Satellite pay tv company, Zuku, has reduced the price of its satellite decoders by almost 30 percent as speculators talk of its imminent exit from pay tv market.
Latest price cuts in decoders have made the local pay tv market very competitive as players jostle for more tv viewership.
Under a campaign dubbed “Tuvuke Digital na Zuku Satellite TV”, the firm said it is dropping its prices as the country readies itself for the first phase of the digital migration in Nairobi and its environment before the global deadline in June 2015.
Its decoders from Sh 5,600 to Sh 3,999 still the most expensive in the low end market segment after rivals StarTimes and Go Tv slashed their free to carry set top boxes to an average of Sh 3,500.
“The Christmas and New Year holidays offer opportunities for families and friends to share important moments in the comfort of their homes and we are giving this excellent offer to our customers given we understand their needs and provide the best ever channels for them to view,” said Wananchi Group CEO Richard Alden.
The firm has of late gone huge on a local and regional network expansion plan, promising its subscribers affordable price-but the company has been off the radar in the digital migration craze.
Speculators claim the player is opting out of the pay tv market due to intense competition following entry of Tanzania’s Azam tv, Radio Africa’s Bamba tv and impending entry of Kenyan media owners in the market.
“Zuku’s focus has been so much on internet to homes with a little craze on pay tv market, competition has also intensified to threaten its existence,” said an insider who sought anonymity.
Media owners under the African Digital Network are said to be developing a decoder that will allow viewers access movies and other digital content via internet.
This is a niche that Zuku, Safaricom and Multichoice are also eying to capitalize on landing of high speed 4G network in Kenya.