New research from Informa Telecoms & Media shows that the MENA television market is starting to fulfil some of its long-held potential. According to the second edition of Informa’s Middle East and North Africa TV report at present, of the region’s 52.5 million TV homes, 29.5 million have a multichannel TV service – giving a 56.2% penetration rate. By 2010, that number will have reached 41 million, giving 67.7% penetration.
According to Adam Thomas, Informa’s media research manager, and author of the report: “There is a general trend in the Middle East towards market liberalisation, which is helping the broadcast sector. Added to this are several other positive factors, such as the common language for most of the region and its relative wealth, driven by oil revenues.”
In 2004, TV advertising revenues were worth $1.9 billion across the region and Middle East and North Africa TV (2nd edition) forecasts they will grow to $3 billion by 2010. According to Thomas: “Advertising revenues will show modest but consistent growth over the next few years. I’m expecting to see the launch of more private terrestrial channels, to add even more dynamism to the sector.”
While most multichannel homes watch free-to-air channels, by 2010 the regional total of pay TV homes is forecast to increase to 6.7 million. This gives an 11.1% pay TV penetration rate. Much of the growth will come from Israel and Turkey, who will account for 5.5 million pay homes between them at end-2010.
One of the factors inhibiting greater growth is the disparity, across much of the region, between the disposable income of a wealthy minority and the rest of the population. As a consequence pay TV operators can only sell to a relatively small proportion of wealthy locals, while also catering for a sizeable expatriate community.
Middle East & North Africa Television – 2nd Edition will be published by Informa Telecoms & Media in May 2005.
