The pay TV market in the Middle East and North Africa will grow by 47% over the next five years, according to new research published today. The third edition of Informa Telecoms & Media’s Middle East and North Africa TV report shows that the region’s 5.3 million pay TV subscribers at end-2005 will grow to 7.7 million in 2011. Much of the growth will come from Israel and Turkey, who will account for 5.5 million pay homes between them at end-2011.
Informa also discovered that, of the region’s 53.8 million TV homes, 30.7 million have a multichannel TV service – giving a 57.1% penetration rate. By 2011, that number will exceed 40 million, giving 65.2% penetration.
According to Adam Thomas, Informa’s media research manager and author of the report: “The region’s broadcast sector continues to exhibit encouraging signs. Several countries are looking towards market liberalisation, and the TV sector is benefiting from this. Both Showtime Arabia and Al-Jazeera are considering an IPO, so potentially giving investors access to two of the region’s high-profile TV brands.”
Other positive factors come from the common language and culture for much of the region, positive demographics weighted towards young adults, high rates of TV consumption and the region’s relative wealth - driven by oil revenues.
Pay TV Subscribers
|
(000) |
2005 |
2011 |
|
Israel |
1,453 |
1,826 |
|
Turkey |
2,338 |
3,675 |
|
Levant |
162 |
234 |
|
Gulf States |
791 |
1,197 |
|
North Africa |
512 |
797 |
|
Total MENA |
5,256 |
7,729 |
Source: Informa Telecoms & Media
One of the factors inhibiting greater growth is the disparity, across much of MENA, between the disposable income of a wealthy minority and the rest of the population. As a consequence pay TV operators can only sell to a relatively small proportion of wealthy locals, while also catering for a sizeable expatriate community.
Another negative is that the most developed and largest TV nations – Israel and Turkey respectively – are detached from the rest of the region, with both looking towards Europe for its models. According to Thomas the dominance of government-controlled broadcasters is also holding the sector back: “New private terrestrial channels are not launching in sufficient numbers to provide adequate competition to the lacklustre state-owned networks. While this remains the situation, the market will fail to meet its full potential.”
The 150-page report Middle East & North Africa TV (3rd Edition) is published by Informa Telecoms & Media. It analyses the region’s 16 leading markets – as well as analyzing developments in Sub-Saharan Africa. Informa produces several media business publications, including Television Business International, New Media Markets and TV International.
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