Business Daily<\/a> (Nairobi)<\/p>\nOkuttah Mark<\/p>\n
11 December 2011<\/p>\n
\nNairobi \u2014 The battle for control of Kenya’s Pay- TV market is set to intensify as DStv unveiled another low-cost product, highlighting the importance of the bottom end segment for growth.<\/p>\n
The firm on Friday released a hand-held device that will enable subscribers to watch free-to-air stations like NTV, KTN, KISS TV, and K24 and access selected entertainment channels on its pay-per-view channels.<\/p>\n
The product, dubbed ‘Walka’, will have a minimum charge of Sh385 a month to access 11 channels or Sh990 to access 15 channels. It comes months after the company launched two low-end products in the race to defend and grow market share from recharged rivals.<\/p>\n
The first product comes with a monthly charge of Sh440 to access services through a mobile gadget and the other dubbed GoTv will cost Sh585 per month for news, documentaries, sports and movies.<\/p>\n
Stephen Isaboke, the general manager MultiChoice Kenya said the company — which has targeted Kenya’s middle class — is going mass market with the roll-out of cheap packages.<\/p>\n
“Growth comes faster by getting into the bottom of pyramid and this segment is our main focus now,” said Mr Isaboke, adding that the high cost of access devices remains a challenge. The Walka access kit is retailing at Sh9, 999.<\/p>\n
DStv is looking to use pricing as its arsenal to gain marketshare from its main rival Wananchi that has threatened to shake its dominance of Kenya’s pay TV market with a low cost model.<\/p>\n
Wananchi’s product costs between Sh999 and Sh2, 999, but the company has applied to the industry regulator Communications Commission of Kenya (CCK) to allow it to offer its services through hand-held devices.<\/p>\n
This will give it room to introduce cheaper products and broaden its offerings, said CEO Richard Bell.<\/p>\n
New entrants like Smart TV, My TV, and Star TV have also joined the race to dislodge DStv which has had little competition over the last 15 years.<\/p>\n
The planned entry of the mobile telephony firms into the TV market is set to complicate the market outlook more for the pay-TV firms, and DStv seems to be racing ahead with portable decoders.<\/p>\n
Globally, mobile TV is seen as a new growth area for both broadcasters and mobile firms.<\/p>\n
Still, DStv hold of a number of exclusive channels, especially sports contents such as the English Premier League has made it difficult for rivals to offer meaningful challenge.<\/p>\n
Sports content is crucial since it attracts subscribers, and DStv has signed exclusive deals with Kenya Premier League and the rugby association.<\/p>\n
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