MIDDLE EAST & AFRICA ISSUE November 2018 pOFC DTVE MEA18.indd 1 30/10/2018 16:25 pXX Amos Spaceceom MEA18.indd 1 24/10/2018 12:57 Digital TV Europe Middle East & Africa 2018 > Contents November 2018 Streaming to success Middle East & Africa emerging markets of Africa and the Middle East remain domi- 2018 The nated by free-to-air TV, with satellite-delivered pay TV growing steadily. But streaming services have gained a foothold in both markets and are helping stimulate interest in local original content. Issue no 342 In Africa, OTT TV providers face the challenge of poor terrestrial fixed-line infrastructure, the high cost of mobile data and a fractured market. Never- Published By: theless, subscription video-on-demand services have gained some traction KNect365 TMT in key markets. High mobile data charges remain a barrier, however, while Maple House regional diversity could stand in the way of pan-regional players building scale, explaining why 149 Tottenham Court Road existing providers have typically focused on a few major markets. Digital TV Europe’s Middle London W1T 7AD East & Africa 2018 looks at some of the challenges and opportunities facing OTT providers in Tel: +44 (0) 20 7017 5000 the sub-Saharan Africa market. Fax: +44 (0) 20 7017 4953 In the Middle East, despite elements of a common language and culture, regional variations Website: www.digitaltveurope.com also stand in the way of providers achieving dominance. Other hurdles include piracy and the highly politicised nature of media competition – as illustrated by the way the conflict between Saudi Arabia and Qatar has spilled over into the media business.Digital TV Europe’s Middle East Editor Stuart Thomson & Africa 2018 tracks some of the key developments over the last year, including Saudi Arabia’s Tel: +44 (0) 20 7017 5314 attempts to establish itself as a regional media powerhouse and the development of multiple Email: [email protected] OTT services that are helping stimulate the local content business. l Stuart Thomson, Editor Contributing Editor Andy McDonald [email protected] Tel: +44 (0) 20 7017 5293 Contents Email: [email protected] Contributors Africa: the big picture 2 Andy Fry, Rebecca Hawkes Satellite and – following switchover – digital-terrestrial TV are likely to remain the dominant distribution technologies in Africa, framing the context for growing competition in pay TV. Commercial Director Patricia Arescy Tel: +44 (0) 20 7017 5320 Africa: competition growing in pay TV 4 Email: [email protected] Pay TV is growing and streaming is making some headway in Africa, despite challenges. Art Director Matthew Humberstone On-demand Africa 6 OTT TV providers are optimistic about the future of streaming services across the continent, Marketing Manager Abigail Dede driven by high mobile penetration. However, obstacles remain. Andy Fry reports. Printing Wyndeham Grange, West Sussex The Middle East: the big picture 12 Satellite TV remains dominant, but fixed and mobile broadband is growing in the Middle East. Middle East: demand for content fuelling subscription services 14 To subscribe to this magazine or our daily email newsletter please visit An appetite for local content and OTT launches have boosted subscription in the Middle East. digitaltveurope.net/registerhere Fluctuating fortunes 16 The last year has seen Saudi Arabia emerge as the major force in Middle East media, while OTT TV providers are making their presence felt. Rebecca Hawkes reports. © 2018 Informa UK Ltd Viewpoint: Reinventing the MENA content industry 24 All rights reserved OTT services are boosting investment in local original content, says Nick Grande. Reproduction without permission is prohibited Visit us at www.digitaltveurope.com 1 p01 Ed Note MEA18v2st.indd 1 02/11/2018 18:54 Middle East & Africa 2018 > Africa and its growth prospects Digital TV Europe November 2018 Africa: the big picture Satellite and – following switchover – digital-terrestrial TV are Key likely to remain the dominant distribution technologies in Africa, Cable DTH DTT IPTV Broad- framing the context for growing competition in pay TV. band Notes: * Q2, **Q3 2017 Source: Ovum/WBIS Algeria Angola Botswana Cabo Verde 15000000 350000 80000 20000 300000 70000 12000000 60000 15000 250000 9000000 50000 200000 40000 10000 6000000 150000 30000 100000 20000 5000 3000000 50000 10000 12,371,450 2,700 2,394,627 82,000 322,000 14,250 94,623 14,000 18,800 81,000 3,500 0 0 0 0 Cameroon Congo Dem. Rep of Congo Egypt 250000 50000 350000 15000000 300000 200000 40000 12000000 250000 150000 30000 9000000 200000 150000 100000 20000 6000000 100000 50000 10000 3000000 50000 215,000 25,000 56,709 47,500 13,737,125 56,900 6,256,025 48,000** 15,000** 2,160** 316,500 132,750 26,912 0 0 0 0 Ethiopia Ghana Kenya Libya 150000 500000 400000 300000 350000 250000 120000 400000 300000 200000 90000 300000 250000 200000 150000 60000 200000 150000 100000 100000 30000 100000 50000 50000 23,117 145,552 132,397 428,159 212,600 144,562 384,956 99,750 294,175 2,000* 270,000* 0 0 0 0 Visit us at www.digitaltveurope.com 2 p02-03 Africa charts MEA18vID14v2st.indd 2 02/11/2018 19:07 Digital TV Europe Middle East & Africa 2018 > Africa and its growth prospects November 2018 Malawi Mauritania Mauritius Morocco 80000 15000 250000 8000000 70000 7000000 12000 200000 60000 6000000 50000 9000 150000 5000000 40000 4000000 6000 100000 30000 3000000 20000 2000000 3000 50000 10000 1000000 60,750 1,962 6,650 13,275 148,917 235,028* 6,967,680* 76,800* 1,754,665* 0 0 0 0 Mozambique Namibia Nigeria Rwanda 200000 120000 8000000 40000 7000000 35000 100000 150000 6000000 30000 80000 5000000 25000 100000 60000 4000000 20000 3000000 15000 40000 50000 2000000 10000 20000 1000000 5000 12,980 36,155 20,744 185,750 50,750 41,500 15,158 85,750 104,250 67,710 145,000 7,011,625 1,436,449 0 0 0 0 Senegal Seychelles South Africa Sudan 100000 25000 2000000 100000 80000 20000 80000 1500000 60000 15000 60000 1000000 40000 10000 40000 500000 20000 5000 20000 3,000 82,250 21,600* 418* 35,333 22,000 93,438 8,416,778* 99,508 1,782,876* 0 0 0 0 Tanzania Tunisia Uganda Zambia 1200000 2500000 250000 150000 1000000 2000000 200000 120000 800000 1500000 150000 90000 600000 1000000 100000 60000 400000 500000 50000 30000 200000 2,183,565 1,502,915 141,229* 36,442* 204,712* 0 268,931* 1,069,190* 101,761* 0 0 249,923 155,131 0 Visit us at www.digitaltveurope.com 3 p02-03 Africa charts MEA18vID14v2st.indd 3 02/11/2018 19:07 Middle East & Africa 2018 > Africa and its growth prospects Digital TV Europe November 2018 Africa: competition growing in pay TV While reliable statistics are hard to come by in Africa, there is plenty of evidence of growth in pay TV, fuelled by competition, while streaming is making some headway, despite challenges. remains predominantly a and 22.4% of its TV households at the end of aware Gabonese individuals intended to equip Africa free TV market, but pay TV 2017. Even so, pay TV household penetration themselves to receive digital TV. numbers are growing rapidly, fuelled over the remains low at around 25.7%, according In Senegal, where DTT deployment is more past couple of years by intensifying competition to Kagan, compared with 52.5% in South advanced, 93.3% were aware of DTT, of whom between a number of regional players. Africa, with Nigeria turning in multichannel 21% were already equipped to receive it with a Digital TV Research predicted at the start revenues of US$835 million versus South further 54.4% intending to equip themselves to of this year that pay TV subscribers in sub- Africa’s US$1.9 billion. Kagan expects Nigerian receive digital transmissions. Saharan Africa were set to increase by 74% multichannel revenues to grow to over US$2.4 Streaming remains at a relatively early stage between 2017 and 2023 to reach 40.89 million. billion over the next 10 years, but predicts that in a market where terrestrial infrastructure is Digital TV Research predicted that sub-Saharan this will still be somewhat less than the total for patchy and broadband penetration limited. pay TV revenue would increase by 41% to reach South Africa. Much has been made of the potential of mobile US$6.64 billion (e5.84 billion) by that date, According to Kagan, the bulk of Nigerian pay in a market with high and growing mobile with subscriber growth outstripping revenue TV homes – about 60% – take digital-terrestrial phone penetration, but the cost of data remains growth as competition begins to eat into prices. services, with DTH having a 34.8% share of a hurdle despite initiatives around zero-rating The research outfit calculated that pay TV the pay TV market, with the remainder taking and bundling. market leader MultiChoice had 12.48 million fixed wireless services. The Nigerian pay TV Nevertheless, subscription video-on- subscribers across all its platforms – which market is increasingly competitive, however, demand services are growing. Digital TV include DTH service DStv and DTT platform with new entrants Kwesé TV and TSTV adding Research predicts that SVOD users across GOtv – at the end of 2017, forecast to rise to to the existing line-up of players in the market. sub-Saharan Africa will number 10 million 16.66 million by 2023. As the snapshot of TV distribution by 2023, up from just 1.56 million across the Digital TV Research predicted that technology across selected African countries region at the end of last year.