Pay TV operators to lose exclusivity of prime contents

Pay TV operators might soon be forced to sell their treasured premium content to rivals once a new regulation sponsored by the Communications Authority (CA) comes into force.

The draft regulation by the authority seeks to end exclusivity to premium programmes for TV channels in the country.

The move could see some of the operators lose their edge in the Kenyan market, where they hold exclusive rights to air content.

If the regulations go through in the form that the authority is proposing, Mutlichoice’s DSTV will take a major hit given that it might be compelled to share with its competitors rights to air such content as the English Premier League, which has a huge following locally and aired exclusively on its Supersport channels.

Francis Wangusi, CA Director General said the exclusivity has made some of the firms operate in a monopolistic manner, pricing their products in a manner that hurts the consumers who have no other options but to pay exorbitant fees.

He said the regulations will be ready in September when they will be unveiled for stakeholder consultations.

“Anybody with premium content should know that it will no longer be exclusive. Other operators that will want the same premium content can be able to get them from the companies that hold the rights to them through a commercial arrangement,” said Wangusi.

“They have in the past used the content as a tool to price their services too high and frustrated consumers.”

DSTV has for years been in battles with other pay TV operators that have wanted to buy content from the company to air some of its exclusive contents.

Wananchi Group’s Zuku has for years now been fighting to have DSTV share its premium content in particular rights to air EPL in Kenya on a commercial basis. The firm has argued that the exclusivity was anti-competition and has stunted the pay TV market in Kenya.

Zuku has also wanted to air local sports – football and rugby – where DSTV also has exclusive rights.

More recently, national broadcaster KBC has succeeded in getting the high court to bar pay TV operators from airing World Cup matches despite their protests.

The matches are currently being aired by KBC and DSTV’s super sport channels. Star Times Media and Zuku were taken to court by the Kenya Broadcasting Corporation (KBC) for airing the World Cup matches without authorisation and the court ruled in favour of KBC.

Wangusi also added that the authority would also migrate the licensing regime where pay TV operators would now be required to get permits as opposed to current situation where they are issued with permits.