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Showtime
and ART Target Lebanon Sat-pirates
By Chris Forrester,
TBS Contributing Editor
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| Showtime
and ART Want to Clean Things Up |
Mid-East
sat-platforms Showtime and Arab Radio & Television (ART)
sent out a series of Electronic Counter Measures (ECM, handled
by CA-supplier Irdeto) on March 25 to Lebanese cable pirates.
Piracy is so widespread in the Lebanon that Showtime's popular
movie channel frequently tops local ratings despite the broadcaster
having only a handful of legitimate subscribers in the region.
Independent market research study by Statistics Lebanon shows
that an estimated 720,000 Lebanese households-or more than 78%
of the entire population -are currently subscribing to illegal
pirate cable television networks. This represents a rise of
23.75% since a similar survey in 2000.
A recent
International Intellectual Property Alliance (IIPA) report says
cable piracy is "rampant" and puts the figure at nearer
90% of all homes in terms of the loss to US studios. "The
theatrical market continues to suffer and the legitimate video
market has been almost entirely destroyed by the various forms
of piracy in Lebanon. Local broadcast television stations have
canceled long-standing licenses with copyright owners because
they cannot compete with the pirates," says IIPA.
The annual
loss to Lebanon's economy simply from income tax and VAT from
an estimated 1000+ cable pirates is estimated at about $12m,
and much higher when one includes the damage to inward investment
into Beirut's growing market economy. In August, 2003, a judge
in Beirut issued the first ever injunction against seven cable
pirates (responding to requests brought by Showtime, and ART).
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From
the IIPA report:
"There are only four part-time inspectors in the
[Beirut] Department of IP Protection tasked to fight piracy.
In the area of software piracy, these inspectors lack
computer knowledge. In addition, startlingly, these officers
only work until 2 p.m. and won't work with computer experts.
Even when these inspectors have been given targets to
raid, many problems in enforcement have ensued (e.g.,
the pirate reseller at 4 p.m. at a computer fair could
not be raided, because it was "after working hours").
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The anti-piracy
timing was simultaneous with the launch of ECOnet, an official
channel supplier. Sheikh Saleh Kamel, owner of ART, invested
in Beirut-based ECOnet in April 2001, and the result is a digital
MVDS system handling about 120 channels. ECOnet was initially
formed to supply cable TV within the Bekaa Valley region in
1990. The broadcasters recognised the need for a legitimate
low-cost alternative to the existing "cable operators".
Showtime and ART have granted exclusive transmission within
the Lebanon with ECOnet. Around 100 channels are now offered
for about $15 a month (Leb£ 23,000). The strategy is to
make the bundle appealing to consumers who are long used to
paying barely $10 a month for pirated services.
LEBANON
TRADE LOSSES DUE TO PIRACY (in $m)
| |
2003 |
2002 |
2001 |
2000 |
1999 |
| INDUSTRY |
Loss/Level |
Loss/Level |
Loss/Level |
Loss/Level |
Loss/Level |
| Motion
Pictures |
10.0
80% |
8.0
80% |
8.0
80% |
8.0
60% |
8.0
60% |
| Records
& Music |
2.5
70% |
2.0
65% |
2.0
65% |
2.0
80% |
2.0
60% |
| Business
Softwares |
NA
NA |
5
3.5 74% |
1.1
79% |
1.3
83% |
1.6 88% |
| Ent.
Software |
NA
80% |
NA
NA |
NA
NA |
1.5
96% |
0.5
70% |
| Books |
2.0 NA |
2.0 NA |
2.0
NA |
2.0
NA |
2.5 NA |
| TOTALS |
NA |
15.5 |
13.1 |
14.8 |
14.0 |
Data:
IIPA
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| Peter
Einstein in Beirut |
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| Sheikh
Saleh Kamel in Beirut |
"As
of this morning, illegal cable television operators will no
longer be able to transmit pirated ART and Showtime channels
to their subscribers," said Sheikh Kamel. This is the first
stage of our campaign to combat illegal distribution of satellite
television channels in Lebanon. The Lebanese government is also
backing the crack-down. Peter Einstein, president of Showtime,
said viewers' screens would "today" be going completely
dark: "Lebanon is one of the most entrepreneurial countries
in the region and has a highly educated workforce with particular
talents in the IT, media, entertainment, and music sectors,
yet companies are choosing other cities in the Middle East for
their regional headquarters….It is encouraging to see the
Lebanese government make significant progress in the battle
against piracy." Einstein stressed that Showtime's recent
expansion in Dubai, from 200 to 400 jobs, was the sort of investment
and job creation "that should come to Lebanon but companies
are being driven away by the relaxed attitude towards copyright
infringement."
Despite
the official government support, the International Intellectual
Property Alliance (IIPA) says Lebanon must stay on its Priority
Watch List because of the continued activities of illegal DVD
and CD copiers that have "astonishingly high" levels
of piracy. Intellectual property enforcement is so inefficient,
and copyright theft so severe, that the IIPA has grave doubts
whether Lebanon should remain a beneficiary of the USA's Generalized
System of Preferences (GSP) trade program, which permits import
into the USA of Lebanese products. For example, the IIPA suggests
that even if cable piracy is solved, end-user piracy of computer
programs as well as pre-recorded music and films, is still widespread
"among large companies, banks, trading companies, and most
government ministries". During the first 11 months of last
year, Lebanon imported almost $28.2m of products into the United
States without duty. The complete Lebanon IIPA report can be
viewed at www.iipa.com/rbc/2004/2004SPEC301LEBANON.pdf,
TBS
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