PayTV players like DSTV and GOtv are now banned from having exclusive sporting content in Nigeria. Upon paying pounds, euro and dollars, the companies are required to share content with local players like NTA. More so, if they pay for La Liga Spanish football league, they are required to spend at least 30% of the amount on the Nigerian league.
People, Nigeria is now run like an activist organization. I am not a fan of DStv, GOTv or whatever, but we must be bold to tell our government that it is not helping power, education, logistics, banking, retail, etc sectors on foreign investments when they make policies designed to cripple one company. There is no inherent fairness in this code. It has been structured to destroy DStv.
PayTV is a luxury product in Nigeria. Our government should invest efforts to fight for clean water, electricity, etc and not waste our trust banks on Zee World, Messi and Ronaldo.
This is this business as I have noted in the past. I expect DStv to begin disengagement from Nigeria as there is simply no protocol for it to remain. As it returns back to South Africa, exiting Shoprite may be a flight mate. And as that happens, NTA will call Europe to wire Naira and Kobo to watch Messi and Ronaldo on its own terms.
Once NTA makes it tender to Europeans, it will notice one thing: the cost of this product has been rising: “The cost of English Premier League broadcast rights has risen almost 8% to 9.2 billion pounds ($12 billion) for the next three seasons”. If you make it a direct correlation, it simply means that DStv should be increasing costs by 8% over the next few years. But in Nigeria, even though naira is losing value to the euro or pounds sterling, DStv is expected to freeze its rates. That does not make sense!
Technically, unless MutiChoice has changed its business charter to non-profit, it has no business in Nigeria. When you add the new muted plan to force it to license its expensive London luxury product to local players, at Umuahia rate, you will understand the outcome. Yes, MultiChoice will abandon Nigeria and will not renew its EPL rights unless Nigeria allows it to increase rates, to compensate for increasing cost of the raw material and naira deterioration.
Hello Kano Pillars & Enyimba! Yes, local sports teams are still there.
The statistic depicts the revenue from the Premier League television broadcasting rights from 1992 to 2019. From 2013 to 2016 the Premier League generated over 3 billion pounds in revenue from its marketing of TV broadcasting rights per year. (source: statista)
No one is saying you do not need to protect Nigeria. But our model of changing the rules during the game needs to stop. When govt sold electricity properties with a good rate, many came and invested. After they shipped their monies into Lagos, we changed the rates. Now, power is not working for years because no one trusts Nigeria to invest. China is consistent on this. Brazil is consistent on this.
Our problem is that Nigeria is not consistent and that is the problem. If you want to fight, as a dev. nation, who watches football is not a good place to waste our reputation as a nation. This is a luxury product and should be left to those who can afford. We have more urgent needs in Nigeria we need help.
Abiola. SB. I do not write to please anyone. This is my personal opinion. To be reading me, you have to deal with it. It is irrelevant what Ghanaians think of their govt.
Good points. You do not develop your products. Someone buys a working product for $100. And you make a law for him to sell it at below market price. Yet, people are hailing government because we are Nigerians. As I noted in the piece, price increase of DStv has tracked or even lagged EPL tv rights increment. This means, the cost of raw materials has increased because this is an imported product, and customers need to pay more. NTA wants to pay $10 for a $100 product.
Understand that this product is auctioned which means anyone can challenge DSTV parent and win the rights. But NO, you wait for it to bring it home and then you use laws to cripple it.
Click to join Tekedia Capital and build Next Africa with min of $10,000 co-investment in startups.