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ALKESH SHARMA / Emirates Business
Driven by the presence of large number of expats in the Middle East region, satellite television has emerged as one of the dominant players in the infotainment industry in this part of the world. Satellite television, which offers a varied range of programmes emanating from different parts of the world, has become the foremost choice of residents and eventually companies are investing huge capital to ensure smooth flow of this medium.
According to a latest survey-report christened ‘Media Industries in the Middle East 2016’, the region’s TV market base currently stands at 50 million TV households, and is dominated by satellite television. Satellite television dominated this region with nearly 79.1 percent prevalence in the MENA households and it is followed by terrestrial television with only 16.5 percent hold.
“Satellite television is the undisputed market leader in the entertainment industry in this region. Some of its highlights are rich content, world-class programmes and user-friendly nature. Moreover, it is also a lucrative option for industry player as once the apparatus is set-up then there is no need for frequent updates or repairs,†Alexandra Sanchez, who is running a digital media start-up in Dubai, told Emirates Business.
However, globally cable television dominated with 36.9 percent households and satellite television held 23.2 percent homes.
“Satellite television remains resilient and dominates Middle East’s TV market. Other channels of distribution, including cable and digital terrestrial television (DTT), remain relatively small, although Internet protocol television (IPTV) is growing faster than the global average,†stated the report, which is compiled by the Northwestern University in Qatar, in partnership with Doha Film Institute.
However, IPTV, which grew from 0.6 percent share in 2010 to nearly 1.2 percent stake in 2014 in the MENA region, is still largely a GCC phenomenon. It is mainly focussed on high-bandwidth markets such as the UAE and Qatar.
Notably, overall television remains a buoyant and progressively vibrant medium in the Middle East. Its share in the overall ad revenues in this region also stayed stable over the years.
TV ad revenues remained stable overall and saw a constant annual rise during the period of 2010 to 2015. In 2010, out of the total MENA ad market, 37 percent was TV advertising and this share surged to 43 percent in 2015.
As per experts, the MENA’s traditional TV industry was pegged at over $3.37 billion in revenues in 2015, and it included more than $2.39 billion in free-to-air (FTA) advertising.
“With 43 percent of total net ad spend, TV in the Middle East has one of the highest shares of media ad spend in the world; compared to 37 percent in Asia-Pacific, 36 percent in North America, and 29 percent in Western Europe,†the report findings pointed out.
