A fortnight ago, Multichioce Nigeria, operators of the popular DSTV, announced to its subscribers that from May 1, it will implement a new tariff regime for its premium bouquet. In this piece, YETUNDE ADETOKUNBO IYAPO asks whether the recent development infringes on consumer protection rights…
Background
Recently, Multi-choice Nigeria, operators of Digital Satellite Television (DSTV), a direct-to-home TV broadcaster announced to its subscribers, vide SMS, its proposition to hike subscription fee for its premium bouquet from N9, 420 to N9, 900 effective May 1st.
This is coming on the heels of a recent past barrage of consumer complaints against DSTV alleging wide-range abuse of subscribers’ rights, including poor quality of service such as incessant disruption of service without compensation, wrongful disconnection of service during subsisting subscriptions, decoder swap irregularities, and poor redress mechanism and customer service.
Needless to point out that consumer rights are fully backed by law as provided for in the Consumer Protection Council Act, under Chapter C25, Laws of the Federation of Nigeria 2004.
The act provides for the establishment of the Consumer Protection Council (CPC) and empowers it to uphold these rights for every Nigerian – no matter the social standing.
The functions of the Council are provided for under section 2 of the CPC Act, stipulating inter alia:
(a) provide speedy redress to consumers complaints through negotiations, mediation and conciliations;
(d) cause an offending company, firm, trade, association or individual to protect, compensate, provide relief and safeguards to injured consumers or communities from adverse effects of technologies that are inherently harmful, injurious, violent or highly hazardous;
(i) ensure that consumers’ interests receive due consideration at appropriate forum and to provide redress to obnoxious practices or the unscrupulous exploitation of consumers by companies, firms, trade association or individual;
(j) encourage the adoption of appropriate measures to ensure that products are safe for either intended or normally safe use.
In light of the foregoing, the question arises as to whether DSTV’s action in raising subscription fee for its premium bouquet offends any consumer right for which the court may be approached for redress or for which the CPC may be invited to administratively rein in the allegedly offending broadcaster.
Put simply, is the proposed tariff hike exploitative or excessive to warrant administrative or judicial intervention?
It is recalled that in 2015, a Federal High Court sitting in Lagos had restrained Multi Choice Nigeria Limited from implementing its new rates and increase in tariffs payable by its subscribers across board.
Now, has the order restraining DSTV from implementing any tariff hike lapsed or been vacated to warrant the latest development?
Is DSTV not in breach of the order of a competent court for which the law may be invoked to recoil against the company?
Recently too, the Senate Committee on Information elected to organize a public hearing with stakeholders like the Nigerian Broadcast Commission (NBC) and the Consumer Protection Council (CPC) to work out ways to ensure that Nigerian customers are protected from exploitation, and to guarantee that regulatory agencies begin to take their responsibilities as ‘Watchdogs’ more seriously.
Senate President Bukola Saraki made this disclosure after Senate discussed “A Motion on the Unwholesome Practices by Multichoice Nigeria (DSTV) – A Subsidiary Of South African-Based Multichoice Africa,” following complaints by Nigerians.
Despite these public expressions of misgivings and displeasure over the activities of Multichoice, the company has explained that the price increase was necessary for it to continue offering the best in local and international entertainment to its subscribers.
It further explained that the hike is marginal in consideration of the current economic recession being experienced in Nigeria that has witnessed runaway inflation and which also have seen many public and private institutions raising their prices and fees for consumer goods and services.
Impact of Recession
Managing Director of MultiChoice Nigeria, Mr. John Ugbe, has admitted that his organization, like most other multinational outfits, is facing very tough times. He maintained that a lot of the contents offered to its subscribers are sourced with dollars, but which has to be offered to its customers in naira continually.
This is against the backdrop that the naira has radically depreciated against other major international currencies, especially the dollar, by nearly 70 percent, from N200 in May, 2015 to N400 as at April 2017.
“We have been absorbing the costs on behalf of our subscribers,” he said.
He maintained that “the naira required to pay for the content we buy in dollars has suddenly become so insufficient and indeed scarce.
“Additionally, we can’t even get the dollars to remit. We are lucky that we have a big shareholder, who believes in our business.
“We haven’t been able to pay our bills for about a year now and have been supported by MultiChoice Africa.”
Other Arguments
Arguably, the service offered by Multi-Choice comes as one of the cheapest TV subscription packages in the country.
DSTV access could be purchased by subscribers for as low as N1, 500 monthly.
The raise in DSTV’s subscription rates has however not been sanguinely taken by many, perhaps because “a large number hardly appreciate that the business environment in which we (the broadcaster) operate have suddenly become harsh and forbidding,” Ugbe lamented.
To illustrate, the cost in pounds sterling for DSTV just for relaying EPL matches has spiked at a time the naira has lost its ground against other major trading currencies.
However, some have argued that DStv has yet to bid for new licensing rights and therefore cannot justify its new subscription levels on that score.
But for the downright communists, so to speak, they insist that government should put a lid on how much DStv may charge its Nigerian subscribers.
Others have however argued that government should rather promote competition in the domestic market for direct-to-home broadcast and allow the forces of demand and supply determine prices in a free and open market.
Cable TV Penetration In Nigeria
Television is a powerful medium for relaying information. Not only does it relay visual images and messages, it also conveys audio signals.
The fortunes of the Nigerian media continue to evolve immensely as it continues to be dictated by social, political and economic, technological and cultural influences.
For the most part, liberalization is the most important factor that continues to extend the frontiers of the Nigerian TV broadcast sector, whose history can be traced as far back as 1959.
And DSTV is one of the new powerful media used to relay “infotainment” to a vast audience across the African continent.
Owned by South Africa-based multinational Internet and media group, Naspers, DSTV has been operating in Nigeria since 1994; and has reportedly invested over $100 million into the industry till date.
The digital broadcaster provides various bouquets of programming to its customers, offering general entertainment, movies, lifestyle, culture, sport, documentaries, news and commerce, children, music, religion, among many other consumer channels to its subscribers, reportedly numbering 8 million, with majority domiciled in South Africa and Nigeria.
These two markets in particular are considered the most important for the satellite broadcaster.
Comparing Subscriber Patronage Among the Cable Networks?
Nigeria has only a handful of cable TV network providers most of which have limited local coverage, due chiefly, on their part, to paucity of infrastructure like copper or fibre optics.
Most direct-to-home TV services in Nigeria are over the air instead of cable; notwithstanding, they are still referred to as cable TV.
Apparently, DStv is thriving chiefly on account of their exclusive rights to European Premier League (EPL) matches. Besides, the picture quality is top notch, which other Cable TV networks have yet to replicate.
It is also apparent that the broadcaster is one of the most sought after Satellite Cable TV service providers in Nigeria, which leaves little or no space for other competitors like Daarsat, Multi TV, Startimes, MyTV and HiTV to thrive.
In Nigeria particularly, DSTV has emerged such a strong brand that it has somewhat become difficult for other Cable TV providers to measure up.
DStv has enjoyed near total monopoly in the Nigerian pay-TV market for about 25 years and even counting.
Conclusion
Putting all the material facts as stated above into account, the question remains, can DSTV still be faulted for taking the latest action?
END
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