MultiChoice CEO insists Pay-As-You-Go Pay TV is not feasible

Mr. John Ugbe, chief executive officer (CEO) of MultiChoice Nigeria, has said that the Pay-As-You-Go (PAYG) billing model was not technically and commercially feasible in the pay television industry.

Ugbe made this position known while making a presentation to the House of Representatives Ad Hoc Committee investigating the non-implementation of PAYG subscription model by satellite television service operators.

The Multichoice boss pointed out that Pay-Per-View (PPV) was often confused with PAYG, adding that the PAYG model used in the telecommunications sector was not the right fit for pay television.

Ugbe explained that PAYG in telecommunications is a metered service that ensures consumers are billed only for the service they consume and not for a fixed period.

According to him, PAYG was possible in the telecommunications industry because it relies on a two-way communication system, which enables operators to determine when a consumer is connected, the service consumed and duration of connection.

Ugbe disclosed that satellite broadcasters, unlike telecommunications firms cannot offer pay television services the same way because satellite broadcasting is a one-way system and does not enable broadcasters to determine when a subscriber is connected and/or watching or what channel is being viewed.