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Ibrahim Bbossa #IKB @IBbossa
, 14 tweets, 9 min read Read on Twitter
Free-To-Air (FTA) channels Vs #PayTV subscription.
Pay TV operator have argued that their business model is "Subscription". That when a customer opt for Pay TV, their primary interest is in the premium Pay TV content and not to watch the Free To Air channels.
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During the stakeholder consultations as part of the New broadcasting licensing development, many commentators were for #PayTV providers offering Free-To-Air channels free to subscribers even after monthly subscription have run out. The reason being, they are Free so why pay?
Just like many #PayTV providers globally have also refused to allow customers to pay per channel. Customers are not allowed to customise channels they want to watch for one simple reason, many channels whether it is Discovery Channel or C-SPAN may not be viable on their own.
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 The argument of the newspaper, though old school and outdated due to technological advancement, can be extended to the argument on #FTA.
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 #FTA channels on #PayTVs.
So like paying for a newspaper and reading a few pages but still having to pay for the full paper, #PayTV content is sold in full inspite of what is viewed. When a newspaper subscriber requires to be supplied with newspapers daily or monthly, the papers are delivered in full.
A subscriber will not, however, expect to continue receiving free pullouts and inserts in the months they have not subscribed. Similarly, #PayTV provider
should not expect to continue receiving Free-To-Air content via #PayTV platforms the #PayTV providers have argued.
#PayTV providers believe that Free-To-Air channels should not be provided for free. Digital migration has still provided an option of watching the #FTA or local channels if you like through Free-To-Air Set Top Boxes. If you want #FTA, you know were to get it.
Since the primary objective and interest of #PayTV subscribers is not to watch the #FTA channels, #FTAs should therefore be considered as a bonus to save you from the hustle of toggling between the #PayTV input to the standard TV signal input of your #FTA Set Top Box.
#PayTV provider’s "allege" that it costs them money to source for and carry #FTA channels. So those interested in #FTA channels are encouraged like many other Ugandans to buy Set Top Box decoders if what they really want are Free-To-Air channels.
#PayTV providers argued that they primarily depend on purchased content that is sports, movies, documentaries, etc but in addition provide Free-To-Air channels to their customers as a value-added service. They can not sustain the service by merely screening #FTAs alone.
Just as newspapers won’t give their customers the free pullout when the newspaper is not bought, so the #PayTV providers should not be required
to provide Free-To-Air channels when the subscription is not paid. This distorts their business model, they have argued.
Engagement with #PayTV providers on the possibility of having a minimum number of #FTA channels to remain available to subscribers even when subscription runs out, @UCC_Official introduced a requirement of 20% local content. If a licensed #FTA channel is carried, it remains FREE
Insight on the outcomes of the engagement process to obtain an agreeable position regarding the new #PayTV licensing regime is captured in this post and thread In the new licences, there is something for everyone; Consumers, #PayTV operators & Country
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