HD channels in the MENA TV Market Constantinos Papavassilopoulos 1st meeting of the expert working group Euromed Audiovisual III Tunis 23 – 24.09.2013
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IHS Electronics & Media MENA Media and Telecoms Intelligence Service A description of the HD channels offer in the North Africa and the Levant The platforms that deliver HD content and the dominance of satellite Pay TV operators in MENA HD-enabled equipment in TV households The HD Channels: some characteristics
IHS Electronics & Media MENA Media and Telecoms Intelligence Service • • •
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IHS Electronics & Media provides a comprehensive Middle East and North Africa (MENA) Media and Telecoms Intelligence Analysis and Insight. The research service covers the free and pay television / advertising / broadband / mobile & fixed telecoms and TV technology markets. Offering access to data at the country, operator and technology level is complemented by topical reports covering such issues as HDTV channels in the region, OTT business models and fixed & mobile broadband dynamics. Providing constantly updated and comprehensive market data and forecasts as well as country profiles / operators multi-play intelligence, market monitors and operators profiles. The MENA M&T IS covers the following countries: Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and the UAE.
Rapid growth of a rich HD channels 'offer 140
HD channels’ offer in Europe and MENA Year
France Germany Italy
Spain
UK
MENA
120
2005 2006
0 7
2 5
0 5
0 1
0 12
0 0
100
2007 2008 2009 2010
13 25 38 49
5 6 20 36
6 9 15 16
2 6 15 21
14 30 36 55
1 1 2 20
80
2011
58
56
33
39
59
48
40
2012
101
81
53
52
67
82
2013*
114
91
54
59
74
126
France Germany Italy Spain UK
60
MENA
20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013*
Satellite the dominant platform, IPTV slightly catching-up, no HD on DTT yet 140 120
channels
100
80
Satellite only IPTV only
60
Common HD channels 40
20 0 Satellite (total)
IPTV (total)
Arabsat leads, new local player Yahsat gains ground 70
66
60
51
Channels carried
50 42
42
39
40
32
Total Exclusive
30 20 10 2
0
Arabsat
Eutelsat
0
Nilesat
Yahsat
IPTV operators offer wider choice as re-sellers of satellite packages 60
HD channels offered
50 40 30
HD channels 20 10
0 OSN
Al Jazeera
ADMC
Al Majd
du
Etisalat
STC
Qtel
My-HD
The IPTV operators in the Gulf are offering the largest number of HD channels but OSN is offering the package with the largest number (36) of HD channels
The high growth of HD TV Households will fuel further the rich HD content offer 90%
% of HD TV households
80% 70% 60%
50% 2012
40%
2017
30% 20% 10%
0% Algeria
Egypt
Jordan
Lebanon
Libya
Morocco
Tunisia
HD TV Households experiencing a 140% growth rate between 2012 and 2017 (CAGR 19.1%)
HD TV sets experiencing a 300% average growth between 2012 and 2017 25 000
HD TV sets in TV Households
20 000
2012
15 000
2013 2014 2015
10 000
2016 2017 5 000
0 Algeria
Egypt
Jordan
Lebanon
Libya
Morocco
Tunisia
The MENA HD TV Market is characterized by the high FTA offer The MENA HD channels: FTA vs PAY
46% 54%
The reasons behind the low monetization of HD channels
• A very high FTA offer • A considerable portion of HD channels is owned by PSB and other state-funded entities • Reluctance of people in the region to commit to a monthly payment method • Low penetration of HD MPEG-4 receivers • High cost of satellite capacity slots
HD MPEG-4 set-top boxes form a small minority in MENA countries bar the UAE Countries
2012
2013
2014
2015
2016
2017
Algeria
0.5%
0.5%
0.6%
1.0%
1.1%
1.2%
Egypt
0.7%
0.9%
1.1%
1.2%
1.3%
1.4%
Lebanon
1.8%
2.3%
2.9%
3.2%
3.4%
3.6%
Libya
2.4%
2.7%
3.5%
3.9%
4.1%
5.2%
Morocco
0.3%
0.4%
0.6%
0.9%
1.2%
1.3%
Tunisia
1.8%
2.3%
2.9%
3.2%
3.4%
3.6%
UAE
15.2%
21.8%
28.6%
31.1%
32.6%
33.0%
Saudi Arabia
0.3%
0.4%
0.6%
0.9%
1.2%
1.3%
Entertainment and Sports the dominant genres covering more than 55% of the total offer
Children's; 6 Religious; 3 Music; 7
Culture; 2
Education; 1 Movies ; 14
Lifestyle; 10
Documentary; 7
Entertainment; 43
News; 10
Sports; 29
Prevalence of entertainment & News as result of high number of PFB* Genre
Europe
MENA
Entertainment
17.75%
32.58%
Sports
22.68%
21.97%
Movies
16.62%
10.61%
News
2.11%
7.58%
Documentary
4.93%
5.30%
Lifestyle
5.63%
7.58%
Music
5.49%
5.30%
Religious
2.27%
Children’s
2.11%
4.55%
Cultural
1.27%
1.52%
Educational
0.85%
0.76%
*PFB: Public or State Funded Broadcasters
63% of HD channels are produced or co-produced locally Asian countries; 10 Russia 2 Western Europe 13
USA; 23
MENA countries; 84
Thank you Constantinos Papavassilopoulos Senior Analyst IHS Electronics & Media MENA Media and Telecoms Intelligence
[email protected]