Race for digital-TV viewers heats up as decoder prices tumble
GOtv Kenya general manager Felix Kyengo during the announcement of price reduction on its set top boxes. PHOTO | FILE
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Pay television broadcasters – including DStv owners MultiChoice, Wananchi’s Zuku and China’s StarTimes – have slashed prices of their pay-to-view decoders ahead of the December 31 switch deadline set by the Communications Authority of Kenya.
Pay-TV companies have stepped-up the race to sell decoders to viewers even as free-to-air media owners remain locked in a battle with the communications regulator to extend the deadline for switch-over to digital broadcasting.
The pay television broadcasters – including DStv owners MultiChoice, Wananchi’s Zuku and China’s StarTimes – have slashed prices of their pay-to-view decoders ahead of the December 31 switch deadline set by the Communications Authority of Kenya.
Free-to-air media owners – including television stations such as NTV, KTN, and Citizen – are however demanding a delay in the switch date to allow them time to import their free-to-air decoders on fears that the December 31 deadline will give their pay-TV rivals the advantage of locking in subscribers.
Free-to-air broadcasters have been locked in a legal tussle with the regulator who overlooked them when awarding digital broadcasting licenses to foreign-owned firms.
Having been awarded a joint digital broadcasting licence less than two weeks ago, they now find themselves with less than a month to import decoders for sale to customers who do not wish to pay monthly subscriptions to watch TV.
The free-to-air broadcasters are said to be contemplating court action or switching off their signals if the communications regulator over-rules their application for more time.
On Friday, Tanzania-based pay television Azamtv launched in the country, becoming the latest pay television entrant in the market, in a week that also saw MultiChoice Kenya’s subsidiary GOtv cut the prices of its decoders to Sh1, 799 from the previous Sh3, 399.
The entry of Azamtv is set to increase competition in the lower market segment of pay television, with the launch of its package that retails at Sh870 per month.
Azamtv subscribers will need to pay Sh6,300 for the decoder, satellite dish and installation fees. Those with satellite dishes will pay Sh2,905.
“We are today (Friday) launching our digital direct to home service in the Kenya market which will be broadcast via satellite…, we anticipate (this) will step up competition in Kenya,” Rhys Torrington, CEO Azam media group, said during the launch.
Apart from Kenya, Azam Media also has presence in Malawi, Rwanda, Burundi, Mozambique and South Africa.
Data from from the industry regulator indicates that out of the 5 million households with television sets in the country, only 10 per cent have subscribed to pay television services.
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