StarTimes’ growth plan in Uganda

StarTimes customer care office in Kampala. Photo/Morgan Mbabazi

What you need to know:

  • StarTimes is targeting the low and middle income pay-TV segment with its new Digital Video Broadcast Terrestrial (DVB-T2).
  • The devise will retail at Ush90,000 ($34.7)
  • The “basic package” of 35 channels for example, costs Ush15,000 ($5.8) per month, the “classic package” of 45 channels costs Ush30,000, while the “unique package” of 52 channels costs Ush45,000 ($17.4).

Chinese broadcasting firm StarTimes is seeking to consolidate its market share in Uganda with the recent launch of an advanced decoder.

StarTimes is targeting the country’s low and middle income pay-TV segment with its new Digital Video Broadcast Terrestrial (DVB-T2).

The devise will retail at Ush90,000 ($34.7) undercutting the South African giant Multichoice’s GOtv decoders, which also target the low and middle income market, at Ush139,000 ($57.5) for 18 channels and Ush154,000 ($61.7) for 23 channels.

StarTimes, that started operations in the country in 2010, has 52 channels but offers a choice of bouquets.

The “basic package” of 35 channels for example, costs Ush15,000 ($5.8) per month, the “classic package” of 45 channels costs Ush30,000, while the “unique package” of 52 channels costs Ush45,000($17.4).

Replacing decoders

Simon Arineitwe, the StarTimes country marketing manager said the firm will also replace at no cost all the DVB-T1 decoders, sold to subscribers prior to the Uganda Communication Commission directive in May, banning their importation into the country.

“We are going to work out the schedule and we will soon be communicating when the exchange exercise will start,” Mr Arineitwe said.

A fortnight ago, pay-tv consumers in Uganda mounted pressure on the UCC to force StarTimes to stop selling the DVB-T1 decoders as the country migrates to digital broadcasting whose deadline is slated for December 31.

Uganda is estimated to have two million analogue television sets.

Uganda’s State Minister for Information Communication Technology Thembo Nyombi said the government has given StarTimes ample time to replace the old decoders.

“Our policies and regulations are supposed to benefit both operators and consumers. While we insist on the DVB-T2 decoders, we cannot get up one morning and say we are banning the sale of DVB-T1 decoders as consumers and investors will be affected,” Mr Nyombi said.

Subscriber base

StarTimes is popular in Uganda particularly among the lower end consumer segment. Mr Arineitwe puts the total number of clients at over 120,000.

But Multichoice is the overall market leader due to its high end DSTV product that it introduced into the country in 1996.

Its GOtv subscriber base on the other hand stands at over 100,000 according to marketing manager Albert Nga.

Since the UCC directive in May, GOtv, which started selling the advanced technology last year, has been taking  advantage of the StarTimes delay to import DVB-T2 decoders to woo the latter’s customers.

GOtv is also on air in Zambia, Kenya and Nigeria, and hopes to soon start operations in Tanzania.