Impact of Big Brother Show on the Profitability of Cable Subscription: a Case Study of Multichoice

CHAPTER ONE

INTRODUCTION

Background of the Study

Television is one of the most dominant medium, and it is quite simple for individuals to become addicted to television programmes. One option to deregulate media ownership among global economies, however, is through cable television. According to Dumas (2009), as cited in Hafsat (2022), cable television, or CATV, initially appeared as a way to expand the broadcast signal into places that were not reachable from the source. Individuals would be required to pay a membership fee in order to get the signals. CATV began to be controlled by both individual states and the FCC as the technology progressed and grew widespread. Companies grew and sought exclusive contracts with municipal governments to provide community wiring. In exchange for these exclusive arrangements, cable corporations developed community television facilities and specialised community broadcast channels. Other content channels began to develop alongside these local channels.

Historically, HBO was the first cable television network to be founded in 1972. It was a subscription TV station that delivered movie and sports programming to several operators via satellite. Subscribers pay to view what they wanted. WTBS, previously known as WCTG, arrived in Atlanta in 1976. Because they served several towns, cable firms were known as MSOs, or Multi-System Operators (Ives 2018).. On cable, there was eventually a 24-hour news station, CNN, a music television channel known as MTV, and many more. The FCC deregulated cable in 1984, resulting in the increase of infrastructure and channels.

Following the FCC’s increased deregulation in the 1990s, an increasing number of channels were established. The channels were bringing in money for the cable companies. They collected cable provider membership fees and sold advertising blocks on the new channels. The firms also paid a charge per subscriber to the broadcast channel. These new channels compelled consumers, particularly in cities, to pay a membership fee rather than watch the free broadcast. This meant more money for MSOs due to both higher advertising costs and more subscribership. Furthermore, “rabbit ear” antennae became obsolete in cable-equipped households (Doyle 2022). MSOs gradually adopted a digital signal that flowed into television set-top boxes in the twenty-first century. This signal, like broadcast, made room for new channels. These new channels delivered more variety material as well as extra advertising opportunities, resulting in increased income (Parsons, 2008). Cable, on the other hand, pays more per subscriber for additional channels year after year. As new sports networks arise, such as the NFL Network and YES, providers are being compelled to pay more per client.

In a slowing economy, more customers are abandoning cable in favour of internet or other free material (Hansell, 2009). Cablevision, one of the largest cable providers in the United States, offered an interactive mechanism for brands and consumers to communicate in the fall of 2009. This technology enabled viewers to interact with a firm after seeing their advertisement or promotion. The viewer might read more about the offered product and even obtain samples or discounts (Cablevision, 2019). Satellite television’s economic model is quite similar to that of cable television, although it evolved in a different way. Satellite television began as a gadget marketed to consumers to receive cable television feeds from cable providers that originated in space. Cable quickly encrypted its signals to avoid broadcast piracy. Customers with satellite dishes were then sold decryption boxes. Dishes dropped in size, and television service became accessible, putting cable television in direct competition (Palmer, 2016).

Statement of the Problem

In recent times, reality programmes on cable television have shown to be a potent instrument capable of moulding cultural ideals as well as an outlet for cable firms to achieve corporate development and profitability. The iconic Big Brother Nigeria TV Show is one of the television programmes that has had an impact on society as a whole, but especially on the youth in recent years. The Big Brother Nigeria (BBN) show is a Nigerian reality competition television series based on the Big Brother television franchise, in which contestants live in an isolated house and compete for a large cash prize and other material prizes at the end of the show by avoiding being evicted by viewers who vote for their favourite housemates to remain in the show. The programme, on the other hand, is a game of choice in which viewers select the individual who has the most preferred character (AFANMEDIA, 2015). All of the candidates on the show spend the most of their time doing mundane activities like eating, bickering, playing in carefully placed bath tubs, and hamming it up for the camera (Multi Choice Africa, 2005). Because of the qualities of this programme, it attracts large audiences, averaging 30 million viewers over the course of its run, which is a lot of traffic for cable companies like Multi-choice (Osman, 2018).

Several studies have found that non-fiction and reality shows have a growing market share in the media. According to the Writers Guild of East America report (2019), nonfiction and “reality” TV shows have reached ratings success that equals or outperforms scripted shows. Nonfiction is frequently more profitable for networks since it is far less expensive to produce, owing to lower labour expenses. For these reasons, Abas (20220 believes that reality shows like Big Brother Naija are possible of earning big profits for cable television since they allow viewers to vote for their favourite participant. According to Douglas (2018), “reality” shows accounted for only approximately 20% of prime-time television programming in 2001, but 48% in 2021. Analysts in Media NYC (2022) characterize cable television profit margins as “eye-popping, with an average margin of about 40% annually.” While these reports indicate that reality programmes are beneficial for cable operators, little or no research has been undertaken in Nigeria on how Big Brother Reality Show affects cable subscriptions. Upon this backdrop, the researcher seeks to examine impact of Big Brother Show on the profitability of cable subscription: a case study of Multichoice

Objective of the Study

The broad objective of this study is focused on the impact of Big Brother Show on the profitability of cable subscription: a case study of Multichoice. Other specific objectives includes:

i.          To investigate the extent at which average Nigeria view Big Brother reality Show.

ii.        To investigate whether the desire view Big Brother reality Show influences cable subscription

iii.      To ascertain extent at which Nigerians subscribe to cable television due  Big Brother reality Show.

iv.      To determine whether  subscription due to  Big Brother reality Show will influence cable companies profitability.

Research Questions

v.        What is the extent at which average Nigeria view Big Brother reality Show?

vi.      Does  the desire to view Big Brother reality Show influences cable subscription?

vii.    What is the extent at which Nigerians subscribe to cable television due  Big Brother reality Show?

viii.  Does cable television subscription due to  Big Brother reality Show significantly influences cable companies profitability?

Significance of the Study

There are divergent theories on the future of cable television. The outcome of this  will find a mutually beneficial outcome for all involved parties. With some direction, producers and distributors have an opportunity to last for generations. This issue is applicable not only because of its timeliness, but also because of the many lives that rely on the continued success of cable industry.findings of the study will enlighten cable companies of the need to create more channels for nonfiction and reality shows as this will give them larger market share in the entertainment industry. More the study will enlighten viewer of big brother reality shows on  on the socio-moral consequences of the popular Big Brother Nigeria show. Hence, the study will apprise parents, youths, adolescents etc on the increasing unethical acts and displays conveyed in the Big Brother show which has to a great extent impacted a good number of Nigerian citizens on the dressing pattern, socio-moral values, sexual behaviors etc.

 Scope of the Study

The scope of this study borders on  on the impact of Big Brother Show on the profitability of cable subscription. The study further discuss the  extent at which average Nigeria view Big Brother reality Show and whether the desire view Big Brother reality Show influences cable subscription. The study is however delimited Multichoice.

Limitation of the Study

During the process of carrying out this study, the researcher was confronted with a number of obstacles, some of which were limitations pertaining to time and finances, as well as difficulties pertaining to language and the attitudes of the respondents. Nevertheless, the researchers were able to overcome these obstacles in order to guarantee the success of this investigation.

In addition, the case study approach that was used in the research presented the investigator with a number of difficulties, such as the chance of making erroneous judgments and being subject to prejudice. In spite of this, the investigator was successful in overcoming the difficulties by adhering to the broad principles of respect for processes, justice, fairness, impartiality in observation and recording, and the weighing of evidence.