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Open Forum: Development of the Arabic Content Facing the Future Internet
Vilnius Lithuania, 15 September 2010
Overview
The communication and information sector in the MENA region have experienced
significant growth over the past few years; mobile population penetration is
exceeding 100% in many countries (e.g. QATAR, UAE, KSA, Kuwait, Bahrain,
Oman) and internet household penetration is exceeding 30% in some countries (e.g.
Qatar, Bahrain, UAE). Despite the fact that more end-users are now connected and
levels of e-inclusion have been enhanced, the digital content industry is still in its
infancy. Currently, only 1% of all online content is in Arabic and apart from a few
cases, most MENA region countries score quite low in NRI (Network Readiness
Index) index of accessibility of digital content.
The MENA region has all the characteristics needed to enable a burgeoning digital
content market; macroeconomic, demographic and ICT policy enablers are all there.
Fast growing economies, young and vibrant population, mature mobile markets and
exponentially rising broadband markets are key strategic attributes that regional
markets should capitalize on. Regional ICT industry stakeholders should coordinate
efforts to unlock digital market potential and serve latent demand.
However, a set of key challenges hinder timely and effective development of the
digital content market. Factors such as shortage of skills and talent, inadequate
financing, outdated regulatory frameworks and lack of innovative business
models/revenue streams, restrict opportunities for start-ups/ entrepreneurs, while
impeding development of comprehensive digital media service offerings.
1. The MENA region has all fundamental macroeconomic, demographic and ICT
policy enablers that could drive growth in the digital content market:
– Arab nations population count around 358 million; extremely young and
vibrant population as over 50% of population is under the age of 24
– Total nominal GDP reached around US 1.6 trillion, representing 2.8% of
global GDP
– MENA region mobile and broadband penetration expected to reach 112%
and 41% respectively by 2014
2. Consumers behavior patterns are shifting, as users prefer digital over traditional
media:
– Regional digital media sector net advertisement spend is expected to grow
at 33% CAGR over the coming 5 years, as compared to 5-10% CAGR in
traditional media
– In a survey conducted in the region, it is found that in the GCC,
percentage of traditional media users significantly decreased between 2007
and 2008, while mobile and smartphone users considerably increased over
the same period
3. Emerging new digital media segments demonstrate differentiated ICT needs and
preferences
– Four digital media users segments have been identified: youth (34%),
professionals (4%), female socialites (32%) and leisure males (30%)
– Segments ICT needs and preferences span across digital media ecosystem
categories: infotainment, social media, commerce, communication, search
and applications
– In summary, digital segments’ underlying preferences are:
o Youth is more interested in recreation and entertainment (games),
blogging and education/ knowledge
o Professionals show preferences in information / work,
communication and knowledge
o Female socialites are more interested in amusement, lifestyle /
fashion and communication content
o Leisure males preferences are focused around amusement, news
and sports and personalization
B. Key Challenges
A set of challenges hinder the effective and timely development of the digital media
market in the region:
C. Required Imperatives
2. Incentives Models:
– Subsidize digitization process by funding specialized companies/experts to
deliver high-quality digitization in a timely manner
– Establish venture capital funds to ensure that the right ideas and talent have
access to funding and can be translated to viable commercial opportunities
– Attract international venture capital investments
– Encourage exploration of new business models in the digital content industry
and drive implementation of sustainable models through engaging industry
stakeholders
– Establish prestigious award institution(s) to develop regular well-publicized
competitions related to digital content
D. Role of ictQATAR
Qatar is well positioned to lead development of localized digital content, given its
common and unique strategic attributes:
– Freedom of content: no content filtering, empowering citizens and
businesses to self-regulate access to information and satisfy curiosity for
knowledge
– Strong media track record: Al-Jazeera success story
ictQATAR, as part of its ICT2015 strategy, has clearly set out priorities and initiatives
in developing a sustainable and self-reinforcing ecosystem that promotes
development of rich, open Arabic digital content, disseminated regionally and
globally.
3. Incentives Models:
– Support establishment of content digitization funding mechanism
(government subsidies, grants, VC funds)
– Facilitate development of new business models for digital content industry
(e.g. ad-funded, “digitize-on-demand”) and establish reward and
recognition mechanisms
4. Human Capital:
– Support incorporating digital media courses in university curricula and
encourage internships and international exchange opportunities