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Middle East & Africa November 2016 Middle East & Africa 2016pOFC DTVE MEA16.indd 1 21/10/2016 18:38 The Intelsat Globalized Network Deliver anytime, anywhere, any-screen viewing. Move your programming from linear to digital, multi-screen consumption. The Intelsat Globalized Network is the fi rst and only network that can cost-eff ectively transform your legacy networks and simplify operations by combining satellite, terrestrial technologies and managed media services. The future of media is here. www.intelsat.com/media/9/ 7711-DTV-Europe_Media.inddpIFC Intelsat DTVE MEA16.indd 1 1 9/30/201621/10/2016 2:28:51 17:16 PM MIDDLE EAST & AFRICA Digital TV Europe Middle East & Africa 2016 > Contents November 2016 2014 MIDDLE EAST Going for growth & AFRICA pay TV subscriber growth levelling off in mature markets, or 2016 With even going into decline, the Middle East and Africa are more than ever seen as key growth regions for subscription services. Published By: While the Middle East continues to be dominated by free TV, there has KNect365 TMT been significant movement on the subscription side, with OSN losing some ground to a beIN Media Group that is determined to dominate the space, Maple House along with the launch of Netflix to stir a digital distribution space occupied by 149 Tottenham Court Road players with a stronger local presence such as Starz and Icflix. London W1T 7AD In Africa, meanwhile, pay TV groups continue to expand from a relatively modest base, while Tel: +44 (0) 20 7017 5000 new digital subscription VOD offerings have also appeared. Local content creation, centred in Fax: +44 (0) 20 7017 4953 Nigeria, continues to grow. Website: www.digitaltveurope.net Digital TV Europe’s Middle East & Africa 2016 looks at these developments in detail. We assess the changes in free and pay TV penetration across the region and look at how beIN Media and OSN are competing for Middle East pay TV customers, while MBC continues to dominate the Editor Stuart Thomson free-to-air space. Tel: +44 (0) 20 7017 5314 In Africa, meanwhile, we assess the prospects for key SVOD players ShowMax, iROKOtv and Email: [email protected] Trace Play across a region where connectivity challenges and bandwidth costs pose formidable barriers to growth. We also look at the growth of local content and assess the approach of mil- Deputy Editor Andy McDonald lennial-focused channel EbonyLife TV. l Tel: +44 (0) 20 7017 5293 Email: [email protected] Stuart Thomson, Editor [email protected] Contributing Editor Stewart Clarke Contents Contributor Rebecca Hawkes The Middle East: the big picture 2 Sales Director Patricia Arescy Satellite still rules in the Middle East, though IPTV is making inroads. Tel: +44 (0) 20 7017 5320 Email: [email protected] Shifting sands 6 While MBC continues to dominate free TV in the Middle East, moves by beIN Media and the Art Director Matthew Humberstone development of digital platforms could change the balance in pay TV. Rebecca Hawkes reports. Africa: the big picture 14 Printing Wyndeham Grange, West Sussex Sub-Saharan Africa is seeing strong growth in TV households, and growth in pay TV. To subscribe to this magazine or our daily email newsletter please visit Africa on-demand 17 digitaltveurope.net/registerhere Africa has seen the launch of a significant number of SVOD services over the last couple of years. Stuart Thomson reports on recent activity. A different side of Africa 20 © 2016 Informa UK Ltd EbonyLife TV founder and television personality Mo Abudu discusses the importance of All rights reserved Reproduction without permission is prohibited portraying the young and vibrant face of Africa. Visit us at www.digitaltveurope.net 1 p01 Ed Note MEA16v2st.indd 1 21/10/2016 19:03 Middle East & Africa 2016 > The Middle East and its growth prospects Digital TV Europe November 2016 1,229,650 47,400 610,000 4,281,275 1,272,100 Syria 2,500 164,300 Lebanon 1,000,000 368,362 Iraq 210,000 6,987,286 1,042,325 1,300 Iran 342,289 339,000 Jordan 161,900 Kuwait 5,005,5,0000 178,645178,645 55,000 00000 6,425 4,286,000 216216,455,455 3,400 230,000 Bahrainahhrrain 500,000 102,500 291,750 Qatar 3,030,000 68,975 506,000 Saudi 140,000 1,273,000 Arabia 295,000 UAE 290,300 115,000 1,250 Middle East: 277,200 Oman Cable DTH 1,626,125 DTT the big picture 179,000 IPTV Satellite-delivered free-to-air TV remains the dominant form of distribution in the Yemen Middle East, but fixed broadband networks are developing. Competition in pay TV is Broadband also having an impact on the overall picture. Visit us at www.digitaltveurope.net 2 p02-03 ME Map MEA16v2st.indd 38 21/10/2016 18:57 Digital TV Europe Middle East & Africa 2016 > The Middle East and its growth prospects November 2016 1,229,650 47,400 610,000 4,281,275 1,272,100 Syria 2,500 164,300 Lebanon 1,000,000 368,362 Iraq 210,000 6,987,286 1,042,325 1,300 Iran 342,289 339,000 Jordan 161,900 Kuwait 5,005,5,0000 178178,645,645 55,000 00000 6,425 4,286,000 216216,455,455 3,400 230,000 Bahrainahhrrain 500,000 102,500 291,750 Qatar 3,030,000 68,975 506,000 Saudi 140,000 1,273,000 Arabia 295,000 UAE 290,300 115,000 1,250 277,200 Oman Cable DTH 1,626,125 DTT 179,000 IPTV Yemen Broadband Source: Ovum/WBIS Visit us at www.digitaltveurope.net 3 p02-03 ME Map MEA16v2st.indd 39 21/10/2016 18:57 Middle East & Africa 2016 > The Middle East and its growth prospects Digital TV Europe November 2016 Middle East: the big picture Satellite still rules in the Middle East, though IPTV is making more inroads as internet connectivity improves across this varied region. satellite has long dominated Saudi-financed satellite channel operators, regulatory backing for the broadband sector Free the TV scene in the Middle currently operating outside the country, to set means there is a positive environment for East. However, pay TV services are making up bases within Saudi Arabia. IPTV – although it will be difficult for it to up some ground and IPTV is also making In Kuwait less than half of TV households make a major impact against the established some headway as broadband and fibre access pay for a TV service, although Ovum expects satellite market. improves. This connectivity is also opening this to rise to almost three in five by the up the market to over-the-top providers who end of 2020 – boosted by additional pay are starting to provide services alongside DTH subscribers and potential competition Broadband growth established incumbent operators. from IPTV. As of this year, satellite reigned Unlike many other countries in the Middle supreme with 339,000 DTH subscribers. Despite this, incumbent telco Batelco now East and North Africa (MENA) region, the This is more than twice the number of offers three IPTV packages in areas where UAE has been able to establish a strong broadband subscribers, which numbered it has rolled out FTTH and its Blackbox pay TV market – despite the competition 161,900. set-top box can also access OTT content. from free-to-air alternatives. Broadband Terrestrial TV in Kuwait has a minor Nuetel also offers IPTV and triple play in the penetration in the UAE stands at roughly presence, with the country having missed its Amwaj Islands, where it has a geographic 1.27 million households and IPTV is the June 2015 deadline for digital switchover, as monopoly, and plans to extend its service to top television platform in the country with set by the ITU. the mainland. an estimated subscriber base of 506,000. More than 700 satellite channels are One of the Middle East’s leading broadband This is thanks to the success of operators available free-to-air in the region via the markets is Iran, with an estimated subscriber like Etisalat and Du, which offer fibre-to-the- Arabsat, Nilesat, Noorsat, and Eutelsat base of almost seven million, compared with home (FTTH) and bundle TV services with platforms and Ovum tips this number to about one million DTH and 210,000 homes. their subscription offers. Ovum expects IPTV increase as new satellite companies gain Here, as in Bahrain, Lebanon, Qatar, Yemen uptake to increase over the coming years momentum. and the UAE, the total number of broadband before levelling off by 2021. In Oman, some 50% of TV households customers is greater comparatively than the Following closely behind IPTV is DTH rely on free-to-air satellite for their primary country’s combined TV penetration. satellite at 500,000 subscribers, with TV signal, a factor that limited pay digital Improving internet penetration is giving pan-regional operators such as OSN and satellite penetration to just 11% by the end of an opportunity to over-the-top content beIN Sports performing well in the UAE. 2015 according to Ovum research. As of Q2 providers such as Dubai-based SVOD service Meanwhile, digital terrestrial television (DTT) 2016, the country had an estimated 290,300 Icflix and other regional players like Starz trails at 102,500, according to Ovum figures. DTH users and 115,000 DTT homes. Play Arabia. Netflix also launched across the Saudi Arabia is one of the most digitally Omantel launched IPTV services in Middle East as part of its global expansion advanced countries in the region, following January after partnering with UAE-based in January.
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