The MultiChoice (DStv, GOtv) BIGGEST Survival Game in Nigeria

The MultiChoice (DStv, GOtv) BIGGEST Survival Game in Nigeria

As predicted when I wrote that MultiChoice’s DSTV and GoTv could simply abandon European football rights in Nigeria, the satellite TV company is moving in that direction: “DSTV’s parent company is considering not to renew its premiership and UEFA Champions League broadcast rights when they expire”. The deteriorated naira value and the fact that DSTV cannot increase rates even as its raw material price is increasing are reasons noted. If MultiChoice follows that path, and does not renew, Nigerians may now depend on NTA, the national TV station, and the government for this luxury product. 

MultiChoice seems to have been caught up in a difficult situation, the DSTV’s parent company is considering not to renew its premiership and UEFA Champions League broadcast rights when they expire.

ThisDay reported on Thursday that a source from the satellite TV company revealed how financial losses are forcing it to make the difficult decision not to renew for the 2021/22 football season.

The development was attributed to Nigerian business environment that has yielded low patronage, which does not make up for the cost of broadcast rights which the company said is exorbitant. Moreover, the free fall of naira against the dollar is said to have compounded the situation.

ThisDay quoted the source as saying: “It is becoming impossible to maintain many of these sports rights, especially the EPL, for Nigeria. The recent fall of the naira against the dollar has equally not helped matters.

“Rights for the African continent used to be bought singly, but this changed in 2007 when a competitor, backed by the federal government, forced the EPL to excise Nigeria from the rest of Africa. Now, the cost of the rights for Nigeria has risen to almost the same with the rest of the continent put together, while the number of subscribers in Nigeria is only about one quarter of the rest of the continent.”

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)

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With (1) rising cost of EPL license, (2) deteriorating value of the naira, (3) government interference in pricing and (4) a detached-from-reality expectation by customers for the company to offer PAYG, it is quite probable that the numbers no longer stack up and the company wants to quit. It may well be that the only option of watching EPL in Nigeria is via streaming on pirate websites and over expensive and sub-optimal connections. Good luck to all the viewers.

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36 thoughts on “The MultiChoice (DStv, GOtv) BIGGEST Survival Game in Nigeria

  1. Almost everything in Nigeria works in opposite direction, so while governments are traditionally there to protect the poor and vulnerable groups, Nigerian government is more concerned with making sure that the rich are very comfortable. How many people subscribe to DSTv and its constituents in Nigeria? Less than six million, such a luxury! Yet, it’s the sort of things our government is even concerned about.

    Well, since we live in strange land, the same way the government borrowed five hundred million dollars to make NTA digital, amidst depleted revenue, it can as well bankroll NTA to purchase the sports rights! You cannot beat Nigeria when it comes to doing things that are absurd.

    The same way DISCOs cannot increase energy bill, even when naira has tanked, to serve Nigerians, you must be a magician; no wonder nothing works.

    We want all the best things life can offer, yet no one sits down to calculate the cost, just keep the price the same, irrespective of input costs.

    Our education is faulty, it failed to liberate minds here.

    Reply
    1. I guess you are one of the rich Nigerians enjoying and subscribing to the dstv repeated and outdated contents, it’s not wrong if the government tries to regulate their activity, do you remember how many indigenous pay tv that has come and died bcoss of the so called company by acquiring exclusive right to contents which we pay hard to watch, do you remember some year back the amount of dollars they repatriated from Nigeria to their country of birth some years back?, Now talk of discos how many dollars has been spent in Nigeria on electricity since the days of PDP in Nigeria to date, common 18 hrs light we don’t have, but you want price to always increase when we don’t have value for the money hard earned and paid to these discos for services we hardly enjoy, guy I think you have a rethink and let’s support what the government has done in this regards.

      Reply
    2. Not exactly the price fuel which is suppose to be our national cale never remain the same, it was suppose to be less than a hundred naira per litre but unfortunately its advancing to 200 naira per litre… If only fuel price can be stable … only then can Nigeria be stable.

      Reply
      1. What’s the government concern with the private sector business? Everything in Nigeria is about sentiments, let’s those who can afford DStv to subscribe to their business, Nigeria is suppose to be a free market place free from government interference. The Nigerian government is free to acquire EPL rights and give to it’s citizens free or at giveaway prices but, they should leave DStv alone to pursue it’s business, it has it’s share holders to give account to at the end of the day. This government should focus it’s energy on serious issues like light were they are asking people to pay more for darkness.

        Reply
        1. Yes since we don’t have stable electricity dstv should not compound our problems with continuous tariff increase, Nigeria is a place where people who are thriving in looted funds can call those who are hardworking poor, local content should prevail not companies that will stack away our hard earned money in return for outdated films and movies. Dstv should go if they cannot comply to government regulations.

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  2. If dstv didnt renew it who will be at a loss are we watching it for free the money they have made so far did they build schools here for people to attend for free or roads its biz

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  3. At the time DSTV was making huge profit in Nigeria did they complain?
    That monopoly they have been enjoying has to stop. We can’t continue this way, is this how they pay in South Africa?
    Let them go!

    Reply
    1. Convert d money dey pay in South Africa to Nigeria money u will know dey pay more than Wat u pay. Wat we suppose to fight is our govt if economy is good, social amenities re OK, electricity, is OK n our naira is OK DSTB won’t increase their money but naira is as useless as any thing now, Ghana money nearby is better than naira. Pls my people it’s d corrupt govt we suppose to fight not this people, if Dey know Dey can pay let govt pay n let’s c,its not easy wen u hear how much Dey pay for it, and for someone dat say did dey build sch Wat u dnt know Dnt say, google abt Wat has Dstv did to nigeria,commin uae build substation in Lagos to compensate nija for the patronage pls bf we talk google bf u talk publicly pls.

      Reply
      1. our life does not depend on dstv, We are talking as if we don’t know how dstv is holding Nigerians to ransom with their monopoly and outdated content, some of us do not even have a subscription but relying on viewing centres yet they put a defense for dstv against the government, if the Market is no longer favourable for them they should leave.

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  4. Who is this deemwit? If you got nothing to say, why not close the tear you call mouth? What do you know about south africa. Go to SA and you will be suprisedthat you wont see any DSTV around much especially in Cape Town! DSTV is in Nigeria to milk us and nothing more. Let them try somewhere else too.

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  5. It’s important to know that the most consistent thing in life is Change and don’t forget Business is a Game of Risk ..I expect DStv on their path to know. Secondly I have no doubt that the EPL would have no choice than to bring down this rates..Why? The Pandemic hasn’t allowed supporters into the stadiums and lists of revenues are lost by clubs leaving sponsorship and tv rights has the only source of income left..so would u rather loss a strong African market where the internet facilities to stream live football matches from numerous site on the net is poor?

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  6. It is so sad the way DSTV is exploiting Nigerians, l paid for a particular package on DSTV four days before the expiration of what I paid for,they (DSTV) started removing some of the channels for the package I paid for. Every other Cable TV should be allowed to show football matches. By so doing there will be a level playing field for all not this Monopoly.

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  7. Is DSTV doing Nigerians a favour with their business? They can’t sustain this monopoly model in a sane country. DSTV is close to fraud!
    Good riddance to rip-off rubbish.

    Reply
  8. Another South African company, MTN claimed it is not possible to implement bill by the seconds, akin to pay per view. They made threats of network crash, dollars needed for equipment upgrade and good excuses. Recall that their exclusivity expired. GLO launched their service with billing by second. MTN almost immediately implemented the same billing model, to remain relevant. DSTV are free to leave Nigerian if the cannot follow Nigeria’s business model

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  9. Dstv or what ever you call your self, need l remind you that January to December…..your programs are the same……..please humbly get out of Nigeria……you may take MTN with you.

    Reply
    1. Repeat programmes is what we get, day in day out and year by year.
      Dont they change or have they lost their human consciences that they think Nigeria is a dumping ground for old and repeated movies and pay as mugu people? They should leave if they want to cos we dont benefit much but pay more.
      I keep asking them whenever I called or if they call me that can’t the common man if he paid 2k5 watch at least 1 football channel or even the the wrestlemania that is a repeat programme? They’re saying dark things that doesn’t make sense. Thanks to the National Assembly for giving them the condition of PAYG. Because that’s one of the ways we can enjoy what we pay for, asbif you dont on you dont pay for.

      Reply
    2. Yes since we don’t have stable electricity dstv should not compound our problems with continuous tariff increase, Nigeria is a place where people who are thriving in looted funds can call those who are hardworking poor, local content should prevail not companies that will stack away our hard earned money in return for outdated films and movies. Dstv should go if they cannot comply to government regulations.

      Reply
  10. Sir Benjamin Ogbaini Esq. · Edit

    This write-up is a cheap blackmail employed by DSTV to arm-twist Nigeria and Nigerians to concede to another needless subscription hike!

    Ordinarily, one ought to be distressed by the news as conveyed by the writer, however, the reality of unfair subscription terms and the dearth of local content to the promotion of foreign content, quickly obliterates any distress one would have felt!

    All over the world, pay-TV subscription is “pay as you go”, except in Nigeria where DSTV insists on an outdated and fraudulent monthly subscription arrangement. This was also the same way MTN arrogantly insisted in 2002, or thereabout, that per second billing was impossible, until Glo came up with per second billing and showed MTN’s claim to be the fraud it was.

    I feel certain that we’ll lose nothing if DSTV decides to terminate its services in Nigeria. On the contrary, the field will be thrown wide open to other service providers who DSTV has, over the years, stiffled and frustrated out of the cable TV market.

    Its no secret that Nigeria is Dstv’s largest market in Africa, the goose that lays the golden eggs, if you like. Consequently, its not difficult for me to dismiss any talks of Dstv terminating its services in Nigeria. Such talk is balderdash: I dare them!

    Reply
    1. Sir Benjamin, you can make your point. Do not make it personal. I have shared my perspectives. You can share yours. DSTV is a luxury product and should not matter to Nigeria. So, that we are discussing it is even surprising. I have written based on market principles and you have not challenged any of the points. If Naira has lost 30% of its value and ELP price has gone up, common sense demands a product will increase in price. I do not live in Nigeria to use DSTV. So, I may not know if DStv offers good service or not. But make your points and do not do personal attacks. It scares people away from commenting.

      Reply
  11. Bosun Ogunfowora · Edit

    .aa much as the argument of the writer is valid. I still think there should be some sort of government intervention particularly when business that have a monopoly are involved. Am in a part of Nigeria where dstv usage is not a luxury but the only avenue for keeping abreast with the world apart from the internet. So I strongly feel that there should be some other options of some sort.

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  12. Pardon me writer , you seem to sound as if you have picked a side , a side of the enemy. The south African company DSTV, Your article sounds as if you express your condolences because of their supposed grief. But may I remind you that S.A companies operational history in Nigeria has shown that they don’t play fair. Think back to when mobile communication started by MTN , the sim card was monopolized, what of the payment system only post paid was allowed, talk of Data it was so high. For years they refused to upgrade fast. The world was in 3G , we were using hedge or 2G. Because of that it took a long time for Android phones to break into our market. If not for glo entry into the market we would have still been in darkness, until when Almighty MTN decides to give us medicated glasses. All these excuses and threats By DSTV , won’t kill us. Instead it will make us stronger. We are a Capitalist state, Monopoly is not our way.

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  13. Pls, if dstv wants to go, they should yesterday, not even tomorrow. Who repeated content help. I subscribed for dstv premium, only watched 4 times in the evening because of work. On the 5th day, I taveled to see my people and stayed 3 weeks and sone days. When i returned, that evening, I put on tv, put on the dstv, only to discover that I needed to pay another 15k plus for what I’m supposed to use for 30 days.
    After some weeks of my not subscribing, the so called custom.er care starting calling me, asking why I’ve not subscribed, and what I’ve been watching. See, my fellow Nigerians, pls let’s allow dstv go, and you’ll see that they’ll be uncountable competitions of cable network that would even be better than them.
    Someone somewhere has been pressing some buttons here in this country for dstv, that’s why there’s no competition.
    The level of corruption in Nigeria is so enormous. Dstv should go, we’ll not loose nothing, instead will gain.
    One way closes, one thousand ways open.
    Ofcourse, I know there won’t go, because it’s an empty threat. When they remember what they stand to loose, they’ll have a rethink. But, I’ll appreciate if they can leave us for now… Nonsense!!

    Reply
    1. Nigeria is the biggest market for Dstv ! They won’t go anywhere ! It’s only an empty threat , thinking that Nigerians will rise up in their defense ! Wrong thought on their part. Nigerians are tired of their monopoly and bad repeated programming

      Reply
  14. DSTV just pack your bags and leave Nigeria. Leave us alone. We no do again. And what’s with the threats? Enough is enough! If the Government cannot ask you to leave for whatever reason, we the citizens of Nigeria want you OUT. And please remember not to come back. Enough of your monopoly. Go dominate another economy somewhere else if you can. I blame our politicians who are too corrupt to see the harm being done to your competitors here. Leave, so they CAN BREATHE! Just go so we can all BREATHE. Wetin?

    Reply
  15. I would love the pay as you view package. That would seem fair especially with our epileptic power supply. Whether with EPL broadcast or not. Competition is healthy for our business environment. If Monopoly is what they want, then they should go. Please does anyone know a cable tv company in Nigeria currently offer pay as you view subscription?

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  16. But Startime Nigeria is doing pay per view, you can to pay for daily weekly and monthly view. Do what it is difficult for DSTV to do the same . You can view all Startime full channel a day and for about Startime for the rest of the year. Like me. I do Startime subscription only on weekends that is about N300 or for Saturday and Sunday to view all over 70 Startime channels because that is the only time am available at home to watch TV

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  17. Guys, honestly you have all spoken well. And I am tired of the monopoly enjoyed by DStv for so long. Now is the time to decentralise it. Enough is enough. I don’t care what their reasons are. If I can have a prepaid meter in Nigeria at home. I see no reason why I can’t have PAYG on DSTV,with repeated outdated movies or content. My wife always checks the date of most of the movies,old contents for sure. Apart from the NEWS channels, EPL or other football channels that shows current stuff.i mean nothing else is new when it comes to content. When Glo came with per second billing,as far as MTN didn’t leave because of the large market share they are enjoying,I dare DStv they will not leave. But if they eventually do I will gladly wish them goodbye. Come to think of it, if they eventually go by the pay per view or as you Go, they should expect more subscribers. And can still meet up with their profits with the more subscribers. Remember you fizzle out other TV’s like Tstv (I expected them so much)etc. DSTV go back to your drawing board, have a rethink or re-strategise ,Reason with US. Cheers!

    Reply
  18. The dstv has not come out with a decision on Payment per view or Pay as you go. In face of the allegation of cheating Nigerians just similar to slamming of Nigerians with estimated electricity bill by the power providers, what we the consumers want is payment for what we watch (PPV) , PERIOD. In the case of power we have fought for provision of Prepaid meters AND won while we shall win the current fight on PPV too, if even Dstv will quit the stage for those ready to provide what we need.

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  19. I discarded their services since ” over 4 years now! Prior to then I was on premium and never got value for what I used to pay! Now am online real-time in my home and have never regretted leaving the bad service of Dstv.

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  20. DSTV should get the fuck out of this country…enough of the exploitation called business. Considering the years of exploitation and monopoly yet with repeatitive programs

    Reply

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