Showtime drives growth in regional TV industry

An increasingly discerning and sophisticated audience has developed that seeks out quality, up-to-date premium programming at the push of a button.

Gone are the days of one terrestrial channel and single-set households. Only as recently as the early 1990s, viewers in the region would have to rush home to watch the news or their favourite television programme on a certain day at a set time. Today, as a result of the introduction and growth of satellite dishes and pay TV, the region has witnessed nothing less than a revolution in viewing habits.

The 22 countries of the Middle East and Africa rank third in total TV viewing hours, after North America and Europe, according to a recently published report, 'TV Worldwide', by Eurodata covering 2.5 billion viewers across 72 countries and 600 channels. The study showed that Middle East viewers watched an average of 3 hours and 15 minutes of TV a day, equivalent to almost 50 full days a year, up nearly 8% from last year instead.

This jump in regional viewing, which mirrors global trends, is driven by the explosion in TV choice led by pay TV networks, which in turn is a result of viewers demanding up-to-the-minute breaking news, the latest must-see blockbuster movies and the most recent season of their favourite comedy series.

Showtime and other pay TV operators have been drivers in growing and developing this industry by delivering an ever-increasing number of channel options and programming choices to viewers across the Middle East. Peter Einstein, CEO of Showtime said, 'What sets us apart is the premium quality and exclusivity we offer. Our audience is sophisticated and demanding, and therefore, our sole objective is to deliver programming excellence'

Research recently conducted by Showtime demonstrates that there is a move toward choosing viewing options based on the genre of programming desired at any given time. 'We have 17 quality movie channels to choose from as well as genre channels to suit all tastes whether it is comedy on the Paramount Comedy Channel, documentaries on the Discovery channels, music on MTV, sport, news, children's cartoons and so on,' added Einstein. 'Because viewers find what they want to watch when they want, they tune in more often for longer periods.'

Significantly, the Showtime research reveals that time-shift channels provide further flexibility by giving viewers at least two scheduled times, often one or two hours apart, to watch their favourite movies or programmes. They can choose the time most convenient for them.

Channel choice is a factor driving viewership and pay TV subscription. Ten years ago, there weren't more than 50 channels across the region; today, there are more than 1,100 in the Middle East and Africa, with music and news channels continuing to be some of the fastest growing. There are no less than 70 music channels available in the region.

This choice also affects the way viewers watch - whether alone, with friends, or with family. Pay TV serves all three types, giving subscribers the opportunity to watch a crucial sports match with friends and a suitable movie with the whole family, any time of the day or night.

This regional evolution is mirrored globally, as shown in research reports by Euroconsult, a research and corporate strategy consulting firm, that revealed that every year since 1999, a staggering 1,000 new channels have been added to global satellite television platforms, bringing the total to 12,000 channels worldwide, including 7,000 delivered through direct-to-home platforms. Watching those channels are nearly 60 million households, subscribing to 54 different digital satellite services.

These developments have been reflected in the bottom line. Satellite TV platforms have outpaced both the box office and video games in terms of revenue generated and continue to grow at a sustained rate, supported by technological improvements and increasing demand. In 2003, the international TV industry for the first time posted a consolidated operating profit, with many satellite TV platforms, Showtime included, at or near the breakeven point.

'Showtime is an example of this global and regional growth. We have demonstrated that the right mix of choice, first-run quality programming and solid business strategies will result in success. When the network first launched, Showtime had just six channels. Today, it offers more than 50 channels, including 17 movie channels, four sports channels, 13 music channels and four documentary channels,' said Einstein.