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    Analyzing TSTV Africa’s “5000” Penetration Strategy; will it crown them King of Satellite TV in Nigeria?


    It wasn’t too long ago that Telecoms Satellites (TSTV) Africa launched in Nigeria and we also reported the incredible services they proposed to offer and the unbelievably juicy complementary bonuses and attractions that followed. One of the highlight attraction was the affordably cheap price of the Set Top Box and entire TSTV setup (compared to other Satellite TVs) which was pegged at N5,000. And while we were still dangling in the web of the affordability euphoria, TSTV pulled up another “5,000” stunt (will be discussed below).

    We will therefore do some breakdown to see if TSTV can penetrate deep into the heart, mind and soul of Nigerians to the point of loyalty.

    1. The 5,000 Naira Purchase Price

    TSTV boasts of over 200 channels ranging from Sport, to Entertainment, to Kiddies Channels, Religion, Movies and many more. But to have access to this, the entire TSTV Set Top Box which comprises of the square-shaped decoder, Satellite Dish, Remote and some cables is required to be installed in one’s home. Now to the best part; it all costs N5,000 only (well, according to TSTV).

    The N5,000 price tag puts TSTV right at the bottom of all other Satellite TVs in the region putting price as the basis of comparison.

    The Cable TV that can come close to rivaling this price is StarTimes. The StarTimes Set Top Box comprises of a decoder, an indoor antenna, a remote, and one month of free subscription, all between N3,900 – N6,400. But (yeah, there’s a but) if you live in an area in the country where StarTimes frequency or network reception is poor, you will purchase and outdoor dish which will cost you additional fee and take purchase to a total of N8,800. So, TSTV wins.

    GoTV (also run by MultiChoice, the same company that runs DSTV) can also rival TSTV. GoTV’s Set Top Box comprises of a decoder, remote, an indoor antenna and comes with one month of free subscription on purchase. Interestingly, GoTV does not require an outdoor dish but comes in at N6,900, N1,900 higher than what TSTV is offering. However, asides the price factor, it is only logical for Nigerians to pick TSTV over GoTV because the latter is offering access to over 200 channels, while the former, 38.

    Therefore, going by the “The lower the price, the higher the demand, and vice versa” primary rule of Economics, I believe the N5,000 price tag strategy will snowball the demand for TSTV, or even maybe abnormally but that is only if the low price is accompanied by great, stable, charming and enticing contents. And if TSTV can pull that off, it is only normal for positive feedbacks and recommendations to follow, and before you know it, the Satellite TV will ride comfortably to the throne of dominance.

     

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