Pay TV Booms in Middle East as Revenue Crosses Billion Euro Mark, IHS Says
May 22 2016 - 12:01AM
Business Wire
Demand and market consolidation to fuel €2 billion in revenue by
2020; Iran’s 14 million TV households present new opportunities for
regional TV players
2015 was the year of growth for the pay TV market in the Middle
East and North Africa region, according to a new report from IHS
Inc. (NYSE: IHS), the leading global source of critical information
and insight.
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The report, entitled Middle East and North Africa Pay TV Market
Monitor, says the number of pay TV households jumped 10 percent in
2015 to 4.95 million. In the 13 countries covered by the annual
report, revenues from pay TV passed the billion-euro mark for the
first time.
Revenues from primary households’ subscriptions grew 37 percent,
from €852 million in 2014 to €1.17 billion in 2015, the report
noted. “Pay TV in the Middle East and North Africa region is
growing rapidly and faster than any other region we analyse,” said
Constantinos Papavassilopoulos, senior analyst, IHS Technology.
IHS forecasts that pay TV subscribers will increase to 6.54
million by the end of 2020, up 32 percent on the end of 2015 and
representing a CAGR of 6 percent over the five-year period.
IHS expects that the positive drive of the pay TV market will
continue persistently for the next five years, with revenues almost
doubling to just over €2 billion in that time frame. The growth
will be due to the enhanced level of competition between the major
operators, the introduction of TV Audience Ratings Systems in the
Gulf States, the expansion of fibre networks, which facilitate the
offering of premium pay TV services and the growth of the SVoD OTT
services.
Huge opportunities for investors
The opening of the Iranian TV market, a largely untapped market
for pay TV business, is providing a wealth of opportunities for the
regional operators. According to local data sources, 71 percent of
TV household in Tehran are equipped with a satellite dish. But
there are still barriers to be surpassed.
“The online-video market is very nascent,” Papavassilopoulos
said. “IHS put broadband penetration at 56 percent of households at
the end 2015. However, due to the Iranian government policy of
regulating access to the Internet for its citizens, broadband
speeds are lower than in neighboring Arab states. Content will also
have to be carefully chosen to appeal to the Iranian audience.
Simply repurposing content that was made for wider Arabic audiences
will not work for Iran.”
There is optimism both inside Iran and internationally that the
lifting of sanctions will put added pressure on the government to
relieve some of these restrictions, according to the IHS report.
IHS forecasts that TV advertising revenues can grow from $275
million in 2015 to $627 million in 2020 if the normalization of
trade between Iran and the rest of the world continues. “The TV
market would benefit hugely,” Papavassilopoulos said. “Our forecast
figures would represent a healthy CAGR of 18 percent.”
Report Methodology:
All forecasts in IHS Technology – MENA Media & Telecoms
Intelligence Service are conductedin-house based on historical and
current data gathered first-hand directly from the companies
concerned, and from trade bodies, regulatory authorities or
government departments with which IHS Technology maintains a
relationship. IHS does not rely on third-party sources for its
reports. This approach provides a sound basis on which to develop
IHS models, all of which are built company-by-company and
technology-by-technology. Totals are then derived from the
component parts and are thus wholly granular.
Countries included in the study are: Algeria, Bahrain, Egypt,
Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia,
Tunisia and the UAE.
To request a copy of the report, contact: press@ihs.com
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and
expertise in critical areas that shape today’s business landscape.
Businesses and governments in more than 140 countries around the
globe rely on the comprehensive content, expert independent
analysis and flexible delivery methods of IHS to make high-impact
decisions and develop strategies with speed and confidence. IHS has
been in business since 1959 and became a publicly traded company on
the New York Stock Exchange in 2005. Headquartered in Englewood,
Colorado, USA, IHS is committed to sustainable, profitable growth
and employs nearly 9,000 people in 33 countries around the
world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2016
IHS Inc. All rights reserved.
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IHS Inc.Amanda Russo, +44 208 276
4727Amanda.Russo@ihs.comorPress Team+1
303-305-8021press@ihs.comTwitter: @IHS_news
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