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CASE STUDY KBS is the Kenya's premier public service broadcaster with more than 1,000 transmitters covering 90% of the country's population across on estimated 70

CASE STUDY

KBS is the Kenya's premier public service broadcaster with more than 1,000 transmitters covering 90% of the country's population across on estimated 70 million homes. It has more than 10,000 employees managing its metro and regional channels. Recent years have seen growing competition from many private channels numbering more than 15, and the cable and satellite operators (Dstv). The Dstv network reaches nearly 20 million homes and is growing at a very fast rate.

KBS business model is based on selling half - hour slots of commercial time to the programme producers and charging them a minimum guarantee. For instance, the present tariff for the first 20 episodes of a programme KES.10,000 plus the cost of production of the programme. In exchange the procedures get 780 seconds of commercial time that he can sell to advertisers and can generate revenue. Break-even point for procedures, at the present rates, thus is KES.100,000 for a 10 second advertising spot. Beyond 20 episodes, the minimum guarantee is KES 5000 for which the procedures has to charge KES.60000 for a 10 second spot in order to break-even. It is at this point the advertisers face a problem - the competitive rates for a 10 second spot is KES.70,000. Procedures are possessive about buying commercial time on KBS. As a result the KBS projected growth of revenue is only commercial time on KBS. As a result the KBS projected growth of revenue is only 6- 10% as against 50-60% for the private sector channels. Software suppliers, advertisers and audiences are deserting KBS owing to its unrealistic pricing policy. KBS has options before it. First, it should privates, second it should remain purely public service broadcaster and third, a middle path.The challenge seems to be exploit KBS immense potential and emerge as a formidable player in the mass media.

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