MARKET PRICING, COMPETITION, AND CONSUMER WELFARE IN NIGERIA'S PAY-TV SECTOR

The rapid digitalization of Nigeria’s media and entertainment industry has reshaped the dynamics of the Pay-Tv market. Traditional channel bundling—where subscribers pay for fixed bouquets regardless of preferences—has long been criticized for eroding consumer welfare. This study reexamines pricing and welfare outcomes in Nigeria’s Pay-Tv market, focusing on the shift toward hybrid pricing and dynamic welfare models. Using primary data obtained from subscribers, firms and regulators, the research analyses consumer preferences and pricing models of Pay-Tv services in Nigeria. Findings reveal that, although traditional bundling still dominates, hybrid pricing models, rather than strict bundling regimes, have potential to improve welfare, particularly among younger, digitally active, and middle-income households. Consumer welfare is now more defined by price and choice flexibility, coupled with non-price attributes that are considered welfare-inducing. The widespread advocacy for pay-per-view systems simply point to one thing: subscribers want more flexibility of choice to enjoy their subscriptions. The study recommends adaptive interactions between consumers, firms, and regulators to effectively drive welfare and improve consumer satisfaction in this increasingly advancing digital age. Sustainable welfare gains will depend on a competitive, transparent, and consumer-centric regulatory ecosystem that adapts to the realities of digital convergence.