KARA APRIL-MAY ISSUE.indd - The Kenya Alliance of Resident ...

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ENTERTAINMENT Right of Reply – DStv’s Kenya boss on price increases W ith the public disquiet around the recent increase of the popular pay-tv DStv monthly subscription pricing by US$3, Multichoice Kenya Managing Director Mr. Stephen Isaboke spoke to Neighbourhood Kenya and here are the excerpts; Q. What is the justification for increase of their pricing by US$3 on your services effective 1st April A. It is important to state from the outset that MultiChoice Kenya merely provides subscriber management services for MultiChoice Africa’s DStv subscribers in Kenya. MultiChoice Kenya is not responsible for this price increase as these are effected by MultiChoice Africa. We have, however, been notified by MultiChoice Africa that the annual price increases are necessitated by rising input costs. As with any other business, there are various input costs, which include - salaries, technical infrastructure costs, satellite lease costs, facility costs, marketing costs and programming costs which have increased over the past 12 months. Q. Is it because you are a monopoly and have no competitor after GTV went down If GTV was operational, would you still have increased your pricing A. It is not true that either DStv or MultiChoice is a monopoly – there are a number of other pay TV operators in Africa, and in Kenya specifically. The economies of pay television differ markedly from other sectors in that the more competition there is in the market, this is due to the fact that programming content becomes more costly since such programming content is generally acquired on the basis of a competitive bidding process which drives up the price. MultiChoice Africa have indicated that in determining any price increases it considers a number of issues, including whether it can continue to run its business without any increase, and whether in putting such an increase the service may be beyond the affordability of its subscribers or not. This decision is a complex one that is not taken at a whim on the basis of whether there is a competitor or not. MultiChoice Africa asserts further that it runs a credible and sustainable business, and it is not a fl y-by-night interested in short-term gains. Its business has been in operation for more than 15 years, and has managed to do so because of its prudent management. Q. Critics of your price adjustment note that you are involved in too much sponsorships – are you possibly exploiting your customers to support 18. your philanthropic/CSR activities A. The simple answer is that such critics are incorrect in their assessment. MultiChoice believes that it is important for businesses to give back to the communities in which they operate, as well as invest with a long term view of growing a vibrant television market in Kenya - which is being done through our premium channels such as SuperSport and M-Net. Any CSR initiatives or investment that MultiChoice engages in are well thought out and carefully weighed against the continued viability of the business, and are certainly not the reason for any price increases. Q. The matter of price increase was brought to Parliament last week by Ikolomani Hon. Dr. Bonny Khalwale and the Minister for Information and Communications Hon. Poghisio is supposed to respond this week. What is your view on this A. We certainly think that Members of Parliament, as representatives of people, have a duty to raise any issue that may be of interest to the citizenry, and think that Hon. Khalwale is well within his rights to have raised the issue. The Minister, representing government, has a duty to all of Kenya’s citizens, including corporate citizens, and believe that he would consider the issue very carefully and give a considered response thereto.
CONSUMERS FEDERATION OF KENYA Consumers Federation of Kenya COFEK is Kenya’s independent self-funded and nonprofi t organization, registered on 26th March 2010 as a membership society under Cap. 108 Laws of Kenya. Our members are ordinary consumers from areas spread right across the country who see the need for and who support and own COFEK. We boast of a Council of 20 offi cials who represent the Federation at the national level. Those Council members are led by the Chairperson, Secretary and other offi cials. These offi cers act as lobbyists and spokespersons in their various areas of expertise. It is especially noteworthy that they give voluntarily of their time and expertise. They are supported by our lean secretariat who are directly involved in the research and inhouse production of the Federation’s electronic and hard copy newsletter “Consumer Pride”. COFEK, even at its formative stage, will strenuously represent and fi ght to protect and strengthen the rights of its members and all Kenyan consumers. The achievements are already considerable. Consumers’ rights - the right to information, fair dealing, protection, education - all culminating in the ability to make informed decisions and choices - are and should remain a reality. We will be continually calling on and for Government recognition of our crucial role through the many lawful ways and means. The current income derived from our members’ subscriptions is insuffi cient to permit us to lobby as we should and the need for determined lobbying and input at home, in Kenya and increasingly, regionally, is vital for the future of consumer protection. We will prevail - of that there is no question - but, to grow is our goal and I hope that you will consider supporting and joining with us in order that we might go forward forcefully and grow quickly. Then we can benchmark and demand the better protection, the clearer transparency and the proper ethical standards - from a position of strength - supported by the majority of consumers - for the benefi t of all consumers. We need your support. Join us today! CHAIRMAN COFEK - Consumer Confi dence and Pride! www.cofek.org 19.
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