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cover story_cover story 25/02/2016 18:37 Page 5 Content exclusivity key to MENA pay-TV growth L egitimate pay-TV operators in the Middle East and North Africa are increasingly relying on exclusive content rights to gain subscribers, according to a new report from Digital TV Research. This is especially true for satellite TV platforms such as beIN and OSN. Dipping into the deep pockets of its owners, beIN in particular has been successful in building its subscriber base in a short period of time. Simon Murray, author of the fifth edition of the Digital TV Middle East & North Africa Forecasts report, said: “Gaining subscribers in the MENA is no mean feat as piracy remains rampant in most countries. More than half of the region’s homes receive free-to-air satellite TV signals. Furthermore, established pay-TV operators now have to compete against new platforms as several IPTV operators put greater emphasis on SVoD than on traditional linear channel packages.” Despite these hurdles, the number of pay-TV homes across the 20 countries covered in the report will double between 2010 and 2021 to 20.9m, with Turkey accounting for 37% of the 2021 total. From the 5.40m pay-TV homes to be added between 2015 and 2021, 1.98m will come from Turkey, 0.63m from Uzbekistan and 0.59m from Egypt. About a fifth of TV households legitimately paid for TV signals by end-2015. This proportion will climb to 24.2% by 2021. Qatar will record 80% pay-TV penetration by 2021, with Georgia (69%), Israel (68%) and the UAE (62%) also high. However, pay-TV penetration will be below 10% of TV households in Algeria, Egypt, Jordan, Morocco, Syria and Tunisia. Legitimate pay-TV revenues will climb by 82% between 2010 and 2021 to $5.02 Source: Digital TV Research Ltd. billion. However, growth will only be 25% between 2015 and 2021. Turkey and Israel are expected to contribute 45% of the region’s pay-TV revenues in 2021; down from 52% in 2015 and 63% in 2010. From the $1.028 billion pay-TV revenues to be added between 2015 and 2021, Turkey will supply $206m, the UAE $141m and Saudi Arabia $194m. Revenues in Israel will fall slightly over this period as a result of greater competition and the conversion of subscribers to bundles (which means lower TV revenues per subscriber). Satellite TV will continue to dominate pay-TV revenues, taking nearly two-thirds of the 2021 total (similar to the 2015 proportion). Satellite TV revenues will be $3.21 billion in 2021, up by $0.62 billion on 2015 [