Nigeria’s PayTV market: Multichoice price adjustments and matters arising

WITH over 200 million population, Nigeria, undoubtedly holds its attractions for any profit-seeking business.

But, many also believe that the challenges of doing business in her space are equally humongous. The vast tombstones of brands and businesses that had once called the shots in the country, are attestations to the hostility business contend with in this part of the globe.

Unfortunately, the paytv market seems not immune to such opportunities and vagaries. For instance, besides Multichoice Nigeria that seems to have mastered the art and science of surviving in a stormy economic weather, the nation’s paytv market has not been good news to many players. HITv, Kwese, Daarsat, CommSat, and others, represent businesses that had tried and got their ‘fingers’ burnt in the segment, with their dishes becoming PayTv relics, on the roofs of their once- upon- a- time subscribers.

Interestingly, the industry was, again, in the news, recently, albeit for the wrong reasons. The decision of a major player, Multichoice, to roll out a new price regime of its Dstv and Gotv offerings, drew the ire of some stakeholders, in the market.

They wouldn’t even be swayed by the company’s attribution of the development to the various economic challenges impacting its business operations.

“Why embark on this journey at a time many Nigerians are economically –distraught”? some customers of the satellite TV provider have queried.

To such people, the ultimatum issued by the National Association of Nigerian Students (NANS), recently, to the company to reverse its decision or get its offices, nationwide, picketed, is rather soothing.

But there are also counter-arguments. Does playing in the nation’s paytv market insulate a business from its inclement economic weather? Does it also forbid such business from adopting tactics other businesses have been adopting to survive?

Temitope Ajayi, a brand analyst, in a response to the recent development, queries the ‘charge’ against every of the satellite tv provider’s attempts at raising prices that are market reality-reflective.

He argued that it is the usual norm for businesses to always pass costs to the consumers; since that is the only way of surviving, thriving and serving them. For him, the company has not erred in this latest move.

He noted that despite the seemingly exorbitant prices, paytv subscribers in this part of the globe, still pay far less than their counterparts in other jurisdictions.

“While Dstv premium subscribers in Nigeria will pay equivalent of $33.11, those in South Africa will pay $43.48 for same service and in Kenya, subscribers will pay $70.06,” he argued.

Ajayi also sees paytv as a life-style choice that consumers are free to make or do without.

“Multichoice is not selling oxygen or other vital human organs without which one cannot live,” he submitted.

But a legal luminary, Mr. Nosa Uwadiae however differs partially from the above submission.

According to him, the consumers have every right to protest such price increase; since they are already addicted to the satellite tv provider, which makes looking for alternatives come at emotional, as well as financial costs.

“Some people are already hooked to their subscription, and they have the right to fight back. They have the right to ask questions, regarding the justification for the increase, the ratio of new price increase compared with when they increased it last. Consumers play a lot of role in the pricing mechanism,” he stated.

But a source at the Federal Competition and Consumer Protection Commission (FCCPC), the agency in charge of consumer rights protection, stated that though the agency is working on this, but businesses have a right to adjust their prices.

“The only thing that we guide against is to ensure that such pricing is not anti-competitive or exploitative. We believe every business has its own business model, the budget, the pricing, and it’s not for the agency to direct or micro-manage them in any way, moreso that they have competitors in the segment,” the source added.

Perhaps more enlightenment, regarding how the sector works, will go a long way in reducing some of the agitations that are always experienced, whenever there are price increases in the sector.

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