Rapid TVNews reports that the pay-TV merger between Showtime Arabia and rival Orbit was concluded on time at the end of last month, according to reports out of Kuwait on Aug 11. A statement from Kuwait-based Kipco said the agreement was formally wrapped on July 31.The deal was announced last month, although no official valuation was given other than a very vague statement that the merger was worth “billions”. Neither was any information given as to who initiated the “merger”, although it is widely spoken of as a Showtime Arabia initiative. Showtime Arabia had reportedly bought out its Viacom minority partner in its Gulf-DTH operation. Kipco, an investment vehicle ultimately controlled by the Kuwait royal family, already controlled 75.3% of Gulf-DTH.

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Kuwait Projects Company (Kipco) has announced the merger of its satellite broadcast company Showtime with Orbit, one of the region's leading television companies.The deal brings together the Showtime and Orbit brands and operating platforms. The new company will become the leading pay-TV platform in the Middle East and North Africa (MENA).

The new company is a partnership between the Orbit Group, a member of the Riyadh-based Mawarid Group and Showtime Arabia, a subsidiary of Kipco. The deal follows statements by Kipco and Orbit Group calling for a consolidation of the region's pay-TV industry.

The new company will offer over 70 exclusive channels featuring the widest choice of exclusive first run Hollywood movies, premium sports, Arabic and international television entertainment.

The deal brings together the two core network operations comprising programming, marketing, distribution, broadcast technology and subscriber management systems. The merger offers customers superior programming choice, innovative decoder technology and the most complete pay-TV platform.

Mr Faisal Al Ayyar, Kipco's Vice Chairman, said the merger was good news for all concerned and another example of Kipco's successful business strategy.

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RapidTVNews reports that MGM Worldwide Television has signed a 5-year output deal with Gulf DTH/Showtime Arabia. It will see MGM’s programming appear on Showtime bouquets and covers VOD options.

Chris Ottinger, EVP/Worldwide Television, MGM, in making the announcement, said:  "We are pleased to collaborate with Showtime Arabia in bringing MGM's theatrical blockbusters to the movie fans throughout the Middle East and believe that the Show On Demand platform will be a tremendous asset in gaining exposure for MGM's films and growing our global VOD business model.”

"MGM's brand and its diverse selection of popular feature films will enrich our customers’ experience," said Marc-Antoine d'Halluin, President/CEO, Showtime Arabia. "We're very proud to add MGM's popular film franchises to Showtime's Pay TV and VOD services and look forward to exploring other opportunities with the studio."

RapidTVNews reports that during last month’s CabSat show, a scheme was agreed between major local broadcasters to see mainstream HDTV content made available. “Dream Channel is playing out an HD demo channel, and we're transmitting it in high-def. Also Showtime Arabia, ART and Egypt TV are co-operating on a promo channel as a pilot project," says Salah Hamza, Nilesat’s chief engineer.

"We have given this bandwidth free of charge, and hopefully consumers will see demonstrations of this in the shops, and understand what HD is all about. Once it is started we hope this will break the stalemate, and boost interest in HD. The channel should be on air within the next two months. Incidentally, we are building a new play-out centre for HDTV at our 6th October City, Cairo facility.”

“We are also looking to IPTV. We see Dubai as being a customer, and Sheikh Salah Kamel (of Arab Radio & Television) already has his own IPTV service. He is giving this to remote areas, and resorts. But what we are thinking is that IPTV could provide a home for special services, niche offerings. What we will introduce is the main distribution format, and then leave it to others for the final distribution. We will introduce ideas to broadcasters and would-be broadcasters. Our IPTV will not look like DTH. We can play-out from Cairo, from Amman and Dubai.”

Nilesat has just acquired a major slice of land alongside its existing 6th October City, in order to expand its facilities. A new admin-building has been constructed, and extra buildings for HDTV and the new satellite. “The most important element is that we are looking for new opportunities, and HDTV and IPTV both represent excellent opportunities. We see progress being made from both the pay-TV and free-to-air sectors.”

“Everything is on schedule for a June 2010 launch of Nilesat 201,” says Nilesat’s chief engineer Salah Hamza. “We have good co-operation from Thales to bring it in on time. Arianespace is also being very co-operative. Capacity sales are progressing well, and we now have an agreement in place with Eutelsat to help [the sales effort] and this makes our life easier.”

Hamza explains that since last November Nilesat itself has had zero surplus capacity to offer clients. “The incoming extra capacity will be marketed by ourselves. If you look to what we have available to us today, we are using 20 transponders from Eutelsat, part of this number are newly-released. But Nilesat 201 will have 24 transponders, a portion of which is replacement capacity as well as back-up. In the meantime we do not have frequency rights to add capacity, so the only alternative is to use Eutelsat capacity. Eutelsat, as they have announced will launch a new satellite for the area which will replace Hot Bird 10 which is designed for the Middle East. We are partners, but without a partnership agreement, and we are both working hard on this project.”

Rapid TV News reports that MTV Networks has unveiled plans on October 15 for an Arabic version of Nickelodeon in cooperation with Arab Media Group. The bad news for Showtime is that it will be free-to-air.

Showtime’s existing relationship with MTV Networks is to show Nickelodeon and MTV in their English-language forms with Arabic subtitles.

MTV says the new free-to-air version will launch to a potential audience of some 190m viewers. A website will be launched at the same time.

Arab Media Group is the largest media group in the UAE, with approximately 1,500 employees. It is the UAE’s largest radio operator, with eight radio stations under Arabian Radio Network. AMG’s other business ventures include Awraq Publishing, a publishing house with three daily newspapers under its umbrella; Arabian Television Network; Masar Printing; Done Events, which manages events from entertainment to weddings; and outdoor advertising division Shoof Outdoor.

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Showtime Arabia is mounting a major effort to win new subscribers in the Middle East, using English Premiership soccer.

Dubai-based Showtime spent a fortune to secure exclusive English Premier League soccer for its subscribers, and the marketing build-up has begun. Showtime will air every one of the 380 games kicking off August 11. Showtime has gone the extra mile, investing in new local studio facilities, local hosting (in English and Arabic) and has secured some top-line talent to host the pre-match coverage, and actual match commentary.

Showtime is dedicating up to three live channels (Showsports 1, 2 and 3) and Showsports Extra to manage up to four live games simultaneously. There are occasions when six games are being played at the same time, and the soccer games will pre-empt some programming on other channels.

Read more at Rapid TV News