Pay-TV business is technical, a big project and requires deep pocket. But investors with such deep purse will plunge into it in markets such as Nigeria with large population and growing middle class.

About 20 years ago, the South African MultiChoice, operators of DStv with its Nigerian local partner’s vision, entered the Nigerian market. Since then and with its offering in entertainment and sports, it has continued to keep Nigeria and Africa connected in real time with the world through the DStv platform. Its various contents which appeal to diverse audience have boosted the Nigerian subscription level to the platform.

The Nigerian market is huge, accounting for a large size of MultiChoice operation in Africa. The Pay TV company has also launched GoTV that offers bouquet for N1,000. According to a survey by Digital TV Research, pay revenues from sub-Saharan Africa this year will come in at US$3.6 billion.

The research found out that “Middle East and Africa will have a total of 89.3 million digital TV households by end-2014, up by 12.4 million during the year and up by 32.4 million since 2010. Free-to-air satellite TV will become the most popular platform in 2014; overtaking the declining analog terrestrial total”.

The research further said that from the 32.4 million new digital TV homes, Nigeria alone will provide 7.2 million, Turkey 2.9 million, South Africa 2.5 million and Kenya 2.2 million.

In 2005, an indigenous firm, Entertainment Highway Limited (HITV), perhaps through research which revealed the upbeat Nigerian market in pay-TV opened office for pay-TV service.

HITV is a wireless digital terrestrial platform that started with about 24 channels including CNN, Al Jazeera, BBC World, LBC International, God Africa, MTV Base, Fox Sports and Nicke-lodeon. It also created channels such as Hi-Sports, Hi-Ovation, Hi-Nolly, Nigezie, Hi-KIDS, Hi-Mix and Hi-Biz.

While the platform was offering movies and news channels, the eyes of the managers of HiTV were on the EPL which they believed was a cash cow. Their strategy was to provide subscribers with lower rates and to obtain EPL to drive that process. Consumers were of the opinion that sports rights were solid rock for successful pay-TV business.

Analysts believed that HiTV entered the market, whether right or wrong, with an intention to compete and rival competition. This could be a good marketing strategy but it did not sustain this drive. In 2007, it acquired EPL right at $28m (N4.5bn) for three seasons spanning 2007 to 2010.

In 2010, it bided for the right at about $100m and paid initial N40m non-refundable. The managers were given a certain period to complete the money which they could not and the right was given to the second bidder MultiChoice. The loss created an operational problem for HiTV.

Other pay-TV networks such as StarTimes and DaarSat are operating quietly without such a rat race struggle or showing desperation to compete against the dominant Dstv.

The NTA Star TV Network offers StarTimes, a direct-to-home in Nigeria. Star TV Network is collaboration between NTA and its Chinese partners, StarTimes of China. The novelty of the NTA StarTimes service is that unlike most other pay TV services in Nigeria, subscribing to the NTA Star TV Network’s StarTimes service requires no satellite dish, there is also no installation cost, and of course you do not have to worry about the weather.

Startimes comes with over 30 to 70 channels depending on the package you choose. The channels are carefully selected to target different user needs news, documentaries, live sports, entertainment, Kids, Education.

Last week, an indigenous new pay-TV, CONSAT, seeing the potential in the market, entered the market with its eyes on English Premier League (EPL) while offering deep entertainment and news contents.

Mayokun Okunola, the CEO of Continental Satellite Limited, while unveiling the CONSAT in Lagos, said CONSAT is coming into the country to herald true pay-TV experience as countries around the world migrate from analogue to digital broadcasting next year.

The organisation said it would like to bid for EPL outrightly, the favourite content among millions of sports fans as sports is important but this depends on financial strength. “But what we don’t want to do is be in situation where we are paying hundreds of millions of dollars. We need to have conversation with other broadcasters and engage the regulator . We can come to the table and agree on models. We would like to bid but it has to be at a price we can afford.

“Continental Satellite Limited, established in 2012, is coming with over 50 channels with a view to reach over 100 channels in 2015. It also offers over 10 quality TV channels to the viewers’ even if their subscription lapses.

Mayokun had worked at DStv and he understands the business very well believes that “Content is key to the industry. Continental Satellite Limited made CONSAT subscription price N4,000, while decoder and dish is N14,999.

CONSAT whose CEO is former staff of DStv is ready to compete in the market as it begins with over 50 channels with intention to increase to 70. It is offering 10 free channels and it is already eyeing EPL.

The organization said it would like to bid for EPL out rightly, the favourite content among millions of sports fans as sports is important but this depends on financial strength. “But what we don’t want to do is be in situation where we are paying hundreds of millions of dollars. We need to have conversation with other broadcasters and engage the regulator. We can come to the table and agree on models. We would like to bid but it has to be at a price we can afford”, the CEO said.

On the entry of CONSAT, Caroline Oghuma, PR manager for DStv said ‘at MultiChoice Nigeria we welcome competition. Fortunately, the government has provided an environment that encourages the co-existence of service provider. Ultimately, it’s to the benefit of the consumer as they now would have options”.

DStv has invested significantly in its operation and it has become a colossus in the Pay TV industry as the name is synonymous with Pay TV. CONSAT is coming with experienced management team and deep pocket too. Consumers will watch to see how the competition plays out but ultimately as Caroline said it will be to the advantage of the consumers.
Source:www.bussinessdayonline.com

Hmmm

It can but it will be very difficult. DSTV can't just be pushed aside.

my question is "getting epl, la liga rights is it for only one cable company or can two different companies get d right at the same time in the same country??

shebi Tinubu get plenty money he suppose rival them na

teekrackz:
my question is "getting epl, la liga rights is it for only one cable company or can two different companies get d right at the same time in the same country??

can some one answer this please i also want to know

and d article long ooo, u no fit summarize