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| Editorial Cartoon [ Monday, December 17, 2007 ] | |
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Pay TV comes of age in Kenya
By CATHERINE RIUNGU
Special Correspondent
Pay TV is gradually finding its way into more living rooms in Kenya, shedding its image as a status symbol.
The era high subscription rates to costly installation equipment is over, as pay TV is now accessible for as little as Ksh1,000 ($15.60) a month, a development attributed to the entry of competition in a segment that, until mid 2007, was largely the preserve of MultiChoice — commonly referred to as DStv.
Pay TV firms are trying to introduce products that suit “every pocket.”
“This is one way of ensuring that Africans do not miss out on the digital race and more households access digital satellite television,” said one provider.
Although DStv has insisted that reduction of fees and introduction of additional channels was the outcome of its own market intelligence, it now acknowledges that the entry of Gtv in June woke the market up, resulting in increased subscriptions.
The cost of a satellite dish, decoder and smartcard fully installed has progressively dropped from Ksh48,000 ($750) in 2001 to Ksh25,000 ($390) in 2006 and now a little over Ksh 10,000 ($156) in 2007.
Subscription rates too have dropped to between Ksh4,800 ($75) and Ksh999 ($15).
Although low cost pay TV packages were introduced in 2006 when DStv launched the DStv Compact — a bundle of 33 DStv channels for Ksh1,750 ($27) — it was the entry of Gtv — with two bundles of 15 and 13 channels selling for Ksh2,750 ($42) and Ksh1,750 ($27) — that shook the market.
DStv reacted by launching the family bouquet of 24 channels for Ksh1,350 ($21), which recently was beefed up to 27 channels, to stay ahead of the competition.
Although subscribing to pay TV may be getting cheaper, industry players warn that with limited programme suppliers, the cost of content could go up with more providers bidding for the same content.
“The La Liga, for example, is the only one of its kind and if many people want to buy that content, there is no other La Liga, so obviously that one league will become costly to buy,” said Patricia Mbatia-Macharia, public relations manager of MultiChoice Kenya.
The race is heating up as the players sign exclusive deals for popular channel.
For example, DStv has a deal with the seven big movie producers in the world, locking out all other pay TV providers in Africa from obtaining movies from these suppliers until after they are screened on DStv.
Internationally, reality TV programmes such as Big Brother, Deal or No Deal and Project Fame are being screened alongside a growing offering situation comedies, dramas and telenovellas.
In an attempt to endear themselves to local audiences, there has been a move towards more local productions of drama and telenovelas from East, West and Southern Africa.
The providers are also fighting to introduce pan-African content such as Big Brother Africa, Idols, Survivor series and, recently, Deal or No Deal, with African participants. Eight Kenyans who have so far played the Deal or No Deal game on M-net have won a combined prize of $162,880.
Other Kenyan reality TV series include Catwalk Kenya, which saw one designer win $10,000; while a model — Farida Diba, a schoolgirl from Kayole, Nairobi — won $5,000 and a chance at a supermodel career under Ford Models.
The other popular channel on DStv is Africa Magic, the 24-hour African entertainment channel, which is now in its fourth year.
Ms Mbatia-Macharia disclosed that M-Net is about to announce the winning production house to receive funding to make a Kenyan series, which will show on DStv next year.
Plans are also afoot to launch a weekly Kenyan music programme on DStv that is being made in Kenya and funded by M-Net to the tune of $60,000.
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