The National Broadcasting Commission (NBC) is embarking on a baseline study of the Nigerian Pay-TV market under a plan by the broadcast regulator to check sharp practices that hinders fair competition amongst players, according to Technology Times reports. Ahead of steps to be taken by the regulator, it was gathered that NBC commissioned an international team of TV market consultants to carry out a broad economic baseline assessment of the industry. The move comes on the heels of a recent agreement between NBC and Inview Technologies Limited to provide a Set-Top-Box (STB) system for Nigeria. As it relates to addressing issues revloving around competition in Nigeria’s TV market, the broadcast regulator recently invited an international team of TV market consultants to review current market structures and establish if there are market practices that undermine fair play.
Informed source close to the development says that the scope of their review covers identifying if there are restrictions to content, including premium rights and events, “and whether such restrictions hinders the emergence of innovative services, and platforms.” The scope of the study will also assess their ability to compete effectively and review issues like market dominance, network, programme access rules and content exclusivity, according to Technology Times. The NBC will want to know the impact of the advertising market on broadcast revenue and operations with particular attention to revenue returns for broadcast stations. The rationale behind this move is to ascertain if any current market conduct adversely affects revenue generation for broadcast stations in Nigeria as the economic survival of the broadcasting market depends largely on the operation of the advertising market.
The Commission is set to institute a team of local and foreign experts to examine the role of foreign sports broadcasting property rights, such as football rights on the cost of pay TV in Nigeria as against the development of local leagues and its impact on the cost of the service locally. The team to be formally constituted soon shall work to reduce the possible impact of such rights on the cost of local TV rates, according to information obtained by Technology Times. NBC recently set up the DigiGroup Contact Team made up of broadcasters, signal distributors, set top box manufacturers, legal and technology experts under a plan to refocus issues of digital transition and competition issues within the Nigerian broadcasting market. Leading pay TV service, Multichoice Nigeria Limited (DSTV) was sued recently by subscribers over alleged indiscriminate increase in their subscription charges and fees.
“It is unfortunate that the Nigerian Pay-TV market is under the stranglehold of DSTV due to its early entry into the broadcast market and its already established dominance in South Africa. DSTV has a wide range of exclusive pay-tv rights (satellite and terrestrial) for the wholesale supply of premium channels, such as M-NET, the Super Sport channels, KTV, MTV, CNN, Discovery, National Geographic Channel, etc. It is currently the only supplier of premium sports (English Premier League, UEFA Champions League, Europa League, prime Tennis tournaments and Basketball leagues etc.)”, an anonymous source conversant with the matter claimed. Meanwhile, under its pact with NBC, Inview Technologies Limited in collaboration with MTS Communications Limited, a consortium of Nigerian broadcasters will make available the software for the provision of critical services.
Such services cover the collection of annual Digital Content Access Fee (DCAF); Conditional Access System (CAS); Electronic programme Guide (EPG); Push Video-On-Demand on DTT; Interactive advertising. It will also carry out audience measurement amongst other added services. “The agreement would, essentially help the Commission give birth to the National Set-Top-Box platform that will enable commonality for all digital television services in the Country”, Maimuna Jimada, assistant director, public affairs, NBC said in a recent statement. According to NBC, 13 firms bided for a digital TV System Comprising STB software and Integrated digital TV (IDTV) Broadcast Services to deliver a National Common STB/IDTV Control and Consumer Access Fee Mechanism; and Critical Additional Services Over the Digital Terrestrial and Satellite Networks in Nigeria. “Inview got the job through a detailed, meticulous and transparent selection process”, says NBC.
Ben Uzor, with wire reports
