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Saturday, December 27, 2014

GOTV SLASHES TV BOX PRICE TO SH99, UNVEILS FREE TO AIR OPTION

GOTV has lowered the cost of its decoders to Sh99 by including two months free subscription with its boxes and launched a Free to Air lifetime option for consumers in its latest push for market leadership.

The move underscores the high stakes battle for the digital TV market with 3 days to go before switch off of analogue TV signals in Nairobi.

The company is locked in grim battle for control of the over 1million TV sets market in Nairobi with rival Startimes and other independent set top box vendors.
At an average cost of Sh500 per subscription, the Nairobi market alone could be worth Sh500 million monthly or US$5.52m.

With a payment of Sh1700 or equivalent to two months subscription to GOTV plus one gets the GOTV set top box with the option to begin paying monthly subscriptions after two months.

"We are offering affordable family entertainment, a new mass market product (free to air boxes) and clear digital quality and sound," a GOTV spokesperson said.

"This is a 2-in-1 option. There is the free to air option and there is the pay TV option."

The free to air option will see the consumer pay a Sh2600 administration fee at the end of two months to convert it to an FTA box. The admin fee will enable such a customer to continue using GOTV after sales service if for example they wish to come back.

Also, when the set top boxes are upgraded, the FTA decoders will also be automatically upgraded.

In the FTA field the company will compete with 61 authorized vendors of STBs who are operating under the independent set top box distributors association of Kenya banner.

The pay TV provider who runs on the SIGNET signal distribution platform says monthly fees for normal GOTV will be Sh499 while for GOTV plus will be Sh799.

Content has been targeted with offering for kids such as Disneyland to movies and documentary channels for adults.

*A review of the content offering will be forthcoming on this blog.

After pricing, content could be the next battlefront particularly as government moves to institute the local content rule requiring a certain amount of programming be devoted to local content.


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