NBC’S new code puts investments of paytv, video-on-demand platforms at risk

As creative industry calls for review

While the Nigerian creative industry is almost stifled by inadequate funding, copyright infringements, piracy, among other challenges, the industry is now facing a seemingly worst challenge with the new broadcast code recently announced by the National

Broadcasting Commission (NBC).

Recommended by the Committee on the Reform of the National Broadcasting Commission and consequently approved by

President Muhammadu Buhari, the new code features amendments to the Sixth Edition of the broadcast code, amid strangulation tendencies on creative industry businesses.

It seeks to limit exclusivity of content, as well as, forcing content owners to sub-license content they have exclusive rights to,

to other broadcasters, at a price enforced by the NBC, hence abridging the rights of copyright owners.

Also, the new code, which requires all online broadcasters, including paytv and streaming companies to register with the NBC, and sub-license their exclusive contents to other broadcast platforms in the country, makes it difficult for Nigerian content producers to enter exclusive deals going forward, hence working below capacity, and losing huge revenue by so doing.

But the NBC has assured that the new code would break monopoly and create room for competition in the creative industry.

However, many creative industry stakeholders are concerned that the recent amendments in the code would strangle their business, discourage creativity, and most importantly, put investments of paytv, streaming and video-on-demand platforms at risk.

Streaming companies such as Netflix, IROKOTV, Apple Music and pay Tv outfits, especially Multichoice’s Africa Magic are at risk of losing their investments in local content production if the code stands, considering that they have licensed a lot of local content from some Nigerian movie producers and acquired exclusive rights to them.

Over the years, Africa Magic has supported the Nigerian movie industry with millions of dollar investments, Netflix has started putting its $8 billion original production budget to work in Nollywood, IROKOTV is pushing local content with global appeal with millions of dollar investments as well, among other content producers whose jobs are at risk if they are denied exclusive right or forced to sublicense their contents to other media broadcasters by the NBC.

Looking at the negative impact of the development, many industry players insisted that without a market-driven motivation to invest in content, local broadcasters may simply sit back and collect rent, like the NTA of today does.

For them, exclusivity or right to content ownership is a major market-driven motivation for paytv, streaming and video-ondemand platforms, as well as, big draw for investors.

Expressing his displeasure on the development, Jason Njoku, chief executive officer, IROKOTV, stated that by seeking to limit exclusivity and rights, the new code amendments have the potential to discourage investment in the sector.

Njoku noted that it would not make business sense to invest further in local content and production when return on investment is uncertain because of lack of exclusivity to content right and sub-licensing caveat in the code.

As well, an insider at Netflix Nigeria, who pleaded for anonymity, noted that the amendments are coming at the wrong time when Netflix, which acquired exclusive rights to Lionheart, a movie it is purported to have paid $3million to Genevieve Nnaji, the content owner, to own exclusive rights to the production and other Nigerian movies has licensed a lot of local contents from some Nigerian movie producers.

The insider lamented that