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Tuesday, 30 July 2013

The Azam Tv deal, SuperSport factor and The Nature of our local market


  
It was reported by  a section of the local media that Azam Tv outbidded SuperSport for the Tanzania Premier league Tv rights. It is a story that is hard to buy into given the fact that it was not confirmed if SuperSport did put up an official bid. Again given their vast experience and financial muscles in Sub-Saharan  sports broadcasting, it is hard to imagine they could be easily outbidded if they really wanted it.
It is all about business. Kenya and Uganda with a middle class of 44 and 28 per cents respectively compared to Tanzania’s 12 percent are both more attractive markets to DSTV business. Tanzania’s low middle class base correlate to a lower subscription rate relative to Uganda and Kenya. Apart from football what were they really going to show here? Kenya and Uganda both participate in many other games, rugby and athletics in particular. Tanzania having completely ignored other sports, only offered football meaning if SuperSport were to invest  here, their costly equipments would lie idle most of the time.
Azam Tv might have offered a better financial package but had SuperSport really wanted to flex up their financial muscles, it would have been an interesting fight that would have left our clubs laughing all the way to the bank. When GTV bid for the Kenya Premier league television rights SuperSport realized there were losing the battle. GTV had acquired television rights for the local leagues in Uganda and Tanzania and were sure of including Kenya in the fold. SuperSport was forced to come up with a better bid and eventually acquired television rights for KPL. That’s what competition do. Had SuperSport really wanted to acquire our rights they would have easily bettered what Azam Media Limited offered.

Again, the Tanzania premier league committee could have done a better job of advertising for a competitive tender that would have seen different media players competing. It is hard to get a better deal than what Azam Media limited have offered given the prevailing nature of our market. Ours is a small isolated market that can hardly attract a foreign media player to invest to the tune of what Azam have managed. Nevertheless due process should have been followed. Perhaps our clubs could have gotten much more from a competitive tender process.

In the midst of the reported controversies surrounding the deal, let us not forget that Azam signed a memorandum of understanding with the Tanzania league committee that practically gives  chance to any media player to collaborate with them. They have taken a diplomatic route of not going for an exclusive deal that locks out other willing partners. For example, Zuku , StarTimes or SuperSport can easily partner with Azam in broadcasting the league. In short, Azam Tv has not acquired  exclusive rights, there is plenty of room for other willing media house.Though it is not enough, it is still a sweet, sweet deal that is very hard to criticize despite the mistakes committed by the Tanzania Premier league committee.

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