MultiChoice, the owners of DStv and GOtv, subscription-based platforms has said will not be able to implement the pay-per-view (PPV) model for its viewers in Nigeria because it is costly.
John Ugbe, Chief Executive Officer, CEO, of MultiChoice Nigeria disclosed this when he appeared before an ad hoc committee of the Senate in Abuja on Thursday, noting that the cost on customers makes it unsustainable to be implemented.
The committee was a product of the Senate’s inquiry into the spike in the subscription prices in DStv and GOtv and why the firm could not operate a PPV model.
Ugbe in his response said, “PPV involves retailing a single television programme. This involves a broadcaster transmitting a single event at the same time to its subscribers who have paid to watch the event.
“From industry analysis PPV would be very expensive for DTH subscribers and therefore unsustainable.
“A subscriber who wants to watch an event on PPV is required to pay an additional fee besides his subscription, to watch the programme on PPV.”
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Speaking on the rationale for the hike in tariffs, Ugbe blamed it on inflation, tax and cost of content.
He added, “Inflation rate has steadily gone up which has adversely affected the economic environment as the cost of doing business has gone up exponentially thus undermining our ability to maintain the same subscription price every year.
“Over the past five years, MultiChoice has spent an excess of $238 million on direct and indirect taxes, and $15.1 million on licensing fees.
“The number of channels on the DStv service has increased substantially from the launch of the service to the current 171 channels included on the Premium bouquet. Thus, the value to subscribers in terms of variety and choice of channels has increased tremendously.”
Also, Anthony Iyare, coordinator of Nigerian Viewers Collective, in his speech at the hearing, aligned with Ugbe on PPV.
Iyare said, “The PPV is a more expensive model and one for which a subscriber has to pay separately for access to the content desired in addition to subsisting pay television subscription,” he said.
“It is unrealistic to expect the pay TV operators not to struggle to keep their operations above water, particularly at a time when our economic indices are unfavorable.”
Source: Cable
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