Uganda Communications Commission Takes Action Against Illegal Streaming Devices Amid DStv Pricing Concerns

The Uganda Communications Commission (UCC) is cracking down on the illegal importation, sale, and use of internet streaming devices that broadcast MultiChoice’s SuperSport and Bein channels without authorization. This move follows a complaint from MultiChoice Uganda Limited, which has raised concerns about declining subscriptions stemming from widespread piracy and increasing consumer dissatisfaction with price hikes.

MultiChoice’s Complaint and UCC’s Findings

In its formal complaint to the UCC, MultiChoice Uganda reported that various entities are unlawfully distributing internet streaming devices that allow users to access premium sports content without a DStv subscription. These illegal devices, known as IPTV set-top boxes, include brands such as Starsat, Mediastar, Senator, Red Tiger, and Digsat. Most of these devices are imported from Dubai and manufactured in China.

Preliminary investigations by the UCC have confirmed that these devices are readily available in the Ugandan market, enabling the illegal streaming of premium content. The UCC reiterated that MultiChoice Uganda has exclusive rights to broadcast SuperSport content in Uganda through its officially licensed DStv decoders and subscription-based packages. The regulatory body has vowed to take strict measures against businesses and individuals involved in the unauthorized sale and distribution of these illegal devices.

DStv Subscription Costs and the Shift to Alternatives

MultiChoice’s pricing strategy has significantly contributed to consumer discontent, pushing some Ugandans toward illegal streaming alternatives. The company recently implemented a 3% price increase across most DStv and GOtv packages, effective October 2024. This marks the second price hike within six months, prompting frustration among subscribers.

Under the new pricing structure:

• DStv Premium now costs UGX 300,000 (approximately $79) per month.
• Compact Plus increased to UGX 175,000 (approximately $46) per month.
• Compact costs UGX 113,000 (approximately $30) per month.
• Family is UGX 71,000 (approximately $19) per month.
• Access is UGX 46,000 (approximately $12) per month.
• Lumba, the lowest tier, remains at UGX 16,000 (approximately $4) per month.
• Assuming USD1 is UGX 3800

Many Ugandans, already struggling with economic pressures, have expressed their dissatisfaction on social media, with some threatening to cancel their subscriptions. The affordability of illegal streaming devices, which allow access to premium sports and entertainment channels for a one-time fee, has further intensified the migration away from DStv’s official services.

MultiChoice’s Response to Market Challenges

MultiChoice Uganda has defended the price increases, attributing them to rising content production costs and competition from global streaming platforms like Netflix and Amazon Prime. According to MultiChoice Uganda’s Communications Manager, Rinaldi Jamugisa, “The cost of producing and acquiring high-quality content is significant, and we must adapt to remain competitive.”

Despite these efforts, the company continues to face financial difficulties. In 2023, MultiChoice reported liabilities exceeding assets by UGX 30 billion, largely due to foreign exchange losses in key African markets such as Nigeria, Kenya, Angola, and Zambia. The company’s ongoing merger discussions with French media giant Canal+ could potentially alleviate financial pressures, allowing for more cost-effective content production and acquisitions.

The Future of Pay-TV in Uganda

With the enforcement of restrictions on illegal streaming devices, Ugandan consumers may have limited alternatives outside of legal subscription models. However, the increasing cost of DStv subscriptions could still drive more users toward affordable digital streaming services.

The coming months will be crucial for both MultiChoice and Ugandan authorities as they seek to balance enforcing copyright laws with ensuring fair pricing for consumers. As competition from global streaming giants intensifies, MultiChoice will need to reevaluate its pricing and service offerings to retain its subscriber base in Uganda.