By Jackson Okoth
A ruthless rivalry for control of Kenya’s fast growing Pay TV market is unfolding. This follows the entry of deep-pocketed StarTimes, a Chinese Digital Pay TV company, into the business.
StarTimes is challenging the dominance of South Africa’s MultiChoice Ltd, owners of the DSTV bouquet and Zuku-run by Wananchi Group — a Kenyan–owned firm.
“I am informed that StarTimes currently offers the most comprehensive incorporation of the analogue channels currently broadcasted in Kenya,” said Prime Minister Raila Odinga while officially launching the digital TV service last week.“With the company’s satellite and terrestrial technology, this has provided an open and secure multi-frequency and multi-channel digital wireless television transmission platform.”
The Chinese firm is making its debut after a number of firms, which have attempted to set up in the Pay TV market, shut down their operations here and left in a huff.
Exit of firms
The latest player to switch off their signal, leaving behind angry subscribers with useless decoders on their hands was a Swedish firm Next Generation Broadcasting (NGB), operators of the Smart TV brand.
Also leaving this market with a bloody nose after its products failed to impress subscribers was GTV - a direct-to-home, satellite-based Pan-African pay television and subsidiary of UK’s Gateway Broadcasting Service (GBS).
At a lowly priced proposition of only Sh500 for a basic bouquet, StarTimes aims to eat into DSTV’s turf whose cheapest bouquet goes for $10 or Sh850 per month. Zuku’s lowest offer is priced at Sh999.
StarTimes is investing some Sh6.3 billion ($75 million) to roll out its digital TV menu countrywide.
However, DSTV still has exclusive rights to air live English football, giving it an edge over StarTimes and Zuku. MultiChoice is using satellite-based technology, making it easy to access the service anywhere.
However, DSTV subscribers have to grapple with service interruptions whenever severe weather conditions such as rain or windy conditions occur. StarTimes TV uses a plug and play decoder, which works without a dish and uses a mast for transmission of signals, which makes it all weather friendly.
Competition in the Digital Pay TV Market is expected to intensify in the coming months as Zuku and DSTV react to StarTimes.
Industry sources disclosed that Zuku is proceeding with a plan to increase its programmes.
For instance, one of its projects include Hyped East Africa, a travelling music show that will showcase nightlife in East Africa, covering Nairobi, Kisumu, Embu, Mombasa, Malindi and Eldoret.
Viewership
This programme is expected to hit the screens on August 4, 2012. Then, there is Mentality — a males’-only show expected to kick off on September 16, 2012.
Zuku subscribers will also be offered the Bush Lander - a wildlife programme, a Swahili channel that shows exclusively Swahili plays and another Channel that will be profiling famous local athletes.
While the StarTimes signal coverage is only in Nairobi, Kisumu and Mombasa, the company plans to reach Nakuru and Nyeri in August and as far as Webuye by September this year. Already, its signal in Nairobi’s Upper Hill covers a radius of 140 square kilometres and serves the surrounding Machakos, Murang’a, Gilgil, Kajiado and Narok.
There is another signal in Limuru, which also has also has a similar radius. “Unlike previous entries, StarTimes is heavily supported by government as part of its initiative to encourage migration from analogue to digital platforms,” said James Mwangi, a dealer with Jamtech Communications Ltd in Nairobi.“We also expect the price of decoders to begin falling soon due to growing competition.”
