FCCPC and NBC Different Stance on Pay-Per-View for GOtv, DStv

The Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) have submitted conflicting positions to the Federal High Court in Abuja regarding Pay-Per-View subscription requests for Multichoice Nigeria’s GOtv and DStv services.

In response to the complaint, it set up a committee to investigate the matter concerning requests for Pay-Per-View, among others.

Different Stance On Pay-Per-View for Pay-TV Operators

The NBC said it is bound by the judgement of the court and cannot presently attend to any complaint against Multichoice for now. Multichoice announced new price adjustments for DStv and GOtv packages on Wednesday, April 24, 2024.

In the suit, the claimant also seeks an order compelling Multichoice to roll over unused subscriptions upon expiration for Idam and other Nigerian customers, allowing them to maximize their investment in its products.

According to Nairametrics, in this latest suit, Idam alleges that GOtv subscriptions, for instance, are not metered and do not account for viewing time; instead, customers are disconnected from service upon the expiration of their subscription, regardless of usage.

Idam states that apart from the alleged arbitrary price hikes that took effect in May 2024, Multichoice does not allow customers to roll over unused subscriptions, preventing them from fully utilizing their purchased services, citing this development as oppressive.

“PAYG Model Not Commercially Feasible in The Broadcast Industry”

When asked about the viability of the Pay-As-You-Go (PAYG) model during meetings with NBC, Multichoice, and other pay-TV operators, stated that it is not technically or commercially viable in satellite broadcasting due to current technological limitations. Multichoice refutes the allegations of customer oppression and calls the court’s attention to these earlier clarifications.

“PAYG has been investigated several times by the National Assembly. In the 8th Assembly, the House Committee on Information, National Orientation, Ethics, and Values, led by Hon. Olusegun Odebunmi, found that allegations of exorbitant Pay-TV subscription charges against Multichoice and the GOtv license holder were unsubstantiated and that the PAYG model is not technically or commercially feasible in the broadcast industry,” Multichoice said.

FCCPC Stance

FCCPC officer Mr. Adedeji Bankole asserted that most allegations related to the Pay-Per-View request are incorrect. He clarified that while the FCCPC promotes competition and consumer protection, it does not regulate how businesses operate.

“The FCCPC cannot direct or compel Multichoice to regulate or meter their subscriptions,” Bankole stated. He mentioned that the FCCPC has previously investigated Multichoice and noted that other consumers have taken the company to court over tariff increases.

Also Read: South Africa May Challenge MultiChoice’s Sports Broadcast Dominance

NBC Stance

Odoeme N.V., speaking on behalf of NBC, informed the court that it had received a complaint from the plaintiff dated September 20, 2023, which was directed towards the Multichoice TV CEO.

It formed a committee to look into the subject of demands for Pay-Per-View, among other things, in response to the complaint.

He claimed that Multichoice notified NBC of their plan to raise the membership price in letters dated October 30, 2023, and April 23, 2024.

He went on to say that NBC asked and instructed Multichoice to halt the increase in its letters dated November 7, 2023, and April 30, 2024, and that the pay-TV provider was invited to a meeting to continue the conversation.

However, Multichoice declined the invitation. In response to the plaintiff’s complaint, NBC contacted Multichoice on September 28, 2023, but neither party provided a response or an explanation, the speaker said.

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