It is probably only a matter of time before high definition technology transforms the broadcasting industry in the Arab World and viewers are able to enjoy an image ten times sharper than the one currently on their screens. The speed at which this transformation will take place will depend on how enthusiastically different components of the industry embrace the new technology, as well as on the willingness of the public to invest in new, more expensive television sets. Given the intense competition between the major stations – and despite the considerable skepticism among some professionals – the transformation could come sooner than later.
In Europe HDTV is already a reality, pioneered by Euro 1080 in 2004 with HD1, and since then channels HD2 and HD5. In the United Kingdom, UKTelewest will launch a full high definition service this year, and the BBC announced that trials of HDTV were to begin in 2006 with some existing output already filmed in the format. By 2010, all BBC programs will be produced in HD. In France, subscription television operator TPS began broadcasting several HD channels in 2005. In Japan, terrestrial broadcast of HD started in December 2003 with an estimated two million HD receivers sold already, while in the United States, HD programming is currently carried by all major television networks, including ABC, CBS, NBC, Fox, and PBS.

What of the Arab World?
In the Arab World, two broadcasters have already announced plans to transmit in high definition. Al Jazeera International, the English-language news channel that is to be launched this Spring, will broadcast all of its programs in high definition. And the Jordan-based ART, who has acquired exclusive rights to the broadcast of the World Cup to the Arab World, will transmit all of the 64 games in high definition. However, despite the fact that tens of millions of Arab soccer fans are expected to be glued to their sets for the course of the tournament this June, the number of those likely to take advantage of ART’s HD signal may be modest. “None of us thinks that there are six people in the Middle East who can receive high definition,” says the head of ART Sport Charles Balchin. Consumers, he argues, are reluctant to pay large sums for HDTV sets and decoders when so little HD content is available. “No one,” he predicts, “will buy HD equipment for just one month.”
Balchin may be underestimating the Arab passion for the World Cup, particularly as Saudi Arabia and Tunisia have both qualified for the finals. If soccer aficionados are willing to pay thousands of dollars for a ticket to one game, they are likely to be willing to buy a new set to watch the games in higher definition. However, so far the market for HDTV sets remains sluggish. Beirut-based Panasonic executive Varouj Balian says sales are slow, although “picking up.” While prices are high, ranging from $2,000 to $15,000 for a set, it is the fact that there is no HD programming that keeps sales down, he says. Even those who are interested in purchasing sets, are unaware that they are of little use at this stage, says Balian, and when they find out, they are less enthusiastic about the purchase. “It will take two or three years to achieve an acceptable penetration rate for HDTV sets.” The speed with which consumers respond will depend, he predicts, on how much HD programming is available. At current rates, ART’s Balchin expects a 15 percent penetration rate in the consumer market in four years, with 50 percent in 2014.
Heads of the technical departments at a number of stations, including Hassan Sayid Hassan of Al Rai TV, Nassim Boustany of LBCI, and Hassan Chahine of Dubai TV, see a quicker transition and expect HD transmission in the Middle East to take off in four to five years, with a corresponding impact on consumer behavior. And while some are cynical – Paul Farnsworth, head of the technical department at Al Arabiya says: “I’m an engineer and I watch standard definition and I’m quite happy with it. I don’t think people want HD” – the trend, like it or not, seems unstoppable and inescapable. Experts advise stations that are still operating in analog and want to update to digital, to go ahead and make the leap to HD. By eliminating one step from the inevitable process, in the long run they will save on costs.

HD Production: Demand and Supply
the Arab World are steering steadily into the new technology, despite a widespread willingness to recognize its advantages. High definition offers better resolution; its equipment allows for faster editing times; and to the untrained eye, HD quality is identical to the more expensive film production, while being much cheaper. Forty minutes of a 35 mm reel cost around $3,500 against a very modest $100 on a HD tape. The expense of 35 mm reel also include the added charges of developing and printing, both of which are unnecessary in HD. Cost cutting should provide strong incentives for producers and directors alike. Even when the broadcast is in standard definition, producing in HD and converting to SD will result in an improvement, significant enough for television viewers to notice, says Hassan Chahine of Dubai TV.

A Growing Trend but there are the hurdles
houses say that business is good and that despite their large investments they expect to break even within the next couple of years, Marwan Tarraf bemoans the fact that many clients “have failed to understand HD.” Many, he says, “still confuse between HD Cam and HDV.” While HDV offers a far better resolution than standard definition, HD cameras offer key differences in sharpness and picture quality. “It’s not enough that a camera processes the image through multiple electronic devices or high resolution specifications, but the lens also plays an equally important part. An HD lens is primarily made of glass, instead of plastic and has a retail price of around $70,000. “People here still confuse a $150,000 camera with one for $5,000.”
VTR Beirut, an $8 million post production facility, has processed around six HD projects in 2005, including Darkside’s Bosta. VTR’s operations manager Jem French says that the number of short promotions shot in HD has grown since last year and he forecasts a lot more for 2006. “I would expect more than double the amount…Producers are getting used to the idea,” he says. French suggests that large production companies, “such as Rotana,” have an important role to play with HD expansion in the region. “If they decide they’re going to change the way they work, then it’ll have a big effect.”
The chief creative officer at Fire Horse Production says she is waiting for this change to take place before her company begins production in high definition. Mouna Mounayer believes that production and post-production companies will not make the switch unless the demand for HD becomes overwhelming. “People have already spent a lot of money for their machines, and small businesses can’t afford to continually reinvest.” Mounayer says that there is currently only one regional broadcaster, which she declined to name –but who is known to be MBC—that insists that all production be in HD. All others, she says, have no such restriction. While Mounayer says she is “excited about the high definition potential,” she sees HD as far from being the common fare of everyday production any time soon, as long as “few people are actually qualified to shoot in the new technology.” Mounayer says she is not concerned about the ability of technicians to operate the camera, but about creating the suitable ambiance for HD production. “HD is not a forgiving medium, if you over-light or under-light the set it will be horrible… as a director, this worries me.”
houses say that business is good and that despite their large investments they expect to break even within the next couple of years, Marwan Tarraf bemoans the fact that many clients “have failed to understand HD.” Many, he says, “still confuse between HD Cam and HDV.” While HDV offers a far better resolution than standard definition, HD cameras offer key differences in sharpness and picture quality. “It’s not enough that a camera processes the image through multiple electronic devices or high resolution specifications, but the lens also plays an equally important part. An HD lens is primarily made of glass, instead of plastic and has a retail price of around $70,000. “People here still confuse a $150,000 camera with one for $5,000.” VTR Beirut, an $8 million post production facility, has processed around six HD projects in 2005, including Darkside’s Bosta. VTR’s operations manager Jem French says that the number of short promotions shot in HD has grown since last year and he forecasts a lot more for 2006. “I would expect more than double the amount…Producers are getting used to the idea,” he says. French suggests that large production companies, “such as Rotana,” have an important role to play with HD expansion in the region. “If they decide they’re going to change the way they work, then it’ll have a big effect.” The chief creative officer at Fire Horse Production says she is waiting for this change to take place before her company begins production in high definition. Mouna Mounayer believes that production and post-production companies will not make the switch unless the demand for HD becomes overwhelming. “People have already spent a lot of money for their machines, and small businesses can’t afford to continually reinvest.” Mounayer says that there is currently only one regional broadcaster, which she declined to name –but who is known to be MBC—that insists that all production be in HD. All others, she says, have no such restriction. While Mounayer says she is “excited about the high definition potential,” she sees HD as far from being the common fare of everyday production any time soon, as long as “few people are actually qualified to shoot in the new technology.” Mounayer says she is not concerned about the ability of technicians to operate the camera, but about creating the suitable ambiance for HD production. “HD is not a forgiving medium, if you over-light or under-light the set it will be horrible… as a director, this worries me.”

HD Broadcasting: Show me the money
For broadcasters, costs will be a significant factor. Al Jazeera International paid 50 million euros ($60 million) for a full high definition solution from Thomson-Grass Valley. LBCI’s Nassim Boustany says that their studies shown 40 to 60 percent increase in equipment costs migrating to HD. Al Rai TV’s Hassan says that his station has allocated one million dollars for HD production and post production equipment but will not go any further until they closely monitor the results of ART Sport and Al Jazeera International’s HD broadcasts. “We started our venture in 2004. It would not be financially feasible to fully switch to HD now,” he says.
According to Nigel Spratling, owner of Mavens, a US broadcasting consultancy firm which was responsible for setting up the first ever HD station in the Middle East during the MEB2005 exhibition show in Beirut, the real cost of switching to HD is in the need to replace the standard definition infrastructure and equipment. High definition cameras cost around 10 percent more than their SD counterparts, however the station would have to replace switchers, mixers, graphic systems and other equipment. The good news is that the markup costs are going down. Ramzi Shakra, Marketing Director of Doremi Labs, a US HDTV solutions manufacturer, says that their cheapest converter now costs only $3,500, far cheaper from when they were first introduced. Spratling relates the drop in prices to the increase in processing power. “Back in the days, computing horsepower was very expensive. Today, it’s incredibly cheap.”

Getting the signal out
Dubai TV's Chahine believes that broadcasters in the region are not ready yet to pay for the costs of HD transmissions via satellite. Currently, HD broadcasts use the conventional MPEG2 format which takes up a whole satellite transponder of 36Mghz. “At the moment HD is just silly,’ says Al Arabiya’s Farnsworth. “We’re talking about taking the whole transponder for the same channel. It’s too expensive.” According to Arabsat, leasing the full capacity would cost a station $3million a year. Generally, one transponder can house up to 12 SD channels, at a cost of $250,000 a year per channel.
In time, things could change. “If you wait, there might be a better format that will occupy less bandwidth,” Chahine says. Already in the offing, the MPEG4 format will reportedly be compressed into a sixth of the MPEG2 bandwidth. Spratling says some MPEG4 encoders will be released later in 2006, and will retail at $39,000.

Both chicken and egg will come first
Despite the costs, the reticence and the skeptics, the major broadcasters in the region seem to be slowly migrating to HD. Fadi Boustany, general manager of Pharaon Broadcast, agents for Thomson-Grass Valley equipment, says that Dubai TV is planning for new HD control rooms and that “a couple of Lebanese television stations” are already in talks over Grass Valley high definition solutions. Al Rai TV and LBCI will start shooting some of their programs and promotions in high definition in 2006. “By shooting in HD, we will be creating an archive for the next four to five years when HD will become a common format,” says LBCI’s Boustany. “We have to give consumers enough HD content to convince them to make the switch with us,” says Al Rai’s Hassan. “You cannot ask the viewer to switch when you are transmitting 20 percent of your content in HD,” says Chahine of Dubai TV. “It’s like selling a boatload of fish when you’re still at harbor.” The key will remain in the content – not just in whether it will be available, but in whether the quality of production will be such as to take full advantage of the new technology so that the consumer feels that new and expensive TV set is worth the monthly installments.