Race for subscribers in pay TV market intensifies

 

Summary

·         By 

GaGadiosa Lamtey\

Star Times dominates antenna decoders, commonly known as digital terrestrial television (DTT), with 1.49 million of the country’s 1.667 million active DTT devices

Dar es Salaam. From the use of antennas and cable connections to satellite dishes, Tanzania digital television operators are fighting for viewers as subscriptions grow.

The number of active decoders has increased by 33 percent in the last three years to 3.369 million units at the end of December 2022, while subscriptions to cable TV services grew more than fivefold, from 16,786 to 85,802, according to the Tanzania Communications Regulatory Authority (TCRA).

While the services are available all over the country, the distribution of cable TV subscribers is mainly around the lake zone, led by the Simiyu region with a total of 4,598 subscribers, followed by Mwanza with a total of 3,485 subscribers. On the other hand, Dar es Salaam is ranked first in terms of distribution of decoders, followed by Mwanza and then Mbeya. The regions on the Tanzanian mainland with a smaller number of active decoders are Songwe and Katavi.

 

Race hots up

Pay TV companies are fighting for viewers with innovations in the content they provide through their respective decoders, while subscription rates are frequently reviewed to capture lower-income earners.

In general terms, Star Times is the market leader with 2.09 million active decoders, followed by Azam, which has 900,867, and Multi Choice (DSTV), which has 256,329 active units.

Looking at the kind of decoders, Star Times dominates the antenna decoders, also called digital terrestrial television (DTT), with 1.49 million out of the 1.667 million DTT boxes active in the country.

On the decoders that use satellite dishes, also known as the “digital to home (DTH) platform,” Azam is leading the market with 789,092 subscribers.

In terms of general growth, Azam recorded the highest growth rate of 47.7 percent comparing the data for 2020 to that of 2022 while DSTV grew by 31.1 percent.

Star Times also grew by 12.2 percent, according to the TCRA figures.

Other decoder operators include Continental, whose subscription dropped from 69,385 in 2020 to 65,554 in 2022, and Zuku, which also decreased from 53,587 to 34,115 decoders in the same period. Digitek’s tally has slightly increased from 17,382 to 17,392, while that of Agape increased from 3,776 to 4,001, according to the TCRA’s latest report.

TCRA director of industrial affairs, Dr Emmanuel Manasseh said broadcasting services are performing well amid strong competition. “That helps customers get quality content that is improved, and that is also good news for the regulator,” he said.

Technological development around the world has also enabled users of the internet to access digital television anywhere they are without necessarily having a physical decoder. The tech advancement requires the service providers to be more creative by designing content crucial for sustainability of their business.

“Currently, you can download applications and get the same content. So, we ask the service providers to be more innovative; otherwise, they will find themselves out of business,” he noted.

Dr Manasseh added that service providers in the country have also started to go along with what the market wants, as many of them have mobile applications that a customer can access through a mobile phone and the internet.

“We know that creating content is expensive, but without investing, the market will throw you out. Right now, people want content that will give them a solution to unlock development activities. The service providers should also focus on providing education, for example, on how a farmer can easily sell their produce without going to the market,” he stressed.

According to him, instead of service providers waiting for advertisements, they should find ways of entering into contracts with people using technology that educates them and solves their problems. Senior lecturer at the University of Dar es Salaam’s College of Information and Communication Technology (CoICT), Dr Moses Ismail, said the decoder market has grown due to the availability of quality pictures and local content such as football matches and movie series.

“In Tanzania, I can say the market for movie series has contributed largely to people buying decoders. The price of installation and payment for packages, depending on the financial muscle, have also contributed to the increase,” he emphasised.

According to him, the content is currently more focused on entertainment, but in the digital economy, there is a need for investing in content that can educate people on how they can simplify their daily economic activities.

Africa’s pay television industry is projected to add 16 million new viewers over the next five years as top players step up the battle for compelling and affordable local content.

Between 2022 and 2028, the continent’s pay-TV subscribers are projected to rise by 38 percent to 57 million, according to a new report by research firm Digital TV Research.

Pay-TV revenues on the continent are forecast to reach $6.44 billion by 2028, up by 29 percent from $4.99 billion in 2022, signalling that consumers are likely to benefit from falling monthly subscription rates.