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Masiyiwa to wrestle Multichoice for Pay TV market

Entrepreneur Strive Masiyiwa


Serial entrepreneur Strive Masiyiwa has announced plans – through Econet Global – to launch a pay TV service known as Kwesé TV, which will offer exclusive sports and entertainment programming to African markets.

The newest venture, which has been in the pipeline for three years, will see Econet Global competing with Multichoice, owners of DSTV, who have dominated the pay TV service since 1995.

“You may know of other companies in this market, most of which either provide content that’s far too expensive, or content that’s just so bad it's not worth paying to see it, even if it’s cheaper.

We know you understand what the problem is. And I believe my team has developed an exciting product which will change that dynamic,” said the billionaire on his facebook post before adding that Kwesé TV’s success will depend on their ability to acquire and also to develop new, high-quality and unique programming at an affordable price.

Dr Masiyiwa said that "Kwesé" means "everywhere" and “anywhere" signalling their intention to penetrate the African market as a whole in a similar manner to MultiChoice’s strong footprint across Africa.

It won’t be the first time a company tries to wrestle Multichoice for the pay TV market share. In 2010, On Digital Media, owners of StarSat pay-TV service was expected to give DSTV serious competition through their TopTV service but the business has since floundered and it’s languishing under a business rescue process.

Multichoice’s lack of credible competitors has made the company a target of criticism for being a monopoly as it controls 98 percent of satellite TV in Africa. Furthermore, DSTV has taken some flak for continuously increasing prices without much improvement on the content they are offering, often accused of airing too many repeats.

But Multichoice continues to be a money spinner for its parent company Naspers. Multichoice reported in its 2015 interim financial results that its group revenue increased from R15.1 billion to R17.1 billion, while its core headline earnings grew from R3.2 billion to R3.6 billion over the past year. DStv’s subscriber base in South Africa also grew from 5.1 million to 5.5 million homes year-on-year. In total, DStv has more than 8 million subscribers across Africa.

However, Econet Wireless might prove to be Multichoice’s most formidable competitor yet. According to Masiyiwa, Kwesé TV will be built around Econet’s core capabilities of satellite communications, fibre optic networks, and mobile services.

Econet is a privately held diversified telecommunications group with operations and investments in Africa, Europe, South America, North America and the East Asia Pacific Rim, offering products and services in the core areas of mobile and fixed telephony services, broadband, internet, satellite and fibre optic networks.

Econet was founded in 1993 by Strive Masiyiwa, who first came to international prominence when he fought a five-year constitutional legal battle leading to the removal of the state monopoly in Zimbabwe’s telecommunications sector. The landmark ruling is regarded as one of the milestones in the opening up of African telecommunications to private capital.

Econet subsidiaries include Econet Wireless International, Econet Wireless Africa, Econet Wireless Global, Econet Enterprises and the Liquid Telecom Group.

But Billy Sekgororoane, Managing Director of Multichoice Botswana, is not a worried man. “We welcome competition as we believe that it benefits the broadcasting and production industries, it can also contribute to diversification of economies, the growth of local production industries and a pluralism of services to customers. Ultimately television viewers may benefit through the additional volume and variety of content that will be distributed by various operators in the market.”

On the issue of Multichoice’s monopoly on the Pay-TV market, Sekgororoane says that couldn’t be farther from the truth. As a matter of fact, Multichoice’s view is that competition in a market stimulates growth, which in turn stimulates the industry and when that happens, the industry in Africa will grow and branch out into the rest of the world. “That is the position that Multichoice wants to be in. Multichoice is, therefore, not a monopoly and does not encourage monopoly in any way,” He remarked.

While consumers might hope that the imminent competition between Kwese TV and DStv will result in competitive prices, Sekgororoane points to a tough trading environment and has defended Multichoice’s annual price increases as borne out of survival than pure profit making.

“Subscription price increases generally occur every year in April, at the beginning of our financial year. These are necessitated by increasing input costs.  Multichoice Africa’s cost structure has various input costs, which include staff costs, technical infrastructure costs, satellite lease costs, facility cots, marketing and programming costs.

In determining the price increases Multichoice takes into account many factors including, and amongst other things, current inflation, impact on subscribers, efficiencies that may be effected in the company that may offset the necessity for a price increase. Unfortunately, it is necessary to effect price increase due to the ever rising costs to the business.”

He however explained that Multichoice has various packages that will appeal to different consumer segments depending on what they can afford.  Multichoice offers a variety of bouquet options on its DStv service, from basic to premium services. “The range of DStv packages allows subscribers flexibility in price (from P105.00 to P610.00 per month), and choice without compromising quality and variety. Subscribers are able to choose any bouquet of their choice depending on affordability and needs” said Sekgororoane.

Pay TV revenues in Sub-Saharan Africa will reach $6.22 billion in 2020, up from $3.54 billion in 2014 and $1.92 billion in 2010, according to a new report from Digital TV Research released in January 2015. The fourth edition of the Digital TV Sub-Saharan Africa report forecasts that South Africa and Nigeria will contribute more than half of the region’s pay TV revenues by 2020 for the 34 countries covered. Second-placed Nigeria will more than double its revenues from $449 million in 2014 to $1,148 million in 2020.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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