Content Is King and He Is One of Us – Or Is He?

PAMRO 2017 Content is King and he is one of us – or is he?

February 2017 to June

Fragmented viewership February Loss2017 of audiences on main channelsto June Programming will change, with a wider variety of shows available to the viewer

Decreased channel loyalty – content will drive stations ratings

Demand for quality content

"Yesterday" TV Viewership STB Ownership amongst "Yesterday" television viewers 100.0% 88.8% 87.0% 90.0% 34% 81.8% 83.1% 80.0% 70.0% 60.0% 47.4% 50.0% 40.0% 38.5% 30.0% 35.5% 30.1% 20.0% 27.0% 29.0% 10.0% 0.0% Q1 2015: February Q2 2015: June Q3 2015: September Q4 2015: December Q1 2016: January Month of ITU digital migration Month of switch-off deadline

Base = Television owners

Month of switch-off Month of ITU digital migration deadline Base = Set-top box owners

6 © 2017 Ipsos. Source: Ipsos Day After Recall Surveys Just over 2 out 5 were satisfied with the content; and a third of television owners were neither satisfied nor dissatisfied with television content; March 2015 – during the digital migration DIGITAL MIGRATION DISRUPTS VIEWERSHIP Stations with low reach pushed out of top 10, top 3 stations maintain position. Vernacular televisions stations quickly feature amongst top 10 Q4 2014 May to July 2015 December 2015 March 2016 July 2017 1 Citizen Citizen Citizen Citizen Citizen TV 2 KTN NTV NTV NTV KTN 3 NTV KTN KTN KTN NTV 4 K-24 K-24 K-24 Inooro TV KTN News 5 Q TV KBC Inooro TV K-24 Inooro TV 6 KBC Q TV QTV KBC K-24 7 Kiss TV Kiss TV KBC QTV KBC 8 GBS Supersport 3 Africa Magic Channels KTN News Gikuyu TV 9 Family TV Africa Magic Channels KTN News Kiss TV Baite TV 10 UTV Njata TV Kiss TV Supersport 3 Supersport 3

8 © 2017 Ipsos. Source: KARF Q4 2014; Ipsos 2015/2016 Day After Recall Surveys; and KARF 2016 Tracker survey Vernacular stations follow largely the same program schedule as top 3 stations ARE THEY JUST RIDING ON THE HABITS OF TELEVISION VIEWERS?

14.00% Soaps & Local shows 12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

00:59-01:30 07:30-08:00 14:00-14:29 00:00-00:30 00:30-00:59 01:30-02:00 02:00-02:29 02:29-03:00 03:00-03:30 03:30-03:59 03:59-04:30 04:30-05:00 05:00-05:29 05:29-06:00 06:00-06:30 06:30-06:59 06:59-07:30 08:00-08:29 08:29-09:00 09:00-09:30 09:30-09:59 09:59-10:30 10:30-11:00 11:00-11:29 11:29-12:00 12:00-12:30 12:30-12:59 12:59-13:30 13:30-14:00 14:29-15:00 15:00-15:30 15:30-15:59 15:59-16:30 16:30-17:00 17:00-17:29 17:29-18:00 18:00-18:30 18:30-18:59 18:59-19:30 19:30-20:00 20:00-20:29 20:29-21:00 21:00-21:30 21:30-21:59 21:59-22:30 22:30-23:00 23:00-23:29 23:29-00:00

PLATFORM OVERRIDES CONTENT

Increased ratings instantly Platform and Habit override Content

Maisha Magic East Peak before Prime Time: Airing local shows that have previously aired on mainstream

stations & own local programs

12:00-12:30 13:30-14:00 15:00-15:30 00:00-00:30 00:30-00:59 00:59-01:30 01:30-02:00 02:00-02:29 02:29-03:00 03:00-03:30 03:30-03:59 03:59-04:30 04:30-05:00 05:00-05:29 05:29-06:00 06:00-06:30 06:30-06:59 06:59-07:30 07:30-08:00 08:00-08:29 08:29-09:00 09:00-09:30 09:30-09:59 09:59-10:30 10:30-11:00 11:00-11:29 11:29-12:00 12:30-12:59 12:59-13:30 14:00-14:29 14:29-15:00 15:30-15:59 15:59-16:30 16:30-17:00 17:00-17:29 17:29-18:00 18:00-18:30 18:30-18:59 18:59-19:30 19:30-20:00 20:00-20:29 20:29-21:00 21:00-21:30 21:30-21:59 21:59-22:30 22:30-23:00 23:00-23:29 23:29-00:00

14:29-15:00 20:00-20:29 00:00-00:30 00:30-00:59 00:59-01:30 01:30-02:00 02:00-02:29 02:29-03:00 03:00-03:30 03:30-03:59 03:59-04:30 04:30-05:00 05:00-05:29 05:29-06:00 06:00-06:30 06:30-06:59 06:59-07:30 07:30-08:00 08:00-08:29 08:29-09:00 09:00-09:30 09:30-09:59 09:59-10:30 10:30-11:00 11:00-11:29 11:29-12:00 12:00-12:30 12:30-12:59 12:59-13:30 13:30-14:00 14:00-14:29 15:00-15:30 15:30-15:59 15:59-16:30 16:30-17:00 17:00-17:29 17:29-18:00 18:00-18:30 18:30-18:59 18:59-19:30 19:30-20:00 20:29-21:00 21:00-21:30 21:30-21:59 21:59-22:30 22:30-23:00 23:00-23:29 23:29-00:00

Estimated Estimated Population Internet Population Internet Rank Country Internet Users Rank Country Internet Users (2017 Est.) penetration % (2017 Est.) penetration % 2017 2017 1 Kenya 48,466,928 39,664,377 82% 1 China 1,382,323,332 721,434,547 52% 2 Mauritius 1,281,353 803,896 63% 2 India 1,326,801,576 462,124,989 35% 3 Seychelles 97,539 56,168 58% 3 U.S. 324,118,787 286,942,362 89% 4 Morocco 35,241,418 20,207,154 57% 4 Brazil 209,567,920 139,111,185 66% 5 South Africa 55,436,360 28,580,290 52% 5 Japan 126,323,715 115,111,595 91% 6 Tunisia 11,494,760 5,800,000 51% 6 Russia 143,439,832 102,258,256 71% 7 Saint Helena (UK) 3,970 2,000 50% 7 Nigeria 186,987,563 86,219,965 46% 8 Nigeria 191,835,936 93,591,174 49% 8 Germany 80,682,351 71,016,605 88% 9 Algeria 41,063,753 18,580,000 45% 9 U.K. 65,111,143 60,273,385 93% 10 Reunion (FR) 873,356 390,000 45% 10 Mexico 128,632,004 58,016,997 45% Source: www.internetworldstats.com Source: www.internetworldstats.com

• With a population of 48 million and an internet penetration of 82%, this means that children and a high proportion of rural population access the internet • Can Kenya’s internet penetration be higher than China and Russia?

Magazine Newspaper Internet Television Radio

Radio 65.10%

Television 46.10%

Internet 28.20%

Newspaper 10.30%

Magazine 0.40%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

1. Citizen TV 24.3% 2. Whatsapp 17.8% 3. Facebook 14.3% 4. Citizen Radio 13.5% 5. KTN 7.5% 6. Jambo FM 6.5% 7. NTV 6.4% 8. Daily Nation 5.9% 9. Radio Maisha 5.7% 10. Inooro FM 5.4% 11. Inooro TV 4.7% 12. Kameme Radio 3.7% 13. KTN News 3.7% 14. K-24 3.5% 15. Kass FM 3.4% 16. Ramogi FM 3.4% 17. Radio Taifa 3.0% 18. Google 3.0% 19. Milele FM 2.9% 20. Chamgei FM 2.6% 21. KBC 2.5% 22. Classic FM 2.4% 23. Musyi FM 2.3% 24. The Standard 2.2% 25. Coro FM 1.9%

. . . .

LSM 8+ Nairobi & Coast Urban 15 to 35 year olds

• Queues at polling stations were pretty long – Kenyans online shared pictures of their experience on voting day • A photo was captured of a voter in line carrying githeri (a local dish made of boiled beans and maize) in a polythene bag. The man, dubbed “Githeri Man” carried his githeri as his breakfast whilst queuing • This photo went viral on Twitter and spurred lots of conversation. Githeriman is said to have eased the tension in a controversial election

2007 2015

81.3%

69.1% 65.7% 55.4% 46.6%

16.1%

Swahili English Vernacular

•Vernacular Radio 1st

•Swahili Radio 2nd

•English Radio 3rd

TELEVISION RADIO NEWSPAPERS MOBILE PHONE INTERNET

2007 – 8.2 M 2007 – 16.6M 2007 – 4.8M 2007 – 8.7M 2007 – 0.5M 2015 – 7.3M 2015 – 14.5M 2015 – 2.0M 2015 – 16M 2015 – 2.5M 11% 13% 58% 84% 500%

78% 14% Aware Aware and participated 08% Not aware

DIPSTICK STUDY AMONGST 15 TO 18 YEAR OLDS

• Could more co-creation be done with the target consumers to create more engaging content?

• Is the program on at the right time and on the right platforms?

. . . .

Established traditional media In order to remain relevant, Advertisers need to be in Organic conversations are platforms have the luxury of traditional media must the consumers’ space at gold – all brands need to high audience reach, listen to their more the right time and in the continually seek out ways to established consumption disconnected audiences right place. They need to remain relevant and and work with them to understand their authentic; whilst creating an habits; and high brand generate content the consumers and involve experience for its audiences equity. All of which can consumer wants them on the brand’s and consumers trump content 40 © 2017 Ipsos. journey THANK