What is the future of TV revenues?



The total spend on TV advertising in the Middle East amounts to US$6.5 billion a year. This sounds impressive - but when you factor in production and broadcast costs, and the fact that this spend is shared by a staggering 450 stations, the business of TV starts to look less rosy.

Elsewhere, it's a different story. In the US, for example, a staggering US$229 is spent on TV advertising per person each year. In the UK, TV advertisers spend an annual US$113 per capita, compared with US$71 in Germany and US$62 in France, according to figures cited by A.T. Kearney.

But in the Arab world, just US$7 per capita is spent on TV advertising each year - leaving some of the smaller stations struggling for revenue.

So, what is the industry doing about it? This is the topic of the first 'National Industry Insights' event, a new series of debates organised by The National, which will address industry issues in the context of the wider Middle Eastern business landscape.

The discussion 'Addressing the Future of TV Revenues in the UAE' will debate how hundreds of TV stations are vying for their slice of the ad pie, and how smarter, more targeted TV campaigns are luring advertisers.

The conversation will address the different models of revenue - including paid subscriptions and ad-driven 'free to air' TV - and alternative forms of advertising such as product placement and branded content.

Confirmed panellists include Marc-Antoine d'Halluin, head of Orbit Showtime Network, Mazen Hayek, official spokesman for MBC Group, and Karim Sarkis, executive director of broadcast at the Abu Dhabi Media Company, which publishes The National.

Andrew Piller, the commercial director of FMX, the new media division of FremantleMedia, will also be on the panel. FremantleMedia is the co-producer of the some of the world's most successful TV shows, including Pop Idol, The X Factor and the 'Got Talent' series.

Other panellists include Shadi Kandil, the managing director for OMD in the UAE, and Wael Hattar, branded entertainment consultant for Core Branded Entertainment MENA.

If you are interested in attending the event, which takes place in Abu Dhabi on Monday 5th July, email industryinsights@thenational.ae.

Or submit a question to any of the panellists using the comment form below. Selected questions will be posed to the panel, with the responses published here at Mixed Media on Monday.

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Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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Hydrogen: Market potential

Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.

"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.

Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.

The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.

Business Insights
  • As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses. 
  • SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income. 
  • Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
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