In recent years, Nigerian subscribers have persistently called for MultiChoice, the parent company of DStv and GOtv, to adopt a Pay-Per-View (PPV) model. Despite these demands, MultiChoice maintains a subscription-based system. This article delves into the reasons behind MultiChoice’s stance, exploring the technical, economic, and operational factors influencing their decision.
Understanding Pay-Per-View (PPV) and Subscription Models
The PPV model allows consumers to pay for individual events or specific content they wish to watch, offering flexibility and potentially reducing costs for viewers who consume less content. In contrast, the subscription model requires customers to pay a fixed fee for access to a bundle of channels or content over a specified period, regardless of individual viewing habits.
MultiChoice’s Position on Implementing PPV in Nigeria
MultiChoice has consistently argued that implementing a PPV model for its DStv and GOtv services in Nigeria is not feasible. John Ugbe, CEO of MultiChoice Nigeria, stated that the PPV model is expensive and would be unsustainable for both the company and consumers. He emphasized that the costs associated with PPV could make it prohibitively expensive for the average Nigerian viewer.
Appearing before an ad hoc committee of the senate in Abuja in September 2022, John Ugbe, chief executive officer (CEO) of MultiChoice Nigeria, said the cost on the consumers makes the model “unsustainable.”
The committee was set up after the upper legislative chamber resolved to probe the hike in subscription prices in DStv and GOtv prices and why MultiChoice could not implement PPV.
“PPV involves retailing a single television programme. This involves a broadcaster transmitting a single event at the same time to its subscribers who have paid to watch the event,” Ugbe said.
“From industry analysis PPV would be very expensive for DTH subscribers and therefore unsustainable.
“A subscriber who wants to watch an event on PPV is required to pay an additional fee besides his subscription, to watch the programme on PPV.”
Ugbe listed inflation, tax and cost of content as some of the reasons they hiked tariffs.
“Inflation rate has steadily gone up which has adversely affected the economic environment as the cost of doing business has gone up exponentially thus undermining our ability to maintain the same subscription price every year,” the MultiChoice CEO said.
“Over the past five years, MultiChoice has spent an excess of $238 million on direct and indirect taxes, and $15.1 million on licensing fees.
“The number of channels on the DStv service has increased substantially from the launch of the service to the current 171 channels included on the Premium bouquet. Thus, the value to subscribers in terms of variety and choice of channels has increased tremendously.”
Economic Implications for Consumers
While PPV offers the allure of paying only for content viewed, the cumulative costs for consumers could be higher, especially for those who watch multiple programs or channels. MultiChoice suggests that a subscription model provides better value for money, offering a wide range of content for a fixed fee. This approach ensures that consumers have access to diverse programming without the need to pay for each piece of content individually.
Regulatory and Legal Perspectives
The debate over PPV has also entered the legal arena. In 2024, a legal case sought to compel MultiChoice to implement a PPV system and roll over unused subscriptions. MultiChoice argued against this, stating that the PPV model is not technically or commercially feasible in the broadcast industry. The Federal Competition and Consumer Protection Commission (FCCPC) supported this stance, indicating that it does not have the authority to mandate how businesses structure their subscription models.
Recent Developments and Subscriber Reactions
In February 2025, MultiChoice announced a 20% increase in subscription fees for its DStv Premium package, raising the cost from ₦37,000 to ₦44,500. This hike has led to subscriber dissatisfaction and renewed calls for a more flexible payment system, such as PPV. However, MultiChoice attributes the price increase to rising operational costs and continues to uphold the subscription-based model as the most viable option.
While the concept of Pay-Per-View appeals to consumers seeking flexibility and control over their viewing expenses, MultiChoice’s decision to maintain a subscription-based model in Nigeria is influenced by technical, economic, and operational considerations. The challenges associated with implementing PPV, coupled with the potential for increased costs to consumers, suggest that the current subscription model remains the most practical approach for delivering diverse content to a broad audience.
