CONTRIBUTION

DStv and Gotv added Sh56.9 billion in total value to the economy

This include value to consumers, the number of jobs created, taxes contributed and net GDP created among others.

In Summary

•Multichoice Kenya developed the local content industry through local channels such as the Maisha Magic East Africa, SuperSport and production infrastructure investments to a tune of $138 million over the period.

•The sector has recently been faced by competition due to home Internet, digital TV and telephone connections from telcos and similar firms such as Zuku and demand for streaming services such as YouTube and Netflix.

The DSTV dishes .Photo Elkana Jacob
The DSTV dishes .Photo Elkana Jacob

Pay-TV company, Multichoice Kenya has announced to have contributed Sh56.9 billion ($573.8 million) in total value to the economy between the period April 1 2015 to March 31 of this year.

In an economic impact study conducted by Germany-based consulting firm Accenture Strategy, the value was made through its operations from the supply chain, advertising and marketing, distribution of devices and transmission masts, ancillary services and creative industry.

This also includes value to consumers, the number of jobs created, taxes contributed and net GDP created.

 

The firm offers services on Dstv and GOtv digital terrestrial (DTT) packages.

The firm contributed Sh1.807 billion ($17.5 million) in direct taxes, $69.6 million in indirect taxes, $1.2 million in regulatory fee contributions and $110.6 million in GDP uplift from the employment created.

Vaibhav Rathi, Accenture Strategy Business Strategy Manager; Reatile Tekateka, MultiChoice Group Executive Head of Corporate Affairs; Ruth Omondi, Ag. Finance Manager, and Wolfgang Popp, Accenture Principal Director
Vaibhav Rathi, Accenture Strategy Business Strategy Manager; Reatile Tekateka, MultiChoice Group Executive Head of Corporate Affairs; Ruth Omondi, Ag. Finance Manager, and Wolfgang Popp, Accenture Principal Director

“Companies can only survive if they put value in their business and environment and not only generating profits,” Accenture principal director Wolfgang Popp said.

It added that it has been developing the local content industry through local channels such as the Maisha Magic East Africa, SuperSport and production infrastructure investments to a tune of $138 million over the period.

“About $33.8M worth of content has been produced, acquired and commissioned. Out of this, 1,181 hours of content is commissioned locally with 5,092 hours contributing to acquired content. $1.2M has been spent on sponsorship of football tournaments,” the report showed.

A total 181 people are employed by MultiChoice Kenya.

The number raised to about 6,440 from sales agencies and installations, call centres and in adjacent industries including film industry.

 

The sector has recently been faced by competition due to home Internet, digital TV and telephone connections from telcos and similar firms such as Zuku and demand for streaming services such as YouTube, Netflix.

This forced the company to slash its monthly package subscription price by nearly 30 per cent in September for its pay TV customers

Mutltichoice also runs Showmax under Naspers.

The subscription fee for most expensive paid package, Premium was down from Sh7,900 ($79) per month to Sh7,400.

The fees for the cheapest package, Access, dropped by Sh50 to Sh900 per month.

Multichoice Kenya corporate affairs manager Philip Wahome however said cut was guided by customer requests and market conditions.

The price cuts is an industry shift happening globally even to other pay-TV providers,” Wahome said.

“We welcome competition. The benchmark on businesses with be on numbers and we will keep putting our position out there,” he added.