content distribution HD in the Middle East
This year’s IBC will, as usual, welcome its
regular portfolio of visitors from the Middle
East. Indeed, the region’s broadcasters have
grown enormously in numbers and strength
over the past few years. But the region is also
one of constant flux, and July saw the merger
announced between Orbit and Showtime
Arabia, two of the region’s pay-TV platforms.
This still leaves Arab Radio & Television (ART)
as the market-leader in pay-TV, which is not
saying much after almost 15 years of
Chris Forresteroperation. reports.
HDTV and the Mid-East
Not all are profitable, of course, and game. However, the 12 Julyt is worth remembering that the
the ‘big four’ broadcasting groups of announced merger between pay-TVArab world, at least as far as the
MBC, LBC, Future, Egypt Satellite Ch., players Showtime and Orbit isMid-East and North Africa
and their imitators dominate the undoubtedly good news for the(MENA) region is concerned, is
industry and win the bulk of operators themselves - andgeographically massive -
I
advertising revenues. But the subscribers. The combined businessstretching from Mauritania in the
expansion continues. will offer around 70 exclusivewest to Oman in the east. It is
Two-Four-54 (named after Abu channels, and no doubt startnumerically huge at around 350
Dhabi’s geographic location) is a new achieving the economies of scale thatmillion people, although culturally and
player and part of the Emirate’s plan will help drive profitability. Marc-financially extremely diverse. Qatar
to create a media centre for the Arab Antoine d’Halluin, currently runninghas a GDP per head of a mind-
world that’s focused on creativity at Showtime, is the new company’sblowing $81,900, while poor Yemen’s
all levels. Meanwhile in the same CEO. The announcement is an ‘equalis just $1200. Egypt’s massive 76
city is Abu Dhabi Media Company, partnership’ between Orbit, up untilmillion population - and its huge
which is also investing in new Arabic now a wholly-owned subsidiary ofmiddle class - appeals to these
media. An early result is the creation, the Saudi Arabia-based Mawaridbroadcasters, but it is wealthy Saudi
with National Geographic, is an Group, and Showtime Arabia/Gulf-Arabia’s population of 25.5 million
Arabic-language factual channel. DTH, which was owned by Kuwait’sthat’s the key TV market.
Both enterprises are helping balance KIPCO and Viacom. The past few years have seen the
Samir Abdulhad
number of Arabic free to air TV
(left) and Marc-
what until now has been a The merger of two of these two
Antoine d’Halluin. heavyweight focus by nearby Dubai. competing pay-TV platforms is partly
channels explode to close on 400.
Which is not to say that Dubai and aimed at addressing the
Abu Dhabi have everything their own fragmentation of the region’s pay-TV
way. Far from it. The other cities of sector which has “not helped the
creative excellence such as Cairo, consumer to make his mind up,”
Beirut, Damascus, Tunis, Amman and according to Samir Abdulhadi,
even Kuwait, are all increasing local president and CEO of Orbit Group. A
output and seeking breakthrough by-product is that the platforms are
drama and comedy shows, as well as also likely to see the inevitable ‘tens
kids, documentaries and, of course, of millions of dollars’ in synergies,
movies. which usually means job losses. The
The usual competitive drive means new combined operation will need to
that - at least for the top 10 channels see every penny of these savings
- content quality is now high, proving translated into above the line profit.
that competition raises everyone’s Commenting on the merger, Faisal
8 l ibe l september/october 2009 l
www.ibeweb.com
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