Regulator mulls fair play plans for Nigerian Pay-TV market

The National Broadcasting Commission (NBC) is conducting a baseline study of the Nigerian Pay-TV market under a plan by the broadcast regulator to check practices that undermine fair competition among players. Technology Times learnt that ahead of steps to be taken by the regulator, NBC commissioned an international team of TV market consultants to carry out a broad economic baseline assessment of the industry. The move comes amid a recent agreement signed NBC with Inview Technologies Limited to provide a National Common Set-Top-Box system for Nigeria. Meanwhile, under plans to address issues of competition in the Nigerian 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. [blockquote right="pull-right"]" Under plans to address issues of competition in the Nigerian 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. "[/blockquote] [caption id="attachment_27175" align="alignright" width="1631"] President-elect, General Muhammadu Buhari (left) and President Goodluck Jonathan[/caption] People conversant with the situation 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 new 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. The broadcast regulator will also want to know the impact of the advertising market on broadcast revenue and operations with particular attention to revenue returns for broadcast stations. The reason for this is to examine whether any current market conduct adversely affects revenue for broadcasting stations in Nigeria because of the economic survival of the broadcasting market depends 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 over alleged indiscriminate increase in their subscription 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 key 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 statement. According to NBC, 13 companies bided for a digital TV System Comprising Set Top Box (STB) software & 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 Technologies Limited got the job through a detailed, meticulous and transparent selection process”, says NBC while promising to ensure a smooth switchover to Digital terrestrial television broadcasting in Nigeria.

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