Do you remember when UCC proposed a reworked broadcasting licensing regime for Pay TV providers? UCC had also ran a public Notice in the New Vision promising to revoke non-compliant Pay TV providers. This later led to several complaints from the Pay TV operators who raised concerns about the new broadcasting licensing regime by UCC especially concerning free to air channels.
Pay TV operators published a joint statement complaining about ‘unjustified’ fee increase. Consequently, UCC organized a meeting with Pay TV providers on 26th April 2018. The meeting aimed to allow parties involved to harmonize positions on issues raised by the Pay TV operators.
In the meeting, UCC seemed to have humbled the rebellious Pay TV operators after it clarified on a few points. However, Pay TV providers have another argument that might just change the pay Pay TV business in Uganda.
Pay TV providers’ argument on Free To Air Channels.
Pay TV operators have argued that their business model is “Subscription”. That when a customer opts for Pay TV, their primary interest is in the premium Pay TV content and not to watch the Free To Air channels.
Many commentators wanted Pay TV operators to provide FTA channels for free on their platforms. Meaning that FTAs continue airing even after monthly subscription runs out. The argument was, they are Free so why pay?
However, Pay TV operators pointed out that customers have no position to customize channels they want to watch. The reason behind this is that no single channel is viable on its own. On the global market, many Pay TV providers do not allow customers to pay per channel.
However with the rise of mobile TV streaming, people have the power to customise what they watch. We opined on how the World Cup has changed the face of mobile TV. Consequently, unhappy customers might run to streaming TV content.
The Newspaper Example to help you relate.
It is the same reason you cannot buy the jobs section of a Newspaper on its own, it come as part of a full paper. The argument of the newspaper, though old school and outdated due to technological advancement, can be extended to the argument on FTA channels.
Newspapers, in addition to having different sections such as politics, business, lifestyle and sports also have free pullout magazines or inserts. These free pullout sections can be equated to Free to Air channels on Pay TVs.
Pay TV providers affirm that their content is sold in full inspite of what is viewed. Like paying for a newspaper just to read a few pages but still having to pay for the full paper. When a newspaper subscriber requires to be supplied with newspapers daily or monthly, the papers are delivered in full.
However, a subscriber will not expect to continue receiving free pullouts of the Newspaper in the months they have not subscribed. Similarly, PayTV provider argued that customers should not expect to continue receiving FTA content after subscription runs out.
Pay TVs: FTA content should not be provided for free!
Pay TV providers have pointed out that digital migration provided an option of watching the FTA or local channels. This is through Free-To-Air Set Top Boxes. “If you want Free to Air channels, you know were to get it.”, added Pay TV providers in their argument.
According to Pat TV providers, customers are even lucky they are are getting FTA channels on the platforms in the first place. The primary objective and interest of Pay TV subscribers is allegedly not to watch FTAs.
Pay TV providers claim that the only reason they carry FTAs is to save subscribers the hustle of toggling between Pay TV and FTA Set Top Boxes. Pay TV providers also “allege” that it costs them money to source for and carry FTA channels.
Buy Free To Air Set Top Boxes.
Pay TV providers have advised those interested in FTA channels to buy Set Top Box decoders if what they really want are Free-To-Air channels. While this may sound like a brave statement from a consumer dependent
Pay TV providers argued that they primarily depend on purchased content such as sports, movies, documentaries etc. They only provide FTA channels to their customers as a value-added service. They can not sustain the service by merely screening Free to Air channels alone.
They argue that just as newspapers won’t give their customers the free pullout when the newspaper is not bought, they should not be required to provide FTA channels when the subscription is not paid.
So will Pay TVs carry FTAs?
The commission earlier advised that Pay TV operators ought to carry a minimum of 20% local content on their broadcast platforms. UCC noted that this 20% must remain available to subscribers even when subscription runs out.
However, the commission is still in engagement with Pay TV providers on the possibility of a minimum number of FTAs that will remain active after subscription runs out.
An agreeable position is yet to be established. However, operators claim there is not enough good quality local content to fill the 20% quota.
