The Nigerian Senate has requested pay-Tv companies operating in the country to adopt the pay-per-view subscription model amidst the economic crisis Nigerians are facing.
Current situation
The Nigerian Senate is initiating a probe to determine the working conditions of the pay-per-view model which would align pay-Tv companies’ pricing and activities in Nigeria with international practices.
What’s happened
Multichoice Nigeria announced a 14.1% increase in its premium bouquet on DSTV and a 15.2% rise in GOtv max package, taking effect from 1st April 2022. This would be the fourth time in seven years that the pay-Tv company is increasing its subscription packages. Multichoice Nigeria had also in 2020 implemented a Federal Government 2.5% rise in Value Added Tax (VAT).
What they are saying
The Senate president, Ahmad Lawan, called on the Federal Ministry of Communications and Digital Economy to collaborate with the Nigerian Broadcasting Commission to introduce a pay-per-view subscription model for DSTV and GOtv subscribers in Nigeria.
- The Senate also set up a seven-man subcommittee to develop the working conditions of the pay-per-view model.
Mr. Babatunde Irukera, executive chairman Federal Competition and Consumer Protection Commission, FCCPC, said that the commission is investigating whether Multichoice Nigeria’s increase in subscription packages aligns with the commission’s steps. The chairman added that the violation of these steps attracts a fine of N5million.
- FCCPC which operates with the authority of the Federal Ministry of Trade and Investment is the highest federal competition regulator in Nigeria.
Implications
In the face of one of the toughest economic challenges Nigerians have ever seen, an increase in paid viewing could mean a cut in the number of subscribers.