Kenya’s reducing cost of internet is set to shake up the pay television (PayTV) market due to the rising popularity of internet TV service, statistics have shown.

High-speed internet is available in most urban towns for less than 40 U.S. dollars per month, down from 100 dollars a few years ago, meaning customers can afford to subscribe to the various internet TV services that have propped up in Kenya.

According to the latest January-March report released by the Communication Authority of Kenya (CA) this month, there are approximately 3.7 million households in Kenya that subscribe to PayTV services.

However, this industry is facing a serious threat from competition from internet TV services.

Drawn by reducing internet costs, global internet TV firms such as Netflix, Showmax and Iflix are now available in Kenya.
The services are attracting customers in droves with subscription fees as low as 8 U.S. dollars per month to access thousands of the world’s best TV shows and movies.

PayTV has long been considered as a preserve of the urban rich in Kenya. Douglas Kibet, a resident of Nairobi, discontinued his PayTV subscription in favor of Internet TV service.

“I prefer the internet TV service because it is much cheaper as compared to PayTV. It also offers the latest popular TV shows from around the world,” Kibet told Xinhua in Nairobi.

During the launch of Iflix in Kenya, last week, Country Manager Paul Coogan, said that his firm will offer consumers the largest selection of the best TV shows and movies from all over the world and revolutionize the way Kenyans consume entertainment.

Coogan noted that for a monthly retail subscription of 2.6 dollars per month, consumers will have access to a vast library of Hollywood, Asian and African TV shows on up to five devices.

The internet streaming services also have a huge advantage as they can be viewed on smart phones. According to the CA, out of the 27 million internet subscribers, 99 percent are mobile-based.

Mobile data subscriptions have dropped to less than 5 dollars for 1.2 gigabyte of data per month, making it possible for consumers to enjoy internet TV services. Enditem

Source: Xinhua/