Competition, harsh economic times driving down TV content prices

Competition, harsh economic times driving down TV content prices

Competition is driving the TV content market to new levels as players move to realign strategies with a fast changing market. Harsh economic times and the need to stay realistic to needs of a rising customer base is fast causing a downward trend in prices charged for pay TV content as new entrants like Kwese TV continue to agitate for more rights. Kwese Sports has most recently acquired rights to air IAAF athletics events, with partial rights to English Premier League games. This development could be a pointer that sub-Saharan Africa could soon witness deceased pay TV charges going into the next few years.

For example; DSTV customers can now view their favorite shows like football at a favorable price.

At a news conference in Nairobi on 29th August 2017, Multichoice Africa announced a new regime of tariffs for its customers in Kenya in what is largely seen as an approach to harsh economic times and an increasing online television audience in the advent of fiber internet enabled streaming. Multichoice through its famous SuperSport brand is the driving engine behind the growing love for European leagues particularly the monumental rise in fan numbers of English football.

The reduction in prices is estimated to be between three and nine percent and will be effective from September 1st. Subscribers on the cheapest Access Package will pay Sh950 down from Sh1050 previously charged on the tariff. A further 9.68% drop on the compact subscribers’ charges will now see

them pay Sh3, 200 down from Sh3550 while Compact Plus users will pay Ksh5, 200 a reduction of Sh225 from the Sh5, 425 charged before.

On the other hand Premium tariff users will now pay Sh7, 900 down from Sh8, 180 previously charged. Multichoice Kenya MD Eric Odipo allayed fears that these price adjustments might be altered by changes in exchange rates saying that not much currency devaluations is expected for the remainder of the year.

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