The Nigerian satellite television industry is a major component of modern Nigeria’s culture.
Many television shows and channels are produced by Nigerians and targeted towards Nigerian consumers.
Consumers of satellite television subscribe to these services because it is part of their culture and they believe it is a way to always stay in touch with their culture.
Nigerian satellite television is provided mainly by MultiChoice through its DStv and Gotv brands, which have been running services in Nigeria for over two decades.
However, recently it has been under a lot of scrutiny from its consumers, mainly due to its foreign exchange rate and the prices for its services.
MultiChoice has attempted to explain to its Nigerian consumers the reasons for the price hikes in their subscriptions over the years, but this has only led to an even bigger backlash.
Many Nigerian DStv consumers do not believe they are getting enough value for their money.
This planned increment for DStv plan hikes is an economic strategy by MultiChoice to deal with the foreign exchange rates.
However, it is not only detrimental to the culture the DStv services hold with its Nigerian consumers, but also to the satisfaction of the quality of service from the price in all consumers.
Background talks about the current state of the Nigerian economy and its effect on the standard of living of the average Nigerian citizen, can’t be overlooked.
The value of the Naira against foreign currencies has shifted, and the standard of living has also decreased.
One of the major industries affected by this is the Nigerian entertainment industry, specifically the Nigerian satellite television industry.
The value of the Naira has affected the price of satellite television subscriptions, which in turn has affected the quality of service Nigerians are now receiving.
EXPECTATIONS
The expectations from the Federal Competition and Consumer Protection Commission (FCCPC), the National Assembly and the Federal Government regarding MultiChoice’s planned tariff hikes from May 1, 2024, are likely to involve regulatory scrutiny and consumer protection measures.
The FCCPC has been active in protecting consumer rights and interests, as evidenced by their recent enforcement operations and condemnations of discriminatory practices .
They have also taken action to address rising prices and protect consumers.
In the past the Competition and Consumer Protection (CCPC) tribunal had slammed N25 million fine on MultiChoice for contempt for increasing the prices of its TV products in disregard of its earlier interim order.
It’s gladdened that the ₦25 million fine imposed on MultiChoice by the Tribunal was implemented despite an earlier interim order to maintain the status quo, which would have effectively restrained the company from implementing a tariff hike.
The fine was ordered to be paid immediately to the Tribunal’s Registry. MultiChoice was found in contempt for disregarding the tribunal’s restraining order on tariff increase initiated by Onifade’s legal firm on behalf of himself and other stakeholders.
Again, MultiChoice has announced a planned 26% tariff hike, which would be the fourth increment within two years.
According to the company in an email sent to customers on Wednesday, the new prices on its DSTV and GOtv packages will take effect on Wednesday, May 1, 2024.
The new prices affect both new subscribers and existing customers renewing their packages.
Giving the reason for the fresh hike, the company said the new price adjustment came as a result of the persistent increase in the cost of production within the country.
The pay television outlet increased the subscription fee for packages on both platforms from about 20 percent to about 26 percent, depending on the package.
For instance, the cost of the DStv Premium Package was increased from the old price of N29,500 to the new price of N37,000. The cost of the Compact Plus package was increased from N19,800 to N25,000.
The Compact package moved from N12,500 to N15,700; Confam package was increased from N7,400 to N9,300; Yanga moved from N4,200 to N5,100; Padi that was N2,950 is now N3,360; HDPVR Access Service – N4,000 moved to a new price of N5,000; Access fees old price N4,000 increased to N5,000 and XtraView old price N4,000 increased to N5,000.
For GOtv package: Supa+ increased from N12,500 to N15,700; Supa old increased from N7,600 to N9,600; Max increased from N5,700 to N7,200; Jolli increased from N3,950 to N4,850; Jinja package increased from N2,700 to N3,300; and Smallie package increased from N1,300 to N1,575.
The new subscription price in the email signed by Chief Executive Officer, Multichoice, John Ugbe, explained that the move would allow the firm to provide more quality content to its subscribers’ homes across the country.
“We understand the impact this change may have on you – our valued customer, but the rise in the cost of business operations, has led us to make this difficult decision.
“It remains our mission to provide the best entertainment and viewing experience to you and are committed to continue to deliver high-quality content and unparalleled service.”
However, the FCCPC should investigate the justification for these hikes and assess their impacts on consumers.
Further Legal Action could be looked at including higher fines or more stringent enforcement measures.
The National Assembly, representing the legislative arm of the government, should also hold hearings or inquiries to discuss the implications of the tariff increases and the need for regulatory measures to ensure fair pricing practices.
The Federal Government, through its relevant ministries and agencies too, should monitor the situation closely.
They should engage with MultiChoice to discuss the reasons behind the price increases and explore ways to mitigate the impact on Nigerian consumers, especially considering the current economic challenges faced by the population.
It’s important to note that the Competition and Consumer Protection (CCPC) Tribunal has previously fined MultiChoice for disregarding a restraining order on tariff increase.
Moreover, in response to these hikes and the quest for more competitive pricing and services, Nigerians should continue been exploring alternative providers. One such alternative is SLTV from Metro Digital Limited, which offers affordable subscription rates and has recently won a legal battle for the broadcast rights of premium sports channels in Nigeria.
Another option is TSTV Africa, which provides a variety of indigenous and foreign content, including a pay-as-you-watch option.
Additionally, Internet Protocol Television (IPTV) has become a popular choice, offering a wide range of channels and streaming services without the constraints of traditional cable or satellite setups.
These alternatives are gaining tractions among Nigerians who seek viable options to choose from, especially this MultiChoice’s incessant subscriptions rate increases.
In all, consumers and stakeholders would be looking up to national assembly and these regulatory bodies for their responses and measures to ensure that the interests of Nigerian consumers are protected
Ade Adesokan, Public Affairs Commentator
