Mr John Ugbe, the Managing Director, Multichoice, has said it is impossible or unfeasible to implement the Pay-As-You-Go model for pay television in Nigeria.
He stated this on Monday while speaking to members of a House of Representatives Ad hoc Committee on Pay-As-You-Go.
Explaining further, the Multichoice CEO stated that Pay-Per-View (PPV) is different from the PAYG model used in the telecommunications sector.
He said PAYG in telecommunications is a metered service that ensures consumers are billed only for the service they consume and not for a fixed period.
Ugbe argued that Pay-As-You-Go is possible in telecommunication sector because it relies on a two-way communication system, which enables operators to determine when a consumer is connected, the service consumed and duration of connection.
He maintained satellite broadcasters, unlike telecommunications firms, cannot offer pay television services because satellite broadcasting is a one-way system and does not enable broadcasters to determine when a subscriber is connected and/or watching or what channel is being viewed.
“It is only in instances where there is two-way communication between the device at the subscriber’s home and the headend of the pay-tv service provider, which will enable the provider to determine when a subscriber is connected or not, that a billing system could be designed to take into cognizance the subscriber’s behaviour,” he said.
On Pay-Per-View, the Multichoice boss said it entails a broadcaster transmitting a single event at the same time to its subscribers who have paid to watch the event.
He said “A subscriber who wants to watch an event on PPV is required to pay an additional fee besides his subscription.
“A typical example would be the Mayweather and Pacquiao, and Wilder and Fury II boxing bouts which were retailed on PPV in the United States for $100 and $79.99 respectively.
“The Mayweather/Pacquiao bout, which was shown on DStv premium bouquet, would cost N38,000, which would far exceed the cost of any of the DStv bouquets.
“The bouquet or bundling model is an effective and efficient means of providing a large but still manageable variety of choice to satisfy consumer demand for entertainment, at the lowest possible cost to consumers,” he said.
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