Price Hike: TV Service Providers Follow NNPC, Others to Increase Rate

Oladipupo Mojeed Business, Leading Stories 07/09/2020

Satellite TV service providers, Multichoice, and StarTimes have hit Nigerians with new high subscription tariffs.

Entertainment is a form of relaxation and the Satelite TV service providers render such services in Nigeria. But the companies have over time continue to increase their tariffs giving one excuse or the other.

The initial increment was done on July 1st due to the new Value Added Tax of 7.5%. This made the DSTV Premium fee increase from ₦15,800 to ₦16,200 for instance. The Premium rate is now 18,400. The company cited increment in dollar rate, inflation, and operational costs. The recent increment is 13.3%.

Is this justifiable judging from what some low-income earners using GOTv are using? Subscribers on Max on Govt paid N3,280 from N3,200 while Jolli and Jinja subscribers paid N2,460 and N16,640 respectively. This became effective after the increment in July. Now, Max users will be paying N3600.

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StarTimes cites increase in operational cost for new subscription tariffs

Another Satellite TV service provider that followed suit is StarTimes. The service provider also raised prices of its subscription plans by an average of 22% effective August 1, 2020.

The company cited increment in VAT from 5% to 7.5% as well as the foreign exchange rate. They said their cost of operations has been affected.

This is an eye opener to Nigerian content providers.Most of the equipment used by these companies are imported into Nigeria at the current dollar rate. The final users have to therefore bear this burden.

What happens in a situation where a Nigerian company provides such service and get backing of the government? Is this possible in today’s Nigeria?

This is quite possible. All that the government needs to do is to provide a suitable environment for one or two savvy Nigerian entrepreneurs to partner and create jobs for many Nigerians.

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The government will have to face the reality. The subscription rate is becoming a burden to so many people in the country. Since most of the subscribers are those watching Nigerian contents, this is a thriving market for the creative industry.

For this to be possible, all hands need to be on deck than what the Nigerian Broadcasting Commission (NBC) is currently concerned with.

TStv had once attempted to break the duopoly of DStv and StarTimes. There is nothing wrong if the government can even help in setting up this business and hand it over to technocrats who knows how to run it.

As they say, government has no business in business. This is a goldmine waiting to be tapped as we will dictate our own economy and our currency will become stronger.

It can even lead to the resuscitation of our mine and steel companies that could provide all the components needed for this to work. All I am seeing is opportunities that the government has failed to encourage investors to tap into.

It won’t be surprising if the subscription rates remains the same once the Naira rises strong against the dollar. This is Nigeria where most often, leaders take no responsibility neither are they willing to use their initiatives for the betterment of the people they serve.