Broadcasters reject Pay-Per-View model
Broadcast Stakeholders in Nigeria have rejected calls for a switch from the current monthly payment plans to Pay-Per-View (PPV) for Pay TV.
What’s their reason?
During a public hearing on “Pay-TV Hikes And Demand for Pay-Per-View subscription model”, which was organised by the Senate Adhoc Committee chaired by the Deputy Chief Whip of the Senate, Sabi Abdullahi, Multichoice and other stakeholders rejected the proposals, arguing that the Pay-per-view subscription model would be difficult to implement and that the model is not in the interest of consumers.
What’s the difficulty in implementation?
The broadcasters argued about the current difficult economic environment businesses are operating under, insisting that Pay TV operators, like other businesses, should have control over price. Chief Executive Officer of MultiChoice Nigeria, John Ugbe argued that the proposed PPV model will be of no benefit to both consumers and the industry players, and reiterated the need to allow the forces of demand and supply to influence price in the broadcast industry.
Conceptualization of terms
Ugbe explained that the proponents of the Pay-per-view subscription model appear to be mixing it up with the Pay-as-you-go model. “A pay-per-view PPV is Not the same, and is Very different from Pay-As-You-Go (PAYG), Ugbe said. “The PPV model allows a subscriber to watch some special one-off events, usually of the high-ticket variety in sports and entertainment, by paying for such events in addition to having an active subscription”, he said, adding that on the other hand, “Pay-As-You-Go, accommodates a metered mode of service, where consumers are billed only for the service they consume and not for a fixed period”.