digital broadcast me - july 2010

VOLUME 3 ISSUE 7 JULY 2010

An ITP Business Publication

ROADMAP FOR MOBILEWhat next for the troubled format?

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Th e online video site set to shake-up Middle East TV this Ramadan

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03www.digitalproductionme.com

CONTENTS

JULY 2010

36TESTING TIMESHow to use T&M equipment effi ciently

with evolving broadcast technologies.

28SET TO PEAKHow one of the UAE’s smaller emirates is

on the rise in the media world.

ALSO IN THIS ISSUE...

WEB HIGHLIGHTSSpot poll: What now for MENA

World Cup coverage?; top

web stories; editor’s choice: IN

PICTURES: Al Jazeera woes.

THE BRIEFINGSaudi TV drops

commercialisation hints; OSN

to go all HD by 2013.

WRITTEN IN THE STARSIs the Middle East set for a

period of surplus or shortage

of satellite capacity?

COVER STORY: WEB PLAYERSTh e new Arabic online video

service looking to take advan-

tage of the maturing market.

MARKET ANALYSISTh e pay TV market will con-

tinue to grow but with a shift in

platform and location.

4

8

12

18

40

18

THE MOSTCOMPREHENSIVEFAMILY OFDIGITAL TVMONITORING,MEASUREMENTAND ANALYSISPRODUCTSIN THE WORLD

www.digitalproductionme.comJULY 2010

DPME.COM ROUND-UP

04

EDITOR’S CHOICE

MOST POPULAR STORIES

1 Technicolor develops cheap way to show fi lms in 3D

2 Ten big moments in thehistory of 3D

3 Arabsat unveils plans for satellite broadband

4 TFrance Telecom eyeing ‘four or fi ve’ MENA deals

5 Middle East leads EMEA media recovery: PwC

Al Jazeera Sport points the fi nger of blame

elsewhere as World Cup coverage is dogged

by signal loss, poor video quality and random

changes in audio track.

digitalproductionme.com/news

AJ SPORT SHIFTS BLAME FOR WORLD CUP WOES

The online home of:

DA

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une

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ALSO ON THE DPME SLATE THIS MONTH...

The broadcast and TV technology bringing the World Cup to hundreds of millions of homes.

ANALYSIS

GREATEST SHOW ON EARTHIkoo CEO and online ad guru Isam Bayazidi reveals how broadcasters can get more from the web.

INTERVIEWS

WEBMASTER

The best iPhone apps for broadcast professionals.

TECHNOLOGY

APPLY YOURSELFThe legal perspective on Indian censorship regulation (or lack of).

COMMENT

INDIAN TV CENSORSHIP

IN PICTURES

AL JAZEERA WOES

digitalproductionme.com/analysis

digitalproductionme.com/technology

digitalproductionme.com/interviews

digitalproductionme.com/comment

Ten defi ning moments in thehistory of 3D entertainment.

READER COMMENT: “The fact is, if their systems were resilient & redundant this would have been overcome. If FIFA are going to allow monopo-lies to exploit their customers, at least make sure we receive what we paid for.” Kevin, Dubai, UAE.

SPOT POLLWHAT SHOULD BE DONE ABOUT AL JAZEERA’S WORLD CUP PROBLEMS?

47% FIFA should make it FTA.

41% It makes no difference; no one has a clue about customer service.

12% Another broadcaster should get the rights.

0% AJ should keep rights. DA

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COMMENT

JULY 2010 07

The World Cup debacle should serve as

a dire warning. Audiences had little

to no interest in the actual source

of the problems. Al Jazeera, as the

customer facing broadcaster, was the target of

the criticism, regardless of how legitimate that

criticism was. Its response was defi ant and in no

way conciliatory.

Th e World Cup problems were an isolated

incident. Th ere are ongoing problems that are far

more signifi cant.

Th e quality of service in the Middle East is

well below par. Th e lack of accurate data in most

electronic programming guides continues. A vast

number of the region’s channels are broadcast

with poor quality video and frequently tinny,

popping audio. Customer service is notoriously

bad. A number of readers (including yours truly)

have had frustrating experiences swapping

out set top boxes. Th e number of missed

appointments for the pick-up of the old box is

approaching double fi gures in my case with

drivers repeatedly going to the wrong address or

failing to show up at all.

Call centres are unresponsive and all too

frequently, uninformed.

QUESTIONABLEQUALITY

TO SUBSCRIBE please visit www.itp.com/subscriptions

JOHN [email protected]

The online home of:

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

Getting connected to a pay TV service can be

just as diffi cult and inevitably billing starts well

ahead of the actual connection date.

When all of this information is compiled, even

the low pay TV penetration in the region seems

miraculous rather than disastrous.

Many of these problem services; billing, call

centres and so on are outsourced by operators,

so the message is clear, ask more from these

partners or fi nd new ones.

Th e audience is key to any objective of a TV

station – commercial or otherwise. With the

exception of some IPTV operators and networks

pushing out HD channels, there has been little

improvement in service in the last three years.

Th e quality of experience should be enticing

people to shun piracy in favour of legitimate

source of entertainment, not driving them

toward it.

08 www.digitalproductionme.comJULY 2010

THE BRIEFING

Th e quality of Saudi TV would improve after

commercialisation, according to an offi cial from

the Kingdom’s Ministry of Culture and Informa-

tion (MOCI).

Th e MOCI is also keen to privatise its nine

channels in order to circumvent restrictive regu-

latory conditions.

“I think that turning Saudi TV and

radio station into private institutions

would free this sector from lots of re-

strictions,” said Eng. Saleh Al Mughai-

leth, assistant deputy minister of in-

formation for television aff airs.

Al Mughaileth also added

that Saudi TV currently faces

a number of bureaucratic,

fi scal and administrative

challenges because it

complies with govern-

ment rules on adver-

tising.

Th e Motorola Home business has identifi ed the

Middle East as a major growth region for its

video services, according to a senior executive at

the company.

“Motorola Home is putting all its resources

into this region at the moment, it will make a

step-change in our business going forward,” said

Steve McCaff ery, VP and GM, Motorola Home.

“I see KSA as one of the largest growth mar-

kets for us in all of the EMEA. Th e majority of

our market share has come form the incumbent

carriers in Western Europe but now the focus for

us in terms of resources and opportunities for

development is in Middle East.”

Speaking after the Arab Advisor’s Media and

SAUDI TV HINTS AT PRIVATISATION PLANMinistry of Culture and Information offi cial backs commercialisation

MOTOROLA EYES MIDDLE EAST MARKET

BROADCAST BUSINESSGOOD MONTHFACEBOOKThe runaway success of all the social networks has appar-ently been growing revenues as well members.

Several sources close to the company told Reuters that the company’s 2009 revenues were as high as US $800m, far greater than the $500m esti-mate by the company itself.

“They are downplaying their performance. There’s no upside in getting people’s expectations high, it’s always better to go low,” said one of the sources.

BAD MONTHBEBOTwo years after being bought by AOL for $850m, struggling network Bebo was sold-off to merchant bank Criterion Capital for a fee rumoured to be as low as $10m.

The company is set to gain in the region of $300m in tax benefi ts as a result of the sale.

“The deal will allow Bebo’s users to remain within the social platform, while enabling a new owner to bring new possibilities and experiences,” said Tim Armstrong, CEO, AOL.

Similar comments were made last year by Dr

Riyadh Najm, assistant deputy minister engi-

neering, MOCI.

“Nothing is fi nalised yet. We are still holding

talks with key government entities about possi-

bly commercialising Saudi TV,” said Dr. Najm.

“We want to run the organisation more

effi ciently and profi tably. Of course, it

will continue to be a part of the govern-

ment and abide by local customs.

However, there will be greater ef-

forts to make it profi table. Right

now, all the investments for Saudi

TV comes from the Ministry of

Finance and any revenue

generated also goes to the

Ministry. Th ere is no

co-relation. We must

be able to generate

revenue and oper-

ate profi tably.”

Telecoms convergence conference, McCaff ery

said that there had been a noticeable switch on

attitude to content distribution.

“Certainly over the last nine months the Mid-

dle East has shown a very strong drive towards

video distribution systems. Th e onset of both

wireless broadband and fi xed broadband with

ultra high data speeds has driven them [the tel-

cos] to look for new revenue streams through

video services.

“It was astounding to see the number of cus-

tomers and CxO level executives that attended

the conference and showed their commitment

to the convergence process in the Middle East,”

added McCaff ery.

Dr Riyadh Najm, assistant deputy minister engineernig, MOCI.


THE BRIEFING

JULY 2010 09

Al Jazeera Sports has claimed that un-

named elements deliberately disrupted

its coverage of the FIFA World Cup with a

number of alternative theories arising as

the tournament progressed.

Nasser Al Khelaifi , general manager of

Al Jazeera Sport, initially claimed that the

people responsible for “destroying our sig-

nal” would be found “very soon”.

His statement came after the fi rst game,

South Africa vs Mexico, was blighted by

repeated losses of picture and the English

language commentary suddenly switching

to the French audio track.

M&A ACTIVITY TO RISE IN REGIONA rise in merger and acquisitions activity among Technology, Media and Telecoms (TMT) fi rms is expected in the Middle East, according to a report by Value Partners.

“The acquisition of content providers and producers has been limited, due to the low uptake of IPTV and mobile TV in the region,” said Zoran Vasiljev, MD, Value Partners

QUOTE OF THE MONTH

DELIVERY

SIGNAL PROBLEMS BLIGHT WORLD CUP COVERAGEReception losses continue as claims of industrial sabotage cause confusion over cause of issues

It’s a good thing that there was a cull [of FTA channels] just to keep the numbers down, to make the market sensible and ensure that TV is of interest to people as a marketing tool. The medium has done extremely well during the downturn. MEKKI ABDULLA CEO, FUJAIRAH MEDIA

IPSOS WINS AJ SPORT CONTRACTMedia research agency Ipsos MediaCT will provide Al Jazeera Sports with viewership re-search data for football matches staged during the FIFA World Cup and the UEFA Champions League, the company has announced.

Ipsos will conduct day-after-recall interviews in KSA, UAE, Egypt, Kuwait, Yemen, Syria, Jordan Iraq and Iran, following live matches.

QATARI CINEMA AUDIENCE FIG-URES TRIPLE IN JUST FOUR YEARSThe number of cinema-goers in Qatar tripled between 2005 and 2009, according to statistics released by the Qatar Statistics Authority (QSA).

Aided by an increase in the number of cinemas from nine to 25, attendances leapt from 374,568 to 1,365,000.

Elie Aoun, COO, Ipsos MENA.

Th e debacle continued with disruption af-

fecting further matches in the tournament

after a brief period without disruption.

Meanwhile Digital Broadcast learned

that Al Jazeera was evaluating a condition-

al access swap-out prior to the tournament

with the intention of sending the “kill sig-

nal” on the fi rst day of the event.

It is not clear whether this process could

have aff ected the Nilesat signal only and

leave the Arabsat feed unblemished.

Al Jazeera has made no further com-

ment since its accusations against satellite

operator Nilesat.

Nilesat has also remained tight-lipped

after initially angrily refuting accusations

of wrongdoing.

Zoran Vasilijev, MD, Value Partners.

010 www.digitalproductionme.com

THE BRIEFING

Pay TV operator OSN has said that it intends to

off er all its channels in HD by 2013.

Th e network currently off ers nine chan-

nels in the HD format but hopes to

transfer all 75 by the end of 2012

and will switch-off its SD services

six months later.

“I’d estimate that by mid- to

end-2011 every one of our in-house

channels will be available in HD,”

Marc-Antoine d’Halluin,

CEO, OSN told newspaper

Th e National.

D’Halluin also said

that the non-HD BRO

AD

CAST BRIEFS

DELIVERY

ALL OSN CHANNELSHD BY 2013: D’HALLUINPay TV operator sets target date for SD switch-off as HD gains traction

THE BRIEFING

WORLD CUP BROADCASTERS TURN TO TECHNOLOGY TO SILENCE VUVUZELASBroadcasters around the world deployed new audio fi ltering technology to counter the ever-present vuvuzela horns at World Cup matches.

The BBC received more than 500 complaints from UK view-ers about the instrument.

International audiences were far from enamoured, with many complaining that the combined drone created by the instruments makes it diffi cult to hear TV commentary.

French audio lab Audi-onamix created a specialised fi lter designed to remove the vuvuzela frequencies from a the mix, without distorting or dampening the rest of the atmospheric sound of the fans.

Pay TV network CANAL+ was the fi rst to apply the technology to its coverage of the competition.

“We were watching the World Cup and found our enjoyment of the experience hindered by the loud drone created by thousands of vuvuzelas,” said Olivier Attia, CEO, Audionamix. “Our engi-neers immediately went into the lab and emerged 48 hours later with a solution.”

The value of the global media and entertainment market in 2014 according to PricewaterhouceCoopers, up from $1.3 trillion in 2009.$1.7 trillion

MARQUIS APPOINTS NEW PRODUCT MANAGERSoftware developer Marquis Broadcast appointed John Wood-

house as product manager. Woodhouse will map out the future development path for the com-pany’s Media Highway Technology, which forms the underlining architecture for the its Medway media transfer and format conversion software.

Woodhouse previously held the position of head of operations at Softel in addition to several product management and marketing positions with Quantel.

ROSS PROMOTES BRIAN OLSONRoss Video announced the promotion of Brian Olson to XPression marketing product manager.

Olson previously held the position of XPression business development manager for the US market with Ross.

“Brian has done a great job developing our XPression business in the US. He has a deep pas-sion for graphics and character generators, and their use in broadcast, production and branding applications,” said Jeff Moore, executive VP sales and marketing, Ross Video.

MOVERS & SHAKERS

JULY 2010

channels would be available for six to 12 months

after that meaning the network would be HD-

only by 2013.

OSN is seeking to position itself as the

fi rst choice for HD content in the Middle

East after its reign as the English Premier

League broadcaster in the region ended.

“We have very good reactions from the

market that the Middle East wants

HD. OSN is already the big-

gest platform for HD in

the whole region – and

the whole company is

gearing up behind the

HD eff ort,” he added.

Marc-Antoine d’Halluin, CEO, OSN.

www.digitalproductionme.com 011

BROA

DCA

ST BRIEFS

YAHLIVE CHIEF PREDICTS MAJOR TV INDUSTRY REFORMATIONThe Middle East broadcasting industry has reached a defi n-ing moment in its develop-ment that could see a shift from today’s free-to-air (FTA) landscape towards sub-scription-based, on-demand services, according to YahLive CEO Mohamed Youssif.

The growth of FTA channels in the region has levelled-off during the past year and Yous-sif believes this is the begin-ning of a major reorganisation of the broadcast industry as a whole.

“At the moment people give their spare time to view free entertainment,” said Youssif, speaking exclusively to Digital Broadcast. “But this model will not last much longer. People don’t have much free time these days, now they want to watch what they want, when they want.”

“We are at a crossroads and the [business] has to change to accommodate this. With broadcasters be-ing squeezed by expensive content and a challenging advertising market, they have to start looking at another source of revenue – a viewer supported model – pay TV,” said Youssif.

“If you look at the fi gures around the world subscription is outpacing advertising as a source of revenue. Broadcast-ers are starting to realise this and are looking for a new business model,” claimed Youssif. “I feel it is about time that people get used to the idea of paying for their TV.”

France Telecom is eyeing four or fi ve acquisitions

in the MENA region during the next fi ve years

and some deals could be concluded this summer,

according the fi rm.

In April the company said it was looking to in-

vest a total of US $8.6 billion in the region.

“Perhaps we will sign in the summer, perhaps

it will take six months,” said Marc Rennard, ex-

ecutive director for MEA and Asia, France Tele-

com speaking to Bloomberg. “We do not want to

deteriorate our Ebitda (earnings before interest,

tax, depreciation and amortisation) ratio, but we

need growth,” he added.

Th e growth rate of free-to-air (FTA) channels in

the Middle East has slowed to just 2.7 percent

between April 2009 and April 2010, according to

the latest report from the Arab Advisors Group.

Th e research found that there are now 487

FTA channels broadcasting on Nilesat, Arabsat

and Noorsat with 13 new channels emerging

between March 2009 and April 2010 compared

to 104 new additions between August 2007 and

March 2009.

Th e most common genre of the FTA stations

are general-private sector channels, which con-

stitute a share of 19.6 percent.

FRANCE TELECOM EYES MEA DEALS ‘THIS SUMMER’

MIDDLE EAST FREE-TO-AIR CHANNEL GROWTH SLOWS

SATCOMMS MARKET

Satellite operator Arabsat has offi cially unveiled its plans to offer satellite-based broadband services in the MENA region.

The company fi rst disclosed its intentions at an industry conference in Dubai last December but has now spoken publicly of the service – branded Ar@b Surf – for the fi rst time.

The expense of installing terrestrial networks throughout sparsely popu-lated areas of the MENA region has left broadband services limited to major cities. Satellite broadband can be received through a relatively small 0.6m dish in any part of the service’s coverage. The proposed coverage area is made up of 10 spot beams, fi ve over KSA, two in Iraq

ARABSAT TO OFFER BROADBAND SERVICES; LAUNCHES NEXT-GEN SATELLITE

Mazen Hayek, offi cial spokesperson, MBC.

and one each in Yemen, Jordan and Afghanistan.The company also successfully launched its new

Arabsat 5A satellite after a brief delay caused by a problem with the launch infrastructure.

According to Arianespace – the launch service provider – it “postponed its Ariane 5 fl ight... follow-

ing a pressurisation anomaly”.The launch was fi nally undertaken three

days late on Saturday June 26.“We are very thankful for the success-

ful launch of 5A that will cover the whole African continent for the fi rst time,”

said Khalid Balkheyour, president and CEO, Arabsat. “It will provide

satellite television broadcasting, telephone connections, broad-

band services, VSAT and interactive services. It rep-

resents great progress.”Khalid Balkheyour, president and CEO of Arabsat.

Marc Rennard, execu-tive director MEA and Asia, France Telecom.

JULY 2010

THE BRIEFING


VOX POP

REGION SET FOR SURPLUSPATRICK FRENCHSenior analyst and head of Singapore offi ce, Northern Sky Research

WRITTENIN THE STARS

Typically it is a three to fi ve year process

from end-to-end from when management

starts internal market assessments through

to satellite bidding, construction and

launch. Th is leads to a common cycle in the

satellite industry of demand appearing in

a market, such as the Middle East, supply

tightening for a few years and then launch

of new capacity often leading to an excess

supply situation that requires several

years for the market to absorb.

Certainly there are strategies

such as switchable capacity

between beams or steerable

beams that help reduce the

risk of over-serving a market.

Yet, all competitors see

the same demand and the

natural tendency is to want

to launch suffi cient excess

capacity to address long-

term market develop-

ments over the lifetime

of a satellite – 15

years and up – that

simply cannot be

predicted today.

Predicting the bandwidth requirements of Middle East broadcasters is a guessing game satellite operators must indulge in. Digital Broadcast asks how to mitigate

for the lag between demand and launch and whether the region is set fora period of surplus or shortage.

HD and eventually 3D are undeniably

important market developments but they

alone will probably not generate suffi cient

capacity demand long-term in and of them-

selves to guarantee a “healthy” market. Th e

industry is all about aggregating demand

for all types of applications and being as

fl exible as possible to adjust to new market

developments as they come along.

Slower FTA channel growth could be one

dynamic in a possible decline in capacity

pricing in the Middle East but it would cer-

tainly not be the only consideration. New

capacity and new players, arrival of new

undersea cables and terrestrial fi bre and a

number of additional issues all combine to

determine eventual capacity pricing trends.

Individual operators may be under more

pressure than others to bring down pricing.

Th e Middle East appears to be on the

cusp of the curve moving from a tight

supply situation to a one with much

greater supply assuming all of the currently

planned satellite launches are successful.

But as NSS-8 demonstrated recently, it can

only take one failure to dramatically alter

market dynamics.

012 JULY 2010


VOX POP

013JULY 2010

Th e cycles of surplus and shortage of

capacity has been a constant in the satellite

industry. Th ere was a shortage in late 90s,

and a capacity glut in the mid 2000s.

Th e 18-24 months timeframe

from planning to launch indeed

presents some risks for any satel-

lite launch. Th ere is also some

diff erence between the forecast-

ing and management of TV

versus Telecom services. With

TV, it is important to identify

the proper fi xed orbital posi-

tion, after which the demand

is linked to the broadcasters

interested in that specifi c

position. It is then important

to manage the relationship with

them over the 15-20 years life span of

the satellite. Telecom services have a

higher degree of fl exibility.

Satellite operators need to diff erenti-

ate themselves beyond pure transponder

capacity sale (or resale). Th ere are oppor-

tunities for satellite operators and satellite

broadcast service providers to better serve

the MENA TV market for instance.

Th e band selection is also an important

element to consider. Band C is much broad-

er than the Ku and Ka bands. Th e broader

the coverage the lower the risk, although

in Ku and Ka there are also mechanism to

re-orientate the spot. Pricing is also a key

variable to manage supply and demand.

Th e launch of HD means larger needs for

satellite capacity.

However this capacity need is also off set

by improvements in compression technolo-

gies. 3D will also be another driver as the

technology improves.

Prices for premium capacity are unlikely

to fall as these cannot be easily substituted.

PRICES UNLIKELY TO FALLSANTINO SAGUTOManaging partner, Value Partners

Th ere are many steps that must happen be-

fore an operator can begin off ering services

on a satellite.

Assuming the company has resolved the

issue of fi nding an orbital slot – which is

not an easy task these days – and that it

has completed frequency coordination with

neighbouring satellites, the process can still

take years. Finalising a design takes time

and there are still two to three years before

launching and testing once it is ordered.

Obviously during this time, the market

may change. Often it does.

Th is means that operators perhaps have

to do a little guessing, in reality it is more of

an educated guess.

Th is is not a unique situation, the satel-

lite business is like any other investment,

no one can guarantee the business plan.

I’m very optimistic about the satellite

industry and I’m particularly bullish about

the satellite TV business in the Middle East.

HD and 3D will create lot of demand,

the question is how it will be implemented.

Th e HD available now is using quite a small

bandwidth. YahLive is planning to only put

four channels on each transponder, which

would be about 12Mb/s per channel. Even an

SD channel at 12Mb/s will look very good.

Th is year we are watching the World

Cup in HD and 3D. In a few years we

could be looking at Ultra High Defi -

nition, which requires 33Mb/s

per channel. Th is would take us

back to the analogue days of

one channel per transponder.

Th e possibility of what is

about to happen in terms

of HD and 3D channel

development, means the

Middle East will soon

be underserved.

NEW FORMATS WILL CREATE SHORTAGEMOHAMED YOUSSIFCEO, YahLive


NEWS REVIEW

www.digitalproductionme.com 015JULY 2010

NEWS REVIEW

AL JAZEERA IN A JAMThe recent signal interference during the World Cup led to a bout of fi nger pointing but long-termissues over the lack of regulation and consumer protection are more important than the blame game.

tor) that the public were blaming for the problems.

Th is blame was also being laid at Al Jazaeera’s

door by consumer groups.

Th e UAE Ministry of Economy said it had met

with Al Jazeera offi cials and was discussing the pos-

sibility of pursuing compensation for viewers in the

Emirates that had purchased the broadcasts.

However, a lawyer with experience of the region’s

satellite broadcasting industry said that it was

unlikely that Al Jazeera could be held liable for

compensation because of the blackouts.

“Commercial satellite contracts typically include

a force majeure clause that would envisage interfer-

ence ‘out of the broadcaster’s control’, such as the

jamming that Al Jazeera suff ered last month and

that would excuse the broadcaster from liability,”

said Sonya Shaykhoun, attorney, Charles Russell

LLP. “Moreover, as satellite television is still not

regulated in the Middle East, it is unlikely that any

of the telecommunications regulatory authorities

in the MENA region would have jurisdiction over

a satellite television operator in the highly unlikely

event that the operator caused the transmission

interference itself,” she added.

Al Jazeera did agree to refund UAE customers

that were given faulty cards or who were charged

over the defi ned prices by distributors. No compen-

sation for signal problems is forthcoming so far.

“Needless to say, it is caustic to imagine that

either of the satellite operators, Nilesat or Arabsat,

would interfere with the Al Jazeera channel, which

is owned by the Qatari government, to such a dam-

aging extent and at such a crucial time,” claimed

Shaykhoun. “Especially given that Nilesat is owned

in party by the Egyptian government while Arabsat

is owned by a consortium of Arab countries. It is

imaginable that the sabotage was not commercial-

ly-motivated but rather motivated by a disgruntled

customer armed with the know-how or by political

malcontents for obscure political reasons,” said

Shaykhoun who also noted that signal interference

of any form is illegal under international law.

“Tracing the source of the jamming is a time-

consuming eff ort which is apparently akin to trac-

ing a phone call.”

A fter facing criticism for its World Cup

distribution, Al Jazeera would have

been hoping to overwrite the bad

press it was generating by delivering

high quality coverage of the event. Its introduction

of both HD and 3D channels for the competition

looked like they could go a long way toward deliver-

ing the compensation many viewers in the region

felt was owed.

Instead the broadcaster found itself on the

receiving end of further criticism during its cover-

age of the showpiece’s opening fi xture. Signal losses

continued to dog several proceeding matches. Th e

English language match commentary was also

intermittingly swapped with its French equivalent.

Th e network issued a statement immediately

stating that it had been the victim of “deliberate

acts of sabotage”.

In an offi cial statement, the broadcaster said: “Al

Jazeera Sport would like to condemn the actions of

those involved in the deliberate attempts to block

its signal during its World Cup broadcasts yester-

day”, and continued to condemn those responsible.

UAE-based Arabic newspaper Emaraat Al Youm

quoted Al Jazeera Sport managing director Nasser

bin Ghanem Al Khleifi as accusing Nilesat of inten-

tional interference and an “act of piracy”.

Th e paper featured the front page headline: Al

Jazeera has ruined the World Cup.

Meanwhile, Mahmoud Juma, head of the

Egyptian Radio and Televsion Union – which owns

40 percent of Nilesat – was quoted by AlJazeera.

net as saying: “Al Jazeera might have decided to

punish Nilesat 10 minutes after the fi rst disrup-

tion by claiming that its causes were unknown and

requesting its viewers to move to other providers,

such as Arabsat, Eutelsat and Noorsat. Al Jazeera

is punishing Egyptian viewers and advertisers.

Egyptians are not thieves or highwaymen; we are

gentlemen and professionals. We do not want to

spoil the fun of Egyptian and Arab families watch-

ing the World Cup”.

Regardless of who was responsible for causing

the problems and of how little Al Jazeera could have

done to prevent them, it (as the public facing opera-

NEWS REVIEW

Although this is not the fi rst time in Arab broadcasting history that large sums of money have been paid for exclusive broadcasting rights of sporting events, it may well be the fi rst time that such a monumental event has been subjected to jamming.

SONYA SHAYKHOUN

Attorney,

Charles Russell LLP


OPINION

tightest fi ts and the most obvious combinations are

coming together.

Hard times have traditionally encouraged merger

activity as companies look to trim operating costs

and improve effi ciencies, but the diffi cult banking

landscape has blocked off that escape route.

Th e shortage of fi nancing for deals has also made

it diffi cult for companies looking to invest in other

ventures for the purpose of revenue diversifi cation

or expansion, to chase their objectives and improve

their standing.

Th e restrictions on all forms of M&A activity

therefore created a set of frustrating problems for

companies that had found a route to improvement,

but could not aff ord to pursue it.

As economic troubles begin to melt away, technol-

ogy, media and telecoms (TMT) players can now re-

visit the possibility of indulging in some M&A action.

Whether we will ever see the telcos buying up

media assets with the appetite that was predicted

previously is unclear.

A recent report by Value Partners noted that the

slow uptake of mobile TV and IPTV in the region

off ers little incentive for telcos to splash out on con-

tent, a situation unlikely to change unless a business

model emerges that would allow them to recover the

high costs associated with acquiring premium con-

tent licenses and developing original productions.

So far the indication is that telcos would prefer the

partnership route, off ering media owners infrastruc-

ture and a degree of distribution in return for content,

a convergence of goals, if not balance sheets.

The recent international merger and acquisi-

tion activity looks likely to touch down in

the Middle East very soon but it is likely to

be unrecognisable compared to what was

expected three years ago.

Prior to the economic downturn, there was a great

deal of expected merger and acquisition (M&A)

activity expected in the Middle East.

It all seemed very obvious. Th e most anticipated

shift was to see telecom operators buying media

companies so that they could push content onto

their customers via various platforms. Meanwhile,

the biggest and most successful technology vendors

would continue to gobble up smaller competitors.

At the time, regional telco giants were spending

billions of dollars buying smaller operators around

the globe. Th e (relatively) tiny fees required to aggre-

gate content did not seem like much of an obstacle

when compared to these huge transactions. Many

local production houses were convinced that sooner

or later, a telco would off er them a golden ticket.

Th e recession – specifi cally the squeeze on bor-

rowing that it created – has made it more diffi cult for

any fi rm, telco or otherwise to, fi nd the temporary

cash for a shopping spree, within its own resources

or from outside.

Th e immediate consequence was a freeze on

transactional activity. As this thaws, the deals that

we are seeing are highly strategic, carefully crafted

and relatively low risk.

Broadcast technology fi rms have sought out rivals

with complementary product lines, but only the

Merger and acquisition activity is back on the cards as borrowing restrictions ease off, but can media companies expect to have the same number of suitors as they did post-recession?

GOODBYE BUYOUTS?

$25bn-$30bnThe estimated value of TMT M&A activity in the Middle East and Africa in the next three years.

30%The increase in the average value of MENA M&A deals in Q1 2010 compared to Q1 2009.

16%The fall in the total number of deals completed during the same periods.

WHAT’S THE DEAL?

SOURCE: Value Partners; Ernst & Young

The Middle East & North Africa’sONLY monthly magazine for the broadcast and production industry

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Fareed Dubery Tel: +971 4 2108 632Email: [email protected]

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COVER STORY

WEBPLAYERS

Online video ventures in the Middle East have previously failed to gain traction. Digital Broadcast spoke to the team behind the

latest effort looking to take advantage of a maturing market.


COVER STORY

O nline video covers a broad spectrum

of services that deliver an even wider

range of satisfaction for consum-

ers. Until recently, the technology

required to underpin a satisfactory online video

experience has been playing catch-up with the

expectations of the public. Th e result is a lot of

questions and disillusion with the platform. If

YouTube can host however million videos then

why can’t my favourite channel put all its content

online? If I can download a movie trailer in HD,

why is the show I’m streaming so grainy? And of

course the dreaded word for all online video view-

ers, “buff ering”.

Th e fact is that consumers simply do not under-

stand the nuances of the technology itself and why

should they? All that they should be concerned

with is the end experience.

Th ere are numerous examples of services in

developed markets that have overcome these

obstacles but several pieces of the puzzle in the

Middle East have been missing.

New Arabic online video portal Vidunia claims

to have fi nally tied these loose ends together to of-

fer a service that leaves few unanswered questions

for consumers.

Th ere have already been a number of plays in

this fi eld in the Middle East, so what is it about

Vidunia that diff erentiates it from these earlier –

not entirely successful – attempts?

“Vidunia is tailored for this specifi c region,”

says Amir Hegazi, general manager, Vidunia.

“Because it can geo-block, it can off er dif-

ferent pricing in diff erent markets for the

premium content and restrict access

to rights in certain territories or


COVER STORY

on certain platforms based on the details of the

content rights. Niche content can also be targeted

at certain parts of the region.”

Although some content will be charged for,

the intention is that the vast majority of content

will be off ered free with only premium content or

functionalities subject to subscription, a model

described as ‘freemium’.

“We believe that Vidunia is absolutely correct to

pursue the freemium model and it will be the fi rst

such Arabic content service to take this approach

anywhere in the world,” claims Kaleil Isaza Tuz-

man, chairman and CEO, KIT digital – Vidunia’s

technology partner.

“Th ere are other services that are basically

linear but VOD for online content has been shown

to be more popular by a factor of 20. Th ere are

linear, premium subscription channels and then

there are low-quality ad funded services. Hulu is

the model to follow in terms of providing a high

quality, free service. Th e prospects are very good,”

says Tuzman. Th e other indisputable diff erentia-

tor between Vidunia and its predecessors is the

support across four screens.

020

Vidunia will off er content across a number of genres. It expects to have 2000 hours of programming ingested by the beginning of Ramadan with many more content owners in ongoing talks to provide more.

A user’s account can be accessed online,

through a smartphone, iPad or connected TV, al-

lowing them to view their content on the platform

of their choice. Crucially, this choice includes the

living room.

“We’re not asking people to watch poor quality

video on a web player, if they want to watch some-

thing with the family on a 42-inch screen in the

living room then the technology can deliver that,”

says Andy Steward, CTO, KIT digital.

“One of the great diff erentiators of Vidunia is

the quality of the content in terms of the visual

experience. We’re streaming at very high bit rates

and we’re enabling the viewer to see it in DVD or

even HD quality. It’s not the typical web experi-

ence where the viewer has no choice but to watch

grainy, degraded quality content, it’s a true movie

rental experience.”

Th e next crucial question is what bandwidth is

required to run these services? Th e high cost and

patchy availability of broadband in the MENA

region is well documented – though improving –

and this has been one of the primary obstacles to

previous ventures.

No one really caresif their favourite show was by ABC, NBC or DMI. The fi delity around thecontent is based on the content itself or a certain actor, presenter, gameshow host, what-ever the case might be.KALEIL ISAZA TUZMANChairman &CEO, KIT digital


COVER STORY

“Th e HD quality requires a bit rate of 3Mb/s, 1.2

to 1.8Mb/s is approaching DVD quality and in the

living room the diff erence becomes unnoticeable,”

says Steward.

With an additional 10 percent on top of the

recommended bit rate, a decent quality of service

can be achieved with a 2Mb/s connection. Th e

adaptive bit rate technology ensures that users are

given the best possible signal as dictated by pres-

sures on their internet connection.

“If you are serious about being a primary enter-

tainment service then you have to do adaptive bit

rate,” says Tuzman.

So far Vidunia has secured 400 hours of launch

material from Jordanian production house Arab

Telemedia. By Ramadan a total of 2000 hours of

content from various providers will be ingested

and live on the service. Discussions with further

partners are on-going.

“We are talking to between 40 and 50 content

providers in the coming weeks. Ramadan is our

biggest focus at the moment. We’re confi dent that

we will have a strong off ering by then including

the major Ramadan series as well as content in

a number of other genres such as lifestyle, game

shows and so on,” says Hegazi.

“Th e four screen strategy will see diff erent

genres of content prove more popular on diff er-

ent devices. News, sports highlights and other

short-form content is best on mobiles for example

but there is a trend now of people using multiple

devices. Th is is often dictated by their schedule.

Th ey could be watching a show at home in the

morning then switch to mobile when they start

their commute.”

Th e ability to move between platforms creates

complicated issues regarding the licences for pro-

gramming. A robust and comprehensive digital

rights management (DRM) system is required to

ensure protection for content owners.

“KIT digital is actually the only IP video plat-

form that is studio approved. It is working with all

of the major Hollywood studios. KIT supplies ser-

vices to Vodafone and other operators. Th ere is a

lot of protocol to be followed regarding how many

people can actually touch the product throughout

the supply chain. It’s about as high grade as you

can get,” claims Tuzman, adding that the Hol-

lywood seal of approval for the DRM system is a

decisive pre-condition for some content owners.

Th e DRM can be downloaded to portable de-

vices and laptops and provided to connected TVs

We’re not asking people to watch poor quality on a web player, if they want to watch something with the family on a 42-inch screen in the living room then the technologycan deliver that.

ANDY STEWARD

CTO, KIT digital

Vidunia will look to exceed the penetration achieved by previous ventures in the Middle East such as Getmo (above), that have failed to fi nd a mass audience and convert content into sustainable revenues.


by plugging a small device into the WiFi terminal.

Th e presence of the DRM is as critical to the

business model of Vidunia, as it is to enabling the

four screen end-user experience.

“One of the things that makes us comfortable

with the project is that there is a context of trust

here with regard to DRM and the content owners,

that is diff erent than a lot of other projects like

this in the region – even those that have more sig-

nifi cant corporate players involved,” says Tuzman.

Th e online content rights landscape in the

Middle East is somewhat fragmented, another fact

that makes negotiations with content owners in

the region complex.

“Th is issue is at the heart of the matter right

now. In the US those online rights have been

disassociated between the producer and the dis-

tributor. In this region, the majority of content has

all the rights in one corporate location,” explains

Tuzman. “Th at is going to change, which is to the

benefi t of online platforms. Instead of dealing

with one megalith distributor you are dealing with

smaller individual producers, so you can divide

and conquer from a negotiating perspective. We’re

starting to see that happen in this market.”

Th is shift has come as distributors

have realised that consumers’ loyalty

lies elsewhere and they have become

less protective.

“No one really cares if their favourite show

was by ABC, NBC or DMI. Th e fi delity around the

content is based on the content itself or a certain

actor, presenter, gameshow host, whatever the

case might be,” claims Tuzman.

“Hulu is the famous example of those historical

barriers around production and branding being

overcome. Arch-rivals, hated competitors got to-

gether and recognised that no-one was identifying

their content as Fox or NBC. Th is hasn’t happened

in the Middle East yet. Some times when we talk

to a big broadcaster their approach will be ‘we

have X percent of the market why do we need

to partner with anyone else?’ It’s only a matter

of time in our view before it becomes clear that

the Arab consumer is like every consumer in the

world in the way they consume video. Th ey want it

all in one location. Th ey don’t want to have to go to

a diff erent location for each individual show, they

don’t care who produced it. Th ey want one place

for everything,” claims Tuzman.

Hegazi is confi dent that once the service is up

and running and content owners see the poten-

tial of the product at work – and the potential

revenues to be made – there will be a spike

in enthusiasm.

“Many people are not monetising

the online rights that they do own at

present or if the content is available SEA

RCHIN

G FO

R A W

EB WIN

DFA

LL

ROUTES TO REVENUEVidunia will initially be a free service as it looks to build an audience. Eventu-ally it will begin charging subscription fees for access to premium content or premium functionality. This could be the licence to download a piece of content and ‘own’ access to it through the Vidunia user account. It could be a fee in the order of a few dollars per month to remove all advertising from your service.

Pay per view events will also be phased in driving extra revenues.

Sponsorships will be offered with clients able to target their exposure toward users based on viewing habits and so on.

Once the audience is developed, the service will begin carrying adverts in the form of regular ban-ners, pre- and mid-rolls as well as interactive call to action campaigns, overlays and others.

The freemium model will be based on subscriptions and online ads.

COVER STORY

Hulu is perhaps the most successful online video platform bringing content from Disney, NBC, Fox, MTV, MGM, Paramount and others to one location.

$100million

The ad revenue in 2009of online video

service Hulu.


COVER STORY

online it’s certainly is not on all three screens. It

becomes a pretty simple proposition for them to

except,” adds Hegazi.

Th e obstacles in attracting the content to the

platform therefore seem to have been addressed

by Vidunia.

Previous online ventures in the Middle East

have also suff ered from lukewarm receptions

from users. Some of the barriers that were the root

cause of this have since been removed however.

“Consumer devices have changed dramatically

in the past two years and broadband has steadily

improved in this region to,” says KIT digital’s

Steward. “But consumer devices and the under-

standing and awareness that you can consume

content on these, has dramatically changed. In

the past most people watched pretty substandard

content on the internet and it wasn’t a great expe-

rience. Th e fact that we can now put great content

onto an iPad, a smartphone or the TV screen is

going to convince these people to come back to

this model.”

Steward says there are now a number of con-

sumer orientated companies such as Apple, con-

nected TV manufacturers and online players such

as Google and Yahoo! all driving the usage and

awareness of how content can now be consumed.

Th e most high-profi le example of this is argu-

ably Google TV. So how does Vidunia view the

mooted service from the web giant?

“It’s great for the market and it’s great for us,”

says Steward. “It solidifi es the strategy we are

pursuing. Vidunia has similar technology, but it

doesn’t have to be driven by Google. Samsung and

LG are adopting open standards for connected

TV which has opened up a great opportunity for

Vidunia. And if Google were to become the estab-

lished technology then Vidunia could be made

available on the Google platform too.”

Th e next stage for Vidunia is to continue signing

up content and to begin marketing as well as piec-

ing together its ad sales business and fi nalising

subscription packages.

“Th e fi nal charges haven’t been set and there

could be variation in diff erent territories and

adjustments based on user feedback. Th e basic

package would be a fi ve-day trial for around $3.95.

Th e other end of the spectrum would be the all-

you-can-watch, all access packages that will cost

in the order of $19.95 to $24.95 per month.”

Hegazi also says they expect to off er live events

such as local concerts and sporting events on a

pay per view basis with one-off prices in the order

of $3.95 to $7.95, depending on the content and the

target market.

“In the initial phases, we are more interested in

having as much as possible for free to draw traffi c

and build awareness,” says Hegazi.

We are talking to between 40 and 50 content providers in the coming weeks. Ramadan is our biggest focus at the moment. We’re confi dent that we will have a strong offering by then including the major Ramadan series as well as content in a number of other genres such as lifestyle, game shows and so on.

AMIR HEGAZIGM, Vidunia

TECHNOLOGY FOCUS

THE TECHNOLOGY BEHIND THE BUSINESS“KIT digital has provided the four screen platform to Vidunia; from the online environment to the connected TV, mobile and iPad and really providing them with all the tools necessary from a commercial and merchandis-ing perspective.

The platform also permits the broad ad inven-tory from banners and pre-rolls to contextual and overlays, call to action and so on. It also provides the e-commerce platform around the video. The freemium approach means there are several trigger points around the content. It is also important to provide the tracking tools so that Vidunia can comfortably carry out the revenue share with providers so that it can provide the tracking and information back to those content provid-ers ensuring they can get the correct royalties.”

KALEIL ISAZA TUZMAN

Chairman & CEO, KIT digital

THE TECHNOLOGY DELIVERING THE SERVICE“The content is being ingested in Central Europe, it is protected there, something the content providers want assurance of. The ingestion is done so that it can be played on all devices. It is encoded from HD quality all the way down to mobile quality.

Distribution is done through a network of edge servers on the Akamai network. Other networks could be used but in our experience Akamai is the best performer globally and is well connected in this region. These are taken as close to the consumer as possible so that it doesn’t create a bottleneck.

The individual’s user account enables the content and depending on pricing and licensing rules for that content we can enable it for any device. Effectively we can control how they get the content.”

ANDY STEWARD

CTO, KIT digital

E

o

www.digitalproductionme.comJULY 2010 024

AAG CONFERENCE

C onvergence has been a useful industry

notion, to describe anything that seemed

slightly non-traditional, for the best part

of a decade.

Th ere are now however, a number of aspects

of the telecoms and media industries in which

convergence is recognisable as a functioning,

discrete entity. Today there are in the region of 50

million IPTV subscribers. Online video portal Hulu

generated more than US $100 million for the media

networks and studios that back it. Video on de-

mand is now a prerequisite for any self-respecting

pay TV service.

Th e Arab Advisors Group held its seventh

Telecoms and Media Convergence Conference last

month. Th e event has become increasingly relevant

in the last three years as the ideas under discus-

sion have evolved from being hypothetical, to fully

operational active deployments.

Convergence is not only about the operators

however. Vendors and technology developers also

have to adjust to serve the new look market.

Motorola, traditionally associated with its tele-

coms network and handset business, is arguably

the best example. According to a report by MRG,

Motorola now has the largest market share globally

for IPTV set top boxes (STB) and video head-ends,

at 26 percent and 37 percent respectively.

“Th e STB is an integral part of the growth plan.

Motorola has now delivered 100 million home

entertainment devices into the market place,” said

Steve McCaff rey, VP and GM, Motorola Home. “Th e

STB has certainly driven the topline of the business

and the market share has done very well.”

Th e company has also been acting to cement

its position in the video market with the

acquisition of two broadcast technology

fi rms, BitBand and SecureMedia.

“Th e goal has been to create an end-

to-end play in the video market and the

acquisitions we have made have been

designed to aide that off ering across three

screens,” says McCaff rey.

“SecureMedia was purchased to provide

a DRM solution, a software based system for

devices, which is well-suited for Motorola’s

smartphone technology. BitBand provides the

company with a content management system.”

Th ough McCaff rey acknowledges that there are

still some regulatory issues to be straightened out

in order to smooth the path for three-screen video,

he is confi dent that the Middle East is working hard

to accomplish this.

“Th e Middle East, certainly over the last nine

months, has shown a very strong drive towards

video distribution systems. Th e onset of both

wireless broadband and fi xed broadband with

ultra-high speeds has driven them [telcos] to look

for new revenue streams through video. Th at video

takes several forms IPTV, cable, satellite or OTT

and there is just a merger now – a blurring – of

all those delivery mechanisms in the Middle East

as I see it,” he claims. “Th e majority of our market

share has come from the incumbent carriers in

Western Europe but now the focus for us in terms

of resources and opportunities for development is

in the Middle East.”

Th e company is not just working with telcos

from the region however, McCaff rey says they are

also talking with content owners such as Rotana,

STATE OFTHE UNIONWith the latest Arab Advisors Group convergence conference talking place lastmonth, Digital Broadcast assesses how the evolving relationship between telecomsand media is affecting vendors, service providers and broadcasters alike.

The majority of our market share has come form the incumbent carriers in Western Europe but now the focus for us in terms of resources and opportunities for development is inMiddle East.

STEVE MCCAFFREY

VP and GM, Motorola Home

025JULY 2010 www.digitalproductionme.com

AAG CONFERENCE


AAG CONFERENCE

in order to develop an environment that

suits the media companies as much

as the telecom operators.

“It was astounding to see the

number of customers and CxO

level executives at the conference

showing their commitment to the

convergence process in the region.

Th ey’re very supportive of our focus

and Motorola is putting all its resourc-

es in to this region at the moment.”

Newtec, CEO Serge van Herck points out

another form of convergence – that of the broadcast

and data worlds. Much of this form of convergence

underpins the rest with IP video for example, play-

ing a large part in cross platform content delivery.

“It was my fi rst time at the event but there was

a lot of broadcasters and telco operators there

discussing how they foresee things developing in

the future.

“Th ere was a lot of discussion about the role the

iPhone is playing in the dramatic rise in data that

is currently being sent over networks. Mobile video

will also increase further especially with the num-

ber of connected smartphones,” says Van Herck.

Th e loss of voice revenues is reason enough for

the telcos to embrace media, and the new markets

opening up to technology vendors is a strong incen-

tive for them, but what is in it for media companies?

“If you think broadcasters will follow record

companies down the tube and that telcos will take

over, I beg to diff er,” says Sam Barnett, COO and

GM, MBC. “One of the telco executives said to us a

few weeks ago that broadcasters have three years

left and then after that new emerging

platforms will be more eff ective to

reach audiences. I don’t share his

optimism,” says Barnett.

“If you look at international

markets where they have a more

developed infrastructure, such

as the US and Japan, people are

watching more TV than they were

10 years ago. I think that is a lesson

for this market. We can aff ord to be opti-

mistic going forward.

“Inevitably when you start to dance close

together you fi nd you step on each others feet, and

we are seeing that happen,” says Barnett. “Th ere are

various tensions. It is no secret in the industry that

there is a lot of overbidding for content and non-

commercial players are paying too high a price,

which is damaging the market.”

Despite these tensions though, MBC is continu-

ing to expand the scope and depth of its work with

telco partners, however Barnett sounds a warning

that there are limits to this cooperation.

“MBC is working more closely together with

telcos over the last year or so and with the increase

in 3G networks, there is a lot more interest in our

content. MBC also has a few co-production deals

directly with the telcos.

“I can handle operators off ering content over

broadband via subscription because it creates extra

revenues and MBC is ready to put premium content

on to those networks, but if telcos want to get

involved in the FTA market – I’m not sure why they

would – then it is going to be a bloodbath.”

Inevitably whenyou start to danceclose together you

fi nd you step on each others feet, and

we are seeing that happen. There are

various tensions. It is no secret in the

industry that there is a lot of overbidding

for content and non-commercial players are paying too high a price which is damaging the

market.

SAM BARNETT

COO and GM, MBC The Arab Advisors Group convergence event attracts CxO media and telecom executives specifi cally to discuss collaboration between the two sectors.

280Number of delegates at the

inaugural conference in 2004.

532The number of attendees

at the 2009 event.

Even more to discover

RAI Amsterdam Conference 9-14 September : Exhibition 10-14 September

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028 JULY 2010 www.digitalproductionme.com

FUJAIRAH MEDIA

I n a media landscape dominated by a hand-

ful of monolithic networks it can be diffi cult

for smaller players to get by. Nestled among

these giant competitors and headquartered

among the mountains of Fujairah, is the emirate’s

eponymous media group.

Fujairah Media has been able to survive the

downturn – thanks in no small part to the timely

opening of its Creative City cluster – and is now

lining up a number of broadcasting and infra-

structure projects to diversify its income and

carve its own niche on the way to profi tability.

Th e group is a joint venture between the

Fujairah Culture and Media Authority (FCMA)

and Arab International Media Services (AIMS),

with the latter owning a 70 percent stake and the

FCMA holding the remainder.

“It was formed in 2005 originally with the

goal of launching radio and TV stations. AIMS

provides a lot of the investment and handling the

day-to-day management and FCMA off ers infra-

structure and licensing support,” explains Mekki

Abdulla, CEO, Fujairah Media.

“It evolved in 2007 and 2008 to include

the Creative City free zone, which is now

one of our fl agship businesses,” says Abdulla.

Th e company owns two TV stations with

another two set for launch and a fi fth under

discussion. Seven client TV stations also use the

group’s facilities.

“Th ere is another channel – ABC TV – that

we are doing in association with a company in

America called ABC, which is going to be given its

soft launch during Ramadan. It’s a free-to-air TV

channel with good quality programming, includ-

ing a lot of western productions that have not

been purchased in this market previously,” claims

Abdulla. “Th ere tends to be four or fi ve big players

battling it out in the TV market here and to be

honest they all run similar content. Frequently

they are just showing diff erent series of the same

shows. Sometimes you don’t know which chan-

nel you are watching until you look at the logo.

You can’t tell them apart. But they’re doing well.

Th e aim for ABC TV is to do a diff erent style of

programming. It will be something that takes you

SET TO PEAKFujairah Media is not the largest network in the region but the company’s diverse range of activities from broadcasting to operating a freezone and now to operating cinemas, has the fi rm on the track toward profi tability. CEO Mekki Abdulla spoke to John Parnell.

It’s a good thing that there was a cull [of FTA channels] just to keep the numbers down, to make the market sensible and ensure that TV is of interest to people as a marketing tool. The medium has done extremely well during the downturn.MEKKI ABDULLACEO, Fujairah Media


FUJAIRAH MEDIA


through your day. You don’t want to see a horror

movie at seven in the morning, so the content will

change as the day progresses. Th ere will be a bit

more thought put into the programming.”

Fujairah Media also operates four radio stations

with more planned.

Abdulla says that it is crucial to address the

Egyptian and Saudi Arabian markets in order to

monetise TV content but admits that commercial

goals are not the focus of all its channels.

“Th e group does not make money from televi-

sion as yet and it doesn’t expect to for a little bit

longer. One of the channels that it operates, Dunia

TV, is more of a window for Fujairah as opposed

to something for the company to try to monetise.

It is for people in Fujairah and for people from

outside to learn more about the emirate. It has a

very distinct purpose and this is also part of the

overall strategy.”

Dunia is one example but the group is also look-

ing at more commercially driven TV ventures too.

“Th e group also has a channel – Zoal TV – that

is focusing on Sudan that has strong commercial

benefi ts in my opinion. Th ere has been a lot of

interest from people looking to purchase it now

that it has some strong audience fi gures to back

it up. Th ere is an opportunity for us to develop

stations using our infrastructure and addressing

certain niche markets. Th ese can then be sold on

or run internally. Th ere has been a good reaction

030

FUJAIRAH MEDIA

Fujairah Media will open the region’s fi rst drive-in cinema in the emirate later this year. The Arabian Cinema concept will also be expanded to two additional MENA markets in the future, reveals Abdulla.

from the market to Zoal TV, the audience is in

place, advertising is being sold. Th ere is money to

be made if you have a plan,” claims Abdulla.

“We’re not going to limit the business to Fu-

jairah, but we’re not going to try and battle it out

with Dubai. Dubai is already very good at what

it does. Our main market at the moment outside

of Fujairah is going to be Africa. Th ere are lots

of plans to use the platform here to help develop

electronic media in Africa. Th e company is work-

ing very closely with marketing people to see how

this can subsidised by commercial operations.”

Th e company is now identifying sectors that

would be interested in accessing audiences in Af-

rica and identifying where these audiences might

be geogrpahically and bringing the two together.

Recently, the once unstoppable launches of FTA

channels in the region has begun to slow. Abdulla

believes this is ultimately a good thing for the

industry that will reward the channels – like Zoal

TV – that are underpinned by a sound strategy.

“Th ere was a point when there was a lot of

money around and the attitude was ‘oh I haven’t

got a TV station so I’ll open one’. It was very easy

to start a TV channel and there were people happy

to take the money to set these up.

“It’s a good thing that there was a cull in some

form just to keep the numbers down, to make the

market sensible and ensure that TV is of interest

to people as a marketing tool. Th e medium has

The group does not make money from television as yet and it doesn’t expect to for a little bit longer... Dunia TV, is more of a window for Fujairah as opposed to something for the company to try to monetise.MEKKI ABDULLACEO, Fujairah Media


FUJAIRAH MEDIA

done extremely well during the downturn – elec-

tronic media as a whole has excelled itself quite

well. I don’t see there being a sudden upsurge. Any

TV channels launched now will do so with a busi-

ness plan and clear objectives,” states Abdulla.

“Television – if you want to do it properly – is

extremely expensive. Content is key but content

is also costly if it is original and high quality. It’s

a hard game and I think we will see some more

stations close. We’ll also see some new ones come

about with a distinct plan and longevity as op-

posed to more channels blending away into the

hundreds of others.”

Content production is another area that the

group is now turning its attentions to.

Th is month it hopes to launch the Fujairah Film

Commission (FFC), which will promote the emir-

ate as a fi lming location and ensure that the cor-

rect facilities are in place to support productions.

Th e FFC is working on a set of incentives and li-

abilities with the Fujairah municipality and is also

planning to construct a new 3000 sq/m studio

facility to support TV and fi lm projects.

Th e mainstay of the group remains its manage-

ment and operation of Creative City, the media

freezone in the emirate.

“Creative City invites media companies with

backgrounds in technology, marketing, advertis-

ing and consulting to open up there. It is very keen

on start-ups and they are off ered a lot of support.

Most of the 250 companies registered there are

either start-ups or smaller business. Th e major-

ity of the companies have between two and ten

employees,” says Abdulla.

Th ere is also an uplink facility for broadcast cli-

ents, TV and radio studio infrastructure and cable

connectivity throughout the region and to the US

in cooperation with Kuwait’s Gulfsat.

“At the turn of the year we are hoping to build

some more facilities based on the business park

concept. Th ese will be simpler spaces. Th is means

partners don’t need to tie themselves to complex

infrastructure if they don’t need it. Or, in the op-

posite case they can have an as elaborate set-up as

they require. Th ey will also be off ered fl exible rent

and leasing terms to provide some investment

protection for them.”

With a number of competing media freezones in

the Middle East, Creative City is by no means the

largest, but this is not necessarily a disadvantage,

according to Abdulla.

“At the end of the day one of the key diff erentia-

tors between our off ering and other freezones

in the region is that we are a lot smaller and our

aspirations are less than some of the big players.

“It does not try to compete with the major freez-

ones, it has found its own niche in a way and tries

to off er very personal relationships. It doesn’t loom

over its partners like Big Brother. Th e aim is to de-

velop an environment so people can turnaround

their companies quickly and get their business

running effi ciently.”

It [Creative City] does not try to compete with the major freezones, it has found its own niche in a way and tries to offer very personal relationships. It doesn’t loom over its partners like Big Brother.

MEKKI ABDULLA

CEO, Fujairah Media

FUJAIRAH MEDIA PROJECTS

EVENTS AND TOURISMOne of the group’s companies Fujairah Events and En-tertainment is constructing the Arabian Cinema drive-in concept in Fujairah plus two additional MENA sites. The company is also developing a sound and light show in the mountains to serve as a tourist attraction. The events company is also running Ramadan activities in Fujairah.

NEW TV AND RADIO LAUNCHESA number of new TV and radio channels are on the table for the group that could double the groups output.

FILM COMMISSIONThe company will take a leading role in the emirate’s push to attract productions from the Gulf and inter-nationally. The commission will also be responsible for

ensuring adequate infrastructure is in place for those that come to the region including the development of a 3000 sq/m studio.

FREEZONE EXPANSIONCreative City will be expanded to offer business park facilities. New industry sectors could also be catered for.

AFRICAN MEDIA DEVELOPMENTThe company has already enjoyed some success on the continent and is now looking to expand it operations serving African markets.

NEW MEDIAThe fi rm’s new media division is in active negotiations with the TRA regarding several initiatives to discuss how it can add these services to its package.

033JULY 2010

MOBILE TV

A complicated business model and an

even more complex technical back-

drop have made mobile TV a diffi cult

format for telcos and broadcasters

alike. In the Middle East, there have been only a

handful of roll-outs with limited success. Outside

the region, the situation is not much diff erent.

Europe embraced mobile TV very early with

most opting for the DVB-H broadcast standard.

Results were mixed.

“Th ere are only a few services on air based on

DVB-H or DAB/DMB, but a lot of countries are

still waiting for the analogue switch-off to make

new spectrum available,” says Stefan Wallner,

strategic TV market development manager for

transmitters at Harris.

Wallner was involved in early trials of the tech-

nology in the UK, Switzerland and Australia.

“With DVB-H, a separate transmission network

is called for, factoring in an additional expense to

the business model,” explains Wallner.

Th e emergence of the new terrestrial standard

in Europe, DVB-T2, will allow broadcasters to use

the same network for regular and mobile services,

dramatically reducing the costs incurred during

the implementation stage.

Th e DVB organisation is also renewing its ef-

forts on the mobile front with the formation of the

DVB-NGH (next generation handheld) working

group. Wallner says this could lead to renewed

fl exibility and new opportunities to make mobile

TV more fl exible.

Th e high cost of network roll-out led many

services to pursue a subscription based model.

When coupled with premium football content, a

decent subscriber base was built in Italy with the

operator claiming that its ARPU increased by 20

percent as a direct result of the service.

“DVB-H has only been successful in very few

cases, such as in Italy with H3G. H3G has a

signifi cant customer base of around 1 million

users – around 15 percent of its subscribers,” says

Hadi Raad, principal, Booz & Co. “H3G, also has a

successful roll-out of DVB-H in Austria with one

million subscribers, about 10 percent of its cus-

tomer base. In the Middle East, Mobison launched

a DVB-H service in Iraq back in 2009 with limited

adoption in the region of 10,000 subscribers. Th e

DVB-H consortium in the UAE, which inludes

telcos, broadcasters and tech fi rms, is still in a

trial phase.”

Th ere is evidence however, that a free-to-air

(FTA) model for mobile TV Europe would fare bet-

ter (see boxout).

Overall subscriptions struggled and several op-

erators in Europe opted to switch off their mobile

broadcast services and off er video content via the

3G networks instead. Th is of course results in a

huge data strain in the network.

A diff erent approach in the US has allowed ser-

vices to gain a little more traction, albeit in a fairly

understated way.

Th e main diff erence in the two approaches –

aside from the disparate broadcast standards – is

the content approach.

“Here in the US the user wants localised con-

tent, news sports and weather,” says Jay Adrick,VP

of broadcast technology, Harris.

Mobile TV has taken two contrasting paths in Europe and the US interms of technology and business models. But what is the correct routefor the Middle East with a platform full of dead ends?

ROADMAP TO MOBILE


To address network concerns (there are at least

six digital TV standards active in the US) the com-

pany has developed transmission hardware with

standards software-defi ned. Adrick says Harris is

now developing waveforms to suit all of the mobile

standards. Th is also allows for upgrades to equip-

ment, expanding its lifespan.

Th is also reduces the cost for broadcasters but

Adrick says that there is still work for the content

owners to do to ensure a healthy ROI.

“It’s crucial to be able to monetise mobile TV

through multiple revenue streams, not just a

monthly charge for the service. It’s important to

be able to measure your audience and provide

feedback to advertisers,” says Adrick.

Th e platform could also serve as an information

portal. Harris is working with software developer

Roundbox to develop applications such as traffi c

reporting. Roundbox also develops a number of

widgets, TV guides and weather bulletins.

Th e Middle East is lacking the terrestrial TV

network infrastructure to fully (and cost eff ective-

ly) deliver mobile broadcast services via DVB-T2.

Th e MENA region is however well served by cel-

lular communication networks with 3G and even

4G networks fairly well-established.

Long Term Evolution (LTE) technology has

been touted by some as the most likely means to

serve video content (streamed or on-demand) to

customers in the region. Th e mobile broadband

standard can reportedly off er speeds of up to

100Mb/s. Th ese networks are still a few years away

from being commercially accessible in the region

and are by no means an ideal solution.

MOBILE TV

“A mass adoption of mobile TV over LTE net-

works will create a large burden on the network,”

says Hilal Halaoui, principal at Booz & Co. “An

individual mobile TV user will experience a better

quality of service over LTE, but serving the mass

market with mobile TV over this type of network

will require a large investment.”

Halaoui suggests that the ideal network for the

Middle East would be a hybrid broadcast model.

Halaoui says that a standard such as DVB-H in

conjunction with satellite based SDMB technol-

ogy would best serve the region. But the success of

the network is not technology dependant alone.

“Th ere needs to be strong content distributed

through tailored and rich channels. Practically,

subscribers to such a mobile TV service, would

like to benefi t from roaming capabilities, where

they can view their favourite channels even when

they are abroad. Another issue is the handset

technology which would preferably be the same

device customers use for making mobile calls.

Such a service would also need to be aff ordable,

and within the reach of key segments, especially

young people. Th ese are the main ingredients for a

successful mobile TV service in the Middle East.”

Much has been said of the telcos’ assumed role

in establishing the networks, but Halaoui rightly

points out that the incentive for broadcasters to

increase their role in adoption of the service is far

from compelling at present.

“Broadcasters do not yet see the volumes that

they do through the traditional screen – in terms

of the amount of subscribers or the number of

eyeballs for advertising. Th e overall ecosystem for

An individual mobile TV user will experience a better quality of service

over LTE, but serving the mass market with

mobile TV over this type of network will require

a large investment.

HILAL HALAOUI

Principal, Booz & Co.

FTA MOBILE TV COULD END THE STALEMATE: SURVEY

A survey by semiconductor fi rm Telegent Systems uncovered a healthy appetite for FTA mobile TV content in the UK.Fifty-eight percent of respondents identifi ed one or more environments in which they would be likely to view FTA mobile video content, with on the train/bus, while queuing and while at work proving popular answers. This fi gure leaps to 80 percent when you focus on the 18-24 age group and 76 percent amongst 25-34 year olds.

“The availability of mobile TV in the Europe-an market contrasts sharply with ‘developing’ markets such as Africa, Asia and Latin America where it is proving extremely popular,” says Samuel Sheng, president and CEO, Telegent.

“To date European operators and consumers have been understandably held back by regulatory and standards confusion, unproven technologies and the costs associated with building and operating mobile specifi c TV platforms. All of these issues can be avoided by using the existing broadcast TV infrastructure and building the receiver technology into the handset.

“Major events like the World Cup are now focus-sing the spotlight on mobile TV around the world,” continues Sheng. “It’s an event that you want to see live, wherever you are, but once the last ball has been kicked, it’s likely that more people in Lagos than London will have access to live mobile TV. By the time the Olympics come round in 2012 that situation ought to be reversed.”


MOBILE TV

Despite DVB-H take-up being sluggish at best in Europe so far, the majority of commentators agree that some form of broadcast standard is needed to complement a 3G (or LTE) based two-way service.

The future of broadcast technologies such as DVB-H is questionable. It’s already too late for DVB-H to succeed in many markets. It could have been successful, few years ago, before operators started their investments in 3G and LTE.

HADI RAAD

Principal, Booz & Co.

mobile TV is still in its infancy, limited availability

of handsets; underdeveloped market productions

tailored to small screens; and diffi culties in mobile

advertising business models, and this is creating

caution among broadcasters and mobile opera-

tors, alike,” adds Halaoui.

“At present the mobile distribution channel

for broadcasters does not represent a substantial

revenue source. Th e complexity lies in many areas,

and it is mostly inherent in a business model,

where a partnership is needed between broadcast-

ers and mobile operators. For mobile operators,

the partnership model with broadcasters is still a

nascent one.”

Th e broadcasters and telcos still have time to

create viable business models as network infra-

structure is developed. But what is the correct

choice for the region and can DVB-H really succeed

in the region after its patchy record elsewhere?

“Th e main driver for operators to roll-out

DVB-H is the lower cost-per bit in high-traffi c

video applications. Th e network is more profi table

if it is utilised for voice applications. Th is would

suggest that operators would be better off using

their telecoms network for the delivery of voice

and data services, and another with a lower cost

per bit, for the delivery of video and other broad-

cast services, such as DVB-H,” says Raad.

“However, due to the need for specifi c DVB-H

compatible devices – of which there are few –

DVB-H faces signifi cant challenges from stream-

ing mobile TV services, that run on 3G or LTE. Th e

future of broadcast technologies such as DVB-H

is questionable. It’s already too late for DVB-H

to succeed in many markets. It could have been

successful, few years ago, before operators started

their investments in 3G and LTE.”

Raad can envisage one scenario that could re-

vive DVB-H as one component of a broader mobile

video strategy.

“If devices such as DVB tuners that could inte-

grate with existing handsets become widespread

then there could be some growth. Th e business

model could simulate then that of the hybrid STB

in the fi xed business, where users use their satel-

lite dish for FTA content and their two-way IPTV

connection for premium pay content, with DVB-H

playing the role of satellite and the mobile internet

acting as the two-way connection.”

Regardless of the eventual technology used to

deliver mobile content to the masses, the broad-

casters and the rights owners maintain a constant

advantage – the domination of the content itself.

Th is is something the telcos are well aware of.

“To secure their own position, [telecoms]

operators will need to leverage their key assets:

their customer relationships, customer analytics,

investment capabilities, and infrastructure,” says

Raad. “Th e mounting business generated by appli-

cations is more than just another growth oppor-

tunity. It is an imperative, a necessary component

of the future of the business, in which operators

must actively participate in order to thrive and

not just become utility-like pipe operators.”


TECHNOLOGY

TESTINGTESTINGTIMESTIMES

Solid test and measurement infrastructure is essential to keep advertisers and audiences happy.

Getting the right balance between thorough safeguards and costly overkill is just one

challenge broadcasters face in an environment of emerging formats

and rising expectation.


TECHNOLOGY

T he downturn may have helped produce

larger TV audiences and longer total daily

viewing hours, but for broadcasters, the

value of each individual subscriber (or in

the case of FTA channels every eyeball) is higher

than ever.

In the current climate, customer retention is vital

to ensure that ground gained, can be held.

“Poor video service impacts viewership signifi -

cantly and therefore can be very damaging to a TV

operator and its business,” says Ralph Bachofen, VP

of sales and head of marketing, Triveni Digital

“Viewers needn’t be particularly discerning to

notice issues with digital TV signals. Common is-

sues that are particularly visible to subscribers are

video tiling, lip sync errors, missing audio channels,

intermittent tuning, and missing components. As

most TV operators have probably discovered, view-

ers very rarely tolerate interruption or degradation

in the quality of picture or audio,” claims Bachofen.

“For the TV operator, the key to keeping the

viewer – whether discerning or not – satisfi ed is

to analyse not only video, but also audio, data, and

metadata, examining the MPEG transport layer

continuously and comprehensively,” he says.

So with plenty of errors still to spot with digital

transmissions, are viewers now more aware of

these problems and more likely to act on them than

they were in the days of analogue?

“Audiences today are much more savvy. Th ey

have seen how good digital television can be and

they become vocal when it does not meet their

expectations,” says Steve Nunney, managing direc-

tor, Hamlet.

“Th e broadcaster’s unique selling point, is qual-

ity, with reliable high resolution and freedom from

dropouts and stutters. Why would you want to risk

that unique high ground?” he asks.

Viewers may be aware of problems and naturally

become frustrated by them, but changing chan-

nel and cancelling subscriptions are quite drastic

measures. Each viewer must have a threshold for

quality of service that if not satisfi ed, triggers a

response. What aff ect does this have on a broad-

casters reputation?

“A pretty catastrophic one. Customers have a

high threshold before they do anything about a

problem but if issues remain consistent for months,

they will suddenly start experiencing a lot of

churn,” says Simen Frostad, president, Bridge Tech-

nologies. “Th en the more catastrophic loss is when

you lose the signal for hours, which is a terrifying

prospect. Both scenarios can be pretty disastrous

from a commercial point of view, especially if the

slow trickling kind of problem where you have a

consistently bad signal – artefacts every ten min-

utes for instance – slowly this will take its toll and

audiences will turn elsewhere.”

Keeping audiences happy is only one part of the

incentive for maintaining a high quality of service

with advertisers also keen to ensure their wares are

presented in all their glory.

“Without audiences and advertisers, you do not

have a business,” says Hamlet’s Nunney.

Audiences have a huge choice of channels, and

a huge choice of sources of entertainment and

information and advertisers want their products to

look good.

“Th ey take enormous care to make their com-

mercials striking and the packshot colourimetry

to be precise. Th ey will be reluctant to pay to put

their commercials on a channel tat does not refl ect

that care. If they do book commercials and are not

happy with the way they are transmitted, they will

not pay,” claims Nunney.

“Th e message is clear: if you attract an audience

then you will interest advertisers; if you look after

those advertisers, you will keep them booking slots;

if you take advertising revenue, you will have a prof-

itable business. Th at is why quality matters.”

Th eoretically, the best possible achievable quality

in digital TV should be perfection, but is this an

achievable goal for broadcasters or a technical and

commercial implausibility?

“Technically, perfection probably is achievable in

a digital TV network and can be ensured through

the proper use and placement of intelligent moni-

toring devices,” says Triveni’s Bachofen. “However,

it simply is not feasible to deploy monitoring

devices everywhere in a network. Hence, TV opera-

tors can strive instead to achieve a cost-eff ective

balance that leverages both tactical analysis and

strategic monitoring.”

Th is a sentiment echoed by Nunney.

“First, we have to consider what perfect means.

All digital television is, by its very nature, a com-

promise, fi rst in the sampling rate at the time of

capture, then in the degree of compression that is

imposed to make it practical to transmit.

“A lot of very clever and experienced minds have

gone into developing those compression algorithms

to ensure that they are as close to perfection as it

is possible to be, so that the viewer sees and hears

excellent quality. It is then up to the broadcaster

to make the most of the technology available to

achieve that ‘perfection’,” says Nunney.

The CA operator is always the fi rst person to say ‘no it’s not the CA’ and it is then up to the broadcaster to try to prove it. So again the philosophy is to have a particular level of monitoring and analytics capabilities at all kinds of production points where you transform the signal one way or another.

SIMEN FROSTAD

President, Bridge Technologies


TECHNOLOGY

“It means accurate testing of signals at every

point where they might get distorted: on the shoot,

during post production, as graphics are added, and

so on. Ensuring that sound and vision consistently

fi lls the available dynamic range and gamut, can

only be achieved through excellent attention to

quality control.”

Frostad believes in the deep monitoring either

side of a conditional access system too.

“Th e CA operator is always the fi rst person to say

“no it’s not the CA” and it is then up to the broad-

caster to try to prove it. So again the philosophy

is to have a particular level of monitoring and

analytics capabilities at all kinds of production

points where you transform the signal one way or

another,” explains Frostad.

So while perfection may be an attainable goal,

it is one that is beyond the call of duty for broad-

casters that can reach acceptable quality goals by

deploying their monitoring systems intelligently

rather than copiously.

“You don’t need tonnes of equipment you just it

all to be in the correct places in the network,” says

Frostad. “Broadcasters need to have valid monitor-

ing on all the key points on the network. Th e mar-

ket is starting to reach maturity and the operators

that know what they are doing will have adequate

equipment in their network. Th ey already know

they need to maintain a decent service.”

Frostad believes that as a minimum, monitoring

must be deployed at all the handover points on a

network, such as either side of a leased fi bre optic

line to avoid any “fi nger pointing”. Accountability

is a secondary benefi t of an adequate monitoring

environment allowing the point of failure – and the

responsible party – to be readily identifi ed.

Having adapted to the digital television environ-

ment and the increased scrutiny of the HD world,

test and measurement equipment manufacturers

are now having to develop the tools necessary for

3D broadcasting as well.

“We’re interested in 3D monitoring. Th ough it

does require some added signalling, 3D is con-

tained within the MPEG stream just as any other

video signal would be, and 3D content is subject to

the same rules as 2D content,” says Bachofen. “Th e

basic timing and buff er models, for example, are

the same for 2D and 3D broadcasts. At the video

level, further syntax – the nature of which depends

upon the system being used – enables the actual 3D

viewing experience. Triveni Digital monitoring and

analysis systems can be employed both for conven-

tional broadcasts and for new 3D services.”

Hamlet’s Nunney believes much of the work in

broadcasting acceptable 3D content must be done

during the production itself.

“Th e message we are getting loud and clear from

everyone who is doing stereo 3D, is that it is vital

to get as much right as possible on the shoot,” says

Nunney. “Fixing things in post is really not a practi-

cal proposition – the costs are too large. You must

get the basics – black level, gain for example – right

on location, and they have to be perfectly matched

between the two cameras in a pair. Th at means you

need a tool like the Hamlet VidScope 3D, that lets

you measure these parameters independently but

also compare them directly, so you can quickly but

very accurately ensure the perfect match.”

Audiences today are much more savvy.

They have seen how good digital television

can be and they become vocal when it

does not meet their expectations.

STEVE NUNNEY

Managing director, Hamlet

The Boomtown Productions 3D camera rig used to fi lm the promotional fi lm for the Dubai Metro. Getting 3D right on location is crucial to ensure good results with T&M tools an essential part of that process.

THE MOSTCOMPREHENSIVE

FAMILY OFDIGITAL TV

MONITORING,MEASUREMENTAND ANALYSIS

PRODUCTSIN THE WORLD

www.bridgetech.tv


DATA

T he pay TV market is set to continue

growing during the next three years.

Th e distribution of revenues geographi-

cally and by platform look set to shift

however, according to two recent studies.

A report by research fi rm In-Stat found that

Asia currently dominates the global pay TV

industry with more than half of all subscribers.

China alone has more than a quarter of all pay TV

subscribers globally with a 26.3 percent share.

North America has 15.3 percent and Europe

15.6 with the fi nal 20.5 percent distributed

through out all other markets.

Th e study also found that the pay TV sector will

continue to enjoy strong growth with IPTV take-

up accelerating slightly faster than that of cable

and satellite platforms.

“By 2012, there will be nearly 750 million pay

TV subscribers worldwide,” said Norm Bogen,

analyst, In-Stat. “Asia will continue to represent

over half of all subscribers through to 2014. By this

time the total number of subscribers is expected

to reach 855 million.”

According to a study by Infonetics Research

this growth will mean that the global video

services market will be worth $250 billion across

satellite, cable and IPTV platforms by 2014.

Geographical shifts, together with changes in platform popularity, will transform the pay TV marketGROWING PAINSDATA SOURCE: In-Stat/Infonetics Research

“Increased competition among video service

operators will help keep monthly subscription

fees in check, which will off set some of the growth

expected from incremental revenue via video on

demand, digital video recording, and ‘start-over’

services,” said Jeff Heynen, directing analyst for

broadband and IPTV at Infonetics Research.

“However, the biggest threat to revenue growth

is the continued rise of online (over-the-top)

viewing, where users can simply eliminate their

monthly TV subscription in favour of streamed

programming delivered over the Internet via

sites like Hulu and YouTube, and aggregating by

services such as Boxee.”

Th e research also found the average revenue

per user (ARPU) for telco operated IPTV services

was lower in almost all regions, when compared

to that of cable and satellite providers.

Despite this, Infonetics confi rms the fi ndings

of the In-Stat report stating that IPTV will enjoy

a healthy period of growth in the coming years,

helping to bolster the revenues for the telcos as

fi xed-line service incomes continue to dwindle.

Revenues will grow at a slightly higher rate than

subscriber numbers as additional value-added

services such as VOD, 3D and HD content begin to

drive additional earnings for operators.

750 millionNumber of pay TV subscribers worldwide by 2012.

855 millionNumber of pay TV subscribers worldwide by 2014.

$250 billionValue of the pay TV industryby 2014.

SOURCE: In-Stat, Infonetics Research

China: 26.3 %

Rest of World: 20.5 %

Western Europe: 15.6 %

North America: 15.3 %

Rest of Asia/Pacifi c: 22.3 %

DISTRIBUTION OF PAY TV SUBSCRIBERS IPTV USERS AND REVENUES

REVE

NUE I

N US

$ BILL

IONS

SUBS

CRIB

ERS I

N M

ILLIO

NS

260

130

700

350

2009 2014

REVENUE

SUBSCRIBERS

Need to manage

and deliver your

media?

www.globecast.comwww.netia.com

Meet GlobeCast and NETIA at IBC 2010. Location: Stand 1.A29

We’ve got it

covered

GlobeCast and NETIA have joined forces to provide you with Media Asset Management and worldwide delivery of your broadcast.

digital_broadcast 2010.ai 17/06/2010 10:26:30

digital broadcast me - july 2010

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