The expanding reach of Middle Eastern satellite TV.

Middle East satellite and specialized TV have been expanding their reach throughout the Gulf region, and Egypt--long the cultural and informational center of the Arab world is now trying to catch up. The "Big Five" satellite channels in the Arab world include MBC, LBC, Future TV, Dubai TV and Egypt's first private sat channel, Dream TV, which launched in 2001 and is 10 percent owned by state-run Egyptian Radio and TV Union (ERTU). The increase of specialized channels during the last six months on Egypt's Nilesat network, and the recent debuts of Melody Hits and Miza channels come at what experts are calling a critical financial junction for the pan-Arab satellite industry.

"Most Egyptian and Arab satellite channels are not making money, simply because they are long-term investments," said Osama el-Sheikh, who helped establish channels like ART, Dream TV and Kuwaiti Rai. "Egyptian satellite channels are still working for the local market, while successful panArab channels are working for the wider regional market."

According to a 2005 survey, an estimated 89 percent of Arab households (the key demographic according to surveys) in Saudi Arabia have satellite TV; 16 percent have pay-TV subscriptions.

The same study revealed that 90 percent of surveyed households watch satellite TV programming in Arabic or with Arabic subtitles; only 10 percent preferred English programming. This survey is most telling for the pan-Arab TV channels, which have had the greatest success in universal programming like news, children's and music channels, with an estimated U.S.$200-million Arab TV ad revenue.

Lebanon-based music channel ETV Music has extended its 24-hour service with E2; Dubai-based Nojoom has added Nojoom 2 and Nojoom 3 to its bouquet of channels. Music Plus, also based in Dubai, has started testing transmission of Gear One, the first racing and car-focused channel. Unlike Egyptian Melody Hits and Mazzika TV, which derive income from ads, these Arab music channels use lucrative SMS, MMS and chatting services--a trend in the youth market--to make most of their money.

Children's TV stations are tapping the lucrative young Middle Eastern market. Al Jazeera Children's Channel (JCC) set up shop in Cairo in September '05; and MBC 3's children's channel launched in December 2004 to an ever-expanding kid TV generation.

Qatar-based Al Jazeera has begun targeting a global audience with its English-speaking and international channels. At the beginning of 2006, Al Jazeera plans to launch a platform of free-to-air TV channels to compete with the MBC Group, which, two years ago, fielded five successful free-to-air television channels that seriously challenged the pay-TV bouquets of Showtime, Orbit and ART. The MBC flagship, MBC 2, remains the leading Arabic family entertainment or "variety" channel. Most Middle Eastern TV analysts have noted that the channels have become Westernized, with movies and comedy, drama and reality series. The U.S and Britain are the largest suppliers of content to these channels.

News channels are still rated the highest among audiences in the region, with Al Jazeera's 24/7 news in hot pursuit and MBC's M Arabiya's aggressive Iraq reporting attracting viewers.

As channels expand their reach throughout the Middle East and attempt to reflect their own localized identity at the same time, Mideast programming is continuing to comprise of East and West content.