Markaz Sector Report 2013

GCC Media
Moving from a print age to digital age

Research Highlights

Understanding and analyzing the dynamics of GCC Media Industry, its revenue components, ad-spending trends, key demand drivers and challenges faced.

MARKAZ SECTOR RESEARCH GCC Media 2013 March 2013

Research M.R. Raghu CFA, FRM | Head of Research rmandagolathur@markaz.com Murtaza Pattherwala | Senior Analyst mpattherwala@markaz.com

Suppor Jenevivu Lasrado | Secretary, Research jlasrado@markaz.com Nael Aboul Huda | Manager, Media & Communications naboulhuda@markaz.com

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MARKAZ SECTOR RESEARCH GCC Media 2013 March 2013

Table of Contents
1. 2. 3. 4. Executive Summary ......................................................................................................... 5 Overview .......................................................................................................................... 7 Media penetration ......................................................................................................... 13 Print ............................................................................................................................... 17 Newspapers...................................................................................................................... 17 Magazines ........................................................................................................................ 34 5. 6. 7. Television ....................................................................................................................... 39 Digital and Social Media ................................................................................................ 47 Demand Drivers ........................................................................................................... 544 Improving literacy rates .................................................................................................... 55 Favorable demographic pattern ......................................................................................... 56 Higher per capita income .................................................................................................. 57 Revolution in the mobile phone market .............................................................................. 58 Advancement in technology ............................................................................................... 59 8. Trends and Challenges in the GCC media industry ....................................................... 60 Digital vs. Print media ....................................................................................................... 60 Economic crisis vs. Ad spending ......................................................................................... 60 Social media vs. Political upheaval ..................................................................................... 63 9. Conclusions .................................................................................................................... 65

Appendix 1: Audited magazine circulation data for the UAE ............................................... 66

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MARKAZ SECTOR RESEARCH GCC Media 2013 March 2013

Tables
4.1 4.2 4.3 4.4 5.1 7.1 8.1 Freedom status of the GCC countries, 2012 BPA audited magazine circulation data, Kuwait, Dec 2011 BPA audited magazine circulation data for top 15 magazines in the UAE, Dec 2011 BPA audited magazine circulation data, Bahrain, Dec 2011 FTTH Subscribers Growth YoY, 2011 Number of mobile telephone subscription in the GCC US Ad Spending Down 9% in 2009 2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 5.1 5.2 5.3 5.4 6.1 6.2 6.3 6.4 6.5 6.6 6.7 7.1 7.2 7.3 7.4 7.5 8.1 8.2

Charts
Ad-spend in GCC by region, (US$ mn), 2007-2012 Advertising revenues growth in GCC Global media share of ad spending (2011-2013) Breakdown of Ad-spend by segments in GCC, 2012 Global media growth 2012-2013 Internet penetration in GCC countries (Jun-2012) TV penetration by broadcast type in GCC countries, 2011 Mobile phone penetration in GCC countries, 2011 Fixed (Wired) broadband penetration (2011) Social media sites penetration Global Newspaper circulation growth in 2011 Newspaper circulation in GCC countries (in mn) Freedom of Press by country in 2012 Number of newspaper titles vis--vis population (2011) Number of newspaper titles in Kuwait Newspaper circulation in Kuwait (in 000), 2011 Market share of top 10 newspapers in Kuwait, 2011 Newspaper circulation in KSA (in 000), 2011 Market share of top 10 newspapers in KSA, 2011 News- Content of interest as % of internet reach Newspaper circulation in UAE (in 000), 2011 Market share of top 10 newspapers in UAE, 2011 Newspaper circulation in Oman(in 000), 2011 Market share of top 10 newspapers in Oman, 2011 Newspaper circulation in Qatar (in 000), 2011 Market share of top 5 newspapers in Qatar, 2011 Newspaper circulation in Bahrain (in 000), 2011 Market share of top 5 newspapers in Bahrain, 2011 SWOT Analysis Print Media Number of FTA channels in the Arab World Highest share of FTA broadcasting in the Arab World, 2011-12 Pay TV subscriber base in MENA Ranking based on FTTH deployment globally, 2012 Facebook user growth in GCC countries Share of GCC social media users who felt digital networks empowered them to influence change in their community Facebook penetration in the Arab world Youth population dominate the Facebook usage LinkedIn penetration in the Arab nations (as of Jun-12) Twitter penetration in the Arab nations (as of Jun-12) Global digital ad spending (USD billion) and share (%) of overall ad spending Literacy rate in GCC countries Population Growth in GCC (Million) Population Breakdown in the GCC by Age-group, 2009 Population Breakdown in the GCC by Age-group, 2020 GCC per capita income levels (in USD), 2012 Factors influencing shift from traditional to digital media Effect of economic crisis on US ad spending by sector: 2008 vs. 2007

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MARKAZ SECTOR RESEARCH GCC Media 2013 March 2013

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