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Digital Operations: TV Ad Revenue In Nigeria May Hit $400m




With the gradual transition of the Nigerian broadcast environment to full digital operations, the Federal Government has assured that it is committed to providing the impetus and support system that could drive growth within the Federal Government market, and help the industry generate additional 200 million dollars to 400 million dollars in revenue.

Alhaji Lai Mohammed, Minister of Information and Culture, said this at the launch of the Digital Switch Over (DSO) in Enugu recently.

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The switchover from analogue to digital terrestrial broadcasting was performed by Gov. Ifeanyi Ugwuanyi of Enugu State and the minister.

Mohammed said that the feat could be easily achieved by bringing the nation’s TV advertising market in line with global best practice.

He disclosed that his ministry would establish Task Team of industry experts, with best practices related to Audience Measurement Systems.

According to the minister, Audience Measurement Systems is key to DSO sustainability, growth in TV and value creation in the creative industry.

He said the Task Force to be established would, therefore, identify best practice Audience Measurement System to support the sustainable growth of the industry.

According to him, this will also recommend the framework for supporting the sustainability of the Audience Measurement System, independent of the Federal Government.

The Task Force, according to the minister, will recommend a payment and disbursement framework among the key stakeholders in the industry.

“The existing model of TV in the country, stunts quality of the content that can be created and limits the capacity of Television platforms to invest in.

“As it is now, the value of Nigeria’s Broadcasting Advertising Market is not proportionate with its population when compared to the Top 3 Markets in Sub-Saharan Africa region.

“Despite having a population more than three times that of South Africa, Nigeria’s Television Advertising Revenue in 2016, at 309 million dollars, was 76 per cent behind that of South Africa.

“Similarly, in the Radio sector, the value of Nigeria’s 2016 Advertising Revenue of 81 million dollars was 75 per cent behind its peers, South Africa and Kenya, both at 343 million dollars.

“In both territories, the value and growth rate of the Broadcasting Advertising Revenue is largely influenced by the availability of a scientific Audience Measurement System,’’ he said.

The minister solicited the cooperation of all well-meaning practitioners of the industry to join hands with the government to achieve it.

He also underscored the commitment of the government to rapidly spread the massive benefits of digital television to the people.

“We are now at the cruise level of the journey we started in Jos, Plateau State in April 2016, as the DSO train has now transverse Abuja, Ilorin, Kaduna, to arrive here in Enugu, its latest stop.

“From here, the DSO train will proceed to Osun State, as we continue our rapid rollout of digital television across the country,’’he said.

The minister also donated 100 Set-Top Boxes to the state government for free distribution to the people.

Gov. Ugwuanyi said that the journey to DSO was not an easy ride and thanked the Federal Government and in particular the minister for his doggedness and commitment to the project.

He said the state would distribute 10,000 free Set-Top Boxes to low-income earners in its 475 autonomous communities.

The Director-General, National Broadcasting Commission, Modibbo Kawu said that DSO would enhance broadcasting chain, deliver crystal clear TV signals and offer wide job opportunities in the sector.




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