Wednesday, February 4, 2009

The football match will not be televised!

The same blank screen faced many bar and restaurant owners across East Africa last week. GTV the pay television network left many literally in the dark, wondering how they would explain to their patrons why they could not show them the live broadcast of the Manchester United and Everton match. Indeed the English Premier League generates as much if not more following amongst East Africans compared to say CECAFA. League fans have in turn boosted the earnings of many entrepreneurs in the hospitality industry, and thus the blank screen was not welcome to many.

The only consolation GTV could offer their customers was a short message that the company had ceased its operations. This was done without any prior notice. According to the parent company, Gateway Broadcast Services (GBS), the global financial meltdown had given the company no choice but to cease operations. In less than two years the company that changed the face of pay-TV was no more.

If anything GTV will be remembered for was that it challenged front runner DStv who in turn had to fight to woo middle income customers by lowering prices and offering numerous promotions. GTV had even-one upped DStv in its billing. In October last year the company unveiled an innovative payment system that enabled customers to pay their monthly subscription fees using scratch cards. Compared to the long queues faced by customers of its competitors this was revolutionary.

Then having the exclusive rights to broadcast English Premier League matches, the company seemed on its way to actually facing up to market leader DStv in a new way. This also paved the way for new entrants such as Zuqka as more people realised that a little extra money spent to get pay-TV could greatly enhance their choice of programmes and home entertainment experience. DStv even introduced a package with a few target selected channels that was competitively priced to reach the same middle to low income market.

But all that is water under the bridge. So what now?

DStv can now reclaim its customers. GTV’s fall has not quenched our thirst for football. The match must go on, and now restaurant and bar owners will have to fork out for super sports if they are to keep their custom. As for Zuqka, their market is still assured with younger and less well off consumers.

What about any new entrants?

The way GTV just closed without notice has made it an uphill task for any entrepreneur thinking of coming onto the market. How to convince those business owners, the scratch card distributors and the consumers to trust a new upcoming entrant will be an uphill task. However, with rights maybe to start airing local championships live, you never know. After all, the match must be televised, wapende wasipende!

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