Sky News to launch in the Middle East - why Murdoch is interested in the region

The news that BSkyB is about the launch a new Arabic-language station, and has made its first senior appointment, is an interesting note.  And it draws us back to the Middle East just as the mainstream media turns away from the developments in Egypt.

There is a commitment to develop offices across the region, and to operate under the Sky News brand.  It will be a "24-hour channel offering rolling news and current affairs programming, as well as a video-rich website and mobile applications."

So to keep the blog varied, I am going to talk a little about media in the Middle East.  Looks like I will need a new tag….

I confess that media in that area is of personal interest.  I was once involved in a project was looking at engaging the public within Jordan, and that led me to undertake a crash course in the media market.  However, even in the last few years the situation has changed dramatically - and the involvement of BSkyB is another interesting development.

And talking of media changes, I wonder how many of us have book marked Al-Jazeera English over the last few weeks and used them as source of direct information about Egypt?

What is happening in the media world of the Middle East?  How are stations like Al-Jazeera developing?  Why is Murdoch’s BSkyB taking a dip in the waters?

So back to our latest experience with Al-Jazeera. It is a station that has attracted controversy.  And of course there are numerous conspiracy theories about the Al-Jazeera, in particular about its political agenda. 

But what is certain is that Al-Jazeera has carved a position, often in opposition to the official policy positions of Middle Eastern governments.  This is in stark contrast to the State TV stations that are often controlled through state censorship.


The comparison between Al-Jazeera and Nile TV (Egyptian state TV) was stark.  Shahira Amin resigned as deputy head of Nile TV when the censorship of the protest movement became too much for her. 

As we have seen in Egypt, the position taken by Al-Jazeera has not always matched the policy position of the international community.  Up until recently, it was clear that Mubarak was seen by the US as a stalwart ally and a partner in peace.  There continues to be concern that the removal of the regime will lead to instability, and the possibility of more influence by those that might be anti-American.

For many in the US, the Al-Jazeera channel is best known for broadcasting information from Al Qaeda.  In recent panel discussion on the US Fox network, the pundit Bill O’Reilly showed is disdain for the channel.  During the developments in Egypt the US media had problems with how they would handle the Al-Jazeera network.  Nowhere was that more apparent than on Murdoch's Fox network, which had to balance its commitment with democracy alongside the fear that the US would be damaged by the election of Islamist political parties.  


For many it is difficult to separate some of the complexities of Arab politics.  The uniformity of Arab opinion on the question of Palestine poses a problem for many US broadcasters who see this as hostility towards Israel - and of course US interests in the Middle East which are so closely aligned to Israel.

Whilst at the same time Al Jazeera have also been criticised as “collaborator with the Crusaders” by the pro-Al Qaeda groups.  Whilst they may be willing to give coverage to the anti-government forces, that does not mean that they are supportive of the Al Qaeda objectives in creating a new Islamic Caliphate.

  

But there are other political forces at play in the Middle East.  And we have watched the development of competition in the region from other local interests.  Probably the most successful is Al Arabiya (The Arabic One), which is part owned by Saudi broadcasters.  

It was Al Arabiya that President Obama chose to broadcast his first televised interview, when he appealed for a new relationship with Muslim communities.  The political analysts see Al Arabiya as a more moderate alternative, providing less coverage to the campaigning elements in the Arab world.  


And it may be having an interesting impact, in that some analysts would go as far as suggesting that Al-Jazeera has tempered its coverage in order to keep its more moderate viewers.

 

But is it all about politics?  From our perspective it is so simple to boil this down to a battle between two news agendas.  We see the Middle East in terms of its political implications, the possible impact on our own security, and forget that there is rich culture that continues to develop.


It is too easy to link those agendas to a political view.  But Al-Jazeera and the Al Arabiya are not just news networks.  They are also cultural players in the Middle East.

The Al-Jazeera network has over twenty channels, a mix of free and paid.  It has taken a leaf out of the Murdoch approach and has offered football as the incentive for subscriptions.  They bought the rights to the World Cup, and the African Cup of Nations.   In 2009 it had 1 million subscribers, and it wants to boost that by 3 million over the next two years.  

Whilst the parent of Al Arabiya - MBC - is the dominant group within the Gulf States.  It has everything from Arabic talk shows to game shows; it imports US drama like Prison Break and Vampire Diaries; and has children's entertainment channel.

Why is the Middle East so important?

Of course there are the political and economic interests.  And we are often tempted to look at Murdoch's move in terms of a political agenda. 

But there are a number of reasons why TV in the Middle East is exciting.  Not least that this would be a base for Sky News, closer to the issues and less reliant on local media outlets.  And in a region that will continue to be important, there is considerable value. 

There is a tradition of free-to-air TV channels, mostly satellite, and it is estimated that there are about 600 in the region.  Those satellite broadcasters have a majority of the viewing audience (about 53%) over the terrestrial channels.


The emphasis on satellite means that channels are not just limited to national borders.  There are opportunities to work across sub-regions, and develop regional identities for the network.

And there is money to be made.  At the moment advertising revenues in the region are the lowest across the world.  Whilst ad spend per person in North America is about $462, it is about $273 in Western Europe - but just $22 in the region.  As GDP grows there will be opportunities to develop the advertising business.  So some of the smartest people are looking at how they can tackle some of the cultural barriers.

There is also potential to bring together traditional TV platforms with the social media.  It is a "young region", with about 55% of the population under the age of 25.  


This is community that is grabbing social media with both hands. There are local platforms like Jeeran, originally a hosting platform it now includes an Arabic blogging platform.  In a regional context it is a success, with 25 million page views a month and 1.5 million registered users. 


And Magazines like Majalla have moved online, and make use of the modern mobile platforms.  

There is also an important footnote to Mr Murdoch's venture, in that he is going into partnership with ADMIC, which is a private investment firm owned by Sheikh Mansour bin Zayed al-Nahyan.  That may allow a softer landing in the region.  It should open a number of doors that might be closed to BSkyB,  but it is not without some complexity (but not for discussion today).

So?

Of course we would expect a news channel in the Murdoch stable to take his political stance, and for that to drive its coverage.  That should be taken as read.  Creation of a new news network may provide another narrative for the Middle East, set against Al-Jazeera and other broadcasters like Al Arabiya.

But another station in the Middle East provides another base for Sky News.   That base also allows for coverage from a developing region, one that is politically and economically important.  And we know how inter-connected the world has become.  Tremors in the region can be felt right around the globe.  Having 'their people' on the ground and able to provide first hand journalism fills a gap.

And the Middle East is an exciting place for the media, it has a growing audience, plenty of commercial potential, and stations with satellite reach across many countries.   Overall there is the potential for further development, and for some broadcasters to carve out a new position in the region.

There are certainly commercial, journalistic and political reasons to be in the region.

   

• PS. As an aside the print industry in the Middle East also seems to be on the up.  The Editor and Publisher International Yearbook shows that from Morocco to Jordan the number of newspaper titles has risen from 144 in 2003 to 189 in 2009.  With daily circulation rising from about 10 million to 12 million copies.  And with literacy levels currently ranging from 50%-100% across the region, there is potential for a new generation of readers as educational standards rise.