Pay-TV stations under pressure as CCK licenses 84

 

DStv managers at a past function: The new licensing model will put pressure on firms like DStv , Zuku, and free-to- air stations. Photo/FILE  Nation Media Group

By Okuttah Mark

In Summary

• The Communications Commission of Kenya (CCK) on Wednesday said the new providers would be licensed under the digital broadcasting regime, which is replacing the analogue platform.
• It was not clear whether the new operators will offer free-to-air services or pay television that is currently dominated by DStv.
• This is expected to lower costs of operations and remove an entry barrier that has partly contributed to the dominance of DStv and the collapse of its rivals like GTV and Smart TV.

Competition in Kenya’s television broadcast market is expected to increase as the industry regulator announced it has issued temporary licences to 84 new stations.

The Communications Commission of Kenya (CCK) on Wednesday said the new providers would be licensed under the digital broadcasting regime, which is replacing the analogue platform.

It was not clear whether the new operators will offer free-to-air services or pay television that is currently dominated by DStv.

“During the quarter, the Commission issued temporary authorisations to 10 new television (TV) stations to provide TV signals on the digital platform thereby bringing the total number of entities with temporary authorisation to 84,” said the CCK in an industry report released Wednesday evening.

“The Commission continued to ensure plurality and diversity in the broadcasting industry.”

Unlike in the analogue broadcasting the new operators will not be required to establish broadcast infrastructure like masts, but will be hosted by licensed signal distributors like Signet and Pan African Network at a fee.

This is expected to lower costs of operations and remove an entry barrier that has partly contributed to the dominance of DStv and the collapse of its rivals like GTV and Smart TV.

The new operators have been issued with the temporary permits pending the conclusion of a case lodged by Media Owners Association barring CCK from migrating them to the new digital licensing regime.

READ: Media owners get reprieve in signal distribution row

The Media Owners Association won court orders barring CCK from shepherding the migration because the regulator was not an independent player as envisaged under Section 34 of Constitution.

Earlier, the information ministry noted that new licensing regime will provide for video on demand, which allows subscribers to buy specific programmes instead of packages that have made the pay-TV market expensive and forced consumers to buy content they do not need.

Most of the permits, the ministry said, were to be issued to thematic areas such as sports, culture, environment, religion and industry.

This model would exert competition pressure on pay television providers such as DStv, Zuku, My TV and free-to- air stations.

The Business Daily failed to establish whether the operation model of the new players has changed from this earlier position. CCK did respond to our questions on the issue.

DStv has largely been riding on the exclusive rights it holds on key content such as sports, including the English Premiership League, to win a following of about three million subscribers in several African markets.