*Re: FG Prohibits Exclusivity in Broadcast Premium Sport Rights Contents*

- By: Shehu Dikko

 I have followed the divergent views and opinions with regards to the FG directives to the National Broadcasting Commission (NBC) to vigorously enforce the provisions of the Nigeria Broadcasting Code 2019. Specifically issue of Monopoly of Premium contents in sports rights among others. What concerns us here, really is the Sports Rights Issue and as someone that has had the Privilege to be involved in this market for several years and indeed the engagement with Government since 2017 when the process of the review of the NBC code started, I thus provides the following intervention so as to deepened the conversion and expand our understanding of the issue:


 1. The policy by FGN is apparently being viewed by some as targeted at DSTv and or EPL. It may appear so, but it’s far from the reality and the objectives. The policy is basically a general one concerning monopoly of premium content in the sports industry among others across the Nigeria Broadcasting eco system. Thus it applies to all networks and premium contents. For example, the same way it may apply to DSTV with regards to say EPL and Champions league it will also apply to STARTIMES with regards to Europa Cup and Bundesliga etc. in terms of contents the same way it applies to EPL, UCL, Europa, LALIGA etc it will apply to NPFL, meaning NPFL rights as a prime football content would not be sold as a monopoly within the NIGERIAN broadcast space. Thus at the end of the day this policy will balance up and will be a win win situation for both the broadcasters, the contents owners, and indeed the viewing (sports) public as has been proven across so many jurisdictions that have implemented the same policies successfully.

 2. This policy is already a law in Nigeria since the adoption of the revised NBC code on July 4th 2019. The revision of the code took almost 3 years to conclude with several level of stakeholder consultations across the country by NBC (I was privilege to have been part of some of the consultation) before the final copy was agreed and officially launched in Kano on July 4th 2019.

 https://www.thenewsguru.com/news/nigeria-news/article/nbc-dg-kawu-reinstates-commitment-to-instill-sanity-in-nigerias-broadcast-media-space/

 https://guardian.ng/sport/new-nbc-broadcasting-code-could-transform-the-sports-industry-but/

 3. So really the Government is simply giving directives to NBC to enforce the provisions of new code that was approved in accordance to the law.

https://thenationonlineng.net/why-fg-is-breaking-monopoly-in-broadcasting-lai-mohammed/

 4. The 1st question to ask is that is this sports broadcast regulations enacted and or encourage in other jurisdictions? The answer is resounding yes? The 2nd question is does this kind of regulation help develop the industry and indeed stimulate growth in sports ? The answer is a resounding yes.

 5. The following are some key examples of similar regulations and or other broadcast laws enacted in some jurisdictions and how they operate:

 a) SOUTH AFRICA: Since 2014 the ICASA (the Independent communicators authority of South Africa), similar to our NBC have enacted several broadcast legislation specific to sports to deepened the broadcasts industry and indeed sports including breaking of monopoly in premium sports content including PSL and EPL rights. It’s because of this legislation that ensured the PSL rights, even though exclusively owned by DSTV is also shown by SABC (with 50% of the games also shown live on SABC) with also a provision that the big derbies should be shown across all networks including FTA. Even as at 2019 the ICASA in South Africa introduce additional regulations, similar to what is done in Nigeria now

https://businesstech.co.za/news/telecommunications/63057/sa-government-turns-attention-to-dstv-premium-content/

 http://www.sabcnews.com/sabcnews/sabc-calls-on-icasa-to-review-its-sport-broadcasting-regulations

 https://www.bizcommunity.com/Article/196/15/2207.html

 From the foregoing it’s clear even in South Africa Similar regulations as being enforced by FGN now do exist.

 b) *UNITED KINGDOM *: In the UK the OFCOM (office of communications), which is similar to our NBC and NCC in one body, has been issuing several regulations to regulate and promote sports broadcasting in UK. The anti-competition office has also been involve in the regard. This is what ensured the unbundling of the EPL domestic rights and enforcement of other regulations/convention in the Uk sports broadcast space such as the Saturday’s 3pm to 5pm blackout of live Football matches across all networks which is simply aimed to ensure attendance in the stadiums across all match venues at all levels of football as a lot of matches are scheduled around this time and also to deepened the economic activities/productivity around all the Fans going to the stadiums and back. Also, some years back, only Sky has the exclusive rights to EPL and other premium Sports in UK but once the EPL rights were in unbundled and other networks such as BT got involved, competition was created and the income for the domestic rights increase by almost 70% from what if uses to be under monopoly. Inspite of the huge success of the competition between Sky and BT to the EPL revenues, the OFCOM office still opened investigation into the EPL rights sales due to complaints from other broadcasters as it still seems to negate the competition Principles. The investigation was only close after the EPL agreed to increase the number of live Matches available to the public in UK and to also implement the “No Single Buyer” principle in its next auction for the EPL rights.

 https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2014/premier-league

https://www.ofcom.org.uk/about-ofcom/latest/bulletins/competition-bulletins/all-closed-cases/cw_01138

 https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2016/premier-league-football-rights

 From the above it’s evident that even in UK the broadcast regulations and the anti-competition authorities are very active in regulating the sale and distribution of the EPL Rights among other prime sports contents to ensure there is no monopoly and the contents is available to the widest public as much as possible. One interesting thing about the EPL is that, even in UK where the games are played not all the matches are live on TV while down here the entire 360 EPL matches are live to us on TV? Also why is it that no live games are shown in the UK on Saturday’s between 3pm to 5pm? Someone is certainly thinking and protecting the industry and indeed the sport in the UK.

 c) GERMANY : In Germany similar Regulations is being implemented with the “No single Buyer” principle vigorously enforced by the broadcast regulators and anti competition office. This has help the success of the Bundesliga and other sports as well as the development of the broadcast industry.

 https://finance.yahoo.com/news/germany-approves-no-single-buyer-084022485.html

 https://worldscreen.com/tveurope/2016/04/11/no-single-buyer-rule-implemented-for-bundesliga-rights/

 https://www.broadbandtvnews.com/2016/04/11/sky-deutschland-hit-by-no-single-buyer-rule-for-bundesliga-rights/

 https://www.lawinsport.com/topics/item/how-the-bundesliga-s-new-no-single-buyer-rule-has-increased-the-broadcasting-revenue-for-german-football

 d) SPAIN: In Spain the “No single buyer” rule is also applied with mediapro and Telefonica among others always competing for rights. In addition to this the Spanish Government passed a landmark royal decree in 2015 to outlaw the selling of LALIGA TV rights individually by clubs but must be sold collectively like EPL and even legislate on how the revenues will be distributed across by the league to the clubs. Prior to this legislation clubs in Spain sell rights individually and obviously only Barcelona and Real Madrid were taking over 60% of the revenues available while morethan 40 clubs scramble for the rest. But this single legislation by Spanish Govt changed everything in LALIGA with revenues moved from an average of €600m to over €2b annually and an equitable revenue distribution model .

 https://www.lawinsport.com/topics/item/why-joint-selling-is-crucial-to-la-liga-s-future

 https://www.laliga.com/en-GB/news/the-football-family-showed-its-satisfaction-after-the-royal-decree-regarding-the-sale-of-television-rights-was-approved

 https://www.sportbusiness.com/2017/03/sponsored-content-a-new-broadcast-era-for-laliga/

 https://www.laliga.com/en-GB/news/laliga-celebrates-the-first-anniversary-of-the-approval-of-royal-decree-law

 From the above it’s evident several jurisdictions do enact specific and targeted legislation to protect and promote their domestic broadcast industry and sports. This is because broadcast is the heart of sports.

 e) FRANCE: In France They too have several Broadcasting regulations aimed at promoting the industry and sports as well. Just recently the French Government issued a targetted intervention via regulations to aid football and indeed sports by the empowerment of the public broadcaster to be able to compete with cable TV rights holders. The French council of state agreed to direct the CSA (the French version of NBC ) to relax some regulations via exemptions regarding advertisements so as to allow the public broadcaster to air advertisement after 8pm. This is to enable the public broadcasters to be able to attract more advertising revenues during broadcasts of league 1 games so as to be able to compete with cable tv in the acquisition of sports rights. The French Council of State has also recommended a review of France’s listed events legislation to ensure greater visibility for women’s sport and the Paralympic Games, and measures to protects sports events against the increasing threat posed by piracy.

 https://www.sportbusiness.com/news/government-moves-to-aid-france-televisions-spending-power-by-scrapping-evening-ads-ban/

 f) MOROCCO: In Morroco, they even operate a model, where premium Sports rights including the Morroco National teams games and League is acquired by Government through the public broadcaster whom in turn shows the game and also sub-license some to other broadcasters including cable tv. The public broadcaster recoups its investment via advertising revenues and also the sub-licensing income. Meanwhile the Moroccon Government uses this model to ensure the public broadcaster remains relevant and also guaranteed the well being of their sports as adequate revenue goes to the sports to ensure sustainable development. Until recently Argentina also uses this model.


 7. So in view of the foregoing examples it’s very clear that what the FGN is trying to do is what is obtainable across the world and it’s not targeted at any party but to develop and enhance the broadcast industry in Nigeria , the interest of the public as well the Sports industry and its development.

 8. The question to ask is do Nigeria have the ingredient and necessary foundations to make this legislation a success? From the benchmarks on ground the answer to this is in the affirmative. This includes the fact that, we have the numbers in Nigeria to make economic sense to any mass business run properly, there is huge advertising revenues available in the market (which has shown great appetite for local content) and thus once any networks have access to premium contents they can be able to break even. This will eventually translate to more reach and revenues for the sports. The public will also be the winner as the premium sports content will be more accessible and cheaper. For the Industry it’s means more broadcast houses making profits and competing to deliver good services including more jobs opportunities.

 9. Indeed, the outcome of the unbundling of the Telco industry in Nigeria is a good pointer to what could happened if we get this policy right as it’s obvious access to prime sports content is a key driver to the growth and survival of any broadcast network.

 10. In Conclusion, from all available indices, It’s the manipulation of the exclusivity of premium contents including that of football, that stalled the growth of the entire broadcast industry and pauparized all the other networks as the eye balls, subscription and advertising revenues all goes in one direction and this have a direct effect on our sports both in terms of visibility and income. Thus the urgent need to redress the situation and the steps taking by FGN is in the right direction and it needs to be supported across board.

 SHEHU DIKKO is of the Nigerian professional league.

Actors Guild Moves To Restructure, Set Up Six Committees 

By Amaechi Elemona

In a move that has been roundly applauded as the first best step towards repositioning and resolving some of the issues that have almost torn the fabrics of the Actors Guild of Nigeria (AGN) to shred, the leadership of the AGN last week announced the setting up of five sub-committees including welfare, membership, merger and Inter guild activities and a committee for standard contract. The fifth committee is the committee for the ratification of patrons; a committee that observers say may have been set up to resolve the issues surrounding the recent appointment of Senator Elisha Abbo as Patron of the AGN. Senator Abbo’s appointment which the guild announced in March has received wide spread condemnation from within and outside of the guild. 

AGN President Emeka Rollas

 However, the guild in a statement said its decision to set us the ‘powerful sub-committees’ was in line with the vision and mission of the leadership of the guild to transform the guild through innovative and creative programs that would help reposition the guild and offer succor and new hope to teeming members.  Public Relations Officer of the AGN Monalisa Coker who signed the statement disclosed that the AGN President Ejezie Emeka Rollas has inaugurated five powerful sub-Committees to help propel the restructuring of the Guild for more effective and efficient performance, service delivery and to reckon with the post Covid-19 socio-economic changes. 

The release named the actor Keppy Ekpeyong Bassey as chairman of the committee on standard contract while the committee on membership is to be headed by the actor Bob Manuel Udokwu. Veteran actor and Former President of the AGN Zack Orji is to head the merger and Inter guild activities committee, while award winning actor and former President of the AGN Segun Arinze is to chair the patrons ratification committee.  The task of superintending the welfare committee rests with the actor and politician Desmond Elliot.  Other notable members of the sub- committees include, Joke Silva, Richard Mofe Damijo, Bimbo Manuel, Alex Ekubo, Ada Ameh, kate Henshaw, Hilda Dokubo, Ireti Doyle, Monalisa Chinda, Okey Bakasi, Ego Boyo, Emeka Enyiocha, Femi Branch, Sani Danja, Hajia Salma Ibrahim, Moji Oyetayo and many others.

Day Marketers Sneezed And Nollywood refused to catch cold

By Shaibu Husseini (First published in The Guardian on April 24, 2012)

President of FVPMA Norbert Ajeagbu (First from left) and Famous Otamkpowen at an industry event 

If the leadership of the Film, Video Producers and Marketers Association (FVPMA) think that because they sneezed last week with their decision to place a ban on further assigning of rights of Nollywood movies to broadcast stations, then Nollywood should catch cold, then they are mistaken. If some of their previous decisions like the ban they placed a few years back on some notable actors in Nollywood got the industry feeling giddy, their recent pronouncement which ironically has the endorsement of some of the leaders of guilds and association in Nollywood including the still evolving umbrella body-Nollywood Guilds and Associations (CONGA) got most practitioners not only wondering about the marketers real intentions but it got most of them wondering how that pronouncement will help an already chaotic  distribution situation. 

At a well attended press briefing held penultimate Wednesday in Lagos, the marketers through their Chairman Norbert Ajaegbu announced that to address the menace associated with indiscriminate broadcast of Nollywood films by numerous cable and terrestrial television stations in Nigeria and in the continent, the FVPMAN and the entire control structure in Nollywood will enforce a ban on further broadcast of films capable of being released through the conventional distribution channels in Nollywood as from May 1.  The marketers chairman emphasized that ‘no such films capable of being released through the conventional distribution channel’ will be assigned to any broadcast station as from May 1, 2012.  Similarly he said that any movie up for broadcast on television and on any of the cable networks in Nigeria will not be distributed through channels controlled by the Nollywood Film, Video Producers and Marketers Association (FVPMAN).  Ajaegbu maintained that the indiscriminate broadcast of Nollywood films has eroded the usual value attributable to films by Nigerians and that have caused the show inherent in the business to be totally lost.  He lamented that some practitioners have ‘lived and died in penury’ while the broadcast stations that acquire the works at very ridiculous amount smile to the bank.  According to him: ‘many practitioners hardly meet up with their basic needs. Some shine like stars and wither like ashes while the broadcast stations continue to expand in their operations.  We are all living witnesses to the incessant cases of strokes and other ailments owing to the fact that we don’t get back as much as we invest. This cannot be allowed to continue’. The Marketers chairman however explained that the future commencement date of the stoppage order is to allow a window for alignment and perfection of all enforcement procedure as solicited by key stakeholders including the adoption of a standard contract form to ensure total compliance. But he stressed that by ordering the ban, filmmakers were only acting ‘in accordance with the immutable law of nature-an economic liberation and the principle of self defence’. He said further: ‘we are neither prejudiced by this hell of fortune made from us by these stations nor the peanut they pay to producers in the purported acquisition contract. But we believe that time has come for our distribution system to undergo a complete overhaul starting with the broadcast reform. We shall further progress with other essential reforms and expansion of our distribution network and hope in no distant time to regain our lost bliss’. 

Ugbomah

 Minutes after the briefing, reactions mostly of those opposed to the decision of the marketers and some of the industry leaders to stop the assigning of broadcast rights came in torrents. Only the veteran filmmaker Chief Eddie Ugbomah supported the move.  In fact for the Officer of the Order of the Niger (OON) the decision came seven years late. ‘Its seven years late’ he said. ‘They would have taken this decision a long time ago. It is one of the reasons Nollywood is presently on its knees. I was preaching that it was going to lead to the death of Nollywood and that is exactly what we have today. People no longer buy movies or even stock them at home because they can easily see the films on television and cable stations. I told them this several years ago when they rushed to take their films there either for peanuts or that thing they call barter but they didn’t listen. I told them that they will come back bruised and crying and that is what has exactly played out’ Ugbomah said. Although aware that assigning of rights to broadcast and cable stations constitute one of the revenue streams open to a filmmaker, the Septuagenarian filmmaker lamented that what filmmakers get in return for assigning such rights is nothing compared to what their counterparts in ‘far less developed movie societies’ like Kenya and South Africa are paid. He explained: what some of these stations pay here is ridiculous. Some are offering as a little as 35, 000 thousand naira for an episode and as little as 15,000 naira for documentaries. I shot a documentary recently and they were offering me 500 dollars to air it. That’s nonsense. How much did I rent the camera and how much did I spend in actual production. Even the films that you see on all these wonder, high and magic stations how much do you think they pay for them? Peanuts. We pressed for them to pay us something higher like in the region of 2000 to 5000 thousand dollars when they started but we had hardly return home from the meeting when they started offering our boys 500 to 1000 dollars. Today I hear they pay as a little as 200 dollars per episode while they pay as much as 2500 dollars to filmmakers in East Africa and South Africa. That’s slavery’.  

Reminded that like in all commercial ventures the power of negotiation lie with the seller in this case the content owner, Ugbomah reasoned that the situation was different in Nigeria as the filmmakers are not even given any room for negotiation. ‘It is just that we don’t have a united industry. If we had, we will not be complaining today. If we had, we would have set a benchmark and we would have insisted that no new movie should be shown on that channel except the movie has exploited other distribution channels including cinema release and even when a new movie is to be shown, it should be under an exclusive arrangement and the pay must be good. Not al these pay peanuts and show for two years deal that we have all over the place. In fact recently on a channel, I watched the same thrice on a day. Who will ever go to the market and buy that kind of movie especially now that we even have decoders that can record films while you are at work. No one, except you need the film for research. So I support the move and I think it is coming years late. May be this will force these broadcast stations to begin to invest in producing local content’ he surmised. 

Shooting in Progress

If Ugbomah supports the decision, two notable filmmakers Mahmood Ali-Balogun

Ali-Balogun

and Yinka Ogundaisi do not subscribe to the position taken by the marketers.  In fact for Ali-Balogun who is in Tribeca to seek marketing opportunities for his jubilee hit Tango with Me, the decision by the marketers amounted to ‘crying over spilt milk’. The one time President of the National Association of Nigerian Theatre Arts Practitioners (NANTAP) noted that the marketers were in the first place responsible for the rot in the broadcast rights assigning regime and so he is amazed that all of a sudden they are the ones calling for a ban.  ‘Why are they all screaming now?’ he asked. ‘Were they not the ones who made the direct to video release look as though it was the norm? Were they not the ones who carried bags filled with DVD’s to these stations and were ready to accept any amount just for the films to be aired? When we were negotiating for a better deal for filmmakers were they not the ones who went behind us and started accepting peanuts? Were they not the ones who made releasing in parts look as if it is a crime not to do so? Check the films that are currently running on these stations unending, are they not by those FVMA members? So why are they crying now when they are responsible for the current state of the industry?’ Ali-Balogun asked on and on. ‘I think those guys (the marketers) should just sit down and carryout a reform within them. They are the ones who negotiate the left when we the industry is heading towards the right.  How did we get to the stage of all these 10 in one DVD’s if not the activities of some of the marketers? They need to first agree to abide to certain industry best practices. Once that is done, then we can listen to them. Outside that I will wait to see how this can be enforceable’ he said. 

Even Ogundaisi doesn’t see how their decision can be enforceable because as he argued members of FVMA control only a segment of the market. He described as very ‘minute’ the market they control.  Besides he doesn’t think that the decision was a product of wide consultation. ‘I don’t think key members of the industry particularly independent producers who are not part of these supposed umbrella bodies are part of the decision. I think it is just an initiative of a group of individuals who most times take advantage of problems in the industry to position themselves. And I ask what is the decision meant to achieve and what will be the level of compliance because there have been several of such pronouncement in the past even among the practitioners in the Yoruba movie industry and the compliance level there was zero. So they can make any pronouncement they like but it is of no effect especially to licensed distributors who have been licensed by law to engage in distribution and marketing of movies’ Ogundaisi submitted. 

Ogundaisi

 Rather than engage in schemes that are of ‘no use to the industry’, Ogundaisi counseled that the marketers should channel their energies towards ensuring the take off of the National film and video distribution framework promoted by the National Film and Video Censors Board.  Ogundaisi maintained that if well implemented the framework, which was launched nearly three years ago was capable of eliminating all challenges impeding the economic viability of Nollywood films including piracy.  ‘We need to channel our energies towards activating the distribution system which will also be responsible for our operational funding, and effectively neutralize all inclinations to piracy and other illegal activities. That is what we need concentrate our energies on now and not engage in schemes or in making high sounding pronouncements that will not lead us anywhere’ remarked Ogundaisi who in a previous interview listed ‘In-auditable processes, ceaseless proliferation and fragmentation, personalized standards and ethics and the lack of in-built challenges and incentives for the distributors to fully explore the marketing potentials of a movie to maximize returns on investment as the defects and limitations of the present distribution system in Nollywood which is mainly championed by the marketers who want movies on television and cable stations banned.

Eyengho

The leadership of ANCOP who last week issued a short terse statement distancing the body from the decision to stop the assigning of broadcast rights to television and cable stations says their position has not changed.  President of ANCOP Alex Eyengho clarified that their decision to oppose the ban was informed by the fact that members of the association were not consulted on the matter and that it will be wrong for such a decision to be forced on the industry when the industry is not ‘owned by people who constitute only a small segment of the industry’. He said: There was no proper consultation before the decision was arrived at. We ought to have sat down as an industry to agree and take a position that will be binding. We refused to have our hairs shaved behind us. Besides our problem as an industry is not airing of content on television or on cable. That is even an income stream for producers. Our problem is piracy and distribution. Let us face those two monsters instead of trying to cure headache when we have typhoid’.