How Bundled Services Are Redefining Entertainment Access

by Business Watch Team
Entertainment

Anyone who resided in Kenya during the 1980s would recount a markedly different narrative regarding the entertainment industry. With limited access to the internet, the primary sources of entertainment were confined to a handful of television and radio stations.

However, the mid-1990s heralded a significant era of transformation, characterized by the introduction of internet services, which catalyzed considerable advancements within the entertainment sector. The ability to access both international and local content on internet-enabled devices has become a remarkable reality.

The integration of the Internet with content delivery platforms has dramatically enhanced the consumer experience. Telecommunications companies, such as Safaricom, have forged partnerships with media service providers like MultiChoice, thereby increasing convenience and accessibility for users.

While some may characterize Kenya as a gradual adopter of internet services compared to other regions globally, it is noteworthy that internet access was not established until 1993 through email services. It was not until two years later that comprehensive access became available, with the Kenya Posts and Telecommunications Corporation emerging as the primary provider. The entry of private Internet Service Providers (ISPs) into the market was delayed by an additional five years, with early entrants including Wananchi Online, Africa Online, and AccessKenya. Their participation significantly expanded internet accessibility in the country.

Challenges, however, remained concerning cost and internet speed until the advent of the undersea fiber optic cables, such as SEACOM and TEAMS (The East African Marine System), in 2009. These developments played a pivotal role in transforming Kenya’s digital landscape by providing solutions to existing challenges. Presently, the estimated number of internet users in Kenya exceeds 37 million, with projections indicating a continuous increase of 29.2 million users from 2024 to 2029, culminating in a potential total of over 60 million internet consumers by the end of 2029.

Furthermore, a report by the Communications Authority of Kenya for 2024 indicates that there were approximately 37.4 million smartphone users in Kenya, reflecting a penetration rate of 72.6%. This stands in contrast to the penetration of 59.6% among the 30.7 million feature phones. The rise in smartphone adoption is significantly contributing to the accelerated uptake of advanced technologies such as 4G and 5G networks.

The implications of these transformations for the entertainment industry are profound. They have facilitated access to streaming services, bolstered the role of social media as a hub for entertainment, and transformed the music industry.

Local content creation and film production have experienced noteworthy growth on platforms such as Showmax and YouTube, enabling filmmakers to distribute their work on a global scale and reach larger audiences beyond Kenya.

The Internet revolution has also given rise to bundled services that enhance consumer convenience. The appeal of these bundled services lies in their ability to combine internet connectivity with content subscriptions, thereby offering customers seamless experiences and access to a broader array of content.

A key area of growth within Kenya’s digital landscape is the rise of homes powered by internet connectivity, especially in urban centers. This evolution has significantly boosted digital content consumption, allowing households to seamlessly integrate streaming services into their daily entertainment routines. A notable example is the partnership between Safaricom and MultiChoice, providing customers access to streaming platforms like Showmax, complemented by mobile data packages.

Additionally, the DStv Stream partnership with Safaricom offers home users a straightforward solution—just internet and DStv Stream—eliminating the need for extra hardware while ensuring access to premium content. This integration fosters a cohesive viewing experience that merges home internet with high-quality television content. Furthermore, Safaricom’s extensive network and mobile penetration enable MultiChoice to reach a broader audience, including those in remote areas.

Bundled services simplify the management of multiple subscriptions or platforms for consumers. This strategic collaboration significantly impacts the promotion of local content, offering enhanced support for the creation and distribution of material that resonates with Kenya’s diverse audiences.

Statistics highlight that a substantial majority of individuals in Kenya aged 16 to 64 engage with online video content, as reported in 2023 by Statista. Music videos accounted for the highest share of views at nearly 63%, followed by viral videos, comedies, and memes at 55%. Educational content and how-to tutorials also captured attention, with viewership at 35% and 32%, respectively, indicating a rising demand for accessible and diverse digital content.

From a revenue standpoint, projections indicate that the streaming market in Kenya is expected to reach US$428.7k by 2025, reflecting a compound annual growth rate (CAGR) of 5.68% from 2025 to 2029. Streaming platforms like Showmax are successfully attracting subscriptions due to their diverse content offerings, which highlight a growing appetite for digital content among consumers.

However, cost and convenience remain significant considerations for many digital content consumers. This accentuates the importance of bundled services in meeting consumer demands effectively. These services are poised to stimulate growth in the digital entertainment consumption market, thus lowering barriers for a wider demographic and significantly contributing to the overall expansion of digital entertainment in the region.

Related Content: Zee Entertainment Africa Launches Zee Dunia In Kenya

By Elsa Lunani, the Head of DStv Business & Digital Products at MultiChoice Kenya.

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