The Entertainment and Media (E&M) industry in Kenya has transformed with time since independence in 1963. The pace of change has increased significantly in the recent past. It is now about five years since the digital migration took place. The government’s objective in embracing the digital migration agenda was to deliver improved quality of audio and visual content to the Kenyan population while at the same time efficiently utilising the frequency spectrum.

Since the digital migration, the number of TV stations has increased more than six-fold from nine in 2015 to 68 in 2018, while radio stations have increased by 44% from 120 in 2015 to 173 in 2019 based on data in the broadcasting report prepared by Communications Authority of Kenya. The number of online news sites has also increased significantly. Though the audience has expanded, E&M companies that have invested in transmission infrastructure and set-top-boxes continue to face several challenges including high levels of churn as a large percentage of subscribers fail to renew subscriptions. This is likely to be compounded as the Kenyan population follows the global trend of code-cutting where viewers using cable TV are on the decline while streaming services are gaining traction as internet services become more available, reliable and affordable.

E&M companies are employing data analytics and Artificial Intelligence (AI) to address churn. By analyzing data collected over time to understand subscriber behavior, E&M companies can categorise and predict customers at risk who can then be targeted with specific tailored campaigns. Data analytics is also being used to improve customer experience by analyzing and responding to consumer likes, preferences and peculiar behaviours.

Traditionally, E&M companies invested in generating quality content which was broadcast at designated times. Consumers had very limited options as to when and how to consume the media. Today, the consumer has more options and flexibility for how to consume media. Consumers are increasingly looking for convenience and media that resonates with their daily lifestyle and preferences. This has put more power in the hands of the consumers as to the choice on the form and timing of media consumption.

This indicates that there is a growing preference for consumers to move away from cable TV where a bouquet of channels is made available for a fixed fee, to services where the consumer has more freedom of choice as to what videos/ programmes to view, at what time and through which devices. In response, media companies are increasingly designing their offerings to address specific consumer preferences using algorithms and AI to predict usage patterns.

Traditionally, the newspaper was viewed as the main source of news. Circulation numbers in Kenya have declined since 2013 with a cumulative decline of 33% having been recorded for the period between 2013 and 2018 (KNBS Economic Survey 2018 - Media landscape report). Although media companies have undertaken significant initiatives to increase circulation in the short to medium term, these initiatives may not have the desired impact in the long term as generation Y or Millennials join the worker and consumer class. Millenials are already more inclined to consume media through digital platforms and hence unlikely to purchase or read physical newspapers.