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How Counterfeit Equipment, Illegal Content Is Affecting Pay-TV Industry

A multi-agency investigation has revealed significant losses by the Pay-TV Industry in Uganda to illegal services and counterfeit equipment imports. Last month, MultiChoice Uganda, a top Pay-TV service provider, sought redress from the regulators, the  Uganda Communications Commission (UCC), over the rising presence of counterfeit devices on the market and illegal distribution of content.

These were reportedly affecting the formal or licensed service providers who called for strict measures against the importation, sale, and utilisation of illegal internet streaming devices or decoders. UCC says they have, through the investigations, observed illegal content distribution through unauthorized streaming devices and that the complaint from MultiChoice reflects a significant reality in the market.

“Our investigations confirm that several entities are involved in importing, selling, and installing illegal internet streaming devices that enable unauthorised access to premium content, including SuperSport and beIN Sports channels,” says Ibrahim Bbossa, the Head of Communications at UCC. In the complaint, MultiChoice alleged that the illegal content distribution was an infringement on its exclusive rights to broadcast SuperSport channels only on DSTV decoders that are subscribed to monthly in Uganda.

UCC’s subsequent investigations revealed numerous types and brands of illegal streaming devices in the market that are used in the illegal streaming of Multichoice content. They included Starsat SR-406OHD, Starsat SR-2090HD Extreme, Mediastar MS-M1INI 1111 Forever, 1616, 1818, 3030, 2727, 7070, Senator Ice 2+ 1080 Mini HD, Senator Tik Tok Pro forever, Red Tiger Digital satellite receiver T3000, Digisat DX Mini Combo, Digsat DX 1000, and Sunplus receivers.

These Internet Protocol Television (IPTV) set boxes are imported majorly from Dubai but manufactured in China, according to UCC. These devices are designed to bypass MultiChoice’s encryption, allowing users to access content without proper licensing.

“Our findings reveal that such illegal activities have had a serious financial impact, with MultiChoice Uganda reporting an annual revenue loss of approximately 2.7 Billion Shillings due to piracy,” Bbossa says.

Additionally, the Ugandan government loses substantial tax revenue as a result of these unauthorised services. So far, he says some key players in this illegal trade, including importers, distributors, and installers operating through both physical retail shops and online platforms, have been arrested.

“We are collaborating with other agencies, including the Uganda Revenue Authority (URA) and the Uganda National Bureau of Standards (UNBS), to curb the importation and sale of these devices. To address this issue, we are also working with MultiChoice to strengthen content security measures, educate consumers on the risks of illegal streaming, and explore regulatory solutions to close loopholes that enable piracy.”

The regulators are looking at ways to block the IP addresses used to facilitate unauthorized access to premium content. MultiChoice has provided a list of known piracy-related IP addresses, and efforts are underway to block access to these sites within Uganda, the regulator says.

These illegal practices have far-reaching effects on the wider economy, including the entire broadcasting industry, the creative sector, and the broader economy, according to UCC, which calls for collective effort from regulators, service providers, the media industry, and consumers. “At the end of the day, paying for legal content doesn’t just support businesses; it strengthens Uganda’s entire media and entertainment ecosystem. The choice between illegal streaming and legitimate pay-TV is a choice between weakening or growing our local industry,” Bbossa says.

The illegal businesses thrive on three key factors: pricing, availability, and perception of value. Users interviewed say they find such products cheaper to maintain and that they find better value for money in them, like the quality of pictures and the range of channels provided. “Why do I have to upgrade to or pay for a whole bouquet of 50 more channels, yet I need only one channel from it? Why can’t DStv or GOtv allow me to pay a little just for that extra channel?” one wondered.

But Bbossa downplayed these sentiments. “In fact, legal pay-TV services offer better picture clarity, reliable signal transmission, and customer support—things that illegal devices can’t guarantee,” he says, adding that many of the unauthorised decoders rely on unstable internet connections, are prone to sudden shutdowns, and often have poor sound and video quality.

However, he says, some consumers may overlook these drawbacks because of cost, hence making pricing a major factor.  Many consumers find pay-TV subscriptions expensive, especially for premium sports content like the English Premier League. Illegal streaming services offer much lower subscription fees—sometimes as little as 30,000 Shillings per month compared to the official rates.

This affordability makes piracy attractive to budget-conscious consumers despite the risks involved. “What people don’t realise is that legal broadcasters like MultiChoice invest heavily in acquiring broadcast rights, maintaining infrastructure, and paying taxes that contribute to the economy. The lower price of illegal streaming comes at a cost—it hurts local businesses, reduces tax revenue, and discourages investment in Uganda’s media industry, he laments.

Another factor that favours the illegal businesses is the limited distribution chains by the formal service providers. UCC admits that Illegal streaming devices are readily available in local markets, electronic shops, and online platforms like Jiji and Facebook. They’re easy to set up, and sellers even offer installation services.

On the other hand, legal Pay-TV requires official subscriptions and decoder activations, while the illicit ones operate with minimal barriers, making them more convenient for people looking for quick and cheap access to premium content. The regulators are calling on the public to only go for licensed products and service providers to avoid the long-term impacts that are not immediately realised.

“UCC is increasing public sensitisation on the risks of using illegal services, including potential cyber threats, poor service reliability, and legal consequences,” Bbossa says, urging MultiChoice and other pay-TV operators to improve affordability and introduce flexible packages to compete with illegal options while maintaining quality.

“Piracy may seem like a cheap option now, but it comes at a cost to local employment, investment, and content creation. The reality is that while enforcement is crucial, the long-term solution lies in making legal services more attractive, accessible, and competitive.

One of the most attractive yet expensive products is the sports channels, mainly the English Premier League, which is currently exclusively licensed to DStv by SuperSport.

Bbossa’s advice is for the introduction of more flexible and affordable plans, particularly for premium content like live sports, which often drives consumers to seek illicit alternatives. “This could involve offering lower-cost packages that include essential channels, implementing pay-per-view or short-term subscriptions for major events, and providing discounts or loyalty rewards for long-term subscribers”

By making these adjustments, providers could attract and retain customers who are currently turning to illegal streaming options. On the general customer experience, he adds that Pay-TV services need to focus on providing greater convenience for consumers, especially as there is a growing demand for on-the-go streaming, mobile accessibility, and on-demand content.

“This can be achieved by simplifying the installation and activation processes, ensuring prompt and efficient customer support for swift problem resolution, and expanding online streaming options that allow viewers to access content across various devices.” By prioritising these improvements, pay-TV providers can significantly diminish the appeal of pirated alternatives.

-URN

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