The advent of digital technologies is providing a wealth of opportunities in consumer choice and this will drive innovation in technology, such as high-definition and 3D, as well as expansion into wired and wireless devices. "With satellite so dominant in the region, there has been limited cable and IPTV [Internet Protocol Television] activity, although IPTV is growing fairly quickly, albeit from a very low base. Despite some signs of progress, broadband penetration in the region remains low," Haddi Raad, principal analyst at Booz and Co, said on the sidelines of the IP&TV Forum Middle East and North Africa 2011.
According to Informa Telecoms and Media's new research, IPTV subscriber numbers are predicted to undergo an almost tenfold increase to 1.6 million by 2014, giving a 2.1 penetration rate. In terms of Pay TV markets, overall the regional total is predicted to increase to 11 million pay TV homes by 2014. This gives a 15 per cent pay TV penetration rate. According to Dr Raad Khusheim, CEO of Selevision, there will be 14.7 billion Pay TV subscribers and 16.4 billion over-the-top (OTT) subscribers in the next five years.
He said content and quality is king, and operators need to team up with media to provide customers high value as piracy is still the number one issue for Pay TV platforms. Raad said that Pay TV needs to differentiate itself through premium content and interactive services. The IPTV share of Pay TV is still nascent in the region with an average of around 3-4 per cent.
An advantage that potential IPTV operators in the Middle East and North Africa have over their Western counterparts is the opportunity to build the most up-to-date and effective networks, the common language and tradition for much of the region and a culture that encourages high rates of TV consumption. There were 79.9 million TV households in the Mena region last year.
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