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November 2016 Middle East & Africa 2016 pOFC DTVE MEA16.indd 1 21/10/2016 18:38
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MIDDLE EAST
& AFRICA
Digital TV Europe
November 2016 2014
Middle East & Africa 2016 > Contents
Going for growth MIDDLE EAST
& AFRICA
With pay TV subscriber growth levelling off in mature markets, or
even going into decline, the Middle East and Africa are more
2016
than ever seen as key growth regions for subscription services.
Published By:
While the Middle East continues to be dominated by free TV, there has
KNect365 TMT
been significant movement on the subscription side, with OSN losing some
ground to a beIN Media Group that is determined to dominate the space, Maple House
along with the launch of Netflix to stir a digital distribution space occupied by 149 Tottenham Court Road
players with a stronger local presence such as Starz and Icflix. London W1T 7AD
In Africa, meanwhile, pay TV groups continue to expand from a relatively modest base, while Tel: +44 (0) 20 7017 5000
new digital subscription VOD offerings have also appeared. Local content creation, centred in Fax: +44 (0) 20 7017 4953
Nigeria, continues to grow. Website: www.digitaltveurope.net
Digital TV Europe’s Middle East & Africa 2016 looks at these developments in detail. We assess
the changes in free and pay TV penetration across the region and look at how beIN Media and
OSN are competing for Middle East pay TV customers, while MBC continues to dominate the Editor Stuart Thomson
free-to-air space. Tel: +44 (0) 20 7017 5314
In Africa, meanwhile, we assess the prospects for key SVOD players ShowMax, iROKOtv and Email: stuart.thomson@knect365.com
Trace Play across a region where connectivity challenges and bandwidth costs pose formidable
barriers to growth. We also look at the growth of local content and assess the approach of mil-
Deputy Editor Andy McDonald
lennial-focused channel EbonyLife TV. l
Tel: +44 (0) 20 7017 5293
Email: andrew.mcdonald@knect365.com
Stuart Thomson, Editor
stuart.thomson@informa.com
Contributing Editor
Stewart Clarke
Contents Contributor
Rebecca Hawkes
The Middle East: the big picture 2
Sales Director Patricia Arescy
Satellite still rules in the Middle East, though IPTV is making inroads.
Tel: +44 (0) 20 7017 5320
Email: patricia.arescy@knect365.com
Shifting sands 6
While MBC continues to dominate free TV in the Middle East, moves by beIN Media and the Art Director Matthew Humberstone
development of digital platforms could change the balance in pay TV. Rebecca Hawkes reports.
Printing Wyndeham Grange, West Sussex
Africa: the big picture 14
Sub-Saharan Africa is seeing strong growth in TV households, and growth in pay TV.
To subscribe to this magazine or our
daily email newsletter please visit
Africa on-demand 17 digitaltveurope.net/registerhere
Africa has seen the launch of a significant number of SVOD services over the last couple of
years. Stuart Thomson reports on recent activity.
A different side of Africa 20
© 2016 Informa UK Ltd
EbonyLife TV founder and television personality Mo Abudu discusses the importance of All rights reserved
Reproduction without permission is prohibited
portraying the young and vibrant face of Africa.
Visit us at www.digitaltveurope.net
1
p01 Ed Note MEA16v2st.indd 1 21/10/2016 19:03
Middle East & Africa 2016 > The Middle East and its growth prospects Digital TV Europe
November 2016
1,229,650
47,400
610,000
1,272,100 4,281,275
Syria
2,500 Lebanon 164,300
368,362 Iraq
1,042,325
1,300
342,289
Jordan
Ku
4,286,000
230,000
291,750
3,030,000
Saudi
Arabia
Middle East:
the big picture
Satellite-delivered free-to-air TV remains the dominant form of distribution in the
Middle East, but fixed broadband networks are developing. Competition in pay TV is
also having an impact on the overall picture.
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2
p02-03 ME Map MEA16v2st.indd 38 21/10/2016 18:57
Digital TV Europe Middle East & Africa 2016 > The Middle East and its growth prospects
November 2016
1,000,000
210,000
6,987,286
Iran
339,000
161,900
Kuwait 5,000
5,
178,645
5,000
5 000
00
6,425
216,455 3,400
Bahrain
ah
hrai
hrain
rain
ai 500,000
102,500
Qatar 506,000
68,975
140,000 1,273,000
295,000 UAE
290,300
115,000
1,250
277,200
Oman
Cable
DTH
1,626,125 DTT
179,000 IPTV
Yemen
Broadband
Source: Ovum/WBIS
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3
p02-03 ME Map MEA16v2st.indd 39 21/10/2016 18:57
Middle East & Africa 2016 > The Middle East and its growth prospects Digital TV Europe
November 2016
Middle East: the big picture
Satellite still rules in the Middle East, though IPTV is making more inroads as internet
connectivity improves across this varied region.
Free satellite has long dominated
the TV scene in the Middle
East. However, pay TV services are making
Saudi-financed satellite channel operators,
currently operating outside the country, to set
up bases within Saudi Arabia.
regulatory backing for the broadband sector
means there is a positive environment for
IPTV – although it will be difficult for it to
up some ground and IPTV is also making In Kuwait less than half of TV households make a major impact against the established
some headway as broadband and fibre access pay for a TV service, although Ovum expects satellite market.
improves. This connectivity is also opening this to rise to almost three in five by the
up the market to over-the-top providers who end of 2020 – boosted by additional pay
are starting to provide services alongside DTH subscribers and potential competition Broadband growth
established incumbent operators. from IPTV. As of this year, satellite reigned
Unlike many other countries in the Middle supreme with 339,000 DTH subscribers. Despite this, incumbent telco Batelco now
East and North Africa (MENA) region, the This is more than twice the number of offers three IPTV packages in areas where
UAE has been able to establish a strong broadband subscribers, which numbered it has rolled out FTTH and its Blackbox
pay TV market – despite the competition 161,900. set-top box can also access OTT content.
from free-to-air alternatives. Broadband Terrestrial TV in Kuwait has a minor Nuetel also offers IPTV and triple play in the
penetration in the UAE stands at roughly presence, with the country having missed its Amwaj Islands, where it has a geographic
1.27 million households and IPTV is the June 2015 deadline for digital switchover, as monopoly, and plans to extend its service to
top television platform in the country with set by the ITU. the mainland.
an estimated subscriber base of 506,000. More than 700 satellite channels are One of the Middle East’s leading broadband
This is thanks to the success of operators available free-to-air in the region via the markets is Iran, with an estimated subscriber
like Etisalat and Du, which offer fibre-to-the- Arabsat, Nilesat, Noorsat, and Eutelsat base of almost seven million, compared with
home (FTTH) and bundle TV services with platforms and Ovum tips this number to about one million DTH and 210,000 homes.
their subscription offers. Ovum expects IPTV increase as new satellite companies gain Here, as in Bahrain, Lebanon, Qatar, Yemen
uptake to increase over the coming years momentum. and the UAE, the total number of broadband
before levelling off by 2021. In Oman, some 50% of TV households customers is greater comparatively than the
Following closely behind IPTV is DTH rely on free-to-air satellite for their primary country’s combined TV penetration.
satellite at 500,000 subscribers, with TV signal, a factor that limited pay digital Improving internet penetration is giving
pan-regional operators such as OSN and satellite penetration to just 11% by the end of an opportunity to over-the-top content
beIN Sports performing well in the UAE. 2015 according to Ovum research. As of Q2 providers such as Dubai-based SVOD service
Meanwhile, digital terrestrial television (DTT) 2016, the country had an estimated 290,300 Icflix and other regional players like Starz
trails at 102,500, according to Ovum figures. DTH users and 115,000 DTT homes. Play Arabia. Netflix also launched across the
Saudi Arabia is one of the most digitally Omantel launched IPTV services in Middle East as part of its global expansion
advanced countries in the region, following January after partnering with UAE-based in January. After an initial free trial of one
the switch-off of analogue TV during 2015. As telco Du. However, Ovum estimates that month, Netflix now provides three different
of Q2, Saudi broadband subscriber numbers IPTV subscription numbers stood at just pricing plans ranging from US$7.99 (e7.30)
stood at roughly 3.03 million. However, IPTV 1,250 as of Q2 of this year. As long as fixed- to US$11.99 per month. According to Ovum
penetration was just 292,000, compared to line broadband penetration remains low, the forecasts, Netflix will round out the year
4.29 million DTH users and 230,000 DTT research firm claims that the prospects for with a subscriber base of some 1.6 million
customers. IPTV in the coming years will be “limited”. subscribers across the Middle East – a figure
Ovum predicts that high levels of DTH That said, Omantel is expected to make some it predicts will climb gradually in the coming
viewing will be maintained in Saudi Arabia, progress with triple- and quadruple-play years to reach 3.7 million in 2021.
but predicted that free-DTH penetration services. Separate estimates by Digital TV Research
will decrease as users migrate to pay DTH. Bahrain’s DTH penetration stood at are less upbeat, claiming that the Middle
Arabsat has partnered with Emerging roughly 179,000 in Q2. Cable, DTT and IPTV East and Africa region as a whole will have
Markets Communications to form a joint each accounted for a relatively small number 19.59 million paying subscription video-on-
venture for providing triple-play services over of people, according to Ovum’s statistics. demand subscribers by 2021, with Netflix
satellite, while Saudi regulator the Audio- Bahrain’s broadband subscriber count comes accounting for just 17.2% of these with 3.37
Visual Media Commission has plans to assist to 216,500 and Ovum predicts that strong million subs. l
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4
p04 ME focus MEA16v2st.indd 14 21/10/2016 18:26
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Middle East & Africa 2016 > Focus on MENA Digital TV Europe
November 2016
Shifting sands
While MBC continues to dominate free TV in the Middle East, moves by beIN Media
and the development of digital platforms could change the balance in pay TV.
Rebecca Hawkes reports.
The past year has seen
the three big
purveyors of premium TV content in the Arab
sport to also encompass entertainment, US
video streaming giant Netflix has entered
the regional arena, and OSN has endured
between the end of 2015 and end of 2016,”
says Constantinos Papavassilopoulos,
technology analyst at IHS Markit. “This is
World remain unassailably dominant: free-to- an executive re-shuffle following a drop in logical to expect, given the churn rate between
air broadcaster MBC still commands huge subscriber numbers. OSN subscribers almost doubled from just
pan regional audiences and the lion’s share of After last year’s 10% rise in the number of 16% annually in 2013 to 30% in 2015.”
advertising revenue, while the multi-territory pay TV households in MENA (to 4.95 million) As a result, the consultancy expects the
pay TV space continues to be governed by and pay TV revenues surpassing the billion- total number of MENA pay TV households to
OSN and beIN Media. euro mark for the first time, the growth of cross the five million mark, “but only just”, at
Yet, below the surface there have been MENA pay TV households will, this year, lose the end of 2016.
some significant developments in the some of its pace, according to analysts IHS This is still a 2.5% rise overall on 2015, but
subscription sector in the Middle East and Markit. this represents, says IHS, the lowest growth
North Africa (MENA). Qatar-based beIN “Our estimations point to OSN losing rate in the region’s pay TV penetration base
Media has expanded its content offering from around 50,000 subscribers year-on-year since 2010.
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p06-08,10-11 Mid East Feature MEA16v4st.indd 6 21/10/2016 17:54
Digital TV Europe Middle East & Africa 2016 > Focus on MENA
November 2016
A localised version of Project Runway (left) Certainly the rivalry between OSN and beIN
is performing well for MBC. OSN Play (right) looks set to continue, with neither expected to
offers video-on-demand and live channel emerge as an out-and-out market leader over
streaming. the next five years.
By the end of 2016, Digital TV Research
estimates OSN will have around 1,153,000
beIN entertainment subscribers and beIN will have 823,000.
Simon Murray, principal analyst, Digital
The rise in pay TV households, albeit small, TV Research thinks that come 2021 the two
is attributed by IHS Markit to the extra operators “will be neck-and-neck”, each with
subscribers picked up by IPTV services 1.6 million subscribers.
provided by Ooredoo in Qatar and STC in Although OSN’s subscriber base seemed
Saudi Arabia, and by beIN Media – which to have fallen in the first quarter of 2016,
this year completed its acquisition of Turkish parent company KIPCO hasn’t provided
pay TV platform Digitürk and bought film an explanation. “We are assuming that
and TV studio Miramax. OSN’s regional rival this is some sort of readjustment and that
also expanded its portfolio to include movies, subscription numbers will increase from now
general entertainment, factual and children’s on,” says Murray.
HD content in November 2015. Between the two regional pay TV
“beIN was very strong in attracting a powerhouses, OSN and beIN account for
male audience with its premium sports between 65% and 66% of pay TV subscribers
content but it had reached a plateau with its and 70% of the subscription sector’s revenues,
subscriptions, which were in the region of according to IHS Markit. Along with free-to-
3.4 million or 3.5 million at the end of 2015,” air giant MBC, they have the financial muscle
says Papavassilopoulos. “By expanding into content – plus Turkish, South Asian and to retain control of the market’s premium
entertainment it is approaching another Filipino entertainment. content for the immediate future, the research
demographic to try and cement its position as “From cutting edge programming such group believes.
the dominant pay TV operator.” as Saturday Night Live Arabia, to same day
With OSN having already sewn up and time premieres [as the US/UK] of key
compelling content deals for years to come series such as Westworld and Divorce, and our Ready, steady, Netflix
with major Hollywood studios such as specialty channels such as OSN First HBO
Disney-ABC Studios, NBCUniversal, Warner HD, we are constantly pushing ourselves As part of its global expansion, Netflix
Bros, HBO, Paramount, Fox, Sony and MGM, to bring exclusive and nowhere else content arrived on the scene with a MENA service
beIN is playing catch-up – entertainment- to our viewers,” says Emad Morcos, chief in January 2016, but like other subscription
wise – and building its base. This year has content officer, OSN. video-on-demand (SVOD) services, has not
seen it targeting kids content, having added Acquisitions such as these differentiate yet made a huge impression on the region’s
Cartoon Network, Discovery Kids, CBeebies, OSN’s value proposition in the market, says entertainment sector.
and DreamWorks Animation, and created Morcos, adding: “We have also evolved our IHS Markit estimates Netflix’s MENA
the beJunior channel with German producer relationships with content providers and subscriber figures will be well below 200,000
Studio 100 Media. engage them in local content on our western at the end of 2016, while Digital TV Research
The strategy is of significance in a region channels. Most recently, we have localised E! suggests the region will provide Netflix with
where conservative family values are the norm, News and there will be more local content just 62,000 paid up subscribers by the end of
and where families often watch TV together coming on Food Network and Comedy the year.
– especially during the Muslim holy month Central HD.” Going forward, Netflix and other locally-
of Ramadan. Family-centric programming IHS Markit’s Papavassilopoulos concurs: based SVOD players such as Icflix, Istikana,
could well boost beIN’s penetration of the “OSN has valuable content, experience in Starz Play Arabia, OSN Go and beIN Connect
entertainment market, as could the addition providing entertainment and a reputation for are looking at significant growth – albeit from
of Turkish content from Digitürk – if, as cooperation.” He cites as regional examples its an estimated base of 500,000 at the end of
expected, beIN decides to utilise its new asset partnership with MBC in creating the MBC + 2016 (IHS Markit). However, this sector-wide
for MENA audiences. Drama channel; its active involvement in the figure is predicted to rise to 1,317,000 by 2021,
Arabic programming, however, seems regional anti-content piracy coalition; and its according to Digital TV Research.
conspicuously absent from beIN’s current tie-up with Abu Dhabi Media to exclusively A lack of Arabic content and issues with
entertainment package. OSN’s 26 Arabic carry its premium channels, adding that piracy may potentially be stunting the
channels, including its premium Ya Hala “beIN has instead gone it alone, and its entry immediate growth of Netflix. However,
brand are, in contrast, very valuable, in the market has sometimes created counter another reason SVOD as a sector is yet to take
particularly set alongside its premium US alliances”. MENA by storm is the inconsistent availability
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p06-08,10-11 Mid East Feature MEA16v4st.indd 7 21/10/2016 17:54
Middle East & Africa 2016 > Focus on MENA Digital TV Europe
November 2016
launch Starz Play has reduced subscription
“Netflix has actually been positive for us. charges to US$4.99 in the North African
countries of Egypt and Morocco, compared to
It has brought category recognition to the the US$7.99 consumers are required to pay
SVOD space in MENA.” in the wealthy Gulf States.
While Netflix focuses more on developing
its original content, its Dubai-based
Maaz Sheikh, Starz Play Arabia competitor has been acquiring Arabic
content. “It is too soon for co-productions,”
of fixed broadband and affordability of data if Middle East – which has a different content says Sheikh. Instead Starz Play Arabia has
the region is considered as a whole. While proposition to its US or UK service – our been dubbing its core Hollywood and western
Qatar and the UAE boast 85% penetration content is very strong, more compelling,” he content into both Arabic and French for the
of fibre to the home, elsewhere, in countries says. Maghreb countries. That, and integrating
such as Algeria, Egypt and Tunisia, online Certainly Netflix’s content proposition in the Starz Play service with carriers and IPTV
connectivity often presents obstacles for MENA is weaker than its offer in the US, as networks for local billing – “which is where
consumers. the first-to-air rights of significant titles such we currently have the advantage over Netflix,”
This, and the difficulty of billing a service as House of Cards are currently held by OSN claims Sheikh.
across multiple territories which have low in the region. So, in the first quarter of 2016, Meanwhile OSN, which has offered its own
recognition of credit cards, is why tie-ups with Netflix offered 611 TV series in the Arab world SVOD offer OSN Go since 2014, believes
established mobile and IPTV operators are compared to 5,379 in the US – with a uniform Netflix’ arrival has helped educate people in
crucial to the expansion of SVOD services in monthly subscription of between US$7.99 the region about over the top (OTT) video
MENA, says Maaz Sheikh, CEO of Starz Play (e7.30) and US$11.99 across the region. services too. The US streaming company
Arabia. Whether it will retain the ‘one size fits all’ has also, says OSN’s Emad Morcos, educated
“Our greatest challenge is that we operate pricing policy across such an economically people on “how to engage with content via
in 19 countries, and we have found that in diverse region remains to be seen. Since its OTT. At the same time, it is a competitor
order to grow and create a presence in all the
key markets we must integrate with multiple
operators,” he says. YouTube presents Arab TV classics
For example, in the UAE Starz Play’s
primary partner is Etisalat; in Qatar and In October, video streaming platform YouTube and Radio Union (ERTU) in Cairo to curate more
Tunisia it’s Ooredoo; in Saudi Arabia it’s unveiled a new digital hub called Mosalsalat, than 7,000 hours of Arabic series for the new
STC; in Morocco, Maroc Telecom; in Egypt, which brings together more than 500 iconic digital hub. Available ERTU series incldude
Vodafone. Brand recognition helps attract Arabic television series dating back to 1962.
customers, and joint marketing initiatives The idea behind Mosalsalat (which means
also pay dividends, says Sheikh. ‘series’ in Arabic) was, with the help of local Khair: Arabic users
With box-set attractions and Hollywood- broadcasters, to collate shows from across the have the right to access
heavy content, Starz Play Arabia claims Middle East and North Africa (MENA) to an premium content without
to have been adding between 30,000 and easily accessible digital library, where content paying for subscriptions
40,000 subscribers a month to its SVOD could be viewed on-demand on any connected or additional costs.
service since May or June 2016 – a growth device and without charge.
spurt that coincides with new partnership The YouTube hub includes series such as
deals with major telcos in Saudi Arabia, Egypt the 1982 historical comic anthology of folklore Layali El Helmeya and Damir Abla Hekmat.
and Morocco. tales Taraef Al Arab, and the critically acclaimed “With more than one billion users, YouTube is
The arrival of Netflix in the Middle East first season of Bab Al Hara from broadcaster Al a platform where anyone, anywhere can access
has added another dimension to proceedings. Watan TV Network in Syria. global and local entertainment. With launching
“We were dreading it, but it has actually Founder Bassel Khair, says: “At Watan Mosalsalat, we want users in the Middle East
been positive for us. It has brought category Network we believe that Arabic users have the and North Africa to watch the best of Arabic
recognition to the SVOD space in MENA,” right to access premium content without paying television anytime they want. These shows have
says Sheikh. for subscriptions or additional costs. That is why made millions over the past 50 years laugh,
“Plus, when Netflix launched the global we cooperated with YouTube to form the optimal cry, and rejoice. We are glad to have been able
service it had to treat the virtual private formula of success to launch Mosalsalat. We are to digitise a part of the region’s heritage,” says
network (VPN) menace. As it had to show proud of what we have done so far, which we Zain Masri, marketing manager, Google Middle
growth in international markets, it had to achieved through our outstanding cooperation East and North Africa.
shut down international servers, which meant with the YouTube Team in the region”. The project follows the 2015 launch of
local subscribers had to subscribe to local YouTube also worked with Egyptian Television YouTube’s Arabic film hub Aflam.
services. When we are compared to Netflix
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p06-08,10-11 Mid East Feature MEA16v4st.indd 8 21/10/2016 17:54Making Space Feel Closer. AMOS Satellites.
More Coverage. More Throughput. More Services.
Across the Middle East, Europe, Africa and Asia.
Spacecom’s AMOS satellite constellation, consisting of AMOS-2 and
AMOS-3 co-located at 4°W and AMOS-4 at 65°E, provides high-quality
broadcast and communications services across Europe, Africa, Asia and
the Middle East.
www.amos-spacecom.com
p09 Spacecom DTVE MEA16.indd 1 21/10/2016 17:18Middle East & Africa 2016 > Focus on MENA Digital TV Europe
November 2016
Westworld is available on OSN’s ‘home of
HBO’ channel OSN First HBO HD.
the group has to rely on ‘guesstimate’ figures
as most countries in the region lack reliable
TV audience measurement data, “initial
indications are that both shows are being well
received and audience size is comparable to
the launches of Arabs Got Talent and X Factor
Middle East,” he says.
Project Runway Middle East, which is
licensed by FremantleMedia and is a
partnership project with renowned Lebanese
fashion designer Elie Saab, showcases young
designers in the Middle East. It will reach its
finale – live in Dubai Design District – on
December 10. Meanwhile, a new season of
Arab Idol will take to the air in November, and
because, at the core, we are all content July 2011, along with premium digital content Arabs Got Talent and The Voice Middle East will
providers vying for subscribers”. on its subscription sister platform Shahid return to MBC schedules in 2017.
What sets OSN apart from Netflix and Plus, and has gained 20 million subscribers “These reality shows are very entertaining
other SVOD-only providers, says Morcos, via YouTube. MBC’s Facebook fans now but also motivational. They are a platform for
is its “privileged position of being able to number 244 million and it has 55 million artistic self-expression and self-identification,
reach audiences via multiple devices and followers on Twitter. and draw on a great pool of talent in the
mechanisms that cater to all types of viewing The group’s ratings have “created an Arab World, where 180 million people are
behaviours; those that are more comfortable impenetrable barrier” between it and the under the age of 30,” says Hayek. “They are
with traditional linear viewing methods and regions other broadcasters, says Mazen produced locally to the strictest international
those that bypass the box and go straight to Hayek, official spokesman and group director standards.”
digital intake.”
As well as linear and SVOD viewing,
OSN offers a catch-up and a 21 channel live
“We are not a media group that takes our
streaming service called OSN Play, and video-
on-demand via OSN on Demand. These offer successes for granted, but SVOD is still not a
recently aired content, box sets and thematic game changer for the masses [in MENA].”
collections.
“We are continually developing and
expanding this offering. We have obtained Mazen Hayek, MBC
more rights from all our partner studios and
networks, which means we now have more of PR, commercial, and corporate social MBC has been instrumental for many years
catch-up and on-demand content than any responsibility, MBC Group. “However, we are in producing, distributing and promoting
other player in the region,” says Morcos. not a media group that takes our successes for high-quality Arabic programming, and also
Yet an even loftier position could be claimed granted. Nor do we take our competition for for employing staff from countries across
by Dubai-based free-to-air broadcaster MBC: granted, but SVOD is still not a game changer the Middle East and North Africa, which
that of undisputed dominance in the region’s for the masses [in MENA]. Will Netflix invest helps build its pan-regional appeal: strategies
audiovisual scene, in terms of viewing figures, a few hundred million dollars a year to create commentators think others could learn from.
advertising revenues and multi-platform traction? We’re not seeing that yet, or seeing Marketing content to the region’s tech-
engagement with its audience. any great impact,” Hayek adds. savvy youthful demographic is also key to pay
The Dubai-based media group can draw an platforms going forward. As is the exploration
estimated satellite TV audience of around 100 of untapped pay TV markets such as Egypt and
million for the finales of its flagship Arabic Location, location, location Iran, thinks Constantinos Papavassilopoulos,
shows. Indeed, Arab Idol, The Voice and Arabs technology analyst from IHS Markit.
Got Talent have a cumulative reach of over What is having an impact on MENA’s mass “At the end of 2016, pay TV penetration will
60% of MENA satellite television households, audience this year, says MBC’s Hayek, are be slightly over 10% of the 47.5-48 million
according to a 2014 regional reach study. the localised versions of US formats Top Chef TV households in the 14 countries where
MBC also offers VOD and catch-up TV via and Project Runway, which have been recently we provide pay TV data. But Iran alone, for
its platform Shahid.net, which it launched in added to MBC’s programming. Although instance, which is not included in our data,
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p06-08,10-11 Mid East Feature MEA16v4st.indd 10 21/10/2016 17:54Digital TV Europe Middle East & Africa 2016 > Focus on MENA
November 2016
Starz Play Arabia has added French audio to
its Hollywood content this year.
In recognition of this, Starz Play Arabia
has, this year, launched a French version of its
interface and its apps, and has added French
audio to its Hollywood content. Although it
is taking a lead on OSN in providing dubbed
French shows, the SVOD operator admits that
its French content is still limited.
Of course it remains to be seen if Netflix
will follow suit, and provide more localised
services within the region, as it has recently
done for the Turkish market (it now provides
streamed video content in Turkish and bills
subscribers in local currency).
But amid the general uncertainty, OSN,
has around 14 to 15 million TV households,” made for Arab audiences, as MBC tried with beIN and MBC look set to retain their
says Papavassilopoulos. MBC Persia, does not work,” he warns. combined status as home to the most
“Overseas satellite TV reception is still French-language programming and attractive premium content in the region –
illegal in Iran, but over 70% of households keener pricing could also help improve whether paid for or free-to-air.
in Tehran have satellite dishes. There is an the pay TV footprint in the North African They will be aided, no doubt, by MENA’s
audience. However, broadcasters would need countries of Morocco, Tunisia and Algeria, ever expanding talent base and state-of-
to cooperate with local Iranian producers to where generations have been raised watching the-art facilities, fuelling the production of
make Farsi content that will have an impact European content received via analogue TV even greater quantities of high quality local
on Iranian viewers. Repurposing content transmission. programming from the Arab world. l
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p06-08,10-11 Mid East Feature MEA16v4st.indd 11 21/10/2016 17:54Simplifying security in a complex world
Conax, part of the Kudelski Group, is a leading global Content Security Specialist for digital
entertainment delivering services for 400 operators, representing 140 million pay-TV consumers in
85 countries globally.
At Conax, we believe that we can simplify content security in a complex world, with our feature
rich and highly sophisticated security hub, Conax Contego that seamlessly supports smartcards,
cardless security, next-generation IPTV, advanced multi-DRM and OTT services. Conax Contego also
fulfils MovieLabs specification demands with Forensic Watermarking, enabling secure and traceable
distribution of 4K/UHD content.
Providing future-proof, secure technology is at the core of everything we do. Based on a continual
commitment, the Conax team brings a wealth of expertise enabling us to deliver a strong
combination of insight and innovation to our customers.
Meet us @ TV Connect MENA, Stand # 15 and TV Connect Africa, Stand # TV 23
Securing content - Sustaining magic conax.com
pXX Conax DTVE MEA16.indd 1 19/10/2016 11:23Keep OTT simple
In a rapidly changing TV landscape where disruption is the norm, pay-TV operators are launching OTT services to combat churn
and target new revenue streams. Conax’s commercial product director Einar Vaagmo says the secret to success is “keep it simple”.
Conax’s commercial product director Einar Vaagmo has been working A third challenge for traditional operators is the “simplicity of
with online video and OTT services for a decade, with extensive scalability”. He cites the example of WhatsApp. “They were 55
experience in the converging telecom and media industries. employees serving 900 million users when Facebook acquired
“It’s not long ago that streaming services was a thing for computer the company for USD$19 billion. And, Pokémon became a world
nerds. Now streaming is main-stream as well as the fundamental phenomenon in just a few days. With cloud technology anyone can
changes in user experience and behaviour,” he says. scale, offering huge opportunities for newcomers entering with low
Previously part of a Nordics OTT start-up launching a premium investments,” he says. “Traditional paid-TV operators need to think
SVOD service on tablets, game consoles, smart TVs and phones, differently, see new market opportunities, and see the benefits of new
Vaagmo recalls: “We actually received an email from a customer asking technologies and how they can monetise.”
‘you mean I actually have to watch this video on my computer?’” All these changes are driven, at least in part, by changing audience
Now disruption is the new norm. “Pay TV providers, service providers habits with a growth in niche audiences. Vaagmo uses the example of
and broadcasters need to adapt to rapid industry changes,” Vaagmo YouTube, where there are channels “with millions of subscribers watching
says. gamers playing games on the internet”.
A specialist in total service protection for broadcast, broadband, multi- He explains: “Millennials are watching TV in a completely different
network and multiscreen digital TV services, Conax supports over 140 way and don’t care how the content is delivered. They care about user
million pay TV consumers in 85 countries. “We come from the conditional experience and simplicity, so these new streaming devices and services
access part of the industry, delivering a security back end and smart cards. that are reducing complexity for the end user are major opportunities
Today we offer a complete portfolio, delivering smart cards, cardless, and challenges for traditional players.”
IPTV solutions, multi DRM solutions, cams and more - managed from our
modular Contego back-end,” says Vaagmo, who works closely with the Keep it simple
sales and engineering departments responsible for product development.
“I also work closely with partners. There are many challenges to launching a One piece of advice Vaagmo has for traditional operators is, “don’t
successful OTT service, spanning the technical, commercial and structural close your eyes on what’s happening in the industry. It’s either disrupt
issues faced by operators. Getting input from the market is key.” or be disrupted.”
He says the market is reacting: “We see content owners and
New market challenges broadcasters going directly to consumers. There’s no doubt the market
will continue to evolve, with new players on all sides, so simplicity is
Vaagmo explains: “Many argue that the technology stack is not there key: the end user has never had more options. Those falling behind are
yet. There’s a lack of standardisation despite some great initiatives like those closing their eyes.”
HTML5 video, MPEG-DASH as a format, Common Encryption and so One structural challenge traditional operators have to overcome,
on.” Vaagmo says, is the historic product cycle and time to market. “The
In addition, multiple hardware platforms, operating systems, time when the pay TV operators spent two or three years making a
streaming and encoding formats multiply the technical challenges. new experience available with new middleware or boxes has passed.
“You need to deal with updates and introductions of new platforms,” You cannot operate like this anymore because the industry is changing
he explains. so rapidly.”
Commercially, “many operators are finding it hard to gain ROI for TV operators need to look to internet companies for the right
their OTT service – it’s hard to monetise and at the same time they are approach, because “they are the ones that are going to win this game
being disrupted by the new market players”, he says. with a new approach to customers”.
Vaagmo explains that operators are finding it hard to grow audience.
“At the same time, cord-cutting is happening,” he adds. Churn is costly Einar Vaagmo is presenting a session called “Don’t let complexity kill your
and cost of customer acquisition is huge. For many operators the fact OTT revenue” on October 31 at TV Connect MENA, at Westin Dubai Mina
that you can combat churn by launching OTT services should justify Seyahi, Dubai. For more information, please visit https://tmt.knect365.
the ROI in itself.” com/tv-connect-mena/
p13 Conax Feat DTVE MEA16.indd 1 21/10/2016 16:55Middle East & Africa 2016 > Africa and its growth prospects Digital TV Europe
November 2016
20,572
52,000
Ethiopia
hiopia
43,000
3,000
12,894,500
80,000
48,550
Sudan
4,299,905
Egypt
yp
2,000
225,0
225,000
Libya
ibya
2,092,625
1,360,104
527,267
5,050,000
Tunisia
803,722
8,847,650 Nigeria
2,250
1,951,792
1,95
51,792
Algeria
geria
132,880
104,250
Ghana
6,512,390
60,500
1,196,973
Morocco
5,250
10,950
Mauritania
248,350
102,000
Senegal
Visit us at www.digitaltveurope.net
14
p14-15 Africa Map MEA16v2st.indd 14 21/10/2016 18:59Digital TV Europe Middle East & Africa 2016 > Africa and its growth prospects
November 2016
19,200 129,625
278
8 195,541
Seychelles
eych
ycch
cchelles
h ess
helles Mauritius
uritiuss
124,550
375,875 62,500
77,750
77,7
750
75 131,000
195,983 702,031
30,500
Kenya
enya 81,425
22,500
TTanzania
anz
nz Mozambique
M
212,450
131,470 Malawi
68,400
0 77,700
Uganda
438 350,965
Rwanda Zimbabwe
12,896
41,649 132,142
22,842 59,625 77,500
77,50
00 6,346,001
Zambia 37,140
3 14
37 6,999
Botswana
wanaa 1,345,254
South
73,000 84,000 Africa
307,000 27,250
51,350 43,000
Angola Namibia
Cable
104
000 DTH
Africa:
2 DTT
IPTV
Broadband
Source: Ovum/WBIS
80
the big picture
250
a
12,932
Growth in TV homes is continuing in sub-Saharan Africa, with
18,820
progress towards digital switchover underway. While progress is
Cabo
aboo
Verde uneven, pay TV players are changing the nature of the game.
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15
p14-15 Africa Map MEA16v2st.indd 15 21/10/2016 18:59Middle East & Africa 2016 > Africa and its growth prospects Digital TV Europe
November 2016
Africa: the big picture
Sub-Saharan Africa has seen strong growth in TV households and significant traction
for pay TV. However, progress and the overall level of development is uneven, with
some countries making much greater strides than others.
The African TV market continues
to develop rapidly but unevenly,
with a number of initiatives underway to
plagued – at least in terms of TV distribution
– by lack of affordability. Piracy also remains
a key challenge to the development of
the Democratic Republic of Congo, the
Republic of Congo, Cote d’Ivoire, and Senegal
over the next five years. Canal+ is meanwhile
develop pay TV across key markets, a number legitimate pay services. driving strong pay TV growth, adding half a
of still nascent moves to build on-demand TV In the pay TV sector, MultiChoice is the million homes across the region in the year
services, and patchy progress towards digital dominant provider in Botswana and Namibia, to March. The Ovum study again highlighted
switchover. with Zon-backed Zap TV and cable service wide variations within the region, with over
According to Ovum, digital-terrestrial TV Cabo – as well as China’s StarTimes half of homes in Senegal and Côte d’Ivoire,
homes are still under half of all TV homes – providing competition in Lusophone for example, having a TV set, while under one
this year across the continent. The figure is Mozambique. in five homes in the Democratic Republic
expected to rise to over four in five homes over Pay TV is expected to account for the lion’s of Congo have a TV. Pay TV is dominated
the next five years. Primary DTT homes will share of TV revenue growth in all three by Canal+ across the region, although
account for about three in four. The number markets. However, across Africa, pay TV MultiChoice’s DStv has a significant presence
of pay digital-terrestrial homes is meanwhile homes are expected to decline as a proportion in Cameroon. As elsewhere, digital-terrestrial
expected to decline as a proportion of all TV of the total TV homes universe over the next TV growth is being led by pay TV providers,
homes from a peak of about one in seven last five years as digital switchover progresses. who have invested in the platforms necessary
year. Overall, Ovum expects pay TV homes to to enable the transition.
However, the top-line figures disguise account for under a third of all TV homes Digital TV Research, another research
huge differences between countries across by 2021, down from two in five this year. outfit, meanwhile predicts that low-cost
the region – encompassing the proportion of The overall number of pay TV homes will offerings will make much of the running in
homes with TVs as well as progress towards however rise – in Ovum’s reckoning by just pay TV growth. MultiChoice’s premium DStv
digitisation and penetration of pay TV. under a half to just short of 32 million homes service will in fact remain the major player
Satellite remains a key TV transmission over the next five years. The proportion of over the next five years and the only pay TV
technology, particularly for pay TV services. homes with a TV will meanwhile rise from provider in the wider MEA region with over 10
Ovum expects the proportion of pay DTH just under a third today to just over half in five million customers by 2021. However, DStv’s
homes to all TV homes to remain more or years’ time. growth rate will be more modest than that of
less stable at around one in five over the next StarTimes, which is expected to more than
five years. Pay DTH homes as a percentage double its base to close to 6.5 million over the
of overall pay homes will be about half in five Wide disparities same period. MultiChoice’s low-cost digital-
years time, also similar to today’s proportion. terrestrial offering will also almost double its
A recent Ovum study of Botswana, A similar study of four East African markets base to 6.2 million. Canal+’s Francophone
Mozambique and Namibia found that just – Ethiopia, Malawi, Tanzania, Uganda and African offering will meanwhile grow by
under half of homes took pay TV services Zambia – highlighted the wide divergence about 50% to reach 3.2 million.
with these mostly being delivered over digital between different countries in the region. Digital distribution platforms are
satellite. All three countries missed the June Here, digital-terrestrial TV is more important developing from a small base and continue
2015 digital switchover deadline set by the as a pay TV platform. Pay TV growth is to face significant infrastructure and
ITU, even though Namibia has been seen as expected to be strong. However, there are commercial challenges such as poor
a leader in digitising its terrestrial network. wide disparities between these four markets, connectivity and high data costs. Despite this,
Digitisation is much less advanced in with TV penetration still only in single figures a significant number of SVOD services have
Botswana – despite the population being in Ethiopia, and the market still dominated launched. Digital TV Research predicts that
concentrated in the capital, Luanda – and by analogue TV, while digital-terrestrial TV in SVOD numbers across the Middle East and
Mozambique, with analogue terrestrial Tanzania reached over three in five TV homes Africa as a whole will grow from 3.7 million at
TV remaining the principal distribution and TV penetration double that of Ethiopia. the end of this year to almost 20 million in five
mechanism. A separate Ovum study of Francophone years’ time, with African platforms iROKOtv
Broadband coverage in the region remains Africa highlighted strong expected growth of and ShowMax reaching 1.551 million and
patchy, being focused on the larger cities and about 39% in TV homes across Cameroon, 992,000 subscribers respectively. l
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16
p16 Africa focus MEA16v4st.indd 16 21/10/2016 18:23Digital TV Europe Middle East & Africa 2016 > SVOD in Africa
November 2016
On-demand Africa
Africa has seen the launch of a significant number of SVOD services over the last
couple of years. Despite challenges related to affordability and connectivity, the
appetite for content and growing penetration of smartphones means that the region
has potential for growth. Stuart Thomson reports on recent activity.
Largely thanks to
example of Netflix,
the subscription video-on-demand model
the approaches. They have looked to deliver
services that are geared towards viewing on
mobile phones, they have looked to provide
According to Richard Boorman, head of
communications at ShowMax, the service as
it was originally conceived was designed for
has dominated the debate about how best to download capability as well as partnerships viewing via both fixed and mobile networks.
make money from video as viewing patterns with telcos to get round bandwidth and However, for Kenya, the company launched
shift away from linear TV towards time- affordability challenges, and they have a version that was specifically aimed at
shifted viewing. targeted the African diaspora market as well mobile users – ShowMax Select. “ShowMax
Africa has not been immune to the as local audiences. Select was designed as mobile-first. It is
shift. The absence of the kind of technical lower-resolution video, which works for
infrastructure that is required to support smartphones and tablets,” says Boorman. For
SVOD across much of the continent, low ShowMax: mobile optimised the full ShowMax Premium service, viewers
disposable income levels and difficulties can opt for one of three resolutions for the
in securing payment for services have not South Africa-based ShowMax, the SVOD streaming version of the service, depending
deterred a number of players from entering service backed by Naspers, the owner of the on the availability of bandwidth. Select users
the market. MultiChoice pay TV service, is currently can opt for the lower two resolutions.
In order to mitigate the risks and challenges available in 55 countries, including 28 outside ShowMax also offers a download option –
associated with on-demand offerings in of Africa, where it is targeting the diaspora. seen as key in Africa because of the patchy
Africa, these companies – although very Within Africa, ShowMax has a localised availability of connectivity at speeds that
different in the markets they specifically presence in only two of its African markets
target and in many aspects of their strategies currently – its home market of South Africa ShowMax recently launched a new mobile-
– have embraced a number of common and Kenya, where it launched in October. optimsed service for Kenya.
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17
p17-19 Africa SVOD MEA16v4st.indd 17 21/10/2016 18:22Middle East & Africa 2016 > SVOD in Africa Digital TV Europe
November 2016
support streaming, as well as the cost of Boorman believes that this is shifting, with iROKO, which now has its own Nollywood
bandwidth – with four file size options. Again, prices steadily falling, driven by campaigns studio business as well as licensing content
the Select option provides the smaller two such as the #DataMustFall initiative launched from other movie houses, has also moved
file sizes. ShowMax Premium is available in in South Africa in September. into offering linear channels as well as SVOD.
Kenya for KES880(E7.70), while ShowMax Boorman says that ShowMax Select offers Most recently it launched ROK, a Nollywood
Select costs KES330. a 50:50 mix of local and international content, channel that is available on Sky in the UK as
“Kenya is a very interesting market – it is while Premium is more heavily weighted well as – from November 1 – DStv. iROKO
quite large with rapidly growing connectivity,” towards international content. also already distributes two channels on the
says Boorman. He adds that launching “We are not trying to be the Netflix of Africa StarTimes platform.
SVOD in the country is nevertheless but the ShowMax of Africa. We want to be Njoku says that ROK is positioned as
challenging thanks to a low level of fixed a great platform that is localised in terms of a premium service that carries the ROK
network connectivity and reliance on mobile. payment and also content. We have a content studio’s large output of movies and series.
“We wanted to get ShowMax Select up and team on the ground in Kenya,” says Boorman, DStv will carry it on its higher tiers. “Our
running there first because it is a challenging who adds that people will take more than one movies went direct to DStv but the studio has
market, and we can then apply the learning service if prices are attractive enough. “This is so much content – 100 movies and 10 series
from that launch to other markets,” he says. not a zero-sum game,” he says. this year – that it made sense,” says Njoku.
Despite the mobile focus of the Kenyan Regarding iROKOtv, Njoku says that
launch, ShowMax has taken a broad-brush the biggest challenge is not content but
approach to distribution. The service is iROKOtv: Nollywood bet accessibility. However, with four telcos
available on a wide range of devices, including competing for business in the Nigerian
Apple TV, Chromecast, Hisense, Samsung ShowMax, despite its heavyweight backing, is market, mobile data costs will continue to
and LG smart TVs and the DStv Explorer only one of a number of SVOD initiatives in fall, he argues. He says that 90% of traffic
advanced set-top box in South Africa. Africa. iROKOtv initially targeted the diaspora is to Android devices and the primary
The company has also looked to team audience, but has more recently focused its mode of viewing is via download rather
up with local mobile and fixed-line telcos attention on building a base in Nigeria, home than streaming. “One of our key things is
to further its distribution goals and provide of Africa’s homegrown Nollywood movie download first. We actually hide the fact that
packages that get round the challenges industry. you can stream the content. What happened
associated with affordability in markets According to Jason Njoku, iROKOtv’s in the past was that when you pressed play
where disposable incomes remain low. In founder and CEO, the Nigerian market, the you handed the experience over to the telco. A
South Africa ShowMax has a deal in place fastest growing in Africa, offers a solid base download takes less than 60 seconds and we
with Telkom whereby the latter will offer on which to build the service. iROKOtv has can control the experience,” he says.
an ‘entertainment’ data package including concentrated on offering Nollywood content, iROKOtv is focusing its marketing efforts
support for ShowMax streaming for ZAR99 and for the last couple of years has focused on in the greater Lagos area, home to about
(E6.50), with users paying the monthly distributing to Android smartphone users. 20 million people as well as Nollywood.
ShowMax subscription fee on top. In Kenya, “A lot of the changes we made two years However, the company recently also teamed
ShowMax has teamed up with mobile telco ago have started to yield results,” says Njoku. up with Canal+, which participated in
Safaricom and Boorman says that exclusive “We started by targeting digital natives and iROKO’s funding round at the start of this
data packages will be part of this. It has also the diaspora audience – and we still have year, to launch an Android-based service for
teamed up with mobile payment specialist that – but we have also shifted aggressively Francophone Africa that includes telenovelas
M-PESA for payment services. to targeting Android users in Nigeria, which and content from Canal+’s A+ channel as
Data remains a key challenge, though is still the fastest growing region in Africa.” well as Nollywood fare.
“One of the key things for us is trying to
understand how French-speaking Africa
differs from Lagos,” says Njoku. The
company is making use of Canal+’s eight and
a half thousand points of sale to expand into
a region where it had no presence previously,
and Njoku says that it will learn a lot from the
experience that could then be applied to the
domestic Nigerian market.
“We are now a broader media player than
we were. We are balancing our revenues
with a diversified customer base that we
iROKOtv has focused in on the Nigerian
market and on Nollywood content.
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18
p17-19 Africa SVOD MEA16v4st.indd 18 21/10/2016 18:22Digital TV Europe Middle East & Africa 2016 > SVOD in Africa
November 2016
can introduce to linear channels and then including three in the US, one in the UK and original content,” says Laouchez. “We want
take them to digital,” says Njoku, who adds one in France. Laouchez said that the group Trace to be the number one global urban
that linear TV is likely to provide the biggest is making a significant investment in content entertainment platform. Urban culture
revenue stream for the company. While and is also discussing two additional series, one is not a small niche. Most contemporary
the company faces a number of significant in the Caribbean and one in Africa. “We are entertainment in Africa and the Caribbean
challenges – including an economic making a significant investment – we saw it as will fit into this filter. The great thing about
recession in its home market and growing necessary to launch not just with content that urban music and culture is that it goes
competition from rival players – he is has been watched by the audience already. We beyond hip-hop and R’n’B music and so on –
confident that iROKO’s focus on building have a strong component of original content it is a form of expression for young people all
its own pipeline of Nollywood content offers and we are acquiring more. It will take a long over the world and it is inclusive.”
a recipe for success. iROKO currently offers time to find that, and we will also acquire some Within this context, some Nollywood
a roughly 50:50 mix of own-produced and existing content,” says Laouchez, who adds content and even telenovelas may have a
acquired content and NJoku has the ambition that the content mix will be broad but selected place in the mix. Indeed, Laouchez says that
of taking the homegrown element to 85%. through Trace’s ‘urban’ filter. Trace is talking with iROKOtv about taking
Laouchez says that Trace Play will be some of that company’s content. Laouchez
available in the US as well as Europe and says he would like to see Trace Play acquire
Trace Play: urban filter Africa. “We are targeting everyone interested “a few hundred thousand” subscribers in the
in urban culture,” he says. While the content first few years following the launch.
One of the latest companies to throw its hat mix will include movies and series as well Many other companies are experimenting
in the African SVOD ring is youth and urban as music programming, music remains with SVOD in Africa, competing but in
music-focused broadcaster Trace, which is set core to its offering. “Our music offering has some cases collaborating with each other.
to launch its long-awaited Trace Play SVOD the biggest line-up of channels dedicated to Technology provider Ericsson earlier this
offering before the end of this year. African and Caribbean music there is, and year launched its own SVOD service, NuVu,
According to Trace founder and CEO this will be a unique selling point for the in partnership with mobile operator Airtel,
Olivier Laouchez, Trace Play will ultimately platform,” says Laouchez. offering a mix of content from international
be available in English and French in 100 He admits that launching a VOD offering distributors, but also licensing content from
countries. Trace, which has built a business
with a focus on urban culture and music as
well as sports celebrity news, has acquired
“The great thing about urban music and
additional content rights through its
purchase of African SVOD provider Buni TV, culture is that it goes beyond hip-hop and
which is now fully integrated into the group, R’n’B – it is a form of expression for young
according to Laouchez.
Trace Play will be UK-based and Ofcom-
people all over the world.”
regulated. The platform will include Trace’s Olivier Laouchez, Trace
total offering, encompassing its suite of linear
channels as well as VOD. The company in Africa is complex, because of bandwidth, both iROKO and Trace. Ericsson positions
recently expanded its bouquet of channels connectivity and billing issues. However, he NuVu as an end-to-end SVOD platform
by launching three regional music services says that Trace would work through these aimed at mobile operators. Other providers
– Trace Africa, aimed at southern Africa, areas and adds that the early phase of the active in the region include south-east Asian
with a mix of music videos, specials and launch is likely to involve a learning process, player iFlix, and Afrostream, a movie-focused
documentaries covering genres including with work still being done on elements like service that last year secured backing from
Kwaito, House, Coupé-Décalé, Afropop, billing mechanisms. “We are taking it step- Orange Digital Ventures to bring Afro-
Rumba and Ndombolo, Trace Mziki, targeting by-step. We are going to learn. There are American, African and French films to a
eastern Africa with a mix of music including things that we don’t control 100%,” he says. wider audience and launched initially in
Ugandan and Tanzanian hits and genres such Trace is launching in a number of countries France, Belgium, Luxembourg, Switzerland,
as Bongo Flavas in Swahili and English, and outside Africa as well, targeting a diaspora Senegal and Côte d’Ivoire.
Trace Naija for West Africa, spanning genres audience as well as anyone else interested Trace’s Laouchez says he expects further
including Afrobeats, Afropop and Hip Life. in its content, which will help mitigate consolidation of VOD platforms in Africa
The channels were initially available on DStv, the risk. For Africa, as with ShowMax and and expects Trace to be a consolidator in the
but Trace recently struck a deal to distribute iROKOtv, Trace will offer download capability region. “The African market has a billion
Trace Mziki on Kenya’s Zuku TV along with to overcome the challenges associated with people, and there are lots of Africans living
its existing Trace Gospel service. streaming. However, this will not be extended in the US and Europe,” says Laouchez. “We
Trace is also planning to expand its original to the music offering because of rights issues. still need to build this market. It is important
content line-up by commissioning new “We are looking to offer a mass-market to find a vertical and a business model that
series. Four series are currently in production, product that will give us the scale to invest in makes sense.” l
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19
p17-19 Africa SVOD MEA16v4st.indd 19 21/10/2016 18:22You can also read
