Nigeria’s Pay TV Operators Fail To Provide ‘Pay-As-You-Consume’ Viewing
There is a widespread belief amongst Nigeria’s pay-TV subscribers that pay-television services are too expensive, especially when the operators continuously increase prices for their services.
In addition to that, research has shown that subscribers generally watch only 15% or so of the channels offered to them so, in essence, they are paying for a lot of channels they never tune in to.
The customers of pay-TV in Nigeria have been persistent in calling for a pay-as-you-consume (PAYC) payment option as opposed to the current monthly plans that they are paying, saying that many subscribers feel ripped off by the current fixed plan payments.
Pay tv platforms, especially MultiChoice, the owner of the GOtv and DStv platforms and also the largest pay-television operator in Nigeria has done very little to calm the masses down in this regard.
Industry insiders say that the operator is still trying to convince Nigerians that the pay-TV industry does not operate like the telecoms sector where customers pay only for the amount of airtime that they want to use.
It is therefore essential, according to industry stakeholders, that pay tv operators communicate clearly to Nigerians that pay-as-you-consume which is very often confused with “Pay-per-view” (PPV) is currently not obtainable in the pay-TV business.
PPV is usually used when a special event is being broadcast.
MultiChoice already provides PPV to its customers at no extra cost whenever there are special event broadcasts.
In the USA where the pay-per-view facility is being offered, people pay almost as much as $100 for a major boxing match. Such tariffs for PPV would not work in Nigeria because the market is not that mature yet and couldn’t handle the excessive charges.
Experts in the pay-TV sector say that Nigeria’s pay-TV operators need to communicate the high cost of purchasing compelling content; such as live coverage of popular sporting events because content owners ask for a lot of money for content broadcasting rights.
Additionally, purchase of broadcasting rights is often made in foreign currencies meaning that whenever any of these markets are negatively affected by foreign exchange volatility, it also affects the pay-TV business.
Credit: This article originated from www.guardian.ng