Introduction of Wananchi Group Introduction of Wananchi Group Holdings LtdHoldings Ltd

Zuku TVZuku TV

Programming Programming AcquisitionAcquisition

Challenges & IssuesChallenges & Issues

Zuku TVZuku TV

The Challenge is to Transform The Challenge is to Transform a one-way Distribution a one-way Distribution

Platform that targeted the Platform that targeted the Asian Households into an Asian Households into an

Interactive state-of-the-art Interactive state-of-the-art network with content that network with content that appeals to all income and appeals to all income and

demgraphic groups.demgraphic groups.

Zuku TVZuku TV

Pre-Existing Exclusivity Pre-Existing Exclusivity

Distribution Agreements Distribution Agreements With Other Pay-tv With Other Pay-tv

ProvidersProviders

Zuku TV Zuku TV

Of the Initial Group of 75 Of the Initial Group of 75 Channels Zuku TV Channels Zuku TV

Pursued, 21 or 28%, had Pursued, 21 or 28%, had Pre-Existing Exclusivity Pre-Existing Exclusivity

Distribution Agreements Distribution Agreements With Other OperatorsWith Other Operators

Zuku TVZuku TV

The Group of 21 Channels The Group of 21 Channels With Pre-Existing With Pre-Existing

Exclusivity Distribution Exclusivity Distribution Agreements Represented Agreements Represented

the Most Popular the Most Popular Channels and Genres.Channels and Genres.

Zuku TVZuku TV

CNN, Euronews, ESPN, CNN, Euronews, ESPN, BET, Hallmark, TCM, BET, Hallmark, TCM,

Discovery, Animal Planet, Discovery, Animal Planet, National Geographic, National Geographic, History, Cartoon Net, History, Cartoon Net, Disney, Boomerang, Disney, Boomerang,

Style, & A&E. Style, & A&E.

Zuku TVZuku TV

Other Multi-channel Other Multi-channel Operators Have Acquired Operators Have Acquired

Content and Packaged their Content and Packaged their own Channels, Which are Not own Channels, Which are Not

Available to Zuku TV Available to Zuku TV

Zuku TVZuku TV

The Geographic Location The Geographic Location of Kenya Prevented Zuku of Kenya Prevented Zuku TV From Viewing Some TV From Viewing Some

Primary Distribution Primary Distribution Satellites. Satellites.

Zuku TVZuku TV

HotBird 6, Eutelsat W2,HotBird 6, Eutelsat W2,Astra 1, HotBird 7A.Astra 1, HotBird 7A.

Zuku TVZuku TV

Alternative Signal Alternative Signal Delivery Options, Such as Delivery Options, Such as Private Satellite Backhaul Private Satellite Backhaul

From London, are Cost-From London, are Cost-Prohibitive for Zuku TVProhibitive for Zuku TV

Zuku TVZuku TV

Due to Unavailability of Due to Unavailability of Kenya Time-Zone Kenya Time-Zone

Appropriate Versions of Appropriate Versions of Many Satellite Signals, Many Satellite Signals, Zuku TV is Forced to Zuku TV is Forced to Time-Shift Signals, or Time-Shift Signals, or

Transmit Signals Outside Transmit Signals Outside of Normal Time of Normal Time

Segments. Segments.

Zuku TVZuku TV

Reported Instances of Reported Instances of Piracy by some Pat TV Piracy by some Pat TV Providers in the region Providers in the region

has Dictated has Dictated Programmers to Demand Programmers to Demand

Large Minimum Large Minimum Guarantees, Creating Guarantees, Creating Capital Constraints for Capital Constraints for

Zuku TV. Zuku TV.

Zuku TVZuku TV

Limited Availability of Limited Availability of Original Regional Original Regional

Programming, Forces Programming, Forces Zuku TV to Import Distant Zuku TV to Import Distant

Satellite Signals Satellite Signals Containing Foreign Containing Foreign

Channels. Channels.

Zuku TVZuku TV

Imported Foreign Imported Foreign Programming Channels Programming Channels

May Represent Language May Represent Language Issues, or Cross-Cultural Issues, or Cross-Cultural Limitations, Relative to Limitations, Relative to

Such Genres as Comedy, Such Genres as Comedy, etc. etc.

Zuku TVZuku TV

Local Social Norms Local Social Norms Restrict the Marketing of Restrict the Marketing of

Certain Types of Revenue-Certain Types of Revenue-Producing Programming, Producing Programming,

Such as Adult. Such as Adult.

Zuku TVZuku TV

The Introduction of VOD & The Introduction of VOD & PPV Programming is PPV Programming is

Inhibited by the Lack of a Inhibited by the Lack of a critical subscriber base to critical subscriber base to

support minimum support minimum guarantees, technology guarantees, technology

issues, and Availability of issues, and Availability of Product, Due to Existing Product, Due to Existing

Exclusivity Agreements by Exclusivity Agreements by Other Operators.Other Operators.

Zuku TVZuku TV

Existing Direct Satellite Existing Direct Satellite Operators Have very good Operators Have very good penetration of the High-penetration of the High-End Multiple Premium End Multiple Premium

Customers in the Market, Customers in the Market, Leaving Middle & Low-Leaving Middle & Low-End Customers as our End Customers as our

best Prospects. best Prospects.

Zuku TVZuku TV

The Middle & Low-End The Middle & Low-End Customers are Restrained Customers are Restrained

by Relatively Modest by Relatively Modest Amounts of Disposable Amounts of Disposable Media Spending, which Media Spending, which

requires careful spending requires careful spending on Programming content. on Programming content.

ZUKU TVZUKU TV

Competition and Market Competition and Market size for Video Purchase, size for Video Purchase,

Requires Additional Requires Additional Product Lines of VoIP Product Lines of VoIP Telephony & Internet Telephony & Internet Access, to Create an Access, to Create an Overall Successful Overall Successful

Operation. Operation.