Multichoice Disclose Reason For Placing DSTV Financial Burden On Subscribers

The Chief Executive Officer of MultiChoice Nigeria, John Ugbe, said DSTV, the pay-TV service of Multichoice, can't offer subscribers a pay-as-you-go payment plan.

Ugbe said because the telecommunications industry can offer that doesn't mean it is possible in the broadcast industry.

He made this known while speaking to the ad hoc committee of the house of representatives on Monday, October 13, 2020. The House of Representatives had set up a panel to look into the payment model of cable tv companies in Nigeria.

There have been protests and criticism against DSTV for increasing its pay-tv package price amidst the COVID-19 pandemic. Despite this protest, Multichoice said it had been left with no choice but to increase its prices due to some factors.

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Why DSTV Increase Price, Place Financial Burden On Subscribers

According to Ugbe, the introduction of the finance bill by President Muhammadu Buhari-led administration prompted DSTV to hike its prices. The Finance Bill led to the increment of Value Added Tax (VAT) for individuals and companies, while some other provisions also led to some fee increment.

He said cost of living in Nigeria forced Multichoice to place the financial burden of Finance Bill on its subscribers. One of the factors he mentioned include the increase in fuel price, “When we did the price adjustment, it was in response to the new finance bill and if you look at it you could see that we were even late in making those changes,” Ugbe said.

Why Multichoice Won't Offer Subscribers Pay-As-You-Go 

Ugbe said there's a misconception about telecommunications operating capacity and that of the broadcast industry. He said the technology used for Pay-as-you-go payment option is not available to the broadcast industry.

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According to him, subscription payment for pay-TV is fixed globally, and DSTV doesn't have the technology to offer Pay-as-you-go, "On the pay-as-you-go model, there is a misconception of the telecommunications industry and the TV industry, it is not a concept that is available in the broadcast industry." Ugbe said.

The Multichoice head said, “If you look at some of the international organisations offering some of those services online, it is a two-way communication. You will see that their billing method is still fixed.

“Telecommunications companies can offer you an option where you can stop and restart but unfortunately that is not the model in the broadcast industry. You must also note that you have to buy these services and repackage and sell – you cannot be selling different from what you buy.

"We don’t have the technology to support that service where if you switch off the TV it stops or restart the service at 12 and stop it at 1pm. That technology is not available to us.” Ugbe told the ad hoc committee of the house of representatives.