• Friday, March 29, 2024
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NBC’s new code puts investments of payTv, video-on-demand platforms at risk

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While the Nigerian creative industry is almost stifled by inadequate funding, copyright infringements, piracy, among other challenges, the industry is now facing a seemingly worst challenge with the new broadcast code recently announced by the National Broadcasting Commission (NBC).

Recommended by the Committee on the Reform of the National Broadcasting Commission and consequently approved by President Muhammadu Buhari, the new code features amendments to the Sixth Edition of the broadcast code, amid strangulation tendencies on creative industry businesses.

It seeks to limit exclusivity of content, as well as, forcing content owners to sub-license content they have exclusive rights to, to other broadcasters, at a price enforced by the NBC, hence abridging the rights of copyright owners.

Also, the new code, which requires all online broadcasters, including payTv and streaming companies to register with the NBC, and sub-license their exclusive contents to other broadcast platforms in the country, makes it difficult for Nigerian content producers to enter exclusive deals going forward, hence working below capacity, and losing huge revenue by so doing.

But the NBC has assured that the new code would break monopoly and create room for competition in the creative industry.

However, many creative industry stakeholders are concerned that the recent amendments in the code would strangle their business, discourage creativity, and most importantly, put investments of payTv, streaming and video-on-demand platforms at risk.

Streaming companies such as Netflix, iROKOtv, Apple Music and pay Tv outfits, especially Multichoice’s Africa Magic are at risk of losing their investments in local content production if the code stands, considering that they have licensed a lot of local content from some Nigerian movie producers and acquired exclusive rights to them.

Over the years, Africa Magic has supported the Nigerian movie industry with millions of dollar investments, Netflix has started putting its $8 billion original production budget to work in Nollywood, iROKOtv is pushing local content with global appeal with millions of dollar investments as well, among other content producers whose jobs are at risk if they are denied exclusive right or forced to sub-license their contents to other media broadcasters by the NBC.

Looking at the negative impact of the development, many industry players insisted that without a market-driven motivation to invest in content, local broadcasters may simply sit back and collect rent, like the NTA of today does.

For them, exclusivity or right to content ownership is a major market-driven motivation for payTvstreaming and video-on-demand platformsas well as, big draw for investors.

Expressing his displeasure on the development, Jason Njoku, chief executive officer, iROKOtv, stated that by seeking to limit exclusivity and rights, the new code amendments have the potential to discourage investment in the sector.

Njoku noted that it would not make business sense to invest further in local content and production when return on investment is uncertain because of lack of exclusivity to content right and sub-licensing caveat in the code.

As well, an insider at Netflix Nigeria, who pleaded for anonymity, noted that the amendments are coming at the wrong time when Netflix, which acquired exclusive rights to Lionheart, a movie it is purported to have paid $3million to Genevieve Nnaji, the content owner, to own exclusive rights to the production and other Nigerian movies has licensed a lot of local contents from some Nigerian movie producers.

The insider lamented that production of Netflix originals and Nollywood originals, which are already launched in Nigeria, may be negatively impacted.

Considering the fact that the big players in content production, streaming and payTV service may be struggling to cope with the amendment, which took effect from March this year, Ademola Onitiri, a movie maker, decried that small producers are going to struggle more, and probably going to close shop if they cannot create contents and own them exclusively again.

“It is the exclusivity that boosts creativity and business deals in the creative industry. An investor can only put down his money on content when it is exclusive and the exclusivity is copyright. Why remove it?” Onitiri asked.

In the same vein, Naz Onuzo, a movie producer, said the NBC was wrong to seek to compel rights owners to sub-license their contents.

“A lot of Nigerian content producers are concerned by the removal of the exclusivity clause because exclusivity deals are the most valuable and this bit reduces the value of the most desirable Nigerian contents,” Onuzo said.

With the sub-licensing arrangement, Ferdinand Adetu, a music promoter and producer, is worried about the revenue target, the sharing formula and the extent the content can be exploited further by the other parties bearing in mind that the original content owner may have provided all the funds for the content creation and production.

“If I invest N100 million in producing a local soap opera and I am forced by NBC to sublet my exclusivity to another producer, how am I going to recoup my money, especially if it is a loan from the bank and who monitors how my content is used at least for data collation?” Adetu stressed.

The above are some of the grey areas, which made the Lagos Film Academy (LFA) to conclude that the new code is problematic and would negatively impact the lives of Nigerian creative and content producers, who currently struggle with numerous challenges of production and distribution.

According to Ruby Igwe, co-founder/executive director, Lagos Film Academy, the code will make it difficult for operators and investors to derive maximum value from the value chain of content production or broadcast.

“Real growth in the broadcast industry will come from opening up the content production, distribution and broadcasting space and by removing unnecessary roadblocks, not by denying creative hands exclusivity of their creations”, Igwe said.

Meanwhile, Wole Soyinka, foremost Nigerian writer and Nobel Laureate, described the new code as stifling and economic sabotage directed against thousands of creative industry practitioners.

The Nobel Laureate noted that while some of the regulations are well intentioned, one cannot imagine the unintended consequences such as backhanded censorship in the age of digital media.

Moreover, Tony Okoroji, chairman, Copyright Society of Nigeria (COSON), tackled the NBC from the legal angle, noting that some of the provisions in the new broadcast code are good; some are unworkable, while others are unconstitutional.

According to Okoroji, with the new code, the NBC is attempting to overreach itself by assuming powers of the National Assembly; hence, he called for a revisit of the amendments.

The lawyers are also speaking on the issue, using the provisions of the Nigerian Constitution as reference.

Norbert Chima, a lawyer, pointed out that Section 44 of the 1999 Constitution gives every Nigerian the right to own moveable properties or any interest in an immovable property and the rights over such properties cannot be compulsorily taken.

He argued that though intellectual property rights are intangible, they are moveable property rights. According to him, the provisions on exclusivity are inconsistent with Section 1 (3) of the Constitution, which states: “If any other law is inconsistent with the provisions of this constitution, this constitution shall prevail, and that other law shall to the extent of the inconsistency, be void.”

He also argued that Section 8 of the Copyright Act, Chapter C28 states that copyright in a broadcast shall be under the exclusive control of the owner.

“It is, therefore, safe to deduce that a broadcaster has the exclusive right to control his work and not even the government can, in anyway, control such”, Chima concluded.

In view of the controversies the new code has raised, industry players are urging the NBC to be a neutral regulator.

They urged the NBC to widen the scope of consultations around the amendment of the broadcasting code, invite, involve and include real industry players, listen to their genuine concerns and inspire a level playing field.

“NBC should lay the guidelines, stand away and let the players play. It should not be involved in fixing sub-licensing prices, as it should be a willing-seller-to-willing-buyer agreement that doesn’t involve the regulatory body,” LFA said on behalf of the players.