Focus On Opportunities in 2015

For the better part during the month of February 2015, we have been in the state of massive television blackout, occasioned by disabling of the analogue signal. This action was sadly followed by self switch off, of digital television by the 3 leading stations. Apart from throwing viewers into bewilderment, the said stations could have inadvertently selected a self destructive trajectory.

The big 3 television media houses had formed a strategic alliance of convenience to safeguard their industry niche. They engaged in continuous court battles with the government, through the Communications Authority and continued winning in each case. That was at the expense of losing on time, as the original June 2015 global analogue switch off neared.

Did you know that the US for example switched off analogue technology on 12th June 2009? Canada did it in August 31 2011; Japan, July 24, 2011, the UK on October 24, 2012, whereas Australia did it on Dec 9, 2013. Closer home, Rwanda became digital compliant in July 2014, whereas Tanzania had become the first country in Sub Saharan Africa to do so in 2013. Why then should we not align ourselves with the best?

Certainly, there was a limit to which the switch off saga could have continued in our own country. Upon finally losing the cases, did it mean that there was no fall back for the market leaders, other than switching themselves off?  That is the question on the lips of the disappointed viewing public. Incidentally, the business sector anywhere in the world succeeds when constructive engagement is employed, towards influencing national policy direction. Conversely, it ends up losing badly upon embracing strategies of incessantly fighting the same policies, irrespective of whether the sector influenced them or not.

Nonetheless, everybody knew that the analogue signal was facing global switch off that was initially not negotiable in any way.  So, what difference does it make being switched off 4 months earlier and sorting ourselves out in good time? That is probably why there had been no public outcry over the TV blackout, which had now become the norm, for those who had not been keen on the early warning signs.

That brings to mind some digital television lessons learnt sometimes in 2010, at the Sarova Pan Afric Hotel. The same were attributable to a presentation during a management forum, by Mr. David Waweru, the then managing director of Kenya Broadcasting Corporation. The organization was then positioning itself towards leading the digitalization process for the benefit of the country. Intricate benefits accruing from the whole process were revealed to the keen listeners. Above all, the digitalization was to present innumerable opportunities of employment and wealth creation, for those swift enough in identifying emerging opportunities.

One of the immediate opportunities was importation and supply of decoders or set boxes, which help the existing television sets, to receive digital signals. Based on a Synovate report of 2008, there were approximately 3.2 million television sets in Kenya. Therefore, if the gross profit of set boxes was to be KES 1,000 per pc, then net revenues close to KES 3.2 billion were waiting to be shared amongst swift importers and suppliers.

Next was introduction of equal broadcasting opportunities attributable to the digital era. Except for the few distributors that were yet to be identified by then, no media house would any longer enjoy any advantage on account of infrastructural developments that had taken shape over the close to 15 years of media evolution. One of the greatest disruptions in the current scenario is that most of those infrastructural advantages are on their deathbed and will most likely, be buried with analogue broadcasting.

Another opportunity was associated with efficiency. In addition to picture clarity and reception, every analogue frequency was to yield an equivalent of 8 upon migrating to digital technology. This was naturally to lead to expansion of capacity for introducing more television stations.

Perhaps, the greatest of all the opportunities presented by the digital era, is the ability of shifting content development and delivery. The latter will now be outsourced to the two or 3 delivery service providers. It will not matter whether it’s an individual or group of individuals that is involved in this. Superior content will obviously attract increased viewership, which may in turn attract two streams of revenue. On one hand is subscriptions that will of-course depend on marketing capabilities.  The other alternative will be advertising revenue. Previously, this revenue has largely benefited the mainstream media. Now, it will be free for all depending on content quality and ability to reach the viewing market.

Another great opportunity, which will soon take shape, is supply of digital ready television sets. Analogue television sets will continue becoming obsolete, therefore giving way to the new sets. The uptake of the new gadgets will naturally depend on the forces of demand.

In light of the above developments, the market dynamics of the media industry have transformed dramatically. From a business perspective, the 3 leading media houses ought to have been working overtime strategizing on how to reposition in a fast changing and competitive environment. Ironically, the self switch off situation has led to many opportunities for start-ups and SMEs, some of which are worth sharing.

Firstly, the previously unknown television channels like Njata, 3 Stones, Farmers TV and many others have now come into the limelight, as viewers continue exploring the available options. The same are now positioning towards sharing the lucrative advertising revenue.

Secondly, elaborate advertisement thrives mainly in competitive situations. The same keeps reinforcing competition even further. When the mainstream media’s activities are muted, competition for the advertising space slows down as well, thus leading to saving on the respective costs.

Thirdly, the webcam news alternative availed by the media giants is definitely a great convenience to many people. One does not have to be glued to the Television watching prime time news. It is now possible to watch them online at any convenient time through our laptops and other media.

Fourthly, has the webcam news not created new opportunities for resellers of airtime and providers of WiFi as well as other internet solutions? Naturally, there are opportunities abound in every situation of change. All we need is to be on the lookout for the same.

Meanwhile,

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