1. Sources: Industry Reports Pan Arab Media Landscape ( Recession Effect) Shariq Faraz [email_address] An overview of the Arab World’s Media industry in the current Economic downturn August 2009

2. Contents Media Industry Context Economic Recession Effect References

3. Current Global Media Context Global Media & Entertainment Industry Value Total $ 1.3 Trillion ($1.3 Thousand billion; $ 13 Thousand Million Split of Total Global Value created by Various Media Percentage Split of Total Global Value Created by Various Media Source: Picard 02 Europe, Middle East & Africa 35% US & Canada 45% Asia pacific 20% Latin America 0% Traditional Media 64% Sports & Amusement Parks 15% New Media 21%

5. Satellite Broadcast in the Pan Arab World Free to Air Satellite Channels by Languages Free to Air Satellite Channels by Regions Free to Air Satellite Channels by Ownership FTA Satellite Channels riding Multiple Satellite to amplify reach Nilesat Arabsat Noorsat

8. Convergence in Regional Media Digital Convergence

9. Convergence Situations Involving Media Platforms and Producers Print Audio recordings Broadcast Convergence is being actively resisted Motion pictures Some convergence is spurred by common interests in soundtracks and distribution systems Strong linkages have been formed in visual entertainment sectors Online Convergence producing limited benefits Convergence producing limited benefits Global illustration Source: Picard 05

12. NMC (Regulatory Body) Viewers Syndicators Advertisers Channels Program Producers Money Money Audiences Programs Time Political Process Licenses Compliance with guidance Programs Money Money Programs Money Programs Inter dynamics within the contemporary Pan Arabian TV industry Weak Strong Sources: Harold L. Vogel; 2007

14. Contents Media Industry Context Economic Recession Effect Appendix

18. Lessons from the past…. Effects of Recession on Consumer Expenditures for Books in the UK 1992-1994 (U.S. $ Millions) Advertising Revenue of the US Newspaper Industry during the 1990-1991 Recession (U.S. $ Millions)

19. Although Indian film industry released 1000 movies in 2007 compared to 590 for Hollywood, Bollywood is still a smaller market with its domestic box office takings of $1.8bn and $214mn overseas in 2007 and compared to Hollywood’s $9.6bn and $17.1bn Before the Economic crisis Bollywood was witnessing an increase of 15% in its domestic box office earnings to $1.8bn compared with a growth of just 2% in US. The growth was driven by rise in construction of multiplexes; boom in Pay TV Industry with 350 channels on air waves (of which 201 are news and current affairs,180 non-news ,67 private channels uplinked from abroad). International investors such as Viacom, NBC, Disney invested $1.5bn in Pay Tv & Movie ventures. As Economic crisis set in advertising & sponsorship revenue has dried up. Pay TV stations slashed their price by 60% to get film rights. Slowdown has halted big investors like Reliance expansion plans and co funding project with Spielberg worth $500-million. The market trend of internationalization is negative currently. India's entertainment industry, appears to be thriving nonetheless as compared to others given its growth phase in industry life cycle . The slump in consumer spending due to the economic downturn has hit the European media and entertainment industries. PwC estimates that the average net debt to earnings ratio for European media companies has risen from 2.8 times to 3.1 times over the past year. Economic crisis has aggravated the potential financing threat faced by media companies should the macro-economic conditions persist . Hollywood runs on credit. $15 billion was invested into films btw 2005-08 by Wall Street banks and hedge funds . The financial crisis is forcing these investors to pull out of billions of dollars worth of film deals; opening the door for specialty investors to scoop up Hollywood assets at discount prices. Securing financing in the new environment has become much harder shrinking supply chain. Approx 200 films are slated to hit theaters in 2009, down from about 219 major studio releases in 2008 and 236 in 2007. Int’l Media Market Post Recession’ Onset

20. Contents Media Industry Context Economic Recession Effect References