Technology strategy implications on the performance of television industry in Uganda.

Abstract

Liberalization in Uganda in the 1990s changed the business landscape affecting TV Broadcasting which was hitherto a preserve of Uganda Television (UTV), now Uganda Broadcasting Corporation Television (UBC TV), a public broadcaster fully owned by government. Private broadcasters started coming on board, Wavah Broadcasting Corporation (WBS) being the first. The competitive environment meant sharing the market. Within a few years that followed, media market survey revealed that UBC TV had been overtaken by WBS. It was perceived that one of the factors accounting for this market shift was the difference in technology and its application at each of the two stations. The objective of this study was to compare the technology strategy applied at each of the two stations and the resultant quality levels and relate them to their respective performances in the market. A cross sectional survey design was carried out to compare the technology strategy, quality and performance of the stations. Using structured questionnaires, the technology strategy of each of the two TV stations was studied and perceptions of viewers/advertisers in Kampala with respect to the technical quality of each of the two were sought The performance data for both stations in terms of market share was obtained from media survey reports for the period 2000 to 2008. Descriptive statistics and factor analysis were used to address objective 1 and 2 and correlation and regression analysis were used to address objective 3, 4 and 5. Findings were that technology strategy and quality was more applied at WBS than UBC. There was a significant positive relationship between quality of products and performance of both UBC and WBS. Technology strategy had weak positive relationship with quality and performance of both institutions. Quality of products significantly explained the performance of TV stations. There is need to emphasize technological quality policies to further enhance performance of TV stations.