Islamic and Muslim lifestyle programming gaining market share in $42 bln US TV industry

There is significant and under-addressed demand for Islamic and Muslim lifestyle television content to serve the United States’ 3.3 million Muslims. With a rising number of dedicated channels, what opportunities are there for new entrants to address the demand for Islamic and Muslim lifestyle programming in the U.S.?

HIGH GROWTH MEDIA AND ENTERTAINMENT INDUSTRY

The United States’ Media and Entertainment (M&E) industry is the largest in the world. Valued at $598 billion in 2014, it is expected to grow by 4.9 percent annual growth to reach $723 billion in 2019, estimates an industry report by the U.S. Department of Commerce. Industry growth is attributable to rises in population and GDP.  

The largest segment of the industry is TV broadcasting, which generated revenues of $42 billion in 2015.

The top three M&E players based in the U.S., according to Forbes rankings, are Comcast, Walt Disney, and Time Warner.

Comcast is a global media and entertainment company that offers over 50 channels available on cable. It also owns and operates broadcast TV, filmed entertainment and theme parks, and communications businesses including high speed internet and voice services. Comcast Corp generated revenues of $74.5 billion in 2015.

Walt Disney is a media and entertainment group with strong international presence. Along with TV, radio, and four major cable channels, the company operates theme parks and resorts across the U.S., ten studio entertainment companies, consumer products and interactive media services. Walt Disney generated revenues of $52.5 billion in 2015.

Time Warner is a global media and entertainment company that owns networks, and produces filmed entertainment and publishing. Its three major divisions include HBO, a network of seven channels, Turner, and Warner Bros. Time Warner generated revenues of $28.1 billion in 2015.

Broadcasting focused on religious content in the U.S. is widespread and dominated by Christian TV outlets. Leading broadcasters include GOD TV, which claims 950 million viewers, and Faith TV, a network of four channels that claims to have a global audience of 45 million viewers.

Other players include Daystar and The Family Channel.  

ROBUST DEMAND FOR ISLAMIC AND MUSLIM LIFESTYLE CONTENT

There were 3.3 million Muslims in the U.S. in 2015, according to Pew Research statistics. They are estimated to have spent $18.8 billion on media and recreation in 2014, according to the State of the Global Islamic Economy 2015/2016 report.

There is a strong demand for Islamic values-based content by Muslims in the U.S. In a 2014 survey conducted on U.S. Muslims in the American Muslim Consumer Study undertaken by the American Muslim Consumer Consortium and DinarStandard, 37 percent of respondents indicated that they wanted to see more media content tailored to Muslim lifestyle needs.

To address this demand, a number of services have emerged, including dedicated channels focused on Islamic religious and cultural content, dedicated programming aired on mainstream TV networks, and content available online and on-demand.

DEDICATED PROVIDERS

Two exclusive U.S. networks have provided dedicated Islamic cultural and religious content: Bridges TV and GuideUS TV.

Bridges TV, founded in 2004, was an Islamic TV network based in New York that was developed to counter stereotypes of Muslims in the West. The network was well-received by the Muslim community but the company ceased operations in 2012 after the owner was convicted and jailed for murder.  Viewers and supporters mounted a social media campaign  to institute new management but could not save the company. 

GuideUS TV, founded in March 2010 by prominent American Islamic preacher Yusuf Estes, was created to share information about Islam in English. Programs produced by GuideUS TV are available on international Islamic networks including Peace TV, Huda TV, and Islam Channel.

Additionally, there are numerous international Islamic networks that are accessible from the U.S. using internet TV receivers including BTV Box, Islam Box, and Jadoo TV, which enable viewers to stream Islamic channels including British Muslim TV from the United Kingdom, Peace TV, and Quran TV from Pakistan .

Further, international packages available on cable networks, such as Dish TV, allow access to Islamic channels from Pakistan and the Middle East.

Mainstream channels and online services also address the demand for Muslim lifestyle content. All American Muslim and Halal in the Family are two TV shows that were featured on mainstream outlets TLC and Funny or Die.

Reality series All American Muslim, which followed the daily lives of American Muslims in Michigan, was released in 2011 on the TLC channel. It was canceled after just one season.

Halal in the Family was a short series aired on website Funny or Die in 2015. It addressed issues of Islamophobia through comedy, featuring an American Muslim family.

Islamic Broadcasting Network, The Deen Show and Muslim Kids TV are three online video services that have targeted Muslim viewers in the U.S.  

Islamic Broadcasting Network (IBN) was founded in 2001 by the Islamic Media Foundation in the U.S. to express the identity of American Muslims through media. IBN started the first American Islamic radio network and has worked on media campaigns with short video productions to engage viewers and listeners regarding social issues and public services. IBN videos have been viewed on 102 TV stations.

The Deen Show was founded in 2006 by American Muslims to clear misconceptions about Islam. Videos it produced have been aired on international cable stations including Huda TV,  Iqra TV, and Islam Channel .

Muslim Kids TV, founded in 2014 from Canada, is a community-driven online media platform that provides learning and development experiences for Muslim children through videos, games and other activities.  It is also available internationally and in the U.S. and claims to have over 10,000 subscribers.

CHALLENGES AND CONSIDERATIONS

While there is ample opportunity in the U.S. to provide curated content, there are a number of considerations for potential market entrants.

Firstly, entering the U.S. market requires targeted marketing to reach Muslim viewers.  Using mainstream marketing channels is costly and inefficient, and could have adverse consequences, especially in an environment where there is negative press coverage of Muslims.

There are much better, dedicated marketing channels to reach the target audience, including online advertising platforms such as Muslim Ad Network and Halal Ad, as well as offline, identifying key influencers, such as Muslim student organizations and businesses.

To help reach sufficient scale, think internationally and seek to secure a broad distribution in the U.S.

Muslim Kids TV, for instance, has marketed its products heavily across the Middle East and Southeast Asia, forming key partnerships in Malaysia. Alchemiya, a UK-based online service, offers subscription internationally.

Raise funds from a broad range of sources and do not rely on the local community to take a risk in your venture, even if it is compelling.

Actively consider crowdfunding as a first step, and seek to market your business at international events, such as the Global Islamic Economy Summit in Dubai, where there is dedicated interest in Islamic Economy products and services.

Speaking about the challenges faced in fundraising, Micheal Milo, CEO of Muslim Kids TV said, “The local community was very supportive [of Muslim Kids TV] but equity investment in start-up media ventures is something totally new to the Muslim community. Although there is a great deal of accumulated wealth in the professional Muslim community, they have not been educated in the entrepreneurial, start-up culture. So we’ve had to be very proactive.”

© SalaamGateway.com 2016