Local satellite television stations, also called payTV companies, are merely gasping for breath under the dominance of South African giant, MultiChoice Nigeria, operator of DStv and GOtv.
Local operators lack the competence for quality content, technology, and spread.
Defunct Nigerian HiTV once threatened DStv by outpacing it to broadcast the English Premier League (EPL) but paid dearly for challenging the market leader.
The demise of HiTV made DStv stronger, and gave brand the confidence to introduce GOtv to further squeeze competition.
Other payTV operators that have entered the market in recent times to challenge DStv are Mytv, Mortage TV, StarTimes, DaarSat, and ConSat.
Martin Olowo, an expert in information communication technology (ICT) based in Lagos, said Nigerian operators lack capacity to compete, let alone wrestle the biscuit from DStv, which has foreign investors while the locals are tied to apron strings of owners with very limited access to funds.
Despite the high subscription fee of DStv compared with local operators and even Chinese StarTimes, Nigerians still prefer DStv.
DaarSat, which launched in 2008, has failed to scratch the surface of the market.
StarTimes’s partnership with the Nigerian Television Authority (NTA) has also failed to challenge DStv, likewise the entrance of Television Continental (TVC) with ConSat.
Mayokun Okunola, Continental Satellite Chief Executive Officer (CEO), said at the media unveiling of ConSat that the company would ensure the growth of the local entertainment industry by delivering the best in Nigerian culture, music, entertainment and lifestyle to a worldwide audience.
“We have invested in a telenovela channel through a third-party partner for the women who love novela entertainment. Our channels also include international news channels, home grown entertainment, state TV channels, and terrestrial channels,” he disclosed.
On the assessment of payTV, Agile Communication CEO, Rufai Ladipo, said “digital satellite television broadcast is not new to the broadcast space. It has got enhanced and more players have come on board, so it’s natural law of business to expect competition and survival of the fittest.”
TPT Communication CEO, Charles Igbinidu, cited the “intense competition at the lower end of the market. You have StarTimes, Gotv and many others. The top end of the market is monopolised by DStv.”
He said indigenous organisations have not made any visible impact in the market because the business is capital intensive.
In his view, financial organisations are not willing to support the sector “because it is not like buying and selling where you easily recoup your investment. The gestation period is long.
“Most financial organisations in this country do not have that kind of patience.”
On whether the paradigm has shifted in terms of dominance, Ladipo said “of course there is a shift from poor quality to excellent television broadcast, and this explains why terrestrial TV operators are fast securing a space in satellite.
“This trend will continue for a while and could eventually drive local television as we know it into extinction.”
Football is used to attract the biggest viewership. This was evident when the defunct HiTV acquired the right to air EPL in Nigeria and DStv market share nosedived.
On what others can do to eat into the market share of the leader beyond football, Igbinidu reiterated that payTV viewership is largely driven by content.
“They have to give viewers what they want. Maybe they have to focus on different segments (children, women, sport, et cetera) and capture viewers in those segments. They should strive to be known for something.
“The only way out is quality programming, not only in sports marketing, but across the board – entertainment, music, documentary; the list is endless.”
