Two years after it entered the Kenyan pay TV market, Kwese TV owned by Econet Media on November 5 announced that it would be shifting from its satellite TV services to concentrate on its digital platforms effectively dealing a huge blow to Kenyan viewers.
But Kenyan sports and entertainment fans have been here before, a foreign company enters the Kenyan market and offers premium content at relatively fair prices which in the long run it is not able to sustain.
In 2009, GTV left Kenyan sports fans furious after it left in a huff following a decision by Gateway Broadcast Services (GBS), its parent company to wind up operations in the country.
Kwese and GTV have one similarity, they both tried to topple the big brother (DStv) who had a firm grip on the Kenyan market, their initial success was resounding before the music stopped.
The two firms acquired rights to broadcast football matches from the English Premier League (EPL) and spread the cost in the different markets that they were operating in. For instance by the time Kwese was folding up its broadcast channels, its subscription cost for 30 days was Ksh 1,745.
READ: ECONET DENIES COURT RULING SPARKED END OF KWESE SATELLITE TV SERVICE
DStv on the other hand charges DsTV Premium subscribers Ksh 7,900, the MultiChoice bouquet that offers a wide range of content including premium premier league matches. As a result many Kenyans found themselves preferring Kwese and GTV.
Acquiring rights to broadcast premier league matches is very expensive, In January 2016, DStv paid EPL Ksh. 34.6 billion to broadcast its matches from 2016 through to 2019.
Kwese had also acquired rights to broadcast giant American entertainment cable TV channel AMC shows and also licensed rights to broadcast cartoons from Jim Jam, Boomerang and Cartoon Network.
It now seems that the tough balancing act of acquiring the content from the foreign companies and spreading the cost to the different African markets proved to be a challenge for Kwese forcing them to throw in the towel.
Kwese will now focus on three core services including free to air channel Kwese Free Sports (KFS), Video on Demand (VOD) sports and entertainment platform Kwesé iflix and streaming service Kwesé Play.
Customers who had already subscribed for November or upfront will get a refund.
SEE ALSO: KWESE, NETFLIX NIGHTMARE FOR DStv
So what does this mean for the Kenyan market?
Just like when GTV left, Kenyans with an interest in watching premium content will have to go back where they started, subscribing to DStv.
The biggest lesson learnt for investors is that the African pay TV market is a tough nut to crack. The next one had better do their homework before splashing the cash.
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