Murdoch’s Mid-East safari

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Rupert Murdoch is linking with key News Corp investor Prince al-Waleed bin Talal to launch two channels over Arabia. The decision is another body-blow to the region’s local pay-TV rivals.

News Corp will launch two 24-hour free-to-air channels, one covering movies, the other showing US imports. Fox Movies will launch first, in May, while the second channel will air in the autumn, probably around November.

James Murdoch and Prince al-Waleed (pictured, left) discussed the deal when the two met at the Prince’s Riyadh, Saudi Arabia headquarters in January. It has been reported that the channels will be owned by Fox but will depend on Prince al-Waleed’s Rotana staffers based in Dubai for management, and ad-sales for income. Ad revenues will be shared. The channels will be uplinked to NileSat from Cairo.

The decision is another nail in the coffin of pay-TV broadcasting in the region. ART, Orbit and Showtime are still trying to gain a meaningful income out of pay-TV, especially challenging when there are upwards of 250 free channels now broadcasting, and plenty of them beaming out quality programming.

Orbit, Arab Radio & Television (ART) and Viacom-backed Showtime Arabia have been selling pay-TV subs since 1994 and none of the players has managed to break through into mass-market propositions, or significant profitability.
 
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