Egypt the next big thing for MBC

The Dubai TV broadcaster's Masr channel is scheduled to go on air next month. MBC's chief executive is convinced the North African country has 'large potential' for advertising growth.

Every picture tells a story: inside MBC's control room in Dubai Media City, the company's headquarters. Pawan Singh / The National

The Arab world's biggest television broadcaster is tuning into the potential of Egypt.

MBC, which is based in Dubai, plans to launch a channel catering specifically to the North African country as the broadcaster forecasts strong growth in the local advertising market.

MBC Masr aims to go on air next month, and will be the broadcaster's 12th station.

The launch comes as MBC looks to gain ground on Al Hayat, which runs the top-three channels in Egypt.

Sam Barnett, the chief executive of MBC Group, is convinced there is "large potential for growth" in Egypt's overall advertising market.

"We would imagine that, all going well, it should be able to sustain a 15 to 20 per cent growth rate, year by year, over a long period of time," he said.

Egypt's advertising industry was hard hit last year as political turmoil triggered a 30 per cent decline in spending. But advertising revenue is predicted to be worth US$505 million (Dh1.85 billion) this year, and to grow 7.7 per cent annually to 2015.

In an interview with The National, Mr Barnett explained the appeal of the Egyptian market, and broader TV trends in the Arab world.

q What is the strategy behind launching MBC Masr?

a Mr Barnett: For many years, we have observed that while we get around 100 million viewers a day, advertisers are only paying for a small fraction of those. We have a lot of viewers which we have been unable to monetise. So we'd like to try and tackle some of the most attractive markets. Egypt we see is clearly going to be a huge market going forward.

What proportion of the shows on the new channel will be created specifically for the country?

Prime time will be dominated by local productions. We've got 300 Egyptians working for us. We have a lot of local knowledge and we'd like to try and [build on] that, to create a channel that will compete in the Egyptian market. Andso a key part of MBC Masr will be the local production component. But we will add on to that shows which will work pan-Arab.

What's your target for advertising?

There is room for a player like MBC. And as the market grows, we should be able to make this channel pay.

Would you have launched the new channel were it not for the change of regime in Egypt?

We're a commercial company, so we respond to commercial events or phenomena. There is now potential for significant growth in Egypt. And I think it's that potential for growth that we're responding to, rather than the political situation. The market can grow very fast.

Do you have plans to launch other country-specific channels?

We'll be doing everything we can to make sure that [MBC Masr] is a success. We would love to build on that. And our eyes will be open to do that.

How many country-specific channels do you think you'll launch over the next five years?

That will depend upon the state of the technology, how we are broadcasting, and the licences.

You've brought a string of high-profile formats to the Middle East, such as Arab Idol. Are we to expect more to come?

We're constantly searching for the next big thing. We've got three really strong formats at the moment, and we are constantly looking for the next one.

How has the Arab advertising market fared this year?

We were nervous about 2012. But actually, it has turned out better than we anticipated, and we've seen strong growth. Our strategy of capturing core anchor shows, Arabs Got Talent,Arab Idol and The Voice, has been successful in drawing in advertising revenues. But also we see that the market environment is healthier than it was last year, and the uncertainty has dropped.

How were advertising revenues during Ramadan?

Growth has continued in Ramadan. That period is important for us because it's the month where you create a lot of your brand equity. Actually, in terms of revenues, it's similar to other months. In the past, Ramadan was 30 per cent of your revenues for the year; over time, that has diminished.

Is that a good or bad thing?

I think it's a good thing because otherwise you've got a highly risky month. You get it wrong, and your year is shot. Whereas now, it's one month among 12. But it remains very important because of the number of people watching, and the critical attention towards the TV that we produce.

MBC's Ramadan drama Omar, which depicted a companion of the Prophet Mohammed, caused controversy. What's your view on that?

The controversy went down once Omar started to play. My impression was that people saw that it was a decent, well-made production, and that it espoused a lot of positive values and wasn't in any way disrespectful. So that reduced much of the anxiety that people naturally felt when dealing with these sensitive topics. The ratings showed that it was the Arab world's highest-rated historical drama.