NBC set for regulatory reforms amid presidential order on Pay-TV, advertising practices
Joy Agwunobi
The Nigerian broadcasting sector could soon be facing a transformative regulatory intervention, driven by mounting concerns over the business practices of the country’s dominant pay-TV operators, including allegations of uncompetitive pricing models, restricted content access, and monopolization of the advertising market.
These concerns have reached a fever pitch following remarks made by Charles Ebuebu, the director-general of the National Broadcasting Commission (NBC), during an informal discussion with journalists after attending an industry event in Lagos.
The urgency of the situation has become increasingly evident with complaints against major pay-TV platforms gaining momentum, and industry players like DAAR Communications—the parent company of Africa Independent Television (AIT)—publicly accusing these platforms of engaging in anti-competitive practices and restricting access to free-to-air content.
The unexpected and ill-timed price hike has drawn fierce criticism, with consumer advocacy groups and members of the public questioning the logic behind a price increase at a time when other goods and services are becoming more affordable due to the improving economic climate.
This controversial move has not gone unnoticed by Nigerian regulators, with the Federal Competition and Consumer Protection Commission (FCCPC) stepping in to challenge the seemingly excessive pricing strategy.
In a clear demonstration of the gravity of the situation, the Nigerian presidency has ordered the formation of special task forces within the relevant regulatory agencies to conduct a comprehensive review of the country’s pay-TV industry, in what appears to be a move towards decisive action on the part of the federal government.
One of the most controversial practices under scrutiny by the Nigerian government’s ad-hoc teams is the practice of pay-TV operators incorporating free-to-air (FTA) channels into their paid subscription models.
While these FTA channels were originally designed to be free and accessible to all Nigerians, pay-TV companies have exploited loopholes in the existing regulatory framework to bundle these channels into their premium packages.
Apart from pricing and content distribution concerns, the NBC’s review is expected to take a hard look at the advertising market, which is perceived to be dominated by a few pay-TV operators.
Industry analysts have argued that the advertising revenue stream is heavily skewed in favour of these powerful players, leaving smaller independent broadcasters in the lurch.
According to analysts, if the ongoing NBC review yields the anticipated results, a new policy mandating that FTA channels remain genuinely free of charge, irrespective of a viewer’s pay-TV subscription status, could emerge.
Such a policy intervention would represent a step towards addressing the anticompetitive practices that have plagued the Nigerian broadcasting industry.
This, they added, would foster an environment of fair competition and enable independent broadcasters to deliver their content to audiences unhindered by pay-TV operators attempting to exert undue control over distribution channels.
As the regulator seeks to level the playing field, it is rumoured that the NBC may be eyeing an expansion of the digital access fee to encompass all digital platforms that reap the benefits of the Nigerian market, including streaming services.
This move, if implemented, would ensure that all participants in the digital media market, irrespective of their physical location, are compelled to reinvest a percentage of their earnings into the local media industry, including the production of Nigerian content, the creation of job opportunities, and the development of digital media infrastructure.
As the popularity of digital streaming services like Netflix, Showmax, and Amazon Prime continues to soar in Nigeria, there are mounting concerns that these platforms, while undoubtedly enriching the media landscape, may be exploiting the Nigerian market without adequately reinvesting in local content creation and production.
This situation has caught the attention of the NBC, which could potentially scrutinize these digital streaming services more closely, requiring them to contribute to the growth of the domestic creative sector and ensure that Nigerian stories are told with the same degree of prominence as their international counterparts.
According to inside sources, the NBC’s review could entail developing a comprehensive regulatory framework aimed at engaging digital streaming platforms like Netflix, Showmax, and Amazon Prime in the Nigerian market. The proposed framework could potentially obligate these platforms to invest a portion of their Nigerian revenue in the development and production of locally-made content.
The prospect of wide-ranging regulatory changes has stirred up mixed reactions from various stakeholders in the Nigerian media sector.
For independent broadcasters and content creators, the proposed policies are a welcome step towards leveling the playing field, addressing long-standing issues such as monopolistic practices, exclusionary advertising revenue allocation, and the ‘paywalling’ of FTA channels
As one might expect, pay-TV providers are treading cautiously in response to these potential regulatory developments, expressing concerns that increased oversight could undermine their existing business models and dissuade future investment.
Leaders in the pay-TV industry have reportedly warned that a heavy-handed regulatory approach may disrupt their operations and potentially jeopardize the future of the sector as a whole.
Despite the absence of public statements from the presidency on this matter, the fact that the government has ordered a comprehensive review of the pay-TV and broadcast sectors signals a keen awareness of the situation and a desire to prevent further escalation.