Euromedia Jan/Feb 2014 | Page 16

coverstory_cover story 26/02/2014 18:20 Page 1 According to Chris Forrester, despite political challenges, the MENA region broadcasting industry has never been in better shape. olitically, the problems in the Middle East continue to dominate the news. But dip beneath the terrible headlines and, without wanting to trivialise any of the challenges, it is nevertheless true to state that the television industry in the MENA region continues to thrive. Indeed, it is also true to say that the broadcasting industry has never been in better shape. The Arab Spring series of revolutions has a long way yet to go before many of the national problems are resolved, but the Middle East remains a region full of optimism, especially from the growing number of talented creative talents who are increasingly making their mark. The prospects are considerable, in terms of free-to-air transmission and pay-TV. Recent data from Digital TV Research suggests that pay-TV revenues in the Middle East and North Africa will grow by more than 83% between 2010 and 2020 to a very healthy $5.6 billion, according to the study. But there is a strong ‘health warning’ in as far as growth from the Arabic viewing community will not be so profitable. REVENUES. Digital TV Research’s recent Middle East & North Africa Forecasts report suggests that Turkey and Israel are expected to contribute 52% of the region’s payTV revenues in the 2020 total. From the $1.49 billion pay-TV revenues to be P Amidst the problems, TV still dominates added between 2013 and 2020, Turkey will supply $359m, Egypt $362m and Saudi Arabia $257m. Satellite TV will continue to dominate pay-TV revenues, taking two-thirds of the 2020 total (similar to the 2013 proportion). Satellite TV revenues will reach $3.74 billion in 2020, up by $1 billion on 2013 and nearly double the 2010 total. But digging deeper into the report it is clear that the forecasts for pay-TV in the key Arab markets are still miserable when compared to the rest of the greater Middle East. For example, Kazakhstan and Uzbekistan’s pay-TV revenues will more or less match those of the UAE! PROGRESS. Which is not to say that the local pay-TV providers serving their Arabic (and ‘western’ expatriate) audiences are “Pay-TV in the MENA region has enormous growth potential.” David Butorac, OSN 16 EUROMEDIA standing idly by. Far from it. OSN (the former Orbit-Showtime Network) says it is very happy with its progress. New channels are continually being added (including recent additions from Sundance) and its HDTV output has been boosted to near-40 channels. In its most recent update, OSN says its highest growth was in Saudi Arabia (35%). The company is rolling out to new markets such as Qatar and Libya. Local reports suggest – at long last – that OSN is profitable, and helping both growth and profitability is a much stronger encryption system and upgraded set-top box which helped curb the significant piracy which it had suffered in the past. In 2013, Digital TV Research suggested that piracy remained a major worry for broadcasters and that fewer than 15% of households paid for legitimate TV signals. Again, there have been improvements, with