An Agency of the Department of Economic Development – Government of Dubai A SMALL AND MEDIUM ENTERPRISES DEVELOPMENT PERSPECTIVE OF THE MEDIA INDUSTRY IN DUBAI The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be violation of applicable law. Dubai SME encourages the dissemination of its work and will grant permission to reproduce portions of the work promptly. All queries should be addressed to Dubai SME at [email protected] (P.O. Box 66166, Tel:+971 4361 3000, www.sme.ae ) DUBAI SME © 2010 CONTENTS 1. EXECUTIVE SUMMARY..................................................................................................................................... 3 2. INTRODUCTION TO THE REPORT ................................................................................................................. 8 INDUSTRY DESCRIPTION .................................................................................................................................................. 8 INDUSTRY STRUCTURE (KEY STAKEHOLDERS) .................................................................................................................... 10 KEY INDUSTRY DRIVERS ................................................................................................................................................ 12 3. MEDIA INDUSTRY IN DUBAI – AN OVERVIEW......................................................................................... 13 (A) GOVERNEMENT PLAN ....................................................................................................................................... 14 1. Infrastructure Developments ..................................................................................................................... 15 2. Regulatory Structure ................................................................................................................................. 18 3. Media Skills Development ......................................................................................................................... 22 4. Government Initiatives / Programs ........................................................................................................... 25 (B)CURRENT SITUATION ANALYSIS ......................................................................................................................... 26 Development of Media segments in Dubai ........................................................................................................ 27 Media Value Chain Activities ............................................................................................................................ 31 SME Orientation of the Media Industry ............................................................................................................ 34 (C) OPPORTUNITY ASSESSMENT ............................................................................................................................. 38 4.GLOBAL AND REGIONAL INFLUENCES ON MEDIA DEVELOPMENTS IN DUBAI .......................... 39 MEDIA TRENDS - WORLDWIDE ...................................................................................................................................... 40 MEDIA TRENDS – REGIONAL (GCC AND ARAB) ................................................................................................................. 42 MEDIA TRENDS - DUBAI ............................................................................................................................................... 46 5. OPPORTUNITY ASSESSMENT – BY MEDIA SEGMENT ........................................................................... 52 MOTION PICTURE/ FILM INDUSTRY ........................................................................................................................ 52 TV INDUSTRY .......................................................................................................................................................... 70 ANIMATION AND GAMING ..................................................................................................................................... 88 WEB CONTENT DEVELOPMENT .............................................................................................................................. 99 MOBILE CONTENT DEVELOPMENT ....................................................................................................................... 109 ADVERTISING ........................................................................................................................................................ 121 6. WAY FORWARD FOR MEDIA INDUSTRY IN DUBAI .............................................................................. 126 ADDRESS CHALLENGES ............................................................................................................................................... 128 PROMOTE OPPORTUNITIES ......................................................................................................................................... 132 7. BENCHMARKING EXAMPLES ..................................................................................................................... 134 8. POSSIBLE SOLUTIONS TO ADDRESS CHALLENGES AND OPPORTUNITIES ................................ 141 POSSIBLE SOLUTIONS AND ITS HIGH-LEVEL ASSESSMENT: INDUSTRY-WIDE ISSUES .................................................................. 143 POSSIBLE SOLUTIONS AND ITS HIGH-LEVEL ASSESSMENT: SEGMENT-WISE OPPORTUNITIES AND CHALLENGES .............................. 148 9. CONCLUSION ................................................................................................................................................... 155 INDUSTRY-WIDE OBJECTIVES AND POSSIBLE SOLUTIONS - “MOST APPROPRIATE SOLUTIONS” .................................................. 156 SEGMENT-WISE POSSIBLE SOLUTIONS – “MOST APPROPRIATE SOLUTIONS” ......................................................................... 156 ANNEXURE I – ISIC CLASSIFICATION .......................................................................................................... 157 ANNEXURE II – LICENSING OF MEDIA SEGMENTS IN DUBAI .............................................................. 160 ANNEXURE III – DMC AND OTHER ARAB MEDIA CITIES ...................................................................... 161 DUBAI SME – Media Page 2 of 163 1. Executive Summary “Media Transformation”---the report highlights the potential TRANSFORMATIONAL opportunities for Dubai’s Small and Medium Enterprises (SMEs) from the traditional distribution, broadcasting and exhibition format to a more evolved economy capitalizing on various Intellectual Property Rights in different Media segments. IPRs which are capable of ‘ creating’, ‘enabling’, ‘storing’ and ‘distributing’ CONTENT that can serve the Arab region in particular and the world in general. An integrated evaluation of global trends, local capabilities, and domestic economic landscape reveals the ability of the Media industry to transform and deliver value added creative products and services to the economy and the entire Arab region. The report assesses the opportunities for the development of Media industry in the region. The potential opportunities position the Emirate as the best place among the Arab countries to build and develop its strengths on enabling CONTENT, for the region in particular and the world at large. Further, Media presents opportunities for the development of valuable IPR assets that can be traded in return of potential foreign exchange. An IPR driven economy, drives the creative, culture and knowledge base of a country to compete globally against developed peers. Additionally, it also provides ample opportunities for SMEs to thrive and enable value-adding businesses. Hence, the role for Dubai is that of creating an enabling environment to assess the Media IPRs, protect them and enforce them when required. Enabling Media/Creative Environment Improvements in ICT infrastructure and Usage Inflow of Creative and Technical Skills Media Literacy Creative Products and Services are Ecosystem of SMEs valuable IPR assets that can be traded and commercialized CREATE Addition to the Economy: Creative, Culture and Knowledge IPR DISTRIBUTE STORE Distribution and trade allows Digital technologies allow storage of large data easily commercialization of valuable IPRs across and its transmission /distribution (for trade) across different mediums, platforms and geographies multiple-platforms with ease and at real-time. DUBAI SME – Media Page 3 of 163 The enabling environment as illustrated above highlights the emergence and participation of high value- added (creative skills) employees, improvements in overall ICT infrastructure and thereby contribution of SMEs to the overall IPR environment. The report is a detailed assessment of opportunities (with a focus on SMEs) in the Media industry of Dubai. It helps identify activities within each media segment suitable for SMEs and ability of Dubai to cater to the opportunity. As such, it reflects the ability of the Media industry to revitalize the economy through valuable IPR generation. The technological readiness of the Emirate is a key determinant of potential to cater to Content Production and Dissemination activities in the MENA region. Unlike in developed economies like US and Singapore where Creative/Media industries contribute more than 11% and 6% respectively