New horizons

With the merger of Orbit and Showtime complete, the newly formed company's president and CEO Marc-Antoine d'Halluin says the final quarter of 2009 is shaping up as a watershed period for the pay TV operator.

Marc-Antoine d'Halluin is understandably proud of the fact the merger of Orbit and Showtime, two formerly fierce rivals in the Middle East and North Africa (MENA) pay TV sector, has occurred not just smoothly, but in "world record" time.

"You simply wouldn't achieve what we have managed in such a short period in any other major television market," he says. "In Europe, you would have to receive approval from various regulatory authorities, not least the European Union itself.

"In the Middle East you just don't have to deal with that type of bureaucracy."

Yet, the speed at which the merger has been finalised belies months of behind the scenes negotiations between the two operators, culminating in July's much anticipated announcement.

D'Halluin concedes that the company, which has officially been rebranded Orbit-Showtime, still has some way to go before it realises the operational efficiencies and commercial opportunities the merger promises. This fact is best illustrated by the operator's decision last month to launch a ‘new' channel bouquet consisting of 75 channels - a positive development, yet one which merely equated to the formal integration of each operator's existing channel line-up.

The company has moved to leverage its stranglehold on the first-run feature film business by offering 15 movie channels in the new bouquet. The merged entity currently maintains exclusive distribution rights with every major Hollywood film production studio.

Other highlights include expanded television news services and documentary channels, including the full roster of Discovery, History and National Geographic offerings.

Yet, the sheer scale of the revamped bouquet suggests there is room for rationalisation in the future, a proposition endorsed by d'Halluin.

"Our 15 movie channel roster is comparable to Sky's offering in the UK," he says.

"However, we probably don't need 15 [standard-definition] movie channels moving forward, so there may be some consolidation. We might settle on a combination of 10 SD and five high-definition (HD) movie channels, for example."

D'Halluin describes HDTV as the next major television industry battleground in the MENA region.

He expects Orbit-Showtime to be at the forefront of future developments, particularly following the launch of the operator's first HD channel in July.

"The channel has proven very popular with our subscribers," says d'Halluin. "We're also broadcasting three English Premier League (EPL) games in HD on a weekly basis, but to be honest, these developments represent the tip of the iceberg in terms of our HD plans."

Indeed, d'Halluin reveals Orbit-Showtime plans to launch "six to 12 HD channels within the next six months".

"We will launch a critical mass of HD channels - perhaps as many as 12 - before the end of the year," he says.

D'Halluin claims the introduction of HDTV services will also provide the pay TV operator with an opportunity "to reset the [commercial] balance, which has tilted towards the free-to-air sector in recent years".

"Consolidation is inevitable in the FTA market," he says. "The recession has demonstrated that the current FTA landscape is untenable.

"The pay TV market holds the key to HDTV services in the Middle East. It provides a perfect landscape for the introduction of these services. You can control the rollout of HD STBs and you can place a commercial value on these services."

HDTV also provides an opportunity to reinvigorate the industry's fight against rampant piracy, the Orbit-Showtime chief argues.

"The pay TV industry must shoulder some of the responsibility for creating an environment which allowed piracy to spiral out of control," d'Halluin says. "It was wrong to advocate an open platform when the industry was first established.

"However, we are working to ensure our HD services are eminently more secure. We are going to close the loop on these pirates, which should ensure we gain access to the revenue streams currently denied to us."

In regards to Orbit-Showtime's cable network deals with UAE telecommunications service providers Etisalat and du, d'Halluin says the pay TV operator plans to "coordinate with both partners to secure revenue streams that are meaningful to us".

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