion done.

READ: FG to make forex available to oil marketers for import to drive down petrol price

He also said, “The owner of the car basically will decide to say I want to run on autogas or CNG or LNG and like the Honourable Minister had mentioned as well, conversion basically has different strands, you can partner with your bank and then the bank will now agree with the conversion centre to say ‘Convert this our customer’s car for free.’

“Not free in its entirety, but you now go and covert your vehicle. What happens is that the installer will put some form of mechanism, that each time you buy the gas; a certain amount will be deducted to pay for the conversion kits.”

While dismissing the notion amongst many Nigerians that the conversion fee is expensive, the ministerial aide noted that payment can be done within 5 to 7 months, in addition to saving up 45-50% cost associated with petrol.

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READ: My recent experience selling a car on Carvana, lessons for Nigerian startups

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What you should know

  • The Federal Government had on Tuesday launched the autogas scheme, called the National Gas Expansion Programme.
  • The programme involves the conversion of fuel-powered cars and generators from petrol to gas, and is aimed at deepening domestic usage of natural gas in its various forms.
  • The programme is also in line with the Federal Government’s plan to make gas the first choice source of cheaper and cleaner energy. This follows the deregulation of the downstream sector of the oil industry with sharp increases in prices of petrol.
  • The Minister of State for Petroleum Resources said that the availability of Autogas as an alternative fuel option will afford Nigerians cheaper, cleaner and additional choice of fuel. Cheaper than the price of petrol and better for automobile and other engines.

READ: Hyundai to invest $87 billion into producing 44 new electric vehicles 

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