Wananchi raises the stakes in pay-TV market

Wananchi Group’s multi-media brand Zuku is gearing up for an extensive rebranding after the firm announced that it would be launching exclusive programming.

The home-grown company seeks to dislodge South African-based DSTV from its pedestal as one of the top premium television content providers with the introduction of a Sh1.5 billion content development division, to be known as the Wananchi Programming Group (WPG).

The division aims to produce local content for its viewers.

“Global pay-TV penetration range between 20 to 80 per cent, while in Africa the penetration is still less than 0.1 per cent. This disconnect is where we see a great opportunity. At the same time, we want to offer our viewers content that add value to their viewing experience,” said Richard Bell, the Chief Executive Officer of East Africa Capital Partners, the majority shareholders of Wananchi Group.

The move is the latest in a string of strategic shifts the company has undertaken as it attempts to position itself as a one-stop entertainment, internet and connectivity provider.

Wananchi started laying the foundation for its assault on the premium television content market with its acquisition in 2008 of Mitsumi Cable— a cable TV firm that mostly served subscribers in the Westlands and Parklands areas.

It has since signed a five year lease with power provider KPLC for a pair of fibres on its cable costing Sh27 million a year that will give the firm the ability to ride on the utility firm’s countrywide network to extend the reach of its fibre network.

Wananchi hopes to ride on its fibre network to reach homes and small offices in urban areas, providing a mix of internet, telephony and television services on a single cable.

Its 187km cable network passes approximately 37,000 homes in Kenya.

The technology enables Zuku to offer such firsts as video-on-demand (VOD), pay-per-view (PPV) and multiple High Definition (HD) channels.

“This milestone puts us at the forefront of pay TV in this market. WPG was made possible by the Sh1.5 billion injection from Canada’s export credit agency, Export Development Canada (EDC),” said Wananchi Group chairman Mark Schneider.

WPG is currently building various themed channels for the Zuku, including Zuku Afrika, Sports, Movie and Life —all of which will contain original, high-quality content from the African continent.

Various studios and television producers are in advanced talks with WPG to provide their programmes to be aired on Zuku Afrika.

An agreement with Royal Roots in Nigeria will ensure a supply of West African comedy and drama, among other shows.

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