digital broadcast - dec 2009

VOLUME 2 ISSUE 12 DECEMBER 2009

An ITP Business Publication

Could Saudi Arabia prove the next major Middle East media hub? Could Saudi Arabia prove the next major Middle East media hub?

SHIFTING SANDS

BOXING CLEVERNext-gen STBs and their

role in driving ARPU

BUCKING THE TRENDHow MBC is raising revenues

despite the advertising slump

An ITP BusiTHE BUSINESS OF DIGITAL CONTENT DELIVERY

Welcome to the largest Arab community in the sky — only from Arabsat

In a world getting more and more interconnected, Arabsat is helping to bring people closer and make the world a smaller place. As the largest satellite operator in the Arab world covering the Middle East and Africa—as well as Europe and beyond—only Arabsat offers the full spectrum of broadcast, telecommunications and broadband services. With the youngest satellites in the region, plus more satellites launching every year until 2012, this capacity will continue to grow and provideunprecedented reach, superior reliability and unmatched flexibility for broadcast and telecom operators. Indeed, Arabsat gives you the most powerful way to reach and connect with the largest Arab community in the sky—and much more. Join our premium neighborhood now.

www.arabsat.com

C O M P A N Y P R O F I L E

For further information, please contact:Arab Satellite Communications Organization,P.O. Box 1038, Diplomatic Quarter,Riyadh 11431, Kingdom of Saudi ArabiaFax: +966 1 483 0940 Email: [email protected]

Arabsat.Youngest fleet. Highest reliability. Maximum flexibility.

Serving the Middle East & Africa

Arabsat’s main coverage area spans the Middle East and North Africa including Sudan. However, in the last 5 years , the telecom-munications sector in the north and south of Africa has experienced huge demand. Arabsat has thus started expanding its reach to bring all of Africa within its coverage area. To achieve this, Arabsat has added its 5-A, 5-C and Badr-5 satellites to cover Africa, complementing its original Middle East coverage. These satellites are located at the Arabsat orbital positions of 20º, 26º and 30.5º East . This vastly expanded reach will lead to the follow-ing enhanced offerings in Africa:

Broadcasting sector

Arabsat has started C-band transmissions of its Digital TV bouquets from its 30.5º East orbital position, creating a TV Hot-Spot for DTH TV services for all of Africa. Two bouquets are currently carrying over 20 TV channels. These bouquets will be transferred to the new Arabsat 5-A satellite planned for launch by end of 2009 to the same orbital position. Once launched, Arabsat will have 100% coverage of the African continent with excellent downlink power allowing dishes of just 1 to 1.2 meters to receive these TV channels. Additionally, Arabsat will launch its Badr-5 satellite in the first quarter of 2010. Badr-5 will cover the whole Middle East and North Africa, supporting its existing Ku-band TV Hot Spot at 26º East. It will act as an in-orbit hot backup satellite for the existing Arabsat fleet (Badr-4 and Badr-6) and provide expansion capabilities.

On board the new Badr-5 satellite, a steerable Ku-band beam can be directed toward any area in the west of Africa—from Morocco in the north to South Africa in the south—to provide DTH services in Ku-band over specific target areas.

Telecommunications Sector

The current Arabsat 2-B satellite at 30.5º East and Badr-6 satellite at 26º East provide C-band coverage for two-thirds of the African continent. To expand its African coverage and reach all of the continent, Arabsat 5-A will be located at 30.5º East, replacing Arabsat 2-B by the end of 2009. Arabsat 5-A will provide higher spot power over the eastern and western parts of Africa.

In addition, Arabsat has deployed another beam covering two-thirds of Africa, the Middle East and Central Asia. This beam operates in a planned C-band spectrum of 6.7 to 7.0 Ghz uplink. This new addition—which also covers Europe’s main Internet backbones—will provide vastly enhanced capacity for various telecom services, GSM backhauling, Internet and other VSAT or dedicated networks across the expanding Arabsat world.

Towards the end of 2011, Arabsat will also launch its 5-C satellite and position it at 20º East, an ideal orbital position to cover the African continent.

Arabsat is launching one satellite every year until 2012, vastly expanding its coverage across all of Africa. With its enhanced capacity, the Arabsat fleet will be a vital contributor to African development, opening new business opportunities in the telecom-munications and broadcasting sectors, generating new jobs and stimulating the business environment with new tools for develop-ing and growing the African economy.

Founded in 1976 by the 21 member-states of the Arab League, Arabsat has been serv-ing the growing needs of the Arab world for over 30 years. The Arabsat world now covers millions of homes in over 100 coun-tries across the Middle East, Africa and Europe, including over 164 million people across 21 Arab countries.

www.arabsat.com

03www.digitalproductionme.com

CONTENTS

DECEMBER 2009

32AUTOMATION FOR THE PEOPLEWhy smaller can also mean better in the world

of broadcast automation.

28EXCLUSIVE: SAM BARNETTTh e MBC chief reveals what the FTA

network has done to thrive in the recession.

ALSO IN THIS ISSUE...

36BOXING CLEVERTh e STB technology looking to meet

consumers growing expectations.

WEB HIGHLIGHTSSpot poll: Which fi lm fest

impressed you the most?; top web

stories; editor’s choice: Yasalam.

THE BRIEFINGUAE prepares for iTunes; GV

sale talks continue; Nokia claims

DVB-H is key for mobile video.

ONLINE ADVANCESCould the internet overtake

TV as the region’s advertising

medium of choice?

COVER STORY: SHIFTING SANDSDigital Broadcast looks at Saudi

Arabia’s emergance as a Middle

East media force.

MARKET ANALYSISTh e world’s top earning and fast-

est growing teleports revealed.

4

8

12

20

40

20

04 www.digitalproductionme.comDECEMBER 2009

DPME.COM ROUND-UP

EDITOR’S CHOICE

SPOT POLL

MOST POPULAR STORIES

1 Google plans ‘iPhone killer’ release in Q1, 2010

2 Thomson reopens GV sale talks

3 Killers call time on bench warmers

4 Handsets could be nextsecurity threat: expert

5 MySpace CEO jumps shipto France

Orbit Showtime CEO Marc-Antoine d’Halluin,

has welcomed the recent crackdown by

authorities in Bahrain on websites enabling the

Dreambox satellite TV receiver.

digitalproductionme.com/news

PAY TV CHIEF BACKS GULF PIRACY BLITZ

The online home of:

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ALSO ON THE DPME SLATE THIS MONTH...

How Qatar is pioneering the implementation of cutting edge AV technology.

ANALYSIS

QATAR RISINGAl Jazeera reveals its pioneering approach to new media.

INTERVIEWS

NEWS BREAKERS

DPME explores the relationship between IPTV and broadband services.

TECHNOLOGY

CABLE TIES...short on substance? Are the local fests doing more harm than good for the industry?

HAVE YOUR SAY

FILM FESTS: BIG ON NAMES...

IN PICTURES

YASALAM

digitalproductionme.com/analysis

digitalproductionme.com/technology

digitalproductionme.com/interviews

digitalproductionme.com/haveyoursay

Beyonce, Kings of Leon, Aeros-mith and Jamiroquai star in Abu Dhabi’s Yasalam concert series.

WHICH REGIONAL FILM FEST IMPRESSED YOU MOST?

33% MEIFF, Abu Dhabi.

27% Tribeca, Doha.

20% Cairo Film Festival.

14% Gulf Film Festival.

6% Others.

READER COMMENT: “Banning the Dreambox because it can perform an illegal function would be like banning knives because they can be used to murder people...”Andrew, Riyadh, KSA.

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EDITORIAL

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ADVERTISING

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STUDIO

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PHOTOGRAPHY

Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers Efraim EvidorStaff Photographers Leila Cranswick,Lyubov Galushko, Thanos Lazopoulos, Jovana Obradovic, Ruel Pableo, Rajesh Raghav

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Director Peter Conmy

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Published by and Copyright © 2009 ITP Business Publishing, a division of ITP Business Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846.

COMMENT

DECEMBER 2009 07

An interesting debate took place last

month sparked by a news story that

we ran on Digital Broadcast’s online

home, DigitalProductionME.com.

Th e story was about the recent activity in

Bahrain to block pay TV signals to illegal set top

boxes. Th e user comments that followed gave

some interesting insights into how the piracy

debate is played out on the ground.

Firstly, there was an allegation that pay TV

prices are so high in the region, piracy is almost

inevitable. An understandable point of view but

not necessarily a valid one. An enlightened DPME

reader pointed out that an average package

with Sky in the UK costs in excess of US $80. Th e

equivalent (EPL included) off ering in the Middle

East would be closer to $60. Th e next logical step

of the argument is ‘but most people in this region

cannot aff ord $60 a month’. Again, this is a fair

statement, but if someone can aff ord a Dreambox

and an internet connection to stream keywords

from, pay TV is not far from their reach.

Another branch of the debate surrounded the

legality of the Dreambox itself. One contributor

commented that “banning the Dreambox

because it can perform an illegal function would

DREAMBOX ON TRIAL

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FOR THE LATEST NEWS, ANALYSIS AND REVIEWS FROM THE MIDDLE EAST CONTENT DELIVERY, MEDIA MANAGEMENT AND NEW MEDIA DISTRIBUTION BUSINESS HEAD TO DIGITALPRODUCTIONME.COM

be like banning knives because they can be used

to murder people”. I’d like to point out that in

most countries carrying certain types of knives

– namely those with no clear function other than

to intimidate, cause injury and generally create

trouble – are very much illegal. It is perfectly

acceptable to brandish an 8-inch butcher’s knife

in a kitchen, but less so in the middle of a mall.

So the pertinent question should be, is the

Middle East market place a kitchen or a mall? I

would argue that it is the latter.

Pay TV operators and their security partners

select STBs carefully in order to protect their

content. Th e Linux nature of the Dreambox

means it can be programmed to perform many

functions, including illegal ones. With so may

non-programmable satellite tuners on the

market the only gap in the market the Dreambox

fi lls is the one labelled ‘mischief ’.


THE BRIEFING

Th omson is aiming to tie-up the sale of Grass Val-

ley and is currently in “active discussions with a

number of buyers”, according to a source close to

the deal.

Th e company had stated in July that it had en-

tered into exclusive negotiations with a potential

buyer, thought to be a US-based technology in-

vestment fi rm, Platinum Equity. Th e identity of

this company was never confi rmed by Th omson.

In October, however, the company said that it

was continuing with non-exclusive discussions

for the sale of GV, sparking claims that the Plati-

num Equity talks had collapsed.

Th e Th omson Group is also selling off its PRN

digital signage unit as looks to focus its attention

on its services for content creators including its

set top box business and the Technicolour fi lm

processing business.

Popular online services provided by Apple, Ama-

zon and Sony could soon be available in the UAE

as part of new talks with the country’s Telecom-

munications Regulatory Authority (TRA).

Th e TRA is in discussions with a view to allow-

ing residents access to new services to download

music, books and fi lms.

Th e proposals could mean that the Apple

iTunes Music Store and electronic reading de-

vices such as the Amazon Kindle and the Sony

Reader could soon be available in the UAE, Th e

National reported.

“We are working with Amazon so they can

sell the Kindle here and they can allow users in

the UAE to use the [device]. Th e same thing with

iTunes,” Mohamed al Ghanim, the director gen-

eral of the TRA told the paper.

“We have contacted them. We have reached

an advanced stage. I hope that soon we will have

it here soon.”

While there are no fundamental roadblocks

stopping their introduction in the country, sort-

ing out the digital rights for each stakeholder

could take some time, the paper added.

More than six billion songs have been down-

loaded since the iTunes store was launched in

April 2003.

UAE internet users can currently download mu-

sic through services launched by Nokia, Etisalat

and Getmo, a joint venture between Abu Dhabi

Media Company and Sony BMG.

While the Amazon Kindle and Sony Reader

are not commercially available

in the UAE, they can be

bought at a number of

grey-market retailers.

ITUNES MUSIC STORE COMING TO UAE: TRATalks over Sony and Amazon electronic reading devices also underway

THOMSON RE-OPENS GV SALE TALKS

MONTH IN NUMBERS

57%Percentage of people surveyed in UAE that

would switch telco given the chance.

BROADCAST BUSINESSGOOD MONTHACTIVISION BLIZZARDThe games publisher saw its Call of Duty: Modern Warfare 2 title become the biggest en-tertainment release of all time. In its fi rst fi ve days of release it grossed US $550 million, according to company.

The previous record, also set by a computer game, Grand Theft Auto IV, was $500 million in fi ve days.

“Call of Duty: Modern War-fare 2 has become the largest entertainment launch in his-tor,” said Robert Kotick, CEO, Activision Blizzard. “Millions of consumers have chosen to play rather than engage in other forms of media.”

BAD MONTHELECTRONIC ARTSWhile Activision Blizzard was celebrating last month, it was a different story for rival publisher Electronic Arts.

In addition to earlier job cuts this year of 1100, the company announced that it was to cut a further 1500 positions.

The move – which will save the company $100 million per year – will see 900 develop-ers, 500 game publishers and 100 corporate positions lost.

79%Percentage of those surveyed citing

Etisalat as their main service provider.

Mohamed al Ghanim, director general, UAE TRA.


THE BRIEFING

DECEMBER 2009 09

Linear broadcast trans-

missions are essential

to support mobile video

services with DVB-H

best suited to the Mid-

dle East, according to

Bjorn Bunte, senior busi-

ness manager for broad-

cast TV at Nokia.

“Th e Middle

East is a strong

market for

DVB-H, there

are no indi-

cations that

other terrestrial broadcast TV standards

will take hold in the region,” said Bunte.

“We see streaming based TV services in

more or less every market worldwide but as

these become more popular we also see the

drawback of these, which is network capac-

ity,” claims Bunte. “We have seen cellular

mobile networks collapse because so many

people have been trying to watch mobile TV

at the same time. Th is tends to happen dur-

ing sporting events.”

According to Bunte, DVB-H networks

can be integrated with the existing GSM

network infrastructure. He proposes a

service using DVB-H to support large-

scale events such as international sporting

events with other niche content available

via streaming.

“Th e consumer doesn’t need to worry

which format they are using. Th ese services

should be unifi ed in one application. If the

viewer strays outside the DVB-H network

they should be able to receive the same con-

tent via streaming,” he said.

ECLIPSE DIGITAL ACQUIRES VAST WILD BUNCH CONTENT LIBRARYDubai-based Eclipse Digital, a new entrant in digital media, archival and content acquisition management, has partnered with Paris-based production and distribution fi rm, Wild Bunch.

The partnership will give Eclipse Digital ac-cess to more than 1000 titles presently held by the French company.

QUOTE OF THE MONTH

ON AIRA consortium including Etisalat, du, DMI,

MBC, ADMC and Tecom will launch DVB-H services in Dubai early next year.

PLATFORMS

DVB-H KEY FOR MOBILE VIDEO FUTURE, SAYS NOKIAMobile broadcast standard is the only way to support large audiences for special events

The important point is that the key Saudi players will come back to the Kingdom and that will change the dynamics of the region. MATTHIEU DE CLERCQ, Project manager, A.T. Kearney.

EUROSPORT AND DU FORM LOCALPARTNERSHIP FOR WEB PORTALEurosport and UAE telco du are to launch an Arabic online sports portal in the fi rst develop-ment of the organisations’ new partnership.

From this month, users across the MENA re-gion will be able to select one of 12 customised Eurosport Arabia landing pages, announced Laurent-Eric Le Lay, CEO, Eurosport (pictured).

HANDSETS COULD BE THE NEXTSECURITY THREAT: EXPERTMobile devices could emerge as the next major security threat for the communications industry, according to Tony Gray (above), local business director of the P3 Communications consultancy.

“There’s always been the thought around the industry that the next level of threats will come from the handsets themselves,” said Gray.

Bjorn Bunte.

Peter Einstein, CEO, Eclipse Digital.

010 www.digitalproductionme.com

THE BRIEFING

Orbit Showtime has welcomed the recent

crackdown on websites enabling the Dream-

box satellite TV receiver by authorities in

Bahrain, however calls remain for stronger

action against the physical distribution of

the hardware itself.

“Dreamboxes are outlawed STBs giving ille-

gal access to Orbit Showtime channels,”

said Marc-Antoine d’Halluin, CEO,

Orbit Showtime, speaking exclu-

sively to Digital Broadcast. “It

is theft of intellectual prop-

erty rights (IPR), and the

Middle East is now fast

joining the markets defending

IPR holders. Th is will enable the

development of a local movie

and TV production industry,

a much needed dimension of

the region’s progression.”

BY THE N

UM

BERSB

Source: Arab A

dvisors Group 2009

PLATFORMS

ORBIT SHOWTIME CHIEF BACKS PIRACY BLITZOperator commends efforts by government and TRA in Bahrain.

THE BRIEFING

DECEMBER 2009

RIDING THERADIO WAVESThe latest Arab Advisors Group survey of the MENA FM radio market has been released showing wide varia-tions across region.The report covered a total of 18 countries.

346The total number of FM radio stations.

176The number of state-owned radio stations.

50The number of state-owned radio stations in Algeria.

8Number of radio stations broadcasting in more than one country.

Number of viewers accessing MBC’s Shahed online VOD platform this Ramadan.3.8 million

JAMPROAPPOINTS JIM GODFREY TO INTERNATIONAL SALES TEAMBroadcast antenna manufacturer Jampro announced that Jim Godfrey will join its

growing international sales team.“Jim’s extensive knowledge of the market

and the industry will be an invaluable tool for both our customers and our company. We are delighted to have him as part of our team,” said Alex Perchevitch, president of Jampro.

Godfrey has previously held senior positions at Tieline Technology and Marti Electronics.

ROSS VIDEO NAMES BRIAN OLSON ASBUSINESS DEVELOPMENT MANAGER FOR XPRESSIONBrian Olson has been named business devel-

opment manager for XPression, the company’s 2D/3D HD character generator.

“Brian will work closely with Ross’ regional sales managers and the XPression product manager, and will support our valued chan-nel partners as we build the Ross brand in the Graphics marketplace,” said Kyle Luther, national sales manager, USA.

MOVERS & SHAKERS

Marc-Antoine d’Halluin,CEO, Orbit

Showtime.

www.digitalproductionme.com 011DECEMBER 2009

MTV Networks International (MTVNI) and two-

four54 have confi rmed a new deal to establish an

Arab comedy content production studio under the

Comedy Central brand.

“We feel that this desire for Arabic comedy con-

tent, combined with the Comedy Central brand,

portfolio and know-how, aff ords us an opportuni-

ty to provide viewers and broadcasters alike with

content that is relevant and funny to Arabs, in

their own language,” said Bhavneet Singh, manag-

ing director and executive VP, Emerging Markets

at MTVNI.

Endemol will launch a free, social gaming version

of its international game show Deal or No Deal on-

line at the end of this month on Facebook UK. Th is

will be followed by further launches in other terri-

tories and on other major social networks in 2010.

Th is is Endemol’s fi rst venture into the social

gaming market and will be funded through adver-

tising and sponsorship.

Peter Cowley, global head of Original Digital Pro-

ductions at Endemol commented that Deal or No

Deal is “just one of Endemol’s many global brands

that can seamlessly cross over to social gaming”.

TWOFOUR54 TO LAUNCH COMEDY CENTRAL ARABIA

ENDEMOL JOINS THE FREE SOCIAL GAMING MARKET

TELECOMS MARKET

Iraq is set to connect to a fi bre optic cable project linking most of the Gulf states, after the country’s incumbent telecom operator, Iraq

Telecommunications and Post Company (ITPC), signed a deal with Gulf Bridge International (GBI),

a Qatar-based submarine cable operator. The two companies signed an agreement to establish a landing for GBI’s fi bre optic International Cable System in Iraq. The link will be Iraq’s fi rst interna-tional fi bre optic cable connection.

GBI’s International Cable System network, which is due to be operational in 2011, will link together the Gulf states and link the Far East and Europe.

IRAQ SIGNS UP TO GULF FIBRE OPTIC CABLE PROJECT

The combative head of Bahrain’s telecom regula-tor, Alan Horne, stepped down from his role last month and left the organisation entirely at the end of November.

“I set out to build competency into the team to ensure that the Kingdom of Bahrain developed into one of the best and most qualifi ed telecom-munications regulators in the Middle East,”

Horne said. “By the end of this year, TRA will have achieved this key objective.”

Horne took on the role of general director of Bahrain’s Telecommunications Regulatory Authority (TRA) in November 2006.

HORNE RESIGNS AS BAHRAIN’S TRA GENERAL DIRECTOR

BROA

DCA

ST BRIEFS

BAHRAIN SIGNS DEAL FOR ARABIC WEBCONTENT CENTREBahrain has launched a major initiative to increase the amount of Arabic online content, which aims to create thousands of new jobs.

The initiative, led by Bah-rain’s eGovernment Authority (EGA) and the United Nations Development Programme (UNDP) will see Arabic content in websites “increase signifi -cantly” from the present one percent, said Cabinet Affairs Minister Sheikh Ahmed bin Ateyatala Al Khalifa.

The EGA and the UNDP will fi nance the creation of the centre equally, with the total investment valued at US $486,000.

QATARI MEDIAGROUP LAUNCHES $200M FILM FUNDFledgling Qatari media group Alnoor Holdings staged its offi cial launch at the Doha Tribeca Film Festival with the announcement of a US $200m fi lm fund.

The company intends to fi nance 15 movies for the international market during a fi ve-year period with the stated aim of generating “the best potential returns involv-ing Hollywood talent”.

QATARI MEDIA

THE BRIEFING

012 DECEMBER 2009 www.digitalproductionme.com

VOX POP

I was surprised to see online advertising overtake

TV so soon in any market, but when I had a look at

the fi gures for the UK in 2007 the gap had already been

closed quite signifi cantly. As far as this region is con-

cerned, anything can happen but in reality, I don’t think

online will be able to catch TV anytime soon.

Television has been used in the region

for decades and the advertisers are very

experienced with the medium and there

is certainly a strong case in favour of TV

advertising.

TV also has very strong content. In

many cases, there is a lot of investment

from government-owned channels in

high-quality programme off ered on

free-to-air channels. Th e result is that

for the cost of a TV and a receiver,

you can access hundreds of channels

showing top-quality programming.

Meanwhile, a mid-range broadband

connection will cost in the region of

US $55 a month. So the cost of entry

for TV is far cheaper.

Also, in the UK and Sweden, a

much larger share of society is mid-

dle to upper class. Th is is far lower

in the Middle East with some of

the Gulf states being the exception.

Online advertising will not be able

FOUAD BEDRANCo-managing director of online ad monitoring service, Out-n-out Online Xperts (OOX).

ONLINE ADVANCES

to challenge TV until this situation changes for the better.

I wouldn’t say there is a shortage of high-quality Arabic

websites. Th ere has been an investment in online content

already. For example ADMC has launched super.

ae, goalarabia.ae and the adtv.ae catch-up

service and the online version of Zah-

rat Al Khaleej, which is the second

most popular women’s magazine

in the region. Maktoob, Jeeran and

MBC have also been boosting their

respective online content.

Th e growth of online ad spend has

been sparked by the lack of inventory.

Th ey need to see a growth of

traffi c from places like KSA and

Egypt. If they can grow the traffi c

[and page impressions] they can

keep the price low, which will allow

them to be viewed as cost eff ective.

If traffi c goes down, the price will

increase to compensate.

Th e prices are quite low at the

moment. It is possible to run an

entire online campaign with a few

hundred dollars if you wish.

Th ere has been a steady growth in

the number of online campaigns. (see

box out, next page). Th ere are several

reasons for this.

Internet ad spend has surpassed TV in the UK and Sweden with a number of other Western markets set to follow. Digital Broadcast asks whether the same

could happen in the Middle East.

DECEMBER 2009 013www.digitalproductionme.com

VOX POP

ROOM FOR BOTHNICK GRANDEManaging director, Channel Sculptor.

Th is change will undoubtedly happen globally,

including in the Middle East. Online penetra-

tion already exceeds pay-TV penetration in the

region, but it’s going to take several more years

before online ad spend passes FTA ad spend.

Th e interesting question for me is whether

we will actually be able to tell the diff erence

between online and TV media by

the time this shift happens.

In developed markets, there

is a huge move away from

linear towards on-demand

programming. On-demand

usually involves a com-

puter of some kind – even

if it’s just a set top box with

a hard disk – so the line

between TV and online is

already blurring.

Online penetration is, of

course, a big factor, but

the biggest factors are

inertia. Agencies (and

therefore clients) remain

more comfortable with conventional print, out-

door and TV buys. Secondly, the lack of credible

market research to eff ect a change in this status

quo is also responsible.

Keep in mind that the Middle East is a ‘me too’

market, so changes happen quickly once critical

mass is reached. Just look at the explosion of

satellite TV stations over the past fi ve years, or

the sudden merger mania in the broadcast sec-

tor over the past six months. Once a few major

household brands go heavily into the online

space, the rest of the market will follow.

Leaving aside market manipulation by the

agencies and sales houses, TV ad spend is

ultimately driven by channel viewership. Th e

most important thing any TV channel can do to

protect its ratings is to understand and serve its

audience. Channel loyalty comes from consis-

tently giving viewers what they actually want,

not what you think they want.

Th e growth of online penetration is inevitably

going to erode TV viewing hours, and therefore

advertising share. Having said this, there is still

huge growth potential for TV spot rates and

sponsorship compared with international mar-

kets. If satellite broadcasters simply concentrate

on making their core off ering attractive, there

should be plenty of upside for everyone.

ONLINE CAMPAIGNS ON THE UPDespite the recession – or perhaps because of the reces-sion – there has been a marked increase in the number of online advertising campaigns in the Middle East. This growth could be attributed to the medium’s lower costs, its higher account-ability or the rise in the volume of quality regional websites avail-able to advertisers to invest in.

Either way, the pattern is the same as is being seen in developed markets where online ad spend is surpassing TV for the fi rst time.

2012Number of online campaigns recorded by OOX in 2008.

2528Number of online campaigns recorded by OOX in 2009 (until Nov 21).

45%Projected year-on-year growth in the number of online campaigns from 2008 to 2009.

DIG

ITAL A

DV

ERTISIN

G

RAISE VOLUME, RAISE PRICEJAIDEEP MERHAccount director, Venture Communications.

Online ad rates are much lower than a 20-second

spot on any one of the satellite channels, so in

terms of spending, it cannot overtake TV. As it is

considered a fairly new medium in the Middle

East, it is still low priced. It needs to

increase its rates to compare itself with

the spends on TV but this can only

happen if more advertisers come on

board for online ads.

TV spend would be higher because

90 percent of the households in the

Middle East have TV sets compared to

an average penetration rate of 34.3

percent for the internet.

I suspect it will take

time to overtake TV but

it can certainly give TV

a run for its money,

partly because of its

accountability as a media vehicle. Advertisers can

quantify its success. In short, it will be considered

a serious option, which currently it is not espe-

cially in the mass category like soap, shampoo

and so on, where TV spend typically represents 70

percent of the budget allocated.

A few things need to change. Th e day the inter-

net becomes widely available and is priced ratio-

nally, it [online advertising] will explode.

Another issue pertains to language.

Web content is largely English, and we

know audiences are typically small for

any programme or communication

in English. In other languages such as

Arabic, reach grows exponentially – and

that is true of online ads.

Advertisers are

defi nitely keen, but

it’s still a “nice-to-

have” initiative

rather than a

“must-have”

initiative.

SOU

RCE: OOX

o’

ONLINE CAMPAIGNS

D


TECH TALK

LAL NANAYAKKARASenior broadcast engineer, CNBC Arabia.

“Th is is our main facility but we also have bureaux in Abu Dhabi,

Riyadh, Jeddah, Cairo, Kuwait City, Doha and London. Each of

these has a staff of 10-15 people.

“We operate live typically from 9:30 in the morning till after

half one the following morning.

“We have two studios here. Studio one is the live studio operating

for 16 hours a day with just two-minute gaps between programmes.

During these gaps, we switch to our Omneon playout servers.

“Th e other studio provides redundancy should we have any

problems and can also be used to fi lm longer form programming,

that we use when the live show is off air.

“We take data from the Th omson

Reuters feeds that the news director

and the presenter will manipulate

for the benefi t of the viewer. We have

used VIZRT graphics since 2005 and

also use their video wall engines.

“Th e production environment is

based entirely around Avid and ENPS.

“We also take live SNG feeds from

other bureaux and have a fi bre link

to the Dubai International

Financial Centre (DIFC)

and the bureau in Abu

Dhabi. Th e SNG feeds

are co-ordinated by

Samacom.”

TAKINGSTOCKBusiness news specialist CNBC Arabia is faced with the challenge of combining feeds from nine locations and a tsunami of fi nancial data into 16 hours of live programming every day. Digital Broadcast showcases some of the technology at the Dubai headquarters.

CNBC uses a Barco videowall with Vizrt graphics to display a multitude of data to viewers. The wall is made up of 12 Barco video cubes operated as three four-by-four screens. The tickers are also powered by Vizrt.

The main transmission room at CNBC Arabia’s Dubai headquarters. A Quartz Master Control unit takes the central roll. Quartz is now part of Evertz.

DECEMBER 2009 015www.digitalproductionme.com

TECH TALK

The facility has a bank of VTRs covering various formats. Hamlet Monitor Scopes are used to track the quality of the ingests.

“The entire production workfl ow is Avid,” says Nanayakkara. This includes MEDIArray and Air Speed modules (pictured).

Above are the ubiquitous profes-sional Tandberg receivers. Tand-berg TV will rebrand as Ericsson from January 25, 2010.

Several rack units of graphics engines keep the multiple layers of realtime data tickers and the videowall graphics on air.

The facility has a number of connection to satellites including Asiasat, Arabsat, Eutelsat, Nilesat as well as the UAE fi bre links. The Dubai HQ is the central point to tie together the SNG connections from CNBC Arabia’s bureaux.


INTERVIEW

Middle East in one form or another?PE: Th e company is self sustaining with another

round of growth capital being raised to take the

business to an even more advanced level and

absolutely we’d like to bring it to the region. But

like everywhere else we favour partnering with a

local company. Video gaming in the MENA region

is huge and GINX could easily be customised in

Arabic to serve this audience.

What is next for you?PE: Th e next big project I’m working on is Eclipse

Digital. Th ere are three reasons why the company is

necessary. Firstly all content from video to works of

art will have to be digitised in the next ten years.

Much of it is currently stored inadequately and is

deteriorating. Much of this material has had limited

distribution because of its physical form. Digitisa-

tion will make it available everywhere. Th irdly,

there is a commercial opportunity to monetise this

content that can suddenly be made available all

over the world via various distribution platforms.

What stage of development is Eclipse Digital in at the present time?PE: Once we have selected our permanent home – in

the UAE or Qatar – we will create the facility itself.

In the meantime, we will be focusing on closing

content deals. We are in negotiations with fi ve or six

archives, some are straight digitisation, restoration

and archiving for governments to preserve cultural

heritage and others are commercial opportuni-

ties which will ultimately expand into advertising,

sponsorship and distribution revenue.

You formed a private equity consultancy after you left Showtime. How has that project developed since launch?Peter Einstein: EMCP is a private equity advisory

and investment company specialising in the tech-

nology, media and telecoms sector (TMT). In the

early days of the company we were building a port-

folio of start-ups and early stage investments using

our own capital as well as private family wealth

funds and other private equity fi rms.

What were the early TMT entities you invested in?PE: During the 2007-2008 period we found it dif-

fi cult to generate traction for these types of invest-

ments because of the frenzy around the real estate

sector. Investors in the region were simply looking

to make a ‘quick buck’. So we decided to look to-

wards opportunities outside of the region. In 2007

we bought a company called GINX, which is co-

funded with several investors mainly from the UK.

GINX is a video gaming TV channel and internet

portal targeting the ‘casual gamer’. It’s really what I

like to call the ‘MTV of video games’.

Where is GINX currently distributed?PE: We have distribution deals with various partners.

Th ere is a 24/7 GINX TV channel in Asia and we also

produce two gaming programmes– Game Face and

Th e GINX Files – for channels like Bravo. We produce

video gaming themed content for a number of other

channels in Europe and Africa as well.

Are there any plans to bring GINX to the

Former Showtime Arabia CEO Peter Einstein tells Digital Broadcast about his journey from pay TV to hisnew digitisation and content distribution company via a private equity fi rm and a 24/7 gaming channel.

DIGITAL OR BUST

We are in nego-tiations with fi ve or six archives, some are straight digiti-sation, restoration and archiving for governments to preserve cultural heritage and others are commercial opportunities which will ultimately expand into adver-tising, sponsorship and distribution.

PETER EINSTEIN

Chairman and CEO,

Eclipse Digital.


OPINION

Th is rationalisation is happening in other areas

of the industry too.

Optimisation of bandwidth usage, a more delib-

erate technology selection process, more scrutiny

for the business case behind each new enterprise,

all in all a more mature, sustainable industry

should emerge. We have seen the brakes put on

DVB-H rollouts, pay TV operators have allied,

even state broadcasters have looked to cut costs

and trim back their – often unwieldy – operations.

Online-based revenue opportunities are being

exploited with increasing frequency. Advertisers

are being off ered a growing number of quality

Arabic websites to sink their budgets into and

investment in new media content creation is only

going to encourage this further.

Th is does not mean 2010 is going to be rosy. Th e

external conditions are unlikely to be that diff er-

ent from 2009, however most companies should

now be in a far superior position to deal with them

than the same time last year when the recession

snuck up on the region.

In the meantime, the same old threats to

revenue remain. Th e economic downturn does

little to discourage fi le sharers or diminish the

popularity of competing forms of media entertain-

ment – legal and otherwise. Th e next challenge is

to combat the same conditions that were choking

the industry before the recession, against today’s

bleak economic backdrop.

A s the end of 2009 approaches, most TV

executives will be glad to draw a line

under a torrid 12 months. Th e ques-

tion now is whether we go into the

New Year with a dull sense of trepidation or with a

renewed sense of vigour.

Some unfortunate companies will have that de-

cision made for them with previous commitments

and a lack of fl exibility rendering them unable

to adapt to the diffi cult circumstances. We have

already seen this in 2009 and there will be more

casualties in 2010.

Th ere will also be more success stories. Many

pundits have been quick to draw similarities

between the eff ects of a recession on industry and

that of a forest fi re – the deadwood is burnt away

and the strongest, most resilient remain and can

benefi t from fertile grounds left behind. Whether

this is the exact situation the Middle East media

and broadcast industry will fi nd itself in remains

to be seen.

Ad dollars will aggregate around the most reli-

able and established entities. Th ose that remain

will more than likely be running at near maxi-

mum effi ciency and far lower operating costs than

12 months before.

Th e soaring cost of living endured in many Gulf

states has levelled-off , giving employers a breather

from the annual pay rises needed just to keep staff

satisfi ed, let alone motivated.

The pre-downturn environment was diffi cult enough, but the leaner, more effi cient industry it has created should be in a better position to deal with the challenges of 2010, old and new alike.

NEW YEAR RESOLUTION

25%The price rise of a 30-second ad spot from 2004 to 2009.

270%The rise in the number of FTA channels from 2004 to 2007.

28.1%The growth in the number of FTA channels from 2007 to 2009.

REASONS TO BE CHEERFUL

SOURCE: Arab Advisors Group

Th is r

of the in

Optim

erate te

for the b

all in all

should e

DVB-H

even sta

and trim

Onlin

exploite

are beinThe price rise of a 30-

REASONS TO BE CHEERFUL

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www.digitalproductionme.comDECEMBER 2009 020

COVER STORY


COVER STORY

For many, Saudi Arabia may seem like a

strange choice as the location for a new

media production hub. International

media coverage frequently (and mislead-

ingly) portrays the Kingdom as a vacuum for the

media and entertainment industries. In truth, the

country has lead the way in the development of

some new media platforms, it houses the larg-

est number of pay TV subscribers, broadband

subscribers and all the signs suggest that a ban on

cinemas is likely to be lifted in the near future.

“Th ree of the top fi ve TV media organisa-

tions are Saudi owned, MBC, ART and Rotana,”

says Matthieu De Clercq, project manager, A.T.

Kearney, the consultancy working closely with

the Saudi Arabian government on KAEC. “Th ey

only need the environment to be correct for them.

Regulation is one element, and lifestyle. If those

conditions are correct then those major Saudi-

owned organisations will come to the Media

City at KAEC. Whether they move all of their

operations or only a portion, is up to them. Th e

important thing is that the key Saudi players will

come back to the Kingdom and that will change

the dynamic of the region.”

Th e theme of creating a set of conditions under

which the media can operate is a recurring one.

Building a media industry requires more than a real estate development. Digital Broadcast explores Saudi Arabia’s King Abdullah Economic City’s (KAEC) upcoming media precinct, which could dramatically shift the powerbase of the Middle East media industry.

SHIFTING SANDS

KSA has made some very strong moves towards becoming a more business friendly environment. It is a long-term play. Look at where Dubai was 20 years ago and where it is now, it just shows that with the right people driving change in the right direction and the necessary infrastructure in place, anything is possible.

CHRISTOPHE FIRTH

Strategy consultant,

A.T. Kearney


COVER STORY

It is clear that the appetite for media in Saudi

is as healthy as elsewhere in the region. Th e

pan-regional pay TV operators see signifi cant

portions of their subscriber bases in Saudi Arabia.

According to Pyramid Research the country’s

communications market is worth US $9.9 billion

in service revenue. Th e country represents around

68 percent of the GCC’s total population.

“On a regional level it is agreed that media’s

contribution to the economy could be greater. Th e

media sector is experiencing immense growth

and the biggest market is Saudi Arabia, the key

players are all Saudi. Despite this they all work

from outside the Kingdom in order to serve it. So,

the concept of the precinct is in part to bring back

these Saudi-owned, Saudi-designed operations,

which makes a lot of sense,” says De Clercq.

When asked directly about the prospect of mov-

ing to KAEC, MBC COO and general manager Sam

Barnett reveals that the network has already had

discussions with KAEC.

“We agreed that we would begin with a branch

offi ce out there,” says Barnett. “We are producing

a lot of Saudi drama and comedy in Jeddah and

we will see how things develop there. It would be

quite easy to move that kind of production from

their present locations into KAEC.

“Certainly in terms of the support they are of-

fering, it could prove to be quite an attractive way

MEDIATROPOLISThe number of operational media cities in the Middle East currently stands at eight with a further six either proposed or under construction.

OPERATIONAL Dubai International MediaProduction Zone

Dubai Media City Dubai Studio City Fujairah Creative City Ras AlKhaimah Media City Twofour54 (Abu Dhabi)

(All UAE) Jordan Media City Egyptian Media Production City

PROPOSED* Bahrain Lebanon (Beirut Media City) Kuwait Qatar Sudan

UNDER CONSTRUCTION KAEC – Media City

*According to Arab Advisors 2009

for us to develop our production infrastructure in

Saudi Arabia.”

So what is it that has prevented these compa-

nies from returning to their domestic market in

the past?

MBC was originally based in London, when it

relocated to the Middle East, it did so to Dubai.

Orbit was originally based in Rome and chose

Bahrain as the destination for its Middle East

headquarters when it returned to the region.

“It is clear that the main challenge relates to

policy,” explains De Clercq. “At present, foreign-

owned media entities are simply not allowed to

have a license in KSA. Th e domestic media are

highly regulated by the MOCI with a written law

that dates from the 1960s and 1970s. Th is is not up

to date with modern content or technology, which

creates a lot of grey areas. For example, should

certain forms of broadcasting be considered as IT

activities or media operations? Th ese grey areas

are a barrier to the growth of the media in KSA.”

So is the answer to strip away the existing regu-

latory framework entirely? What will be deemed

acceptable in one of the region’s more conserva-

tive societies and will it be enough to permit a

healthy media industry?

“Countries such as China and Singapore have

a similar level of freedom of speech as you fi nd in

KSA, however, with the right legislation clearly

King Abdullah Bin Abdul Aziz of Saudi Arabia (centre) and Syrian President Bashar al-Assad (front right) at the launch of the King Abdullah University of Science and Technology in September of this year.

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COVER STORY

DECEMBER 2009

stating what you can and can not do, they are able

to support very strong digital media industries,”

says De Clercq. “Th e key for KSA is not to try to be-

come another Dubai or replicate standards seen in

Europe or the US. It should continue to respect its

own culture and identity whilst encourag-

ing the media. Th is means defi ning on

paper the kind of media industry that

you want to develop – sports, family

entertainment, business news – and

defi ne the boundaries that they must

operate within, then you will see some

activity among those areas.”

Stories in the international press often

draw attention to restrictions on certain elements

within the media, with the actions of a Saudi

journalist on LBC recently grabbing headlines

worldwide.

“People tend to focus on the 10 percent of the

media that is controversial in the country. Yes

there are certain things that you will never be

able to do in KSA, but many of these are already

catered for in Dubai or Jordan and other locations.

Everything from newspapers to books to

internet to video games can be done

in an environment as open as other

locations in the region and at the

same level as any country that has

created the right environment,” says

De Clercq.

“Th e bad news is that there is a com-

plex regulatory system needed, which is not

in place yet. Once these regulations are reformed

KSA will be able to dramatically increase its at-

tractiveness as a location for the media industry,”

claims De Clercq.

Jamal al Sharif, executive director of Dubai Studio City. The facility includes sound stages and other infrastructure to lure tenants to the precinct.

TAMING THE WEB“Online media is a bit of a paradox,” says A.T.Kearney’s Christophe Firth. “It is seen as the future growth driver in this region and certainly in Western markets. It will take ad revenue and viewer-ship away from traditional media as well as acting as a platform for future growth. On the other hand, it is also by far the hardest medium to regulate. In this region it is necessary to think how to put out regulation for online content and infrastructure that can promote internet-based media, but respect cultural and societal factors in this region.”

As broadband penetra-tion improves throughout the region, the immediate benefi ts for establishing such a system are obvious, as De Clercq points out.

“Fifty percent of the population is under 25, con-nectivity is high, the internet is very open, applications like Facebook and Twitter are fl ourishing. We shouldn’t underestimate the will of those people to respect their identity but also to replicate the standards that they see in other parts of the world or what they see in other countries in the GCC.”

INTERN

ET REGU

LATION

57%Percentage of

Saudi Nationalsunder the age

of 25.

Christophe Firth, strategy consultant, A.T. Kearney.


COVER STORY

Curious? Please visit our website www.riedel.net

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ARTIST DIGITAL MATRIX INTERCOMThe Solution for World Class Events.

“Any operator that is not already in Saudi Ara-

bia is not there for a specifi c reason and it is most

likely that this reason is regulation,” he continues.

“Th e last thing an investor wants to do is invest

believing that they are within the scope of the

regulations, only to discover once they commence

that they are not and are shut down. It is better

if everything is in writing and approved

and then no one can shut you down.

I don’t think we are talking about a

daunting 600 page piece of regula-

tion. In Singapore they have a 20

page media code. Th e crucial thing

is what is written, not how much. It

must be suffi ciently detailed to give

companies the confi dence to know

what they can and cannot do.”

Aside from the regulatory situation, there is also

the issue of doing business in the Kingdom.

Many companies view Dubai and Doha as the

automatic choice to base a regional branch offi ce,

often without considering any of the alternatives.

Th ey may be surprised to know that Saudi Arabia

is actually the easiest place in the MENA region to

168million

sq/mTotal area of KAEC

KAEC will cover an area similar to that of Washington DC once completed. Developer Emaar is attached to the site for 25 years.


COVER STORY

do business, according to a recent report.

“KSA has made some very strong moves

towards becoming a more business friendly

environment. Th e latest World Bank Ease of Doing

Business index ranked KSA 13th globally, which

is way ahead of anyone else in the region,” says

Christophe Firth, strategy consultant at A.T. Kear-

ney. “It is a long-term play. Look at where Dubai

was 20 years ago and where it is now, it just shows

that with the right people driving change in the

right direction and the necessary infrastructure in

place, anything is possible.

“KSA has another huge advantage in the size of

its domestic market, ” he adds.

A key component of Dubai’s strategy in the

media sector and others, is the development of

freezones with business friendly regulations

and incentives.

“Th e term ‘Freezone’ is a bit of

a buzzword,” says De Clercq. “A

freezone in Abu Dhabi does not

automatically replicate the same

conditions as one in the next ter-

ritory. If you are talking about the

idea of a location that is business

friendly, where regulations are more

business orientated and where incen-

tives are available, be it in the form of real

estate or fi nancial help to encourage growth, then

yes, in that sense, KAEC a freezone.”

Th e support that will be off ered to businesses

that set up in the KAEC media city are intended

to kick start its development however, rather than

as a permanent, long-term instrument to ensure

tenants remain.

“When you build a new city – literally out of

the desert – and you want to attract a new media

industry, or any other sector for that matter, there

needs to be some incentives just to get it started.

Investors will realise very quickly that the proposi-

tion is good and once this happens the incentives

can dissipate naturally,” explains Firth.

“Th e advantage of building from scratch is that

you start with a clean slate in terms of infrastruc-

ture. Th is means we do not have to contend with

legacy copper wire networks, for example.

“In terms of transport infrastructure there is a

new national train network on the way connect-

ing Jeddah through to Damman, airport links

are already good nationally, when you

put this all together you start to get

a very attractive proposition,” ac-

cording to Firth.

Th e long-term aim of the devel-

opment is not to snatch existing

jobs from other parts of the region

or to attract expats, says De Clercq.

“One important comment to make

on the goal of these initiatives it is not

only to bring expatriates to work in the

specifi c industry it is also about bringing the local

talent into the industry. KSA has a, young, strong

pool of talent seeking employment. I expect the

media sector to fi nd its own identity in the region

MEDIA CITY “MUST HAVES”

Domestic MarketFor a steady source of media consumers and a poten-tial audience for advertisers.

Proximity to clientsMedia buyers, PR agencies and advertising fi rms must be close at hand.

InfrastructureTransportation and media specifi c facilities must be in place.

Incentive and ease of businessFast and easy visa, registration and licensing proce-dures, a competitive system of tax and duties and a structured body to settle commercial disputes.

Access to fi nancingPublic subsidies, sturdy fi nancial system, venture funds and the legal framework to support these.

Local talent poolBoth foreign and local talent availability plus the intention to train the local population in the skills necessary for a career in the media industry.

CostsFrom raw materials to broadband prices.

Regulatory environment and lifestyleIdentifi ed regulators, simple and explicit censorship rules, transparent licensing, audience measurement and intellectual property rights protection rules.

THE EIGHT KEY COMPONENTS FOR THE DEVELOPMENT OF A MEDIA CITY

Whether they move all of their operations

or only a portion, is up to them. The important

thing is that the key Saudi players willcome back to the

Kingdom and that will change the dynamic

of the region.

MATTHIEU DE CLERCQ

Project manager, A.T. Kearney.

800thousand

sq/mTotal area of KAEC

media citydevelopment

TDubai Media City has been running at

capacity for several years now.

SOURCE: A.T. Kearney


COVER STORY

MEDIORNET

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as it continues to develop its own content.

We have seen some success in the GCC al-

ready. Shows like Freej and Tash Ma Tash, are

just some examples of what the Middle East

production industry will become as

it develops its own talent and

grows less dependent on

foreign content. It is more

natural for this creation

to happen for the re-

gion, in the region.”

De Clercq gives

the example of Saudi

productions fi lmed

in Egypt with Egyp-

tian actors, using sets

designed to look like the

Saudi Arabia.

“At the moment, Egyptian actors

are being asked to speak with Saudi Arabian

accents on sets in Egypt designed to look like

the Kingdom. It would be cheaper, easier and

better for the Saudi economy to do this on

home soil with Saudi actors,” he claims.

At the moment, Egyptian

actors are being asked to speak with Saudi Arabian accents on sets in

Egypt designed to look like the Kingdom. It would be cheaper, easier and better for the Saudi

economy to do this on home soil with Saudi

actors.

Egypt currently hosts a number of shoots designed to recreate Saudi Arabia. KAEC’s media city could see some of these return to the Gulf.

EXCLUSIVE: MBC


MBC may not have any shareholders

to appease during the downturn but

it does have to satisfy 106 million

viewers everyday.

Th e free-to-air TV network has nine TV channels

broadcasting across the Middle East as well as a

number of radio stations and websites covering a

range of genres from the adrenaline-fuelled MBC

Action to its children’s channel MBC 3 and the Al

Arabiya 24-hour news channel.

With a reliance on advertising revenue and as the

largest FTA network in the region, all eyes are on

MBC as a barometer for the industry at large.

As the probable (harsh) reality of 2009 came

clear, the network’s COO and general manager, Sam

Barnett launched a two-pronged attack to protect

the company’s advertising revenue.

“Th e fi rst decision we made was that we abso-

lutely could not allow ratings to drop,” says Barnett.

“We cannot give advertisers any reason to reduce

their budgets for MBC. We are realistic enough

to recognise that overall advertising budgets will

be reduced but as the market leader, our larger

channels are the least risky option for advertisers

looking to recover their investment.

“We are not going to compromise; investment in

programming will continue and we will make sure

we are disciplined on the ratings.”

Rather than relying on advertisers to check

the latest ratings fi gures themselves, Barnett has

encouraged the company to actively pursue adver-

tisers with case studies and data supporting the

network’s case.

“You have to get close to your advertisers,” says

Barnett. “We have a good relationship with our me-

dia agents, the media buyers and our advertisers.

But in my opinion, we now have to try to take this

further by pushing initiatives like branded content

and approaching advertisers about these and other

initiatives. For example MBC 1’s morning show,

Sabah Al Khair Ya Arab, Galaxy was approached to

take the sponsorship of the poetry segment, which

proved successful and the agency won an award for

the campaign.

“Th e idea is to get advertisers engaged in the

programme. Th is creates hooks rather than just a

regular 30 second ad spot that they can place with

MBC one week and somewhere else the next.”

“Th e push on branded content, product place-

ment and movie sponsorship has grown over the

last three years but going into budget year 2009, we

decided to do this in a much more aggressive way.”

Barnett gives another example of this on the

children’s channel MBC 3. An advertiser’s website

address was given during a show and the resultant

spike in the company’s online traffi c persuaded

them to take a sponsorship deal on the channel.

“Children’s TV is a more diffi cult sell than

movies, Gulf drama or comedy. Th e market in the

Middle East is not huge and there is a longstanding

belief that kids TV wasn’t worth advertising on.

We have taken an aggressive commercial stance

and approached the market with a proven case

study showing that mothers are watch-

ing kids TV as well.”

MBC may be the mar-

ket leader but

it has by no

means pre-

sumed

Channel launches, large-scale marketing activities and no across-the-board job losses. MBC COO and general manager, Sam Barnett tells John Parnell how the FTA giant has fought off the downturn.

BUCKINGTHE TREND

MBC PORTFOLIOThe MBC Group has ex-panded its activities in recent years on various platforms.

TV MBC 1 MBC 2 MBC 3 MBC 4 MBC Action MBC Max MBC Persia MBC+ (pay channel) Al Arabiya

RADIO MBC FM Hala FM (MVNO in Oman) Panorama FM

OTHERS Haya MBC (Print) MoBC (mobile services) Alarabiya.net MBC.net

EXCLUSIVE: MBC

029DECEMBER 2009 www.digitalproductionme.com


EXCLUSIVE: MBC

that it could sail through the recession picking up

advertising budgets that have been pulled away

from other channels.

Neither has there been any need for wholesale

redundancies or the jettisoning of any of the com-

pany’s other operations.

In fact, Barnett reveals that the company has

sought to protect its revenues during the recession

by increasing spending in certain key areas.

“We have spent even more on research this year

and the speed with which we are reacting has

gone up. If programmes are not working, they get

changed. If things are working, we expand them.

We are also conducting more experiments.”

One such experiment was the introduction of a

second audio channel on MBC Max off ering Ara-

bic dubbing as an alternative to subtitles.

“We had a hunch that this would work, we

tested it in the market and now we are pushing it

out. Gulf comedy, is another example, it seems to

be working so we’ll do more of it. So we are mak-

ing decisions more quickly and pushing them to

their logical conclusions.”

In addition to the Arabic dubbing and the Gulf

comedy, MBC has also continued to push content

onto its online video portal, Shahed Online. Despite

this, Barnett is under no illusions about the com-

pany’s role in the development of platforms.

“What we have done with the new media prod-

ucts over the last three to four years is experiment

with a variety of diff erent platforms and follow the

market. We don’t want to make investments in

technology platforms, that’s a mug’s game,” claims

Barnett. “We will let others invest in the technol-

ogy. When it works, we will ensure we make our

content available on that platform. It seemed to us

that video on demand (VOD) was something that

people wanted and it does seem to be working.

Shahed Online generated 3.8 million viewers this

past Ramadan.”

Th e shift from TV to new media platforms such

as internet TV and mobile TV has been held up in

the region compared to other markets, however

they are now beginning to fi nd some traction lo-

cally. Despite the new sources of revenue that they

can off er, Barnett is confi dent that more tradition-

al TV will continue to play the lead role.

“Our take on the shift from TV to new media is

that it is important to monitor, but it is TV adver-

tising which is the dominant force and it is likely

to remain so for a long time.

“It is still traditional TV that is the focus. We

won’t be sucked into putting our money into the

platforms. We will invest in content that people

want to watch. Currently, they want it on TV, but

we’ll make it available on other platforms as and

when the viewers shift to them,” says Barnett,

dismissing any notion of panic in the company’s

regular TV business.

“It’s not a case of suddenly saying ‘there is a

recession on, TV advertising is down. Let’s get out

of TV and do something else instead’. Th at would

be a mistake.”

Th e company hasn’t come through the past 12

months completely unscathed. Barnett believes

that these changes are the result of good business

sense, rather than a consequence of the recession.

“Some business units that were not productive

or were losing money have been cut, but these are

business decisions made on an ongoing basis. Th e

recession facilitates this because it puts under-

performers into focus whereas at other times, they

can be more diffi cult to spot.”

Th e situation at MBC remains healthy, assures

Barnett, who is confi dent the company will emerge

from the recession in better shape than it entered.

“We’ve had seven years of consecutive growth

[prior to the downturn]. Th e result has been that

we have not had to change our cost base in a radi-

cal way. We told staff it was going to be a tough

year and we asked people to look for savings and to

tighten their belts. Th is has allowed us to continue

to invest in content. We have an effi cient machine.

It works well, we’re commercial, we’re profi table,

we’re cash-fl ow positive and we get the ratings.”

MBC now off ers content for radio, TV, print, online and for mobile phones.

The idea is to get advertisers engaged in

the programme, this creates hooks rather

than just a regular 30-second ad spot that

they can place with MBC one week and some-

where else, the next.

SAM BARNETT

COO and general manager, MBC.

106million

Average daily audience across all MBC TV

channels.

032

AUTOMATION

www.digitalproductionme.comDECEMBER 2009

W ith the switchover to digital transmission the new

range of television and set top boxes (STB) rely on a

lot of specialised computing and software technology,

the only thing diff erent from a PC architecture is the

keyboard and mouse are replaced by a remote control. Th e future

generation of viewers will treat the television screen as a display for

multiple information sources as they do at present with their PC.

Broadcasters need to ensure that the television channel being dis-

played as an application holds the viewers attention. Th ey will have

to use the large volumes of multi-format content they will handle in

a sophisticated way.

To ensure that the viewer’s attention is captured and maintained

conventional broadcast material will require a level of interaction or

perhaps be off ered in HD, providing additional value to the advertis-

ers and sponsors. By failing to evolve, broadcasters will lose out to

competitors that address these demands and off er a more compel-

A small, centralised approach to automation can offer broadcasters an increased degree of fl exibility and ease the path for future expansion in a changeable market, writes Rob Leishman, as broadcast engineers look to take on a future with moving targets.

AUTOMATIONFOR THE PEOPLE

ABITCOMPACT IS KEYPlayout specialist Abit offers a cost effective automation platform capable of supporting three transmission channels.

“Customers wanted an option to take advantage of the wide range of functionality and expertise Abit has devel-oped, but without the need to control a large number of devices in a multi-channel architecture,” explains Richard Thomas, software development director, Abit. “Our solu-

tion gives them access to the full power of the application software in a much smaller non-redundant platform.

“The main benefi t of this approach is that Abit will continue to develop and maintain a single source of software confi gured to run on its existing systems, which allows customers for the new compact system to take advantage of future product enhancements.”


AUTOMATION

Accommodating [HD and interactivity] may seem like a daunting prospect. They need to match plans for growth with scalable, future-proof technology for the... development of their station.ROB LEISHMAN

Marketing manager, Abit.

ling experience for viewers and advertisers alike.

For some small, start-ups or emerging broad-

casters, accommodating these likely demands

may seem like a daunting prospect. Th ey need

to match plans for growth with scalable, future-

proof technology for the successful development

of their station. However, the good news is – from

an automation point of view – that bigger is not

always a better way to manage these multiple

technology challenges.

Th e key point when selecting any automation

system is to choose one where the underlying

design comes from a top-down approach. Th is

means it is possible to confi gure and easily

change workfl ow and there is the ability to

logically link any type of device at a conceptual

level. In other words, the system incorporates

a range of templates to allow the addition of

any new device like a server, mixer or router for

example, at anytime. Tight real-time integration

of a particular brand of device is incorporated in

software modules that operate in real time, close

to the external communication link.

A base design that encompasses top-down

development techniques will therefore, work with

any other device regardless of whether that is a

media management, storage or archiving system

for example.

Each type of device is represented by a standard

framework or ‘Logical Device Template’ with its

own unique data structure allowing the charac-

teristics of the device to be stored, ensuring the

top-down arrangement is essentially future-proof.

Logical templates are assigned to each physi-

cal device and any upgrade to the template is

automatically refl ected down to the applications it

interfaces with, making any necessary changes to

peripheral equipment a simple process.

Th e logical device templates are confi gured into

the required workfl ow and maintain information

fl ow with a heavily optimised database providing

real time information and control.

Th e Protocol Device for communicating with

each specifi c brand of device is maintained

separately and operates at or close to the external

physical connection. Integration is simplifi ed as

no control logic is included at this level and as a

result, the system can manage and control any

current system or one that is yet to be created.

This set up also ensures that commands such

OMNIBUSTHE IT STANDARDSAPPROACHThe iTX software based transmis-sion and production tool by Om-nibus includes automation with a host of plug-ins available to expand the feature set. These include the addition of graphics, logos, vision effects, voiceover, live events and audio effects, claims the developer.

An integrated character genera-tor allows the operator to create CGs or load and modify templated material. The system also supports open and closed subtitles and multiple audio tracks, according to Omnibus.

In addition to these features a drag and drop function simplifi es the process transmission enabling a single operator to work on multiple channels if desired.

The iTX system uses only stan-dard IT hardware.


as; ‘play a particular movie’ for example, are

received at the device level, ready to be trig-

gered on the frame boundary. To operate frame

accurately in accordance with the broadcast

schedule, the command either needs to include

time stamping or, if there is latency, be trans-

mitted to arrive at the device activating the

required action a predefined number of frames

beforehand. To achieve overall frame accurate

broadcasts, the communication to all of the

devices needs to be synchronised and to utilise

a centralised architecture with a real time oper-

ating system. This allows each interface to op-

erate in accordance with the high-level control

algorithms rather than trying to get devices to

work together by changing the timing of control

signals to one device to work specifically with

another device.

A centralised architecture provides single

control reference to ensure that all facets of a

multi-channel environment can be synchro-

nised. Th e control reference must not only use

a recognised time source to synchronise events

but also ensures that any off set required to cater

for the characteristics of each individual device

attached is still relative to the control reference.

Th e combination of high bandwidth and guar-

anteed low latency ensures that frame accuracy

is provided consistently and independent of any

changes in the characteristics of the broadcast

environment itself.

In the past, large computer systems were

required utilising a real time operating system

(RTOS) such as OS9 to provide suffi cient process-

ing power and memory to accommodate the soft-

ware needed to control a multi-channel system.

AUTOMATION

Nowadays, new and faster CPU processor boards

are available. Th ese can be linked with additional

processor boards acting as communication serv-

ers using an internal bus, which provides high

bandwidth and guaranteed low latency for inter-

processor communication. Confi gured like this in

a centralised architecture, the computer system

no longer needs to be large.

A typical small centralised architecture

would fi nd the integrated broadcast automation

software running on a master control processor

while the communication servers communicate

over LAN, Serial and GPI signals controlling the

peripheral equipment over physical connections

Th e centralisation of all system resources such

as recording, playout and duplication along with

the immediate availability of associated meta-

data and state information allows a high level of

automation to be achieved in a multi-channel

broadcast environment.

In the future, the viewer will have the tools

to set the agenda and request media from the

broadcaster acting as a giant media server. Th e

centralised automation system is well positioned

to service the existing business model providing

scheduled playout and the future business model

by becoming a gateway to the media server.

Increasingly compact automation systems are

now available but with diff ering levels of func-

tionality. In a centralised approach the software

is easy to confi gure and support providing a fl ex-

ible yet highly scalable solution to the demands

of current and future automation, proving that

bigger is not always better when it comes to

broadcast automation.

Rob Leishman is marketing manager at Abit.

OASYS (formerly On Air Systems)NEAT AND TIDYThe full OASYS software work-fl ow is based on standard PCs, meaning it can be commissioned in days and requires minimal training and maintenance.

According to the manufac-turer, the Player module offers a number of features as standard that mark it out among rival au-tomated software-based playout systems. These include “on the fl y” schedule creation and time-unlimited advance scheduling, trim, edit and transition effects, and a number of confi gurable error and alert options.

As expected Player is compat-ible with third-party systems including routers, MXF, storage and editing systems.

Software-based automation has allowed broadcasters to adopt a scalable approach that can keep pace with their growth and the changing requirements demanded by the industry and audiences alike.


PRODUCT FOCUS

DECEMBER 2009

F rom the perspective of the viewer, the set

top box (STB) sits at the heart of TV and

telco convergence.

Audiences are more concerned with

services than the technology that enables them.

In the recent past the volume of these services has

dramatically increased and the STB has assumed

a number of additional roles during this time.

Originally just a receiver and tuner, the role of

the STB has evolved so that it is now an integral

component of any digital TV service.

As IPTV rollouts continue and satellite pay TV

off erings continue to push VOD services, more

questions are raised about the way Middle East

audiences will react to their widespread adoption.

“A study has found that 54 percent of DVR us-

ers would rather not watch adverts,” says George

Dabaghi, regional director, Motorola. “However, if

you can off er some kind of incentive – a voucher

for a pizza or discounted VOD content – then

there is a good chance that this fi gure would be

more like 24 percent.”

“At the moment most of the IPTV services in the

Middle East are ‘plain vanilla’, simply delivering

the FTA channels in IP to end users. What opera-

tors need to do is begin trialling the technology

– which is already in place – in partnership with

the advertisers.”

Increasing use of the STB in this way also cre-

ates new opportunities for operators to combat

the threat from illegal online content sources with

ad funded (or subsidised) services like those sug-

gested by Dabaghi.

“Content creators need to take their head out of

From simple DVR capability to interactive ad serving there are several new revenue opportunities for broadcasters fed through the set top box (STB). Digital Broadcast looks at the hardware’s growing role.

BOXING CLEVER

There has been a dramatic shift in how people view content. Consumers want a complete entertainment experience and the STB has had to evolve to deliver these new services.

FREDERIC MAIZERET

Group account director,

telecoms and retail, Pace.


www.digitalproductionme.com 037

the sand and start thinking of innovative ways

to add value for the consumer,” says Jeremy Fos-

ter, marketing director, Ericsson Middle East.

“Th e Spotify music service is the classic example

of how some people will tolerate ads if they can

stream music for free, At the same time though,

Spotify recognises that some people would rather

pay to avoid advertising and they are catered for

too with a subscription based, ad-free service.

“Flexibility in payment options is the answer.

IPTV allows for this, it can create a unique expe-

rience for each individual. IPTV gives far greater

insight to what users are interested in and off ers

enormous benefi ts to advertisers but there is a

lot of discussion and there could be some pain

required to fi nd the best way to approach this

change in the business model,” claims Foster.

While operators and advertisers in this region

stall their use of the full capabilities of modern

STBs, globally consumers are becoming more

aware of what the market can off er.

“Th ere has been a dramatic shift in how peo-

ple view content,” says Frederic Maizeret, group

account director, telecoms and retail, Pace.

“Consumers want a complete entertainment

experience and the STB has had to evolve to

deliver these new services and meet consumers’

expectations. Th e public are defi nitely becoming

much more aware of the diff erent technologies

available to them.”

Maizeret believes that hybrid capabilities

have become a must have function as broad-

casters continue to make more content avail-

able online.

DO

UBLE STA

ND

ARD

S

OPEN OR CLOSED?A report by Arthur D. Little on the case for open standards in IPTV STBs makes some compel-ling arguments for consum-ers, operators and the device manufacturers themselves.

The report cites the differing fortunes of the open cel-lular network standard GSM versus the proprietary CDMA standard. According to fi gures quoted in the report, GSM had an 89 percent global market share in mid-2009 compared to nine percent for CDMA.

The study notes that while the STB manufacturers would “benefi t from open standards through boosted volume sales and greater ability to exploit di-rect retail channels”. However, the report also notes that open standards would make it hard for them to “lock in” operators as customers. An open stan-dard environment would also increase price competition and so lower profi t margins.

Operators and consumers would feel the benefi t of these reduced costs and increased choice. The ease of transfer from one operator to another is increased by open standards, which could lead to higher churn rates.

PRODUCT FOCUS

DECEMBER 2009

Set top box developer Amino demonstrated its new range of hardware powered by the Intel Atom Proces-sor CE4100 at the Intel Developers Forum.

The media processor combines leading-edge consumer electronics features for HD video support, home theatre quality audio and 3D graphics, accord-ing to Amino.

“The CE4100 is a powerful media processor that is designed specifi cally for home entertainment and enables a greatly enhanced consumer experience,”

claims Dominique Le Foll, CTO, Amino. “As one of the fi rst IPTV solutions providers to demonstrate its capabilities, we are very encouraged by the response from customers and partners particularly to its over the top capabilities.

“This builds on our relationship with Intel and we are delighted to have worked closely with them to showcase the benefi ts that CE4100 can bring to the performance of STBs in the IPTV world,” added Le Foll.

AMINO HARNESSES POWER OF THE ATOM

Motorola has supplied du with two models from its VIP range of IPTV STBs.

The VIP1200E and VIP1216E can support both HD and SD, DVR capability with client scheduling, media sharing and music on their TV.

“Consumer trends show an appetite for person-alised media experiences. Key features of Motorola’s

latest set-tops enable du’s customers to enjoy cust-omised viewing experiences, such as recording and playing back high-defi nition IP-based video content,” said Ali Amer, vice president, Middle East, Africa and Pakistan, Motorola Home & Networks Mobility.

Du is estimated to have between 70,000-100,000 IPTV subscribers in Dubai

MOTOROLA SUPPLIES DU WITH VIP SERIES BOXES

038 www.digitalproductionme.comDECEMBER 2009 038

PRODUCT FOCUS

“Th e Le Cube

box we developed

for Canal+ (main

picture, page36)

is France is a great

example of this. It’s one

of the world’s fi rst hybrid

satellite and IP HD PVR devices

which uses the Ethernet port for VOD. And in

Dubai, for example, enabling access to IP ser-

vices is crucial as there’s an increasing number

of DTH providers.”

With the increasing merging of delivery

platforms and consumers looking to view this

material on a number of device,s the STB is

spreading its wings beyond the TV set.

“Th ere’s defi nitely a need for media storage

in the home, and the STB will sit at the heart

of this, becoming even more intelligent than it

is today. We’re seeing a lot of demand for home

content solutions where the set-top box and the

gateway work closely together, and we’re work-

ing on delivering content around the home, both

wired and wirelessly,” says Maizaeret.

TV CHAT A

PPLICATION

S

SOCIAL TV“We are adding the technol-ogy of IPTV and adding social networking applications, for example, as you watch you see your ‘buddy list’ and who is viewing what,” says Bilal Saleh, director EMEA apps. and mob TV services, Motorola (below). “Then you can synchronise what you are watching and send messages to each other.”

PACE: PUSHING HYBRID MODELDeployed by Modern Times Group’s Viasat Broad-casting in late 2009, the TDS855NV is a HD PVR with built-in hybrid functionality. Supporting both MPEG-2 and H.264 content, the TDS855NV HD PVR has 320GB storage capacity and allows users to record up to 80 hours of HD or 160 hours of standard defi nition content. The set-top box has dual DVB-S2 tuners so the user can record and watch content in a combination of different ways to maximise the time they spend viewing television.

As a hybrid box, the TDS855NV comes equipped with an ethernet connector which allows IP content to be delivered over low-bandwidth connections using NDS’ Progressive Delivery (PDL) technology, which removes buffering problems associated with slow broadband download speeds, according to Pace.


DATA

Middle East teleport facilities Jordan

Media City (JMC) and du’s Sa-

macom are among the top 20 high-

est earning independent operators,

according to the World Teleport Association’s

(WTA) Top Teleport Operators of 2009 study. Th e

WTA also released its Inside the top operators

report, which has shown a diversifi cation in the

services off ered by teleports and a geographi-

cal swing away from North America and Asia

towards Africa, Europe and the Middle East.

Samacom was named the twelfth largest

grossing independent operator with JMC nine-

teenth, which was also named the sixth fastest

growing teleport globally.

Th e Amman-based facility experienced a

growth of 50.62 percent, according to the fi gures

from WTA.

A number of other operators serving the Mid-

dle East also fared well. Cyprus-based Europe

Media Port, which has coverage C-band coverage

across the Middle East was named the fastest

growing teleport in the world (by revenue).

Luxembourg’s SES was crowned the number

one operator globally. SES is a partner in Abu

Dhabi’s YahLive satellite operator.

Stratos Global, in the US, was named the top

independent teleport.

Global teleport rankings revealed as local players make top 20 and growing diversity of services uncovered.

TELEPORTS ON TOPDATA SOURCE: World Teleport Association

Diversifi cation of services is on the up among

the world’s teleport operators with non-broad-

cast based content distribution leading the way.

Th e range of services off ered by teleports has

expanded dramatically during the last three

years, according to a report released last month

by the WTA.

Th e number of teleports receiving 25 percent

or more of their revenues from non-broadcast

based content distribution has seen risen by 143

percent. Th ere has also been a swing towards

supplying enterprise networks (up 54 percent)

and internet backbone (up 29 percent).

Europe and the Middle East has emerged as

the largest geographic market for teleport opera-

tors. Two thirds of those surveyed expected to

retrieve at least a quarter of their revenues from

these regions and 47 percent expected to see at

least half of their revenues generated in Europe

and the Middle East.

During the course of the next three years

Africa will under go the greatest increase in

importance to operators with a 14 percent rise in

the number of teleports taking a quarter of their

business from the continent.

By comparison, Europe and Middle East will

rise by only two percent and North America will

decrease by 18 percent.

TOP INDEPENDENTTELEPORT OPERATORS1 Stratos Global (USA)

2 GlobeCast (France)

3 Arqiva Satellite & Media (UK)

4 Telespazio (Italy)

5 CapRock Communications (USA)

12 du (UAE)

19 Jordan Media City (Jordan)

SOURCE: World Teleport Association

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