Insights into Arab consumers broadcast and online consumption habits Jawad Abbassi Founder, General Manager Joint ITU - AICTO Workshop on “Interoperability of IPTV in the Arab region” - Dubai September 20,21 2011 Outline • • • • The TV landscape in the region The Internet landscape Consumption patterns Smartphone findings in Jordan & UAE Continuous growth in Free-To-Air satellite TV channels 53 channels added 600 540 474 500 370 400 300 263 200 200 100 487 290 205 155 100 0 Jan-04 Jul-05 Nov-05 Apr-06 Oct-06 Jan-07 Aug-07 Mar-09 Apr-10 Apr-11 Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat Source: Arab Advisors Group’s Satellite TV in the Arab World 2010, and Arab Advisors Group Consolidation at last in the Pay TV market: OSN with most channels. Consolidation of Pay TV providers 140 Number of Pay TV channels 120 100 Al Jazeera+ 2 ART 36 ART 24 80 60 Al Jazeera+ 15 Showtime 42 40 20 AL Jazeera+ 15 OSN 82 OSN 80 September 2010 February 2011 Orbit 47 0 November 2007 Source: Pay TV providers Most of the Arab countries have competitive Internet markets Internet regulatory framework 2005 1 country (6%) 5 countries (28%) 2011 12 countries (67%) 4 countries (21%) 14 countries (74%) 1 country (5%) Competitive Duopoly Source: Arab Advisors Group, May 2011 Monopoly Four more operators deployed 3G networks in the Arab World since December 2009 May 2011 December 2009 29 33 20 23 Operators that offer 3G/3.5G services Operators that do not offer 3G/3.5G services Source: Arab Advisors Group’s 3G/3.5G Cellular Services in the Arab World and operators 15 Arab countries have commercially launched WiMAX networks by May 2011 Operational, 79% Algeria Bahrain Iraq Jordan Kuwait Licensed but not operational, 5% Qatar Lebanon Libya Mauritania Syria Egypt Morocco Oman Palestine Saudi Arabia Sudan Tunisia UAE Yemen Source: Arab Advisors Group, May 2011 Not licensed, 16% Fixed broadband Internet: UAE, Bahrain and Qatar lead the broadband adoption in the Arab World Fixed Broadband lines % of total population 30.5% 2.3% 1.5% 1.5% Palestine Oman Morocco Egypt Kuwait Jordan 2.5% 4.2% 6.1% Saudi Arabia Mexico Turkey 7.5% 9.4% 10.1% Slovak Republic Source: Arab Advisors Group and OECD 12.0% Bahrain UAE Hungary Italy Japan United States United Kingdom France Norway Korea Denmark Netherlands Note: -The figures are for end of June 2010. Qatar 0% 8.1% 5% 12.8% 10% Poland 15% 13.1% 16.0% 20% 18.7% 21.3% 27.1% 26.3% 2 31.4% 34.2% 25% 3 30% 1 35% 34.4% 37.3% 37.8% 40% Expectedly, almost everybody in the Arab World watches TV.. TV viewership 97% 96% 96% 95% 95% 95% 95% Saudi Arabia Tunisia 94% UAE Jordan Note: Percentages were calculated from the total Internet users in the UAE, Jordan and Saudi Arabia and the total respondents in Tunisia Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey of Internet Users 2010, Saudi Arabia Media Survey of Internet Users 2011, Tunisia Media Survey 2010 … and a majority change their TV viewing habits during Ramadan Changing TV viewing habits in Ramadan 81% 80% 78% 62% 60% 40% 20% 0% Jordan Saudia Arabia UAE Note: Percentages were calculated from the total Internet users who watch TV in the UAE, Jordan and Saudi Arabia Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey of Internet Users 2010, Saudi Arabia Media Survey of Internet Users 2011 The majority of Internet users in Saudi Arabia, Egypt and Jordan reported having an ADSL connection at home 100% 94.5% 84.2% 80% 78.9% 60% 40% 20% 0% KSA Jordan Egypt Note: Percentages are calculated from the total respondents who have Internet access at home Source: Arab Advisors Group’s Saudi Arabia Internet users and ecommerce survey 2011, Jordan Internet users and ecommerce survey 2010, Arab Advisors Group’s Egypt Internet users and ecommerce survey 2010 46.8% of Internet users in Saudi Arabia with an ADSL connection at home, reported having an Internet speed of 4 Mbps 50% 46.8% 40% 30% 20% 11.9% 10% 10.6% 10.3% 7.5% 5.8% 0.70% 0.3% 0.3% 0.3% 10 Mbps 16 Mbps 20 Mbps 2.4% Other speeds 3.0% 0% 128 Kbps 8 Mbps I don't know 2 Mbps 256 Kbps 1 Mbps 512 Kbps 4 Mbps Note: Percentages are calculated from the total respondents who have an ADSL connection at home Source: Arab Advisors Group’s Saudi Arabia Internet users and ecommerce survey 2011 40.5% of Internet users in Jordan with an ADSL connection at home reported having an Internet speed of 1 Mbps or above 50% 47.4% 40% 32.1% 30% 20% 8.4% 10% 4.2% 3.9% 3.0% 1.0% 0% Other speeds I don't know 256 Kbps 128 Kbps 2 Mbps 1 Mbps 512 Kbps Note: Percentages are calculated from the total respondents who have an ADSL connection at home. Source: Arab Advisors Group’s Jordan Internet users and ecommerce survey 2010 Tuning into radio stations online is not widespread Radio listening offline 60% 40% Radio listening online 54% 49% 40% 17% 20% 9% 9% 10% 10% 0% Saudi Arabia UAE Egypt Jordan Note: Percentages are calculated from the total respondents Source: Arab Advisors Group’s Survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt, Survey of Internet Use and Online Advertising Consumption and Effectiveness in Jordan, Survey of Internet Use and Online Advertising Consumption and Effectiveness in Saudi Arabia and the UAE. A minority of people watch TV online TV viewing offline 80% TV viewing online 76% 75% 74% 58% 60% 40% 20% 6% 6% 4% 5% 0% Saudi Arabia UAE Egypt Jordan Note: Percentages are calculated from the total sample sizes of 355 for Saudi Arabia, 300 for UAE, 555 for Jordan and 3,348 for Egypt. Source: Arab Advisors Group’s Survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt, Survey of Internet Use and Online Advertising Consumption and Effectiveness in Jordan, Survey of Internet Use and Online Advertising Consumption and Effectiveness in Saudi Arabia and the UAE. High levels of piracy rates: Self reported findings! How respondents get Pay TV channels Legal subscription Dream Box 100% 85% 80% 60% 40% 58% 56% 55% 37% 34% 20% 20% 5% 0% Saudi Arabia Jordan Tunisia UAE Note: Percentages were calculated from the total Internet users who watch TV in the UAE, Jordan and Saudi Arabia and the total respondents who watch TV in Tunisia Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey of Internet Users 2010, Saudi Arabia Media Survey of Internet Users 2011, Tunisia Media Survey 2010 However, OSN terminated the illegal use of Dream Box… 40% of adult Internet users in KSA use the Internet for e-banking and 19% use it for shopping online 110% 100% 95.9% 90.0% 90% 80% 73.1% 66.6% 70% 56.4% 60% 50% 39.9% 40% 32.3% 30% 29.0% 19.1% 20% 15.6% 10% 3.5% 0% Other Personal website Online shopping Chatting Debate/Foru ms Online banking Collecting information and research Video/audio streaming Downloading files Browsing the Internet in general Email Note: Percentages are calculated from the total respondents Source: Arab Advisors Group’s Saudi Arabia Internet users and ecommerce survey 2011 Almost all of Internet users in Egypt use the Internet for e-mails 110% 100% 98.1% 87.1% 90% 82.8% 80% 78.4% 70% 64.0% 60% 55.4% 54.4% 50% 40% 33.4% 30% 20.4% 20% 7.8% 10% 0% Source: Arab Advisors Group’s Egypt Internet users and ecommerce survey 2010 Other Blogs Debate/Foru ms Video/audio streaming Internet Chatting social websites Downloading files Browsing the Internet in general Collecting information & research Email Note: Percentages are calculated from the total respondents Smart-phones constituted 42% of total cellular handsets in Jordan and 44% in the UAE Smartphones % in Jordan Smartphones % in the UAE Sm artphones 41.60% Regular phones 58.40% Regular phones 56.30% Sm artphones 43.70% Note: Percentages are calculated from the total cellular handsets Source: Arab Advisors Group’s Jordan Smartphone Survey 2011, UAE Smartphone Survey 2011 Social media use has become a primary channel for online social interaction % of Internet users who use social media to interact with others online 80% 66.1% 70% 60% 59.3% 54.6% 50% 40% 30% 20% 10% 0% KSA Jordan Egypt Note: Percentages are calculated from the total sample size of KSA, Jordan and Egypt. Source: Arab Advisors Group’s Saudi Arabia Internet users and e-commerce Survey 2011, Jordan Internet users and e-commerce Survey 2010, Egypt Internet users and e-commerce Survey 2010 Reading newspapers online is more common than watching TV and listening to radio online Reading newspapers offline Reading newspapers online 80% 61% 60% 48% 53% 50% 51% 51% 44% 40% 34% 20% 0% Saudi Arabia UAE Egypt Jordan Note: Percentages are calculated from the total sample sizes of 355 for Saudi Arabia, 300 for UAE, 555 for Jordan and 3,348 for Egypt. Source: Arab Advisors Group’s Survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt, Survey of Internet Use and Online Advertising Consumption and Effectiveness in Jordan, Survey of Internet Use and Online Advertising Consumption and Effectiveness in Saudi Arabia and the UAE. More than half of the Internet users in Saudi Arabia and Jordan play online games 70% 65.3% 60% 52.1% 50% 39.7% 40% 30% 20% 10% 0% KSA Jordan Egypt Note: Percentages are calculated from the total respondents Source: Arab Advisors Group’s Saudi Arabia Internet users and ecommerce survey 2011, Jordan Internet users and ecommerce survey 2010, Arab Advisors Group’s Egypt Internet users and ecommerce survey 2010 The majority who play online games in Saudi Arabia, Jordan and Egypt play free games 98% 96.6% 96% 94% 92% 90% 88% 87.1% 87.0% 86% 84% 82% KSA Jordan Egypt Note: Percentages are calculated from the total respondents who play online games Source: Arab Advisors Group’s Saudi Arabia Internet users and ecommerce survey 2011, Jordan Internet users and ecommerce survey 2010, Arab Advisors Group’s Egypt Internet users and ecommerce survey 2010 Arab Advisors Group Arab Advisors Group provides reliable research, analysis and forecasts of Arab communications, media, technology and financial markets. 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