How to start a TV Broadcast station business in Nigeria

How to start a TV Broadcast station business in Nigeria

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HOW TO START A TV BROADCAST STATION BUSINESS

The media work is to inform and entertain its viewers. It influences the public perception and may even change the hands of the government by putting pressure on them. Owning a TV broadcast station in Nigeria is not a walk in the park as it involves lots of finances, procedures, documentation and constituency. The cost of starting a TV broadcast station business differs when it comes to the location you want to establish it.

There are certain types of broadcasting systems. It is mainly divided in two which are known as the conventional and the modern broadcasting systems. Under these 2 main types, different categories still fall under them

  1. Conventional Systems

These are also known as the traditional systems. They have always been used and some of them are still used till now. Conventional systems are still popular among TV broadcast stations. They include

  • Analog Terrestrial TV

Under this category, broadcasting of television does consist of underground cables or satellite transmission. This method has be used since 1900s. Although the Analog Terrestrial TV is not recommended for those that want to start a TV broadcast station because it is an outdated technology. The information and sound in the Analog Terrestrial TV are encoded in analogue signals

  • Digital Satellite TV

The Digital Satellite TV is one of the most common and popular ways of transmitting television signals. In this category, signals are sent through set up boxes and satellite dishes to the viewers. The satellite rays relays the signals with the uplink satellite dishes. This category has many advantages as it can reach the maximum audience

  • Cable TV

The Cable TV transmission is carried through coaxial cables in this broadcasting system. It is different from the analogue or satellite dishes as it is used to transmit television channels to those that have subscribed for it in a particular region. It is mostly used for hosting local channels

  1. Modern systems

In the past decade, technology has evolved enabling the modern systems which are now used by all television broadcasting channels. The modern systems consists of

  • Digital Terrestrial TV

The Digital Terrestrial TV provides a wide range of channels than the cable connection or satellite dish. It delivers high quality pictures and clear audio. It is popular in European countries and other parts of the world too

  • Video on demand

This is also known as a video hosting channel and it enables users to watch videos in real time as per their demand. It allows the user to watch or download the videos on their devices to enable watching at any time.

  • Internet TV channel

Most users now watch news and entertainment on their personal computer and laptops through the medium of the internet. Even TV broadcasting stations are leveraging on the use of internet and applications to transmit information to their viewers. Starting an internet TV channel is relatively cheap.

Revenue model for a TV broadcast station business:

There are several models a TV station broadcast station business. The models are divided into two which are subscriber fee and advertising. But most TV stations generate through advertising. Many manufacturers and businesses advertise their products on their TV stations, which in turn bring a lot of profit to the company

PROCEDURES AND GUIDELINES ON HOW TO START A TV BROADCAST STATION BUSINESS IN NIGERIA

The following guidelines and steps must be considered before starting a TV broadcast station. It consists of the basic information you need to know and the things you need to put in place. They include:

  • Decide on the type of station or what you intend to be showing

As the owner of the business, you need to decide on the type of station you want to offer. Is it going to be religious, entertainment, news, movie, music, sports or is it going to be a combination of all the types in one station

  • Decide on whether you want to set up a new business or acquire an existing business

There are a lot of reasons why it makes sense to buy a business, but the most important reason why people acquire existing businesses is mostly because the cost of acquisition is low compared to starting up a new one. As a prospective owner of a TV broadcast station business, the decision is on which to take is your choice.  Buying an established station may help companies get a running start

  • Obtain funding
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Starting a TV broadcast station business in Nigeria requires a lot of money. As the owner of the business, you should consider how you will obtain funding for your business. A business owner can obtain funds from the following means

  1. Self-financing
  2. Families and friends
  3. Bank loans
  4. Investors
  5. Venture capital
  6. Selling shares of the company to the public
  • Formulate a business plan

This is where the business starts because having a business plan is vital to your business. Having a business plan will allow you understand how the industry works, the procedures, operations, cost and the revenue involved. The business plan will also state the type of services you want to offer and the purpose of your TV broadcast station. A well drafted business plan consists of

  • Executive summary (This will be done after the plan is written)
  • Business Overview
  • Market Overview: The Opportunity & Solution
  • Competition
  • Financial Highlights
  • Our Ask
  • The company overview

This is the introduction and description of your company. It covers the following details

  • Mission and vision
  • Overview of company history/capabilities
  • Product description and present stage of development
  • Competitive advantage (what’s different or better than competition)
  • Past customers and performance (if applicable)
  • Legal entity, hours of operation, location description and attributes
  • Structure & Ownership
  • Management Team
  • Intellectual property status (if applicable)
  • Commercialization strategies (if applicable – timeframe and actions to move from idea to marketplace
  • Product and services

This covers the following:

  • Definition of Products or Services to be Sold
  • Product Viability
  • Technology
  • Industry analysis, market analysis and marketing strategy
  • Swot analysis
  • Market analysis
  • Market size(Estimate of the total market size for the product or service and trends
  • Quantification of the size of each market segment in terms of (Naira spent, units used, number of people, percent of income etc.)
  • Competition to the business
  • Market Segmentation and Demographics
  • Customer Profile(Actual and potential purchasers of product or services by market segments)
  • Barriers to Entry
  • Marketing/sales plan
  • Management and operations
  • Summary of risks involved
  • Professional and advisors
  • Financials
  • Cash flow projection and/or existing (3 years) with breakeven analysis
  • Income/Expense projection and/or existing (3 years with ratios and benchmarks to industry)
  • Sources and uses of funds (funds needed, owner equity, how funds will be used/start-up cost analysis
  • Funding
  • Amount of Money Sought
  • Use of Proceeds
  • Project implementation schedule if any
  • Register your business with CAC

This involves registration with the Corporate Affairs Commission in Nigeria in order to ensure that your business is a separate entity from the owners. This will help reduce the risks in the business by protecting your personal resources. The business will be registered as a limited liability company. The following are the requirements for registering your company as a limited liability company

  1. The first step required by the applicant is to choose two suitable proposed names for the company. Where this is done, an availability check will be conducted on the CAC online portal to find out if the name is available and not already in use.
  2. Choosing the type of company to be registered whether a private limited company or private unlimited company or company limited by guarantee.
  3. The objectives and business of the company must be provided.
  4. The registered principal address of the company.
  5. The share capital and shareholding formula among shareholders will be required.
  6. The particulars of a minimum of two (2) Directors will be required. A copy of their means of identification such as voter’s card, national ID, drivers’ license or international passport.
  7. Particulars of the company secretary (one of the directors may also act as the Secretary of the company)
  8. The applicant will be required to furnish details of the shareholders of the company. Details such as names, occupation, residential address, email address, mobile phone number and means of identification such as driver’s license, international passport or national identity card. It should be noted that the directors listed can also hold the capacity of shareholders in the company if desired.
  9. The memorandum and Articles of association of the company to be registered which is advisable to be drafted professionally by a Legal Practitioner. However, the CAC has provided a generic MEMART, which any new company can be adopted.
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After which a consultant will prepare the following incorporation documents. They include

  1. Duly verified particulars of the director and statement of share capital known as CAC Form 1.1
  2. Duly stamped Memorandum and Articles of Association
  3. The individual completes all the incorporation documents with the input of an accredited lawyer to duly attest to the incorporation documents.
  4. The payment of the prescribed fees will now be duly made online and the incorporation documents immediately stamped online.
  5. The stamped incorporation documents will now be duly uploaded into the CAC online portal again for the final review of the commission
  6. If all the incorporation documents are well completed and executed, the commission will incorporate the company and issue an incorporation number immediately online.
  7. Certificate of Incorporation and the Certified True Copies of the other documents will be issued by CAC and received by the consultant or lawyer, usually in less than 48 hours after the company is duly incorporated by CAC
  • Obtain the necessary requirements and licenses

Before starting a TV broadcast station business in Nigeria, there are certain permits and licenses that will be required. A license will be gotten from the Nigeria Broadcasting Commission (NBC) where the application will be forwarded to the President of Nigeria through the minister of information.

The following steps will be required in order to obtain a license for the Television broadcasting business you want to setup:

  • The business should be registered as a limited liability company with the Corporate Affairs Commission in Nigeria. The articles and memorandum of association must include broadcasting as one the business your company wants to conduct
  • The company will write to the National Broadcasting Commission (NBC) in order to seek approval for the purchase of a set of application form that costs N50,000.
  • After receiving approval, the company will now proceed to purchase a set of application which will include a copy of Nigerian Broadcasting code and other documents that will provide insights to broadcasting in Nigeria
  • The forms that have been purchased should be completed and submitted with a copy of a comprehensive feasibility of a business plan for the proposed television broadcast station business to the office of the Director general of National Broadcasting Commission (NBC) in Nigeria
  • After the forms have been submitted, the application will be processed by the commission which will transmitted to the president of Nigeria through the minister of information. In Nigeria the constitution provision has the power to give the final approval for radio and Television license.
  • After the application of the applicant has been approved successfully, the applicant is expected to pay a license fee prescribed and sign a license agreement with the secretary of the National Broadcasting Commission (NBC) in Nigeria.
  • The license issued to the applicant has a life span of 5 years and if the license is not used within 2 years after a successful application, it will be revoked

The following documents will be required in order to obtain a license for the Television broadcasting business

  1. Obtain a bank draft of N50, 000 payable to Nigerian Communications Commission for the License. Note that the Commissions name must be written in full on the draft
  2. Fill the application form and produce two more copies.
  3. Certificate of Incorporation
  4. Tax Clearance Certificate but if it is a new Company, a tax waiver letter should be obtained and attached to the submission.\
  5. Certified true copy of Articles and Memorandum of Association
  6. 2 passport photographs of authorized representative
  7. Certificate of qualified technical staff. (if applicable)
  8. Completed application should be submitted in duplicate with all necessary documents attached and bound
  9. License fee on submission of application is N10,000
  10. All payments are in bank draft
  • Location of your studio

The next you need to decide on a studio location. This is where you will be setting up your equipment. The cost of acquiring a studio or location where you will set up your studio depends on the state. Setting up a studio in Lagos or Abuja is very expensive

  • Consider your competition
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The competition in the media especially in TV broadcasting stations are usually fierce. Before starting a TV broadcast station in Nigeria, you need to consider those who are going to be competing against your new establishment. It is better as a new owner to ensure that you are doing things much better than the competition

  • Talk with those who are already in the business

Before starting a TV broadcast station business in Nigeria, you need to also consider talking with those who are in the business. You can consider those in other states to provide you insights and their experience on their company. Since they are in other states and you are not stealing their customers, they will be willing to share information on the industry with you

  • Obtain the necessary equipment needed to start up the business

Obtaining the necessary equipment to start a TV broadcast station business is high. A suitable studio will be needed for the broadcast where all the necessary equipment will be put in place. The basic equipment you will need are

  1. Professional cameras
  2. Headphones
  3. Jack panels with cords
  4. Standing microphones
  5. Turntable arms
  6. Monitor amplifiers
  7. Audio network routers
  8. Flash card recorders
  9. Non-linear editing system
  10. Audio limiters
  11. 6-inch equipment rack
  12. Cd players
  13. Air conditioners to cool down the equipment
  14. Standby generators
  15. Production lighting board and grid, including installation
  16. 25-watt digital translator
  17. Transmission line w/connectors and hangers
  18. Television tower
  19. Tower foundation
  20. Tower installation, including mounting antenna and line
  21. Translator installation
  22. Equipment shelter
  23. Video signal test generator
  24. Real-time transport stream monitor
  25. Video/Audio multichannel test
  26. Bench power supply
  27. Spectrum analyser with sideband adapter
  28. Waveform/Vector scope
  29. Colour monitor
  30. Scope camera
  31. Frequency counter
  32. Field intensity meter
  33. Audio test set
  34. Portable HD camera with lens and cases
  35. Portable audio mixer
  36. Shotgun microphone with fish pole
  • Hire experienced staffs

When starting a TV broadcast station business, you will need different set of employees such as

  • Newscasters
  • On air personalities
  • Engineers
  • A DJ
  • Script managers
  • Editors
  • Security men
  • Production managers

Personnel can be gotten through

  1. Posting about the vacancy on your website and across any social media or email marketing channels
  2. Asking your business network, as well as friends and family if they know anyone suitable
  3. Adding the vacancy to general recruitment websites
  4. Advertising the vacancy in industry trade media or local newspapers
  • Give public notice and market your company

After all is set and the business operation is ready to proceed, announcements should be made through various media in media such as the newspaper, billboards, magazines and radio. You must ensure that you provide excellent services to your viewers in order to build your reputation and attract more viewers

CONCLUSION

Starting a TV broadcast station business in Nigeria is very expensive and requires a lot of resources, expertise and documentation. Whether you consider buying an existing company or a new company, take into consideration all the steps and procedures needed before starting a new TV broadcast station including the competition involved.

Having the right source of information coupled with a guide or a consultant to take you through the process of starting up your business will go a long way in ensuring that your business develops and grows. It is very important for the business owner to seek consultancy services from experienced people. For more information on how to start a TV broadcast business in Nigeria, you can contact us on  08023200801, 08075765799, Email: info@qeeva.com

About the author

Onamakinde Dare Daniel is a highly motivated accountant with knowledge in Accounting, Taxation, Management, Audit, Costing and Research. He is keen on tax matters due to its ever dynamic nature.

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