Press release: Informa report identifies strategies for success in online and mobile content market in the Middle East and North Africa

Growth in data and digital content presents regional industry with new opportunities and challenges

Dubai (Middle East Telco World Summit) -   November 29, 2011 - A new report published by Informa Telecoms & Media identifies the strategies for success in the rapidly-growing market for online and mobile content in the Middle East and North Africa.

The report, ‘Online and mobile content in the Middle East and North Africa: Opportunities and challenges’, which is available at the Middle East Telco World Summit event in Dubai on November 29-30, assesses the key developments in the regional digital-content market as well its growth potential, strategic options and imperatives for the main players.

“In the Middle East, as elsewhere, the convergence of media and telecoms is creating fresh opportunities as well as new difficulties,” said Matthew Reed, one of the authors of the report and Informa’s Dubai-based head of mobile research for the Middle East and Africa. “In many cases, operators, media companies and others with a stake in the sector need to develop new business models if they are to succeed. Few, if any, have the option to stand still.”

Key enabling factors include the strong growth in both fixed and mobile broadband in the MENA region. The number of fixed broadband subscriptions in the MENA region grew by about 160% in the three-year period to end-June 2011. And the number of mobile broadband subscriptions in the region increased from 919,000 in 1Q08 to 6.9 million in 1Q11. The use of smartphones is also growing strongly: smartphone penetration in Saudi Arabia is forecast to rise from 25.01% at end-2011 to 48.63% at end-2016.

Additionally, strong growth in the use of social-media services, which was accelerated by the events of the Arab Awakening, demonstrates the interest in the region in new digital media content and formats. The region’s nascent e-commerce sector is also seeing a rise in activity.

However, there are constraints on digital media in the region, including the limited availability and affordability of data services in the less-developed markets; a lack of attractive local content; high levels of content piracy; and an unpreparedness to pay for goods, services or content online.

These are barriers that must be overcome, because the telecoms industry’s best prospects for growth now lie in data services rather than voice – while the media industry must adapt to viewers’ increasing preference for digital media and new content formats.

Google and Facebook have gone to considerable lengths to localize and Arabicize their services and that is an important factor in their success in the regional market, according to Reda Haidar, Dubai-based consultant for Informa and co-author of the report. “Localization and Arabicization are essential if international players are to reach a mass market in the Middle East,” said Haidar.

Investments in the region by Yahoo and LivingSocial demonstrate the interest that international players have in the regional digital-media market. But players from within the region have the advantage of local knowledge, which is a strength that international entrants find hard to replicate.

About Informa Telecoms & Media

Informa Telecoms & Media (www.informatm.com) is the leading provider of business intelligence and strategic services to the global telecoms and media markets.

About Middle East Telco World Summit

Now entering its 16th year, GSM>3G Middle East Telco World Summit (http://me.comworldseries.com/) is the longest established and largest annual Middle Eastern telecoms event. Having evolved to reflect the current market dynamics, the event embraces the entire telecommunications landscape in both its multi-streamed Congress and accompanying Exhibition. Year-on-year it continues to offer Middle Eastern telcos the chance to meet new and existing suppliers of the highest calibre, discuss the future direction of their business and plan for their expansion.

For more information, please contact:

Denise Duffy

PR Manager, Informa Telecoms & Media

Mob   +44 (0) 7500 330826 

Email: denise.duffy@informa.com

Twitter: @informatm_pr 

© Informa UK Ltd 2011.  All rights reserved.