The number of new free-to-air satellite TV stations has increased by 55 during the last 18 months, bringing the total to 155, according to a report by Arab Advisors Group.
The growth in free-to-air (FTA) satellite TV stations has increased the pressure on the pay TV operators in the region.
The three main pay TV operators are cutting prices and expanding offerings in a bid to maintain a differentiated service.
The report, Satellite TV in the Arab World 2005 was released to the Arab Advisors Group recently.
Judeh Siwady, Arab Advisors Sr Research Analyst, wrote, "The Arab world has witnessed a huge transformation in the TV industry in the past 10 years. The viewers in the region now have a large variety of TV choice available as terrestrial, pay TV and enormously FTA satellite channels.
"There are two satellite system providers that cater to the Arab region, Arabsat and Nilesat. Together these two satellites provide 155 FTA TV channels, more than 20 free radio stations, and carry the TV and radio channels of the three main pay-TV providers in the region, ART, Orbit and Showtime."
Another issue that concerns the Arab region's TV industry is the widespread adoption of illegal satellite de-encryption devices and the illegal cable distributors. It is relatively easy for individuals to purchase a receiver and get pirated smart cards for foreign pay TV channels.
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