Report wants DStv to share football rights with its rivals

MultiChoice, the owners of DStv, could be compelled to re-sell the popular English Premier League (EPL) rights to rivals from 2014 if it is established that they are hindering growth of pay television in the country.

Competing companies, however, faulted the more than two years waiting period recommended in the report and are pushing for immediate implementation.

“Why do a study, then wait for another two years to conduct another study on the same things we are raising now?” asked Richard Bell, the chief executive at Wananchi Group, the owners of Zuku.

The study conducted by Deloitte for Communications Commission of Kenya (CCK) indicates 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.

Robust consumers

The regulator commissioned the study to establish the level and extent of competition in the various broadcasting market segments including free-to-air TV, pay TV, radio and the digital terrestrial television broadcasting.

The recommendation to have winner and holder of the English Premier League rights re-sell content to rivals comes in the background of another investigation initiated by Competition Authority to investigate the sector following the collapse of Smart TV.

“This option may be introduced, provided the third parties present robust consumer evidence that a substantial number of households choose provider based on availability of EPL.”

DStv has a number of exclusive channels, especially sports content that has made it difficult for rival broadcasters to offer meaningful challenge.

The English Premier League draws huge crowds to entertainment joints in Kenya, especially during big matches, partly because commercial subscribers can afford the services through sales margins.

DStv declined to comment on the report.

“I need more time to go through this document before I can comment on anything,” said Claire Ruto, MultiChoice Kenya regulatory affairs officer.