50 Million Multichannel Homes Forecast for Mideast, North Africa

June 26, 2009 World Screen

LONDON: By the end of 2014, there will be 50 million multichannel TV homes in the Middle East and North Africa, reflecting a pay-TV penetration of more than 70 percent, according to new research from Informa.

There were 76 million TV households in the Middle East and North Africa (MENA) region at the end of last year. In the MENA region, satellite TV accounts for 59 percent of all TV households. Cable and IPTV are minor platforms, the sixth edition of the Middle East and Africa TV report notes. There are 6.9 million pay-TV households in the MENA region, for a pay-TV penetration rate of 11 percent. Turkey and Israel account for 4.8 million of these homes, or 69 percent of the total. 

Two of the major issues facing the region, the report states, are in the areas of regulation and legislation. Close ties between governments and many broadcasters is seen to be inhibiting the market, while media legislation has not kept up with changes in technology. 

The report also assesses content trends, citing the staples of sport and film but also pointing to the prominence of regional news. Zones such as Dubai Media City and similar efforts in Jordan, Syria and Egypt are improving production values in the region.

Looking ahead, Informa predicts consolidation among the main pay-TV platforms, Orbit, ART and Showtime, and sees significant moves towards HDTV. The report also sees growth in TV advertising, which currently stands at $5 per capita in the region, as compared with $100 per capita in Western Europe. However, TV advertising is not growing as fast as the number of channels available, especially free-to-air ones. There are some 500 free-to-air satellite channels, up from just 100 in January 2004. Satellite operator Nilesat expects more than 1,000 FTA channels by 2012.

In Sub-Saharan Africa, there are a further 33.4 million TV homes. Multichoice is the pay-TV leader, with some 2.5 million subscribers at end-2008. Other significant players include Nigeria’s HiTV and Canal+ Horizons.