< PreviousAkawi says the global economic crisis that has come as a result of Covid-19 does not bode well for production houses that have to contend with added costs while working on slashed budgets. 7 Production found itself in a similar situation at the height of the lockdown. Lara Ghanem, regional director, 7 Production said: “The events industry is the last industry that will get back on its feet simply because its’s all about gathering crowds and that’s the number one thing that shouldn’t be happening right now. Our operations took a serious hit along with all other companies and business came to a complete standstill.” But in the weeks that followed, 7 Production’s leadership rallied together to complete unfi nished tasks and improve business processes, more on that later. The impact on operations caused by the pandemic hit major corporations as well. Industry powerhouses such as Discovery also took a hit to its operations. Discovery’s MEA and Turkey general manager Amanda Turnbull confi rmed that fi lming had halted at its newly revamped Fatafeat studio in Dubai Production City, in the immediate aftermath of the pandemic. Meanwhile, hardware and software suppliers faced output challenges: Several scaled operations down while some shut shop altogether. LED lighting manufacturer Astera, for instance, dedicated part of its production facility to the fight against Covid-19 by energising its 10,000 m2 factory in Shenzhen, along with upskilling workforce, to assist with the delivery of essential personal protective equipment (PPE) items, including face masks. Meanwhile, a handful of companies were not severely impacted as was the case with Aret Video and Audio Engineering. Dr. Eng. Raff aele Farinaro, presales engineer, Aret said: “From the beginning, we took strict measures to prevent the infection of anyone, and to protect the health of our employees, clients and business partners according to the law. Amanda Turnbull, general manager, Discovery MEA and Turkey. Alaa Akawi, founder — executive director, Artology Creative. Lara Ghanem, regional director, 7 Production. Nick Grande, CEO, Mena.tv. ovid-19 has impacted regional studios and the wider production and broadcast industry. The most adversely hit industry, however, is the events sector. Live sports, and the subsequent spectacle of its broadcast, have been suspended since March, along with major trade shows that facilitate content buying and distribution. A few countries have slowly but surely begun to open their economies, and with it the resumption of certain businesses. It might be some time before events and sporting activities welcome spectators. But studios have begun functioning with social distancing practices in place. Looking back Alaa Akawi, founder — executive director, Artology Creative summarises the situation that the industry found itself in as the pandemic spread its global reach. He says: “Covid-19 managed to build fear in people’s minds and forced us to stay away from each other in order to stay safe. Filming involves being in close contact with the crew, cast, and interacting with one another on set. The pandemic has put this practise at risk and as a result has aff ected the businesses and the entire fi lm industry.” C “WE IMPROVED OUR INTERNAL OPERATIONS, INTERNAL INFRASTRUCTURE, STREAMLINED OPERATIONAL PROCESSES TO MAKE THEM EVEN BETTER. WE STARTED BUILDING THE 4K OB VANS WHICH WERE MEANT TO COME ONLINE DURING CABSAT IN MARCH.” LARA GHANEM, 7 PRODUCTION www.digitalstudiome.com20 / JUNE-AUGUST 2020 ANALYSIS“We facilitated smart working for all our project, design, administration and fi nance teams, while production and operation teams were working, even if at a slower pace, in the company facilities and supported by all measures in terms of containing and handling the spread of the disease. Now we have resumed at full speed to complete and deliver ongoing projects,” he added. Resilience and fi ght back Boxing legend Muhammad Ali once famously said: “Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even.” The resilience and never-say-die attitude shown by local media companies has been nothing short of commendable. Studios have reopened in the Gulf, content fi lmed prior to the lockdown is currently in post-production and in some cases projects have already been completed. The turnaround has begun, signifying the darkest days for our industry could well and truly be behind us. “Covid-19 didn’t impact our Ramadan content which had been thoroughly prepared in advance and is some of the most sought after content that Fatafeat produces each year. In terms of production, due to the operational capabilities in previous months, there was an array of content which we’ve been able to edit and produce remotely as part of our evergreen content off ering,” Turnbull says. Independent fi lmmaker Faisal Hashmi utilised free time to complete a new screenplay and revise others. In the next 12 months he plans to ramp up pre- production for his feature fi lm projects as the “fi lm industry slowly gets back to its feet again”. 7 Production decided to focus on improving its infrastructure. “We fi nally had the gift of time, something we hadn’t been aff orded for years,”Ghanem says. “We improved our internal operations, internal infrastructure, streamlined operational processes to make them even better. We started building the 4K OB vans which were meant to come online during CABSAT in March. We also planned on unveiling our 4K custom pod that was being built for the 2020 F1 season.” A busy schedule before the lockdown meant 7 were not in a position to complete the OB vans and fl y pack pod. “With the time we have had over the last few months we completed the two OB vans and increased the number of pods to two from one. We have also bought plenty of new 4K equipment,” Ghanem reveals. The future Plans are afoot for studios and productions houses as operations begin to swing back into action. For 7 Production, 10 of its 12 studios in the Kingdom of Saudi Arabia have been fi lled by MBC to continue productions of TV shows. “Those have been in operation since last month (May) taking precautions such sanitsation and social distancing into account. A lot of major projects were on hold, but the ones that have started have immediately involved 7,” Ghanem adds. Dubai-founded SVOD service StarzPlay is working on its second original production with Image Nation Abu Dhabi which is also set to face some delays. The show was scheduled to swing into production in October this year, but that has been delayed slightly by the Coronavirus pandemic. “We were in the process of checking scripts and working with talents, the initial goal was to launch production in early Q4, perhaps October. But that has been pushed back to Q1 2021. We are anticipating a three-four month delay in the production of our original show,” Maaz Sheikh, CEO, StarzPlay says. (Read the entire interview with Maaz Sheikh, the Broadcast Executive of the Year 2020, from p22-29) Over the next 12 months, Discovery’s focus for Fatafeat will be on its newly launched Genius Kitchen app — the first fully-Arabic food app of its kind in the world. “All of the content for the app is filmed in the versatile Fatafeat Studio, alongside the slew of existing content – from quick recipe social- friendly videos and specially filmed cooking courses from our roster of professional chefs, to Fatafeat TV shows. With the high demand in content for our platforms, combined with increased functionality, we expect an even larger output in the next 12 months than we’ve ever seen before in the studio,” Turnbull reveals. Mena.tv, a Dubai-founded distributor and content marketer, has witnessed a boom and an uptick of its services. “With trade shows postponed all around the world, Mena.tv is now essential for producers and distributors to reach content buyers. The number of shows listed on mena.tv has jumped almost 100% in two months, and there are now 700 buyers using the platform,” says Nick Grande, CEO, Mena.tv. Creatives and those working in animation and post-production have also been productive during the lockdown in diff erent parts of the world. “Our plans are to focus more on animated solutions at the moment working remotely. So far it has worked well for us and we are positive of what the future holds,” Akawi concludes. “COVID-19 HAS MANAGED TO BUILD FEAR IN PEOPLE’S MINDS AND FORCED US TO STAY AWAY FROM EACH OTHER IN ORDER TO STAY SAFE. FILM INVOLVES BEING IN CLOSE CONTACT WITH THE CREW, CAST, AND INTERACTING WITH ONE ANOTHER ON SET. THE PANDEMIC HAS PUT THIS PRACTISE AT RISK AND AS A RESULT HAS AFFECTED THE BUSINESSES AND THE ENTIRE FILM INDUSTRY ALAA AKAWI, ARTOLOGY CREATIVE” www.digitalstudiome.comJUNE-AUGUST 2020 / 21 ANALYSISIn fi ve years StarzPlay has created a winning formula in the regional SVOD space, it’s cofounder and CEO Maaz Sheikh discusses the rise and expansion Words Nikhil Pereira Maaz Sheikh, cofounder and CEO, StarzPlay.COVER FEATURE aaz Sheikh has steered StarzPlay astutely making it one of the leading OTT streaming services in the region. Five years ago, StarzPlay jumped into the ring with global giants such as Netflix and regional powerhouse OSN, “we flew under the radar for the first three years, and that was probably a good thing ”, says Sheikh, who co-founded StarzPlay. Today the Dubai-based start-up has made competitors take notice and has earned the right to enjoy a strong reputation in the market. Sheikh won the coveted Broadcast Executive of the Year title at the Digital Studio Awards, which was held virtually for the first time in its 16-year history. Catching up with Digital Studio over a Zoom call, Sheikh shared his delight on winning the award, and revealed more about the company ’s changing fortunes. “I’ve been part of the process a few times over the years. This time around I’m proud to receive the prize. I keep looking at the past winners and I know I’m in the company of special people,” Sheikh tells Digital Studio, barely able to control his joy. Over the last few months StarzPlay stepped up its operations from being a licensor of content produced by other studios to producing its own shows. This was a major step-up for the company as just a few months ago Sheikh was circumspect to get into producing originals. So what changed? “Getting the timing right is critical with original content. Doing it too early could lead to burning through capital that you don’t necessarily have, you do it too late and you miss the opportunity of extra growth,” he explains. The company, Sheikh says, now had the right amount of data and history that helped in making the decision, this is the first part of the “puzzle” M that helped compound the decision that this was the right time to get into producing originals. Sheikh says: “As we approached the five-year anniversary and billions of minutes of consumption during this time [a pattern began to emerge]. We had tested several Arabic formats and hosted plenty of Arabic content from different parts of the Arab world (Egyptian, Syrian, Khaleeji). Based on all the data, while becoming financially more stable, we got more confident that this was our time to do it [get into original productions].” Additionally, production houses and its talents have had a shift in mindset to cater to streaming platforms. Public broadcasters have held the ship for the last 20-30 years in the Gulf and wider Middle East. “Over these last few years, we noticed that the industry was changing and evolving where COVER FEATURE www.digitalstudiome.com24 / JUNE-AUGUST 2020“BAGHDAD CENTRAL IS A GRITTY HOLLYWOOD STYLE CRIME DRAMA… BUT IT’S STILL TRUE TO THE STRUGGLES AND VALUES OF WHAT GOES ON IN THE WIDER SOCIETY HERE. THERE ARE LESSONS TO BE LEARNT BUT OUR GOAL IS TO CREATE CONTENT THAT WILL WORK HERE AND RESONATE WITH OUR AUDIENCES. THIS WAS A SAFE FORMULA FOR US WHICH SHOWED IN THE VIEWERSHIP NUMBERS, AS IT WAS ONE OF OUR TOP FIVE SHOWS WITHIN TWO WEEKS OF RELEASE.” IMPACT OF COVID-19 ON PRODUCTIONS When asked what could be a possible timeline of recovery Maaz Sheikh says: “It’s diffi cult to predict the future but there’s no doubt that different parts of the industry have been impacted in varying proportions. Production houses and studios have been put on hold.” We are on the path to recovery with theatres re-opening albeit in limited capacity. “We might not be able to catch up, but my hope is that productions will open up by the end of this year. By mid-2021 we would have hope- fully seen a net delay of six months in production schedules. Production will catch up sooner because things will start moving again once crews and the talent gets back into action. However, theatres getting back to 100% capacity might be slightly longer because it would need governments and health authorities to tell us when it is safe to do so,” Sheikh says. Production of the StarzPlay Image Nation original will be delayed by ap- proximately three to four months, Sheikh says. “We were in the process of check- ing scripts and working with talents with the initial goal to launch production in early Q4, perhaps October. But that has been pushed back to Q1 2021. We are anticipating a three-four month delay in the production of our original show.” the script writers, cameramen, directors and producers were all changing their mind set towards OTT streaming and premium experience that could connect their content to Arab youth,” he adds. BaghdadCentral, Image Nation and Hollywood On February 12, 2020, StarzPlay’s first original joint production BaghdadCentral aired on its streaming The cast and crew at the launch party of Bhagdad Central earlier this year. COVER FEATURE www.digitalstudiome.comJUNE-AUGUST 2020 / 25 “…[DUE TO COVID-19] THERE’S NO DOUBT THAT DIFFERENT PARTS OF THE INDUSTRY HAVE BEEN IMPACTED IN VARYING PROPORTIONS… WE MIGHT NOT BE ABLE TO CATCH UP, BUT MY HOPE IS THAT PRODUCTIONS WILL OPEN UP BY THE END OF THIS YEAR. BY MID-2021 WE WOULD HAVE HOPEFULLY SEEN A NET DELAY OF SIX MONTHS IN PRODUCTION SCHEDULES” TECHNICALLY UNCOMPROMISED In the last two months StarzPlay’ was able to scale its infrastructure going from 100,000 people a day logging into its service to 350,000 logins. In a matter of days, the consumption of content in some countries went from 2 million minutes a day to 6.5 million minutes a day. Even though consumption tripled in six weeks, the platform was able to run without any hiccups. Sheikh credits StarzPlay’s employees who came together more so ever than before. “Even though we all work from home we never once had our service interrupted for a minute.” User experience is critical for any SVOD service, Netflix is often considered the Gold standard thanks to its ease of use. StarzPlay isn’t far behind, users often shower praise thanks to its simple and easy to use interface. StarzPlay, however, excels is on a deeper technical level. Sheikh reveals: “One of the technical feats of our partnership with telecom operators was to create content distribution networks inside their networks. For instance, Etisalat customers will be able to load our application instantly.” platform. The six-part mini-series, quickly garnered international acclaim from film critics around the world, is set amidst the chaos of American-occupied Baghdad in 2003. Sheikh believes that the Middle East audience’ appetite is geared towards Hollywood-style productions. He doesn’t propagate replicating story lines but wants to offer Arab audiences the same level of production quality that the west has been synonymous with. He notes: “Baghdad Central is a gritty Hollywood style crime drama (themed circa 2004-2005 in Baghdad) but it’s still true to the struggles and values of what goes on in the wider society here. There are lessons to be learnt but our goal is to create content that will work here and resonate with our audiences.” In the past, Sheikh once famously declared an “Arab version of Game of Thrones is unnecessary”. Sheikh sheds more light on the spirit behind the analogy. “We live in a region that is steeped in cultural value, traditions and sensitivity around watching content with your family members. We can’t accept shows that work well in other parts of the world will work for regional families and societies. Of course I’m aware that things are changing with social media and the internet but I still think we need to cater keeping regional sensitivities in mind,” he explains. Baghdad Central combines the best of Arab and Hollywood talent. The lead actor and his two daughters are Arab stars, whereas the lead support is Corey Stoll (House of Cards). The show was shot in Morocco with support from plenty of Hollywood producers and directors. “This was a safe formula for us which reflected in viewership numbers, as BaghdadCentral climbed the charts to become one of our top five shows within two weeks of its release,” Sheikh reveals. Another StarzPlay original is in the pipeline. In December 2019, the SVOD service provider signed a partnership with Image Nation Abu Dhabi to produce the first Gulf original series from the UAE. The show, that is yet to be named, was A still from critically acclaimed Bhagdad Central. COVER FEATURE www.digitalstudiome.com26 / JUNE-AUGUST 2020scheduled to swing into production in October this year, but that has been delayed by a few months due to the Coronavirus pandemic (see box out). Partnerships StarzPlay has over one million subscribers and is said to be installed in more than six million devices. Those numbers jumped through the roof over the last few months at the height of the lockdown (more on that later). StarzPlay has partnered with 24 telecommunication operators and has a presence in 20 countries across the Middle East and Pakistan. When it comes to growth — Sheikh says that the company hasn’t left any stone unturned — from telco partnerships to long-standing relationships with Hollywood studios. Cognizant that credit card payments are still not as prominent in the wider Middle East, partnerships with telcos have helped take StarzPlay’s content to new corners. He says: “In countries like the UAE credit card penetration is extremely high. But in Egypt and Morocco, for instance, credit card penetration is less than 5%. Our service needs to appeal to millions of audiences across the region. This is where we believe that allowing customers to sign up and pay through their fixed line or mobile bills makes it alluring as a service. “Over the last five years we have got 24 different telecom partners in the MENA region, and Pakistan. That has been our clear differentiator when it comes to reach. Partnerships add to our credibility as well, one might not associate StarzPlay’s name with being Netflix, but it comforts people to see StarzPlay besides Saudi Telecom or Maroc Telecom for instance.” Michael Garin, CEO, Image Nation Abu Dhabi and Maaz Sheikh. COVER FEATURE www.digitalstudiome.comJUNE-AUGUST 2020 / 27 In addition, the SVOD service also launched in KSA with Saudi Telecom’s Jawwy TV. “Rather than competing with them we are part of that experience. Similar sort of thing with Etisalat’s new TV service Switch, we are part of that as well.” Over the course of 2020, StarzPlay is looking to expand its reach launching with more partners in the MENA region “particularly in Tunis, Egypt and Lebanon”. Reaching all those markets would mean little if StarzPlay didn’t have the arsenal of content to appeal to its viewers. That’s where partnerships with studios have been the stand-out ingredient of its success. Back in the day big studios were wary of betting on a start-up, the stakes were higher given they had exiting relationships in place with local broadcasters in the region. “We are fortunate that Disney, Warner Bros, Sony and MGM bet on us from the outset. These partnerships have been the cornerstone for us and we are going SERVICE PROVIDER OF A DIFFERENT KIND In October 2019, StarzPlay’s technology and infrastructure was licensed to power India’s Lionsgate Play OTT streaming platform. The managed service that encompasses the StarzPlay Connect Platform marked the launch of Lionsgate Play, a premium entertainment service in India. The StarzPlay Connect platform enables the delivery of subscription management, billing, content management, video content delivery and connected devices. The launch of Lionsgate Play service also marked the StarzPlay’s expansion of the company’s strategy to license its Connect platform to broadcast and telecom operators offering a cloud-based solution for providing entertainment services online. “WE SEE STARZPLAY BECOMING A PLATFORM FOR OTHER BRANDS AND STUDIOS… IT’S ABOUT EVOLVING TO OFFER A VARIETY OF CONTENT SERVICES IN A PAY AS YOU GO FORMAT, CUSTOMISING A VIEWER’S SUITE OF SERVICES AND PAYING ONLY IF THEY WANT TO AVAIL OF THOSE SERVICES. THIS SETS US APART FROM OTHER PLAYERS BECAUSE WE ARE NOT JUST AN SVOD PLATFORM ANYMORE BUT A DISTRIBUTION PLATFORM AS WELL.” Some studios have launched their own service in the US, or plan on launching SVOD services of their own. Sheikh says he wants those service providers to consider StarzPlay as a successful platform regionally. “We want them to have confidence that partnering with us is a good thing. And they wouldn’t need to launch their own direct to consumer service in this part of the world. They rather leave it to platforms such as OSN and us, and have the market share battle in US and Europe,” he says. Disney+, for instance, launched its service via local partners in the region choosing not to launch it as a standalone offering. Disney + shows have been licensed to OSN but at the same time the entire Star Wars movie collection is available on StarzPlay. It’s the same with Warner Bros., StarzPlay viewers have access to the world of DC Comics — Flash, Supergirl and Batwoman to name a few. Produced by Sony, L.A.’s Finest is also present on StarzPlay. to continue to build and grow them. As we established ourselves in the market and gained credibility, we brought on Universal as one of our key content partners,” Sheikh reveals. StarzPlay also recently signed a long term partnership with Warner Bros. COVER FEATURE www.digitalstudiome.com28 / JUNE-AUGUST 2020“OVER THE LAST FIVE YEARS WE HAVE GOT 24 DIFFERENT TELECOM PARTNERS IN THE MENA REGION, AND PAKISTAN. THAT HAS BEEN OUR CLEAR DIFFERENTIATOR WHEN IT COMES TO REACH. PARTNERSHIPS ADD TO OUR CREDIBILITY AS WELL, ONE MIGHT NOT ASSOCIATE STARZPLAY’S NAME WITH BEING A ‘NETFLIX’, BUT IT GIVES PEOPLE COMFORT TO SEE IT BESIDES SAUDI TELECOM OR MAROC TELECOM FOR INSTANCE.” “Disney also did a Ramadan special with us — where every day of the Holy Month one of its films were available to watch dubbed in Arabic. So movies such as Frozen were available to our audiences, dubbed in Arabic with Arabic songs. Looking ahead 99.99% of StarzPlay’s revenue is generated via its subscriptions, half of it comes from its partnerships with telecom operators and the other half via online payments, Sheikh says. “Quality of content and its reach are two major facets of our company’s business model,” he says. According to IHS Markit Pay TV & Online Video Report — MENA — 2019 StarzPlay has 29% of the SVOD market share. This puts it at the top spot in terms of number of subscriptions, for the second year running. Sheikh accepts the accolades modestly and approaches the subject of market share with astute business acumen. He says: “Certain studies put us at the number one spot but that could leave you with a false sense of security because we compete with global juggernauts like Netfl ix or regional powerhouse OSN. To co-exist with these leaders in their own right we need to carve out our own space. We have to evolve to be successful in the future and part of that evolution is to create youth focused Arabic content that will resonate with the people of this region.” Sheikh envisages StarzPlay becoming a platform for other brands and studios. During Ramadan StarzPlay ’s platform launched Discovery ’s Fatafeat home cooking content on our platform. “In addition, Discovery ’s DPlay will also be available as an add-on package on StarzPlay. It’s about evolving to offer a variety of content services in a pay as you go format, customising a viewer’s suite of services and paying only if they want to avail of those services. This sets us apart from other players because we are not just an SVOD platform anymore but a distribution platform as well,” he notes. Looking ahead, Sheikh believes that there is plenty of all players given the size of the region. “This isn’t a region where the winner will take all, it’s not that sort of market. We are blessed to serve the region that has 400 million people, we expect anywhere from 8 million to 10 million subscriptions from that. There’s room for two to three [major] player — we ought to be one of them.” Intelligence created by Nick Mohammed (left) stars Friends David Schwimmer. COVER FEATURE www.digitalstudiome.comJUNE-AUGUST 2020 / 29 Next >