Web TV gets a warm reception in Middle East

Channel surfing has taken on a whole new meaning with the advent of video content available via the internet. Already established in Britain and the United States, it is taking hold in this region.

The media transfer room at the Al Arabiya Studios in Dubai. Broadcasters such as OSN and MBC are rolling out Web-based services. Jaime Puebla / The National

The internet is changing the way we view television.

Already, about 10 regional Web television services have been launched as more viewers in the Arab world watch films and TV series online.

Traditional stations still rule the airwaves, with business expected to be worth up to US$2.5 billion (Dh9.18bn) this year, but they now face fresh competition.

In a brave new high-tech world, TV networks are being forced to adapt as a number of young, agile regional start-ups break into the online market.

These include Cinemoz, Shofha.com and Istikana, which features more than 3,000 hours of Arabic series and films and is available on the internet free of charge.

"Web TV will completely revolutionise how video content is distributed and consumed," says Samer Abdin, the co-founder of Istikana.

"In markets like the US, it's gaining momentum pretty quickly. Here, we're a couple of years behind. But it's just a matter of time."

Arab internet customers are among the world's hungriest for online video. Sites such as YouTube are booming in the region, with viewers in Saudi Arabia ranking among the world's biggest users of the video-sharing site.

But old-fashioned broadcasters have been quick to respond, with OSN and MBC rolling out Web-based services.

"It's not that broadcasters are going to die, it's that they need to adapt," says Nick Grande, the managing director of ChannelSculptor, a television consultancy in Dubai.

Mr Grande points to British Sky Broadcasting (BSkyB) in the United Kingdom, which has started broadcasting its channels on tablets, smartphones and laptops via a service called Sky Go.

"[That shows] conventional broadcasters can become major players in the internet space," he says.

Here, OSN, which is based in Dubai, is one regional broadcaster to have embraced internet TV. In March, it launched OSN Play, an online "catch-up" service for its TV series and films.

"OSN Play is strategically a very important move for [the company]," says Mr Grande. "If they don't do it, somebody else will."

The Web TV service is available on PCs and laptops, and OSN plans to provide it on smartphones, the iPad and gaming consoles.

Emad Morcos, the vice president of business development and strategy at OSN, revealed that the broadcaster was also looking to get OSN Play into customers' living rooms.

The broadcaster is in talks with regional telecommunications companies to carry OSN Play on their cable TV services, and it is also in discussions with electronics manufacturers to put it on internet-enabled TVs.

Electronics manufacturers, notably Samsung, have been keen to push "smart" TVs, some of which feature application stores similar to those linked to smartphones such as the iPhone.

Mr Morcos said he saw "significant" potential in people using apps to view TV in the future.

"Inevitably, more and more people will be using apps, whether it be on a connected TV, tablet or laptop," he says.

But then, the living room will be the real battleground for the new players in the TV industry.

The rise of the connected TV, with apps for different channels, could mean that Google or Samsung becomes as powerful in the TV business as the likes of MBC or OSN.

"People are going to try to recreate the Apple App Store with TV," says Mr Abdin. "That will be your main interface to get to all this content."

Yet, despite the rise of internet TV, on-demand video and channel apps, there will still be a role for regular stations.

"Where [it] will always have a place is on live events, news, and probably first airings. You aggregate a lot of people at the same time, and I think advertisers like that," says Mr Abdin.

MBC, the Arab world's biggest broadcaster, is also broadcasting its shows online.

Its Shahid.net service, which is free and supported by advertising, claims to have had almost 3 million individual users in March. It is available on PCs, and an iPad application is about to be launched.

Abe Naga, the online business manager at MBC, says most of the broadcaster's shows are available on Shahid.net.

"Our plan is to become a catch-up service for TV in general. We are currently in the process of signing up more channels," he says. "We're starting to see a lot of interest from the market. Video advertising is one of the buzzwords of the year."

Despite the rise of Web TV, Mr Naga says there will always be a role for regular TV stations: "I don't see online overtaking television, but I see them working together."