American University in Cairo AUC Knowledge Fountain Theses and Dissertations 2-1-2019 Advancing the Egyptian Public Broadcaster to Compete in the Digital Era Maha Sherif Hussein Nagy Follow this and additional works at: https://fount.aucegypt.edu/etds Recommended Citation APA Citation Nagy, M. (2019).Advancing the Egyptian Public Broadcaster to Compete in the Digital Era [Master’s thesis, the American University in Cairo]. AUC Knowledge Fountain. https://fount.aucegypt.edu/etds/736 MLA Citation Nagy, Maha Sherif Hussein. Advancing the Egyptian Public Broadcaster to Compete in the Digital Era. 2019. American University in Cairo, Master's thesis. AUC Knowledge Fountain. https://fount.aucegypt.edu/etds/736 This Thesis is brought to you for free and open access by AUC Knowledge Fountain. It has been accepted for inclusion in Theses and Dissertations by an authorized administrator of AUC Knowledge Fountain. For more information, please contact [email protected]. The American University in Cairo School of Global Affairs and Public Policy Department of Journalism and Mass Communication Advancing the Egyptian Public Broadcaster to Compete in the Digital Era A Thesis Submitted In partial fulfillment of the requirements for the Master’s Degree in Journalism and Mass Communication By Maha Sherif Hussein Nagy Under the supervision of Dr. Hussein Amin Spring 2018 ACKNOWLEDGEMENTS The study hereafter is the result of a long journey and a challenge that could not have been completed without the help and support of many, both directly and indirectly, that enabled me to reach this point. I would like to acknowledge my advisor, Dr. Hussein Amin, for his continuous support, starting with choosing my topic and up to the little details of my final draft. His supervision is truly attentive and thorough, making sure this study is comprehensive and of value to its readers. I would also like to thank both Dr. Rasha Allam, Assistant Professor, Department of Journalism and Mass Communication, the American University in Cairo, and Eng. Hossam Saleh, Telecom, Media and Technology Consultant, as readers of the thesis. I am truly fortunate to have two of the most notable figures in the media and technology fields be part of the development of this thesis. I cannot thank my family enough for their continuous support throughout the past few years, my husband, my sister, my two young boys and most important my parents, whom I hope I am making proud. And finally I would like to acknowledge my two children, who have endured the long hours of studying and absence form their lives as I started pursuing my master’s degree when they were so young. And for my elder son, I hope this thesis shows him how hard work pays off and teaches him never to give up his dreams or let anything stop him from reaching his goals. Abstract In light of the dramatic technological developments the media industry is witnessing in Egypt and the region, the Egyptian public broadcaster seems missing from the scene. While many privately owned channels are offering some form of online catch-up service, the first Egyptian broadcaster is still very weak online with some presence on YouTube that does not meet the opportunities other broadcasters are benefiting from in the region as well as globally. Through a series of in-depth interviews, the study aims at closely examining the strengths and weaknesses of the current digital presence of the Egyptian public broadcaster and providing recommendations on how it can be enabled to compete with privately owned competitors. Having the legacy in the realm of linear TV in the Middle East and currently undergoing a renovation process in terms of content that is planned strongly compete within the upcoming period, a strong digital presence is a must and a key factor to succeeding in reaching such a goal. The study will identify the different formats and business models for existing competition and formulate the digital strategy that would best suit the current state of the public broadcaster. ii Table of Contents Chapter 1: Introduction 1 1.1 Background 1 1.2 Statement of the Problem 4 1.3 Purpose of the Study 6 Chapter 2: Literature Review 7 2.1 The Public Service Broadcasting Concept 7 2.1.1 Public Broadcasting the United Kingdom 9 2.1.2 Public Broadcasting in France 10 2.1.3 Public Broadcasting in Germany 11 2.1.4 Public Broadcasting in The United States 13 2.1.5 Public Broadcasting in India 13 2.1.6 Public Broadcasting in Japan 15 2.2 The Egyptian Public Broadcaster 18 2.2.2 The Era of Satellite Television 21 2.2.3 ERTU Post-2011 23 2.2.4 Post-Revolution Restructuring Efforts 26 2.3 The VOD Market at a Glance 28 2.4.1 The Technology: CDNs and Clouds 30 2.4.2 Controlling the Communications Process 31 2.4.3 The Financial Models 32 2.4.4 Content Strategy 33 2.5 The Biggest VOD Brands 34 2.5.1 YouTube 34 2.5.2 Netflix 36 2.5.3 Facebook 39 2.6 Public Broadcasters on Digital 40 2.7 The Digital Content Market in the Middle East 44 2.7.1 Shahid 44 2.7.2 OSN 47 2.7.3 Netflix 48 2.7.4 Icflix 49 iii 2.7.5 Starz Play 50 2.7.6 Barriers to Market Growth 51 2.7.7 Egyptian Private Channels on Digital 53 2.7.8 The NMA’s Digital Presence 54 Chapter 3: Theoretical Framework 59 3.1 Agenda Setting Theory 59 3.2 Cultivation Theory 62 3.3 Computer Mediated Communication Theory 64 Chapter 4: Conceptual Framework 67 4.1 Media Convergence 67 4.2 Technological Convergence 69 4.3 Economic and Industrial Convergence 72 4.4 Political and Regulatory Convergence 74 4.5 Socio-Cultural Convergence 76 Chapter 5: Methodology 77 5.1 Research Design 77 5.2 Sampling 77 5.3 Instrumentation 79 5.4 Data Collection and Analysis Procedures 80 Chapter 6: Findings and Analysis 82 6.1 The State of the Digital Media Scene in Egypt 82 6.2 Perception of the NMA 84 6.3 the NMA’s Strengths and Weaknesses 86 6.3.1 The Back Catalog 86 6.3.2 Steps Taken so Far 87 6.3.3 The Staff 87 6.3.4 The Vision 88 6.3.5 The Current Content 90 6.3.6 The Perception 91 6.3.7 The Organizational Structure 92 6.4 Opportunities and Barriers to Convergence 92 6.5 Regulatory Convergence 93 6.6 The Recommended Model 94 6.6.1 YouTube vs. Platform 94 iv 6.6.2. The Public Broadcasting Fee 95 Chapter 7: Conclusion 97 7.1 Phase 1 - Putting the House in Order 97 7.1.1 Technically 97 7.1.2 Structurally 100 7.2 Phase 2: The Real Convergence 107 7.2.1 The Technological Model 107 7.2.2 Content Strategy 109 7.2.3 The Financial Model 110 7.3 Limitations and Further Recommendations 111 References 113 Appendices v List of Figures Figure 1 - Online consumption of social media and content in Egypt............................................ 4 Figure 2- Public broadcasters around the world ........................................................................... 18 Figure 3 - Production budgets of major linear and online broadcasters 2017-2018 ..................... 37 Figure 4- Payment preferences for pay TV in the MENA region ................................................. 46 Figure 5 - Average internet connection speed in Q1/2017 ........................................................... 52 Figure 6- Egyptian satellite channels presence on YouTube. ....................................................... 54 Figure 7 - NMA related channels’ performance on YouTube ...................................................... 56 Figure 8 - Distribution of views of the NMA related channels on YouTube ............................... 58 Figure 9 – Quarterly growth of data traffic in the world .............................................................. 71 Figure 10– Cost of data vs data consumption year over year ....................................................... 72 Figure 11- Proposed digital media function structure at the NMA ............................................ 103 Figure 12 – Organizational Structure of the NMA with the new digital media department ...... 105 Figure 13 – Proposed process for the Digital Media Division.................................................... 106 vi Chapter 1: Introduction 1.1 Background Since the first transmitted TV picture more than sixty years ago, TV has rightfully occupied the throne of the media industry as the most attractive medium with its vivid images and storytelling capabilities that far exceeds any of its competitors everywhere in the world. For Egypt, it was not a different case, due to the high illiteracy rates and the government’s adoption of an ambitious project to establish its own broadcasting service that transmitted its first images in 1960, later under the Egyptian Radio and Television Union in 1970. Since then, broadcast media was controlled by the government for several decades. Knowing the importance of its reach and effects, the successive rulers of Egypt held a tight grip over this powerful medium with some differences over the past 40 years up until the early 2000s. Under Nasser’s rule, television was used as a propaganda tool to promote the socialist ideas of the regime and mobilize the masses for support (Guyaabess, 2013). The 1970s and 80s witnessed a gradual change in the content offered, along with a growing reach for terrestrial channels, reaching up to 98% by the end of the 1970s (qtd. in Guyaabess, 2013). The rise of satellite channels regionally and the launch of Nilesat locally in the 1990s marked an important phase in the TV landscape in the Middle East, and more importantly for Egypt. “Satellite television exposed audiences to a greater plurality of voices than had been previously been aired on state television, including views and information that contradicted the “official” line” (Buccianti and el-Richani,2015). However, the media scene in general and state run television channels in particular remained under tight control from the government, which used different tools such as censorship and arbitrary editing to filter the messages going through 1 to the Egyptian audience.