HD in the Middle East content distribution
Al Ayyar, KIPCO’s vice chairman, said than $100 million for three years’
the merger was good news for transmissions. Its exclusivity ends in
A local expert’s comment:
customers, staff and the the Spring of 2010, when the
industry: “This deal brings together contract switches to Abu Dhabi
Gabriel Chahine, partner and head of consumer and
two great brands into one company Media. Showtime is angling for some
media at management consultancy Booz & Co, and which
to offer customers the very best in sort of sub-licence for the games.
took a very close look at Showtime ahead of Showtime’s
Western and Arabic ART hasn’t made an unequivocal
planned - and pulled - IPO, says that neither pay-TV
entertainment. Showtime and Orbit statement, but senior insiders
company was generating solid revenues as separate
were pioneers of the region’s pay-TV suggest that it will be staying
operations. “We don’t have the economics of the paid-TV
market and we’ve both been calling independent, and grow its own rival
networks but it would be very difficult to imagine they
for consolidation of the market for pay-TV business. ART’s plans include
are making money, especially with the amount they pay
some time. Joining forces in this way dumping Irdeto and switching to
for sports rights,” he said. “From an economic standpoint,
is good news for customers, staff and Viaacess encryption, moving towards
three [pay] TV networks (in the Middle East) was way too
the regional television HDTV and embracing a new top-of-
much and it’s very difficult for them to differentiate their
industry.” the-line MPEG4 set-top box. Key to its
content from free-to-air.”
Marc-Antoine d’Halluin, naturally strategy is its use of ANT Galio
‘imports’ some ART and other Middleenough, said he is ‘utterly convinced’ Browser and ANT Galio Core
East channels as part of its specialitythat the market for pay-TV in the Applications for its new service. The
linguistic packages on Dish NetworkMiddle East is as potentially big as new ART service will have an entirely
in the USA. Now it thinks it can be aelsewhere, despite the region new look and feel designed by Arab
consolidator in the region. Not, ithistorically being slow to sign up, Media Corp (ART’s parent company).
stresses, amongst any of the existingand despite the plethora of free-to- The ANT architecture also enables the
pay-TV operators, but amongst theair channels available. As in other redesign and snazzy re-skinning of
well-established and highly-markets where there are two or services on deployed STBs as and
professional free-to-air players. Andthree competing platforms, there will when desired after the initial launch
Echostar wants to use HDTV as thebe a sector that is unwilling to of the service.
catalyst for change. ART andsubscribe to platforms that don’t “Not only is it important for us to
From an Showtime/Orbit are starting to
offer all content, said d’Halluin. But build a compelling new service but
the rationale behind the merger is to also to have a solution that can economic embrace HDTV, and the FTA
create a pay-TV ‘one-stop shop’. “All continue to grow,” said Alan Constant,
standpoint,
broadcasters want to start tinkering
Hollywood movies are on our CTO at Arab Media Corporation, ART’s
three [pay] TV
with HD. They recognise it represents
platform. All without ads. All in wide parent company. “ANT, with its
networks (in
the future for TV, but as yet HD’s
impact in the Mid-East has beenscreen. And we started in HD [in standards based software
the Middle
miniscule. July]. All these things will unlock the architecture, is at the forefront of
East) was way Which brings us back to the satellitepotential of the pay-TV market in the delivering next generation services
too much and
conundrum. Think about theseregion,” d’Halluin asserted. and applications. We are looking
it’s very
statements:Trade publication ‘Inside Satellite beyond what the market is currently
difficult for
• Arabsat wants to win the EchostarTV’ recently quoted a well-informed demanding to the types of services
bouquet. local source who suggested the that consumers will want next year
them to
• Nilesat might well lose Showtime’smerged players will have an uphill and in future years.”
differentiate support once contracts expire.
battle to reach even 400,000 actual But, long-established as these
their content
• Noorsat is the profitable arm ofDTH subscribers. By any measure this three pay-TV players are, there’s
from free-to-
Orbit.is a miniscule viewing base (after 15 shortly going to be a new kid on the
air.”
• SES has done a marketing dealyears of transmission in Orbit’s block in shape of Charlie Ergen and
with Abu Dhabi based YahSat.case). his Echostar/Dish operation. Ergen is
• YahSat 1 will launch next year.Added to this tale of woe is the not wholly ‘new’ as far as the Mid-
• Echostar and SES frequently workfact that Showtime has just lost its East is concerned. Echostar-branded
together.‘crown jewel’ coverage of the English boxes have been sold in the region
Watch this space...Premier League, that cost it more for 15 or more years. Echostar
#VZ
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