Multichoice Nigeria Limited has appealed to the Federal High Court in Abuja to dismiss an application seeking to compel the company to meter its GOtv and DStv decoders on a pay-per-view basis.
The suit, filed by lawyer Maduabuchi O. Idam, also requests an order allowing subscribers to roll over unused subscriptions. Multichoice, in its defense, argued that such demands are neither technically nor commercially viable for satellite broadcasting.
Idam’s lawsuit claims that Multichoice has been exploiting Nigerian customers by arbitrarily increasing subscription prices without offering explanations. He further accused the company of disconnecting users once their subscription expires, regardless of viewing time.
According to Idam, this unfair billing practice denies subscribers the ability to maximize the value of their purchases, and he calls for a more transparent and fair pricing model.
Multichoice’s Head of Regulatory Affairs, Gozie Onumonu, refuted the claims, stating that customers are provided with clear billing information, including subscription duration and payment details.
He emphasized that the Pay-As-You-Go (PAYG) model, similar to mobile telecom services, is impractical for satellite broadcasting due to current technological limitations. Onumonu added that the National Assembly and regulatory bodies have previously investigated and dismissed calls for a PAYG model in the broadcast industry.
Onumonu also attributed the company’s recent subscription price increases to economic challenges such as inflation, rising content costs, and increased electricity tariffs. He noted that the unstable exchange rate and inflation, currently at 33.20%, have significantly impacted Multichoice’s operational costs, necessitating the adjustments.
Additionally, electricity tariff hikes have further strained the company’s ability to maintain consistent pricing.
Despite the lawsuit and ongoing scrutiny, Multichoice emphasized its commitment to Nigeria’s media industry. Onumonu highlighted that the company has invested over $514 million in developing local content and talent, reinforcing its position as the largest investor in Nigeria’s audiovisual sector. The court has set December 5, 2024, for a hearing on the matter.