Tuesday, 7 August 2007

GTV ups the stakes in sports industry

The latest entrant in pay TV in the region has been causing quite a stir and to make things even more interesting , they have sort more involvement in sports in the East and Central African region for starters.
Over the weekend, the founder Mr. Julian McIntyre said that they will hope to take at least 18 months to break even in their operations. They are to invest KShs. 140 million in developing local content material in 2 main sports discipline, football and athletics. He said this when he signed a 5-year deal with the Ugandan football federation FUFA worth approx. KShs. 332 million (US$ 5.03 million) for the coverage of all Uganda national team's games, Super League (which has 18 teams ) and the Kakungulu Cup-Uganda's version of the FA Cup.
In the arrangement, all teams in the League will be entitled to approx. KShs.1 million and the winners will take an extra Kshs.720000.
It's commendable also since the company is seeking other partners for the 2 disciplines. It is also positive to note that they are trying to focus on not just overseas broadcasts and leagues but also developing local ones and having local crowds appreciate their own.
My issue is with KFF-Kenya Football Federation...where art thou my brethren ?
To add more curry into the market, they are launching a partnership with East African Breweries Limited, where they will offer affordable and attractive packages to the 13000 odd bars registered, which offer mainly sports coverage with English Premiership football topping the bill. Social halls are also targeted in this campaign. The Commercial Director-Mr Rhys Torrington- though not in detail said they will unveil this in the next 2 weeks.
These businesses would subscribe for at least $50 per month. To avoid subscribers using the bar package at home, Mr Torrington said, the hospitality package would display a beer bottle on the screen. Bars and hotels that show major football matches are often able to not only lure more clients but can charge a premium on their offerings because of it.
He added that in the longer term they will hope to attract more middle income level earners thus the competitive pricing and programming.It wants, he said, to double the number of pay-TV subscribers in Kenya by December—with a regional target of 60,000 subscribers for the first three east African markets. Mr Torrington said that Kenyan consumers, who have higher buying power would make up the bulk of this number.
There you are , don't say you never heard this....what interesting times ahead for Pay TV in the region and Africa at large !

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