Kenya's digital migration and progress in 2015 has resulted in the launch of over 65 digital TV stations. At the East Africa Com ICT and telecommunications event in Nairobi, industry experts say this segmentation and the growth of OTT services could see more channels merge in order to survive.
"The market has segmented to what it is today. There was a lot of excitement in the early stages post migration. Many people went and took broadcasting licenses but it hasn't been feasible for them," said Danny Mucira, General Manager Digital for Bamba TV.
"When I look into the medium and long term future I see an amalgamation of channels. I see channels coming together to leverage on skills either from a commercial perspective or from a content perspective and to make it viable for them to continue operating," he added
Mucira said that players such as Netflix, ShowMax and YouTube TV pose both a challenge and an opportunity for local broadcasters.
He said audience demand for choice in terms of how to consume content is also influencing the market.
"OTT has really disrupted the market since it is a low-cost operation. People are also demanding to have unbundled content where OTT platforms are able to do that. It is an opportunity for established broadcasters to get into it," Mucira said.
He told ITWeb Africa that the company is looking to launch IP and OTT services to meet the demand for content sourced through secondary screens, including mobile devices.
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