TV mergers on their way

The recession has put the squeeze on free-to-air TV broadcasters, and the sector will see mergers and consolidation, according to a Booz & Co analyst.

Speaking to DigitalproductionME.com, Gabriel Chahine claimed a number of players were in “serious talks”, although he refused to name names. Spoilsport.

“In the next 12 months, I expect to see a number of mergers among major TV broadcasters operating in the GCC. Smaller thematic channels, however, will not be able to sustain themselves and many will close down,” said Chahine, quoted on the site.

his is despite advertisers such as Procter & Gamble claiming to share the love when it comes to ad spend across different channels, with the aim of fostering competition. Maybe there’s just a bit too much competition at the moment...

DPME.com also cites a Booz & Co report which suggests the MBC group is still by far the most dominant player in the regional FTA TV sector, with 43% of the market, compared to 11% each for LBC-Rotana and Saudi TV, and single digit percentages for players such as Al Jazeera, DMI and Abu Dhabi TV.