LONDON -- Middle East paybox Showtime, half-owned by Viacom, is launching all-Arabic movie channel Al Shasha (Flicks).
Deal follows the success of Arabic pay-per-view movies on Showtime, which normally focuses on English-lingo fare from Viacom companies including MTV, Nickelodeon and Paramount.
Showtime president Peter Einstein told
Daily Variety, "Even though we think about 85% of our subscribers are Arab nationals, and that they bought in to us because we guaranteed the best of the West, we wanted to ensure that there would not be a positioning issue with these viewers, and that they'd welcome pure Arabic content. Buy rates show that Arabic movies are equal, if not better, performers than Western movies."
Showtime has extended its PPV exclusive output deal with Cairo-based Founoon Films for the new channel.
"The launch of Al Shasha gives filmmakers like Founoon the opportunity to generate more revenue to fund future movies," Einstein said.
The appeal for Founoon is in reaching audiences in wealthy Saudi Arabia, where cinemas are banned.
Increased competish
Showtime already subtitles much of its 37-channel video output, but launching Al Shasha pits Showtime head to head with two rival pay platforms, Orbit and Arab Radio & Television (ART). Both concentrate on Arab-lingo material.
Orbit recently cut its maximum subscription rate to $30 per month, while ART has reversed a heavily promoted subscription structure by adopting a la carte pricing for its channels.
While both rivals are losing money, Einstein said Showtime (monthly fee $59) is now cash-flow positive. "We are not changing prices one penny. We are sticking to our strategy, which is always to add value," he said.
Einstein said Showtime is in discussions with Dubai authorities about building a facility in the emirate's Media Production City, which offers attractive tax breaks for companies.
He added that while it's still early, the next step may well be taking Showtime public.
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