Regulator pushes DStv to resell English league content

Entrants into the segment say the incumbent is monopolising content thereby hampering the growth of the industry.

Smart TV early this month on low uptake of it service and inadequate funding, making it the second pay-television operator in Kenya to close shop after GTV fell into financial distress in 2009.

The quest to share content comes as CCK is preparing to license 168 operators in the sector with a bias for a business model dubbed video in demand.

This model allows subscribers to buy specific programmes instead of packages that have made the pay-TV market expensive and forced consumers to buy content they have no interest in.

The CCK decision follows a study it had commissioned and released in March to look into competitiveness in the sector.

The study, conducted by Deloitte, indicated that the monthly subscription fees remain high in Kenya compared to other developing nations, a factor that could be locking out many from accessing the service.

The study also found that asking the English Premier League rights’ holder to re-sell content to competitors would increase the access of pay TV by consumers and that DStv would still earn revenue through the arrangement.

At present, the model proposed by Deloitte is practised in France, UK and Italy.

mokuttah@ke.nationmedia.com