As Nigerian exodus of companies accelerates, MultiChoice doesn't plan to ditch Nigeria; MultiChoice Africa says it 'remains firmly committed' to Nigerian market.

Pay-TV operator MultiChoice says it doesn't plan to disinvest and leave Nigeria and remains committed to doing business there, amidst the West African country's tanking economy and increasingly onerous regulatory environment that's accelerating the scale of the ongoing exodus of South African and other multinational companies.

MultiChoice Africa tells TVwithThinus that the pay-TV company that operates the DStv and GOtv brands across the continent, "remains firmly committed to its joint venture in Nigeria".

It comes as Nigeria's economy continues to nosedive against the backdrop of a regulatory environment for all Nigerian business sectors that continues to grow more hostile for companies to thrive and has also seen onerous conditions imposed on MultiChoice in the country the past few months not found elsewhere in Africa.

Sun International has now joined the stampede of companies that has jettissoned Nigeria over a too harsh investment climate and worsening economic policies, following South Africa's Truworths, Clover and Tiger Brands out the door.

Meanwhile a growing number of airlines have quit their Nigerian routes over mounting losses and at least 14 airlines dumped Nigeria and started the process of moving their operational offices to Ghana. Cellular operator MTN was slammed with an astronomical fine.

MultiChoice says it has no plans to abandon Nigeria where it has become increasingly more difficult to do business.

"MultiChoice Africa was one of the first pan-African businesses to establish operations in Nigeria over 23 years ago. Our commitment to Nigeria has seen major investments in infrastructure, people and great entertainment which will continue as we have a long-term view and confidence in the Nigerian market," says MultiChoice Africa.

Earlier this year Nigeria's Consumer Protection Council (CPC) that executed a shocking raid in October 2015 on MultiChoice's head office in Lagos, ordered onerous changes to MultiChoice Nigeria's service not found elsewhere in Africa, ranging from one month's worth free switch-off per year to billing system changes, and to to pay out "compensation" to DStv subscribers who over time lost paid viewing time by not having their service restored quickly enough after payment.

In February Nigeria's senate slammed "the menace of MultiChoice" while Nigeria's broadcasting regulator, the National Broadcasting Commission (NBC) is tightening the censorship screws that is increasingly having a negative impact on MultiChoice's DStv across the entire Africa.

Since late-2015 Nigeria's NBC has forced MultiChoice and channel partners ranging from Discovery Networks International (DNI) to NBCUniversal International Networks to pull certain programming from various TV channels on DStv, making the content unavailable for the entire Africa - not just in Nigeria - since channel providers have only one satellite channel feed to Africa.

In just Nigeria's telecommunication sector, Nigerians already pay 26 different kind of taxes, with the government that plans an additional, brand-new 9% Communication Service Tax (CST) that will have a further detrimental impact on all telecommunication companies, internet service providers and pay-TV operators like MultiChoice in the country.

Consumer rights groups and telecom stakeholders in Nigeria have been vocal about the adverse effects the CST will have on consumers and businesses already battling a harsh economic environment with a PwC Nigeria report on the proposed tax saying it will add to making Nigeria "unattractive to investors".

On Tuesday, MultiChoice Nigeria launched GOtv Lite as a new, cheaper package with less TV channels, of MultiChoice Africa's existing GOtv digital terrestrial television (DTT) service on the continent.

GOtv Lite with 20 TV channels, a new lower-tiered option to GOtv Plus and GOtv Value, will now target Nigerian pay-TV subscribers who can't afford the various DStv packages and the two more expensive GOtv options in the country where the worsening economic conditions has negatively impacted subscriber numbers.

In June MultiChoice, owned by Naspers Limited, said its keeping subscription fees in several African countries - including Nigeria - unchanged for a year to try and halt a decline in subscriber numbers.

R998 to start watching MultiChoice and M-Net's GOtv with 12 TV channels; GOtv South Africa more expensive with less channels than in other African countries.

As expected MultiChoice and M-Net this morning officially announced its GOtv digital terrestrial television (DTT) offering that will cost viewers without a satellite dish R998 to start watching channels already available on its satellite TV service DStv.

At an additional R99 per month for 12 TV channels, GOtv costs exactly the same as StarSat's StarSat Special package with 47 TV channels, and the DStv Access offering over 50 TV channels.

At this price point it raises questions as to why and what type of viewers without pay-TV and who are possibly considering taking up pay-TV, would opt for this DTT product and not rather go straight for one of the existing commercial satellite pay-TV options available.

On face value even Platco Digital's OpenView HD (OVHD) free-to-air satellite service, with a once-off decoder-and-dish cost of R1000 and offering over 18 TV channels with no monthly subscription, seems to be a better deal.

To start watching GOtv, a customer must buy a GOtv decoder of R699. The decoder work with an antenna. The recommended "GOtenna" is sold separately for R299.

Interestingly GOtv operated in several other African countries under the same brand name, has more channels on offer to subscribers and cost less than in South Africa.

GOtv in Kenya for instance cost R95 for 23 TV channels; GOtv in Lesotho offers 20 TV channels for R99.80. GOtv in Namibia for instance carries Sabido's eNCA (DStv 403), while other countries include several TV news channels. 

GOtv for South Africa's website doesn't list a single TV news channel as part of the offering. Asked why there's not a single news channel available in the offering, GOtv says "the GOtv decoder will receive all free to air television and radio services, which will include several news channels".

Asked why the GOtv South Africa offering has less channels than in other countries, M-Net says it can only offer up to 12 channels on its GOtv service in South Africa as provided for in its DTT licence.

"GOtv will give many South Africans who are currently watching analogue television the chance to experience digital quality TV at an affordable price," says Tsabiso Letsoela, GOtv South Africa's general manager. 

"The digital GOtv service offers compelling channels with clearer pictures and sharper sound quality".

Yolisa Phahle, M-Net CEO says the pay-TV broadcaster – since GOtv is an M-Net service – "is excited to launch our digital terrestrial television service", saying "this is a major step forward for local television".

Although the SABC's channels and e.tv are not listed on GOtv's website for South Africa or in a press release, a spokesperson told TV with Thinus that GOtv subscribers in South Africa, besides the 12 channels, will get the free-to-air channels on GOtv like SABC1, SABC2 and SABC3 and radio stations "as long as your GOtv package is active". 

Besides the GOtv Value package for R99 per month there is also a GOtv Lite option of 2 TV channels, Mzansi Music and Dumisa, at a subscription of R45 paid every three months.

GOtv uses a digital network of towers throughout South Africa like what cellphone companies are doing.

Potential GOtv subscribers will first have to check whether they fall within the coverage areas since the signal is currently limited to mostly major sentra like Cape Town, Jeffrey's Bay, Port Elizabeth, East London, Durban, Bloemfontein and Kimberley, and the Johannesburg and Pretoria, Polokwane and Mbombela areas. National DTT coverage will improve overtime.

What about existing M-Net analogue subscribers?

For the existing tens of thousands of M-Net analogue subscribers – M-Net viewers watching M-Net, SuperSport and the Community Service Network (CSN) through M-Net decoders – there's not a DTT option available yet.

"While M-Net analogue customers will have to switch over to digital television at some stage, they don’t have to do anything right now," says M-Net.

"Before each province shuts down their analogue signals, M-Net will be in touch to guide its analogue customers through the migration process".

M-Net analogue subscribers will get a "like-for-like package" and the exact business rules will be communicated and they will get correspondence this week, and more detailed communication with their options in the next few months.

"We are committed to assist our M-Net analogue subscribers through every step of the migration process," says the pay-TV provider.

"You'll keep getting your M-Net terrestrial service until this signal gets switched off. Closer to the cut-off time, we'll be in touch to guide you on what you need to do and how you need to do it. We only expect the switch-off to be a year or more from now."

M-Net analogue subscribers who are worried or have questions or concerns can email terrestrial@mnet.co.za