Middle East FTA TV market set for shake-up

Chahine expects further contraction in the Middle East FTA TV market.

The ongoing economic meltdown will force widespread consolidation in the Middle East free-to-air television market, a leading industry analyst has told DPme.com.

Gabriel Chahine, partner with media analyst Booz & Co. confided that a number of major players were holding serious talks about possible mergers although he refused to divulge names.

“In the next 12 months, I expect to see a number of mergers among major TV broadcasters operating in the GCC,” he claimed.

“Smaller thematic channels, however, will not be able to sustain themselves and many will close down.”

Historically, the major players have resisted consolidation, with one notable exception. LBC and Rotana unified last year with Saudi media mogul, Prince Alwaleed bin Talal Alsau, holding a major stake in LBCSAT.

Chahine’s statements come in the wake of a report published by Booz & Co., which claimed MBC Network enjoys approximately 43% of the pan-Arab viewership, with Saudi TV and LBC-Rotana TV following behind with 11% respectively.

Al Jazeera snared 5% of regional viewing figures while Dubai Media Inc. has 3% and Abu Dhabi TV only 2%. The other FTA channels compete for the remaining 25% share of the market.

The report also lists several channels that ceased operations in the last five years, with the majority being based in Egypt and the UAE.

Notable closures included Al Madina TV, Al Hadaf TV, Fun Satellite and Venus TV from Egypt; Al Hekayat, Al Shashah, M Live and Kumouz from the UAE, Shaharzad from Lebanon and Maktoob TV in Jordan. 

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