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Why is the Egyptian state monopolizing the entertainment industry?

Egypt has long been dubbed the “Hollywood” of the Middle East. But with heightened state-imposed restrictions and stifling production circumstances, what is the way forward for the country’s once widely celebrated television and cinema industry?

Why is the Egyptian state monopolizing the entertainment industry?
Satellite dishes on Cairo rooftops. | Picture by Moody Man / Flickr.com. Some rights reserved (CC BY-NC 2.0)
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The number of Egyptian television series that aired during the peak Ramadan season this year dramatically decreased by half from previous production volumes. Production restrictions and censorship in the most populous Arab country are on the rise, tough circumstances for the entertainment industry, exacerbated by a military-linked production company’s recent monopoly of soap operas. The move also raises concerns about whether a similar fate might be in the works for the film industry.

To make matters worse, the Egyptian cinema and television industry have largely suffered from budget cuts and economic difficulties during the past couple of years, particularly as inflation soared following the float of the local currency in November 2016. Production costs reportedly rose by 50 percent in the mere months thereafter, and inflation levels continue to climb.

In late 2018, a memo circulated to industry professionals by state affiliate Egyptian Media Company (EMC) laid out a set of regulations making it virtually impossible for almost any production company asides from EMC sub arm Synergy Production to produce soap operas in the 2019 Ramadan season. A cap was applied to production costs for soap operas scheduled to air during Ramadan, the shooting cycle was limited to merely 12 weeks, and compensation levels were slashed by upwards of 30%. Although the regulations only apply to the Ramadan season, which this year ran from May 6 to June 4, ambitious television productions historically air during the holy month, as it is the time when advertising revenues soar and viewership levels escalate.