Nigeria’s National Broadcasting Commission has released an amended version of the 6th edition of its broadcast code. Its release spurred different reactions from Nigerians as some were in agreement and others were not. The ensuing uproar caught my attention and informed my decision to review it.
From first inspection, I questioned a number of things, including what the NBC’s intentions were, what their goals were and how the clauses amended would affect their stakeholders. In the broadcasting space, it is known that the exclusivity factor is what sets broadcasters apart from each other, but that distinction is about to be reversed in Nigeria and I could relate with the aggrieved parties and almost joined in the online war myself.
For clarity, I had a conversation with a colleague and was made aware of some misconceptions I had regarding the code. Upon further read, it became clear the aims of the amendments to the NBC Code were to create restrictions for monopolistic behaviour in the broadcast industry and provide for market growth, funding and widespread utilisation of local content in the broadcast industry to drive creativity and innovation. This article is aimed at sharing more insight into some questions you might have.
Anti Competition: This came up to me as though they were against a stakeholder that had a stronghold (audience wise) in the market. Below are snippets of the entire section.
Section 9.0.6: A licensee or broadcaster in a dominant position in the broadcast industry shall on the order of the commission to seize a conduct in that market which has or may have the effect of substantially preventing, restricting and/or distorting competition in the broadcasts industry and to implement appropriate penalties and/or remedies.
Section 9.0.7: The broadcaster shall obey an order prohibiting any conduct on the part of one or more licensees which amounts to the abuse of a dominant position in or in any part of, the broadcast industry in Nigeria if in its discretion it may or would adversely hinder the maintenance and preservation of competition in the media industry in Nigeria.
Looking at the aforementioned at first glance, one is left to assume that NBC is restricting a broadcaster from being the sole provider for a particular service, and that is exactly what they are doing. But the question is: is it for the benefit of the masses?
Citing Section 9.0.6: How does a product/agency/broadcaster/company restrict competition? Did they stop other competitors from producing, or going into the market? If you as a service provider feel you can enter the industry, do better than I do, by all means, Enter! I mean, I did the research, I took out time to figure out what my audience liked, and they saw that and decided to patronise me. So, if you as a competitor feel you can do the same, why not jump on it and allow the audience to decide. Why make me feel like I am doing a bad thing or being a bad person all because I have a strong audience patronage?
In respect to DStv (Sport), as this is believed to be the major reason for the section, I see no reason why a competitor can’t acquire football rights like DStv. It’s not their fault that the others aren’t big enough. NBC shouldn’t take it out on the big guys, this should serve a wake-up call for their competitors to step up their game.
On second thought, another question to ask is: What is NBC’s end game? Who stands to benefit from opening up the industry to multiple players? It’s us – the masses. If there is more competition and more companies, that leaves us the audience with options to pick what we want to watch; better content availability at a lower and cheaper rate. With this in mind, companies and broadcasters seeing that they have to fight their way to acquiring and keeping their audience, would have no choice but to be more innovative based on quality of service, pricing, packaging strategies and technological advances, which have consumer welfare benefits and which would attract an audience to them.
From my earlier statement, while I was angry at the section – I was ignorant of the fact that there were actually restrictions using sports as an example, DStv bought the licence to air sport to all Sub-Saharan district (that is a big feat, to be honest), but that left the smaller “goons” with no option but to seek permission from DStv to sub license the rights which have been denied. This leaves local players at a disadvantage so much so that DStv as a foreign and dominant broadcaster over the years, has had the sole benefits of such premium content. More so, I have come to be educated that the bidding process for the FAPL, for example, is not advertised and local broadcasters are disadvantaged as a result.
All in all, regardless of my earlier outburst, this is a good one, NBC.
Wholesale offer: At first glance, the whole session didn’t sit well with me. As seen from Section 9.1.1.3, why should NBC have a say in the prices? “In no event shall the charges exceed the stipulated prices thereof.” Every business interest is to make profit. Why limit me on that? Yes, there should be a level for your governance since we are under your corporation but there should be a limit, you don’t have to be all up on our neck.
Also, as seen below in Section 9.1.1.5 and Section 9.1.1.9 the language used seemed inappropriate to me as it shows the use of compulsion and suggests that they are controlled and have no say in the matter, which is wrong. There should be a level of openness for the broadcasters despite the fact that they still need to be in check for order to reign.
Section 9.1.1.3 In determining the charges offered for supply under this section, consideration should be had to the prorated cost of acquisition of sports and news program or channels by subscribers on the platform of the licensee (stipulated prices) and the retail thereof in each potential subscriber. In no event shall the charges exceed the stipulated prices thereof.
Section 9.1.1.5 The licensee shall “comply” with any directive or request for information issued by the commission for the purpose of ensuring, monitoring, or investigating compliance with this section.
Section 9.1.1.9 The decision of the commission shall be “binding” on all broadcast licensees irrespective of contract executed to the contrary, as long as the subject matter of the right or license is for broadcast in Nigeria.
Reading the section again with a clearer mindset, I totally understand anyone having the same mindset as my above remarks but it is safe to say that NBC had the audience in mind when amending the code. If the broadcaster is left to fix a price to a service, there is no limit to how high the price can go, thereby leaving the audience with no option than to pay if it must access the service.
On the other hand, it is also a win for the broadcaster – using sport and Section 9.1.1.3 as an example, if a broadcaster owns the sole right to premium content and wants to sub-licence it to smaller agencies (in the absence of that regulation), the broadcaster (the big goons) could decide to spike up the price to their own benefit and thereby creating a barrier to entry with associated high costs to subscribers.
This goes to state that I was wrong and the amendment isn’t as awful, terrible and inconsiderate as I had earlier thought. This is just my candid opinion on issues touching on the 6th amendment. I would advise you not to let the buzz of the media becloud your judgement as it almost did mine, but take out time like I did and make your research, hear both sides and come to your own conclusions with respect to the amendments with the aim to seek more clarity.
. Ubi writes from Etta-Agbor Layout, Calabar, Cross River State.