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Pay TV subscribers grow to 2.1 million
The Pay TV segment experienced a 47 per cent growth due to the World Cup season. PHOTO BY ERONIE KAMUKAMA
Kampala-Pay Television (TV) subscribers have increased from 1.4 million to 2.1 million, according to a report compiled by Uganda Communications Commission, (UCC).
The report, which covered the period between July and September 2018, indicates there was a 47 per cent growth in pay TV subscribers during the period.
“The number of Pay TV subscribers grew from 1,469,129 to 2,165,293 reflecting a 47 per cent growth subscription,” the report read.
The increase was attributed largely to World Cup events propelled by broadcast rights attained by a number of Ugandan service providers including StarTimes and DStv.
The industry has seen steady growth over the years jumping from 1.3 million subscribers in December 2017 to the current 2.1 million in 2018.
However, the Pay TV segment continues to face unexplained drops, according to the report, with subscriber numbers falling at certain intervals.
For instance, in March 2018, numbers dropped to 1.1 million subscribers from 1.3 million in December 2017.
This, some analysts say, could have resulted from an impasse between UCC and Pay TV service providers regarding a rise in Pay TV licence fees from Shs22m to Shs550m annually.
The new licencing regime caused uproar from Pay TV service providers, who said the increase was not only unfair but would impact the price of end user packages.
The deadlock, which forced UCC to meet with service providers, was later harmonised with the licence fees put at an agreeable $25,000 (Shs95m).
Uganda has eight Pay Tv service provider including DStv, Zuku, Azam, Star Times, Kwese and GOtv among others.
Mr Aldrine Nsubuga, the StarTimes, vice president for marketing, said the World Cup was a major driver of growth in the subscription segment, saying their numbers jumped by over 500,000 subscribers in the period.
“The increase was because it was a Word Cup year. At the turn of 2017, we had about 800,000 subscribers but by close of 2018, we had hit 1.5 m subscribers with over 1.3m active subscribers,” he said.
