To: DiViT who wrote (26869 ) 12/18/1997 5:04:00 PM From: John Rieman Respond to of 50808
INTERNATIONAL UPDATE............................ijumpstart.com The programming opportunities in the Middle East seem to be on an inexorable rise as competing cable and satellite platforms struggle to out-do each other - even though the market prospects for pay-TV are far from certain. Chris Forrester reports Middle East platforms slug it out Middle East broadcasting headlines for the past three years have concentrated on one or other digital platforms, as Orbit, Star TV, Showtime and 1st Net slug it out to make a living. Each has been responsible for endless local column-inches in a series of stories that have seen more twists and turns than a daily soap. Indeed, some might argue, the story would make a good topic for a soap. Consider the facts: Orbit launched its digital bouquet from Rome in 1994 targeting the Middle East, initially requiring the purchase of a $10,000 receiver. First subscriptions collected in 1996, and now undisputed market-leader, helped by a dedicated Disney Channel and investment from Disney and Warner in Orbit's 'Super Movies' channel. Rumoured to have spent $1 billion on the venture. Future TV, a free-to-air satellite 'super-station' transmitting from Beirut - and indirectly owned by Lebanon's prime minister Rafiq Hariri. 1st Net, established as a joint platform for Arabic and expatriate viewers. Arabic programming came from Arab Radio & Television, backed by billionaires Prince Alwaleed Bin Talal Bin Abdulaziz of the Saudi Royal family and Sheikh Saleh Kamel. English-language material came from Viacom-owned Showtime. The two outfits have been through more separations and reconciliations than a Hollywood starlet. Currently, 1st Net and Showtime is definitely not speaking and while both parties are coy about hard numbers, Showtime is undoubtedly closer to breakeven. Showtime, now standing alone, is backed by Viacom with programming and with cash from KIPCO, a diversified Kuwaiti group. They offer nine channels, mostly Viacom fare with MTV, Nickelodeon, VH-1 and the Movie Channel. Showtime is taking an aggressive line in showing uncut movies, a brave move in ultra-conservative Saudi Arabia. Star TV, having struggled to make any serious headway in the key Gulf region of Saudi Arabia, threw its lot in with Orbit, called itself Star Select and helped to shift Orbit boxes and gain extra incremental revenue from existing Orbit subscribers. Viewers now get a classic DirecTV/USSB offering - although Orbit/Star still supply only about 30 channels in all. Each of the four platforms is spending heavily, seemingly adding channels by the handful: Orbit will launch a second sports channel, Orbit Sport 2 in February. E! Entertainment TV, which already has output deals with Orbit, is known to be considering a dedicated block. Orbit will transmit Al Thalitha ("Three"), a general entertainment channel heavily targeted towards teenagers and young adults, in the first half of the year. It is understood that Orbit is negotiating with French-based AB Productions to take perhaps two or three channels from AB Sat, the French digital bouquet. Canal Horizons, the popular Canal Plus-backed movie channel for overseas markets, is also in negotiation to join the Orbit line-up. These channels would be particularly attractive to French-speaking Arabs in Tunisia and other North African countries. 1st Net has added a tele-novella and educational (El Mareff - Knowledge) channels, and is said to be planning others. 1st Net added MBC, a high-quality (but free-to-air) DTH channel transmitting from London. But some problems have occurred. One former member of the 1st Net bouquet, Lebanon's Future TV, quit the bouquet at the end of October, with CEO Ali Jaber saying: "In my view the Arab world is not yet prepared for encrypted television. I defy anyone to prove to me the contrary." Future is doing well with its 'super-station' format, lots of pretty girls and an unashamedly populist output from liberal Beirut. It's the same across town at Lebanese Broadcasting Company (LBC), which also transmits a free-to-air satellite super-station. CEO Pierre Daher takes the opposite view, and has stayed part of 1st Net with LBC Plus, which adds some exclusive programmes to the 1st Net pay-platform. "Pay television will never replace free television [in the Middle East]. But pay television will take its niche, it has worked all over the world, why should it not work here." Daher admits that the 'super-station' concept has worked well, more or less doubling his ad-revenue in a single year. As 1998 opens there are new challenges to face. Egypt will throw its hat into the ring with a half-dozen new thematic channels on a new NileSat satellite launching in the Spring. At about the same time a Saudi Arabian 'wireless cable' microwave system will go live, offering initially about 40 channels. The prospect for 1998 is for deep-pocketed Saudis and Kuwaitis battling it out with free-wheeling Lebanese super-stations offering up just what the public want. The new entrants (from Egypt and Saudi Arabia) are looking for a more modest return on the back of state-support and endorsement