May 17, 2024

Telco-OTT Partnerships in Middle East and Southeast Asia

Telco-OTT partnerships in the Middle East and Southeast Asia can expect further growth in the regions, although active efforts are needed. By Ching Wai.

Middle East, Southeast Asia - The global telecommunications (telco) market has reached 1.81 trillion USD in 2022, and is expected to reach 2.65 trillion by 2030. With the recent pandemic accelerating or switching up consumer habits to demand for streaming services, it is no wonder that a staggering 99% of telco executives agree that investing in emerging technologies will help their organisations remain resilient in the global industry.

Such statistics reflect the benefits that telcos and over-the-top video services (OTTs) can enjoy from mutually beneficial partnerships, as well as the increasing trend towards securing these partnerships. Telco and OTT companies in the Middle East and Southeast Asia are no exception to them. As such, here is a list of such partnerships, focusing on streaming OTTs, in the Middle East and Southeast Asia regions.

Middle East

The value of the telecom market in the region is expected to increase by 20.57 billion between 2021 and 2026. Telcos like Saudi Telecom, Etisalat and Ooredoo, especially in the Gulf Cooperation Council (GCC) countries, are able to position themselves as integral to the digital transformation. They appeal to consumers and businesses, offering the latest and high quality services like streaming and 5G. With the average monthly mobile data usage per smartphone in GCC projected to be 30 GB at the end of 2023, ahead of North America and Western Europe, the significant consumer loyalty and reach of telcos in the Middle East is clearly evident.

OTTs have therefore benefitted well from partnerships with telcos, and vice versa. Saudi media consumers are increasingly using OTT video on demand (VOD) platforms because of the diversity, flexibility and personalised experiences offered. Revenues from OTTs like Quickplay, OSN+, Shahid, and Starzplay are projected to grow at a 10.4% compound annual growth rate from 2019 to 2025 in the Middle East and North Africa, and 11.9% in Saudi Arabia specifically.

With an average consumer time spent on social networks of 3.4 hours per day, which is above global standards, beneficial trends from telco-OTT partnerships in the Middle East can be expected to continue.

Southeast Asia

OTT markets in the region still reportedly exhibit huge potential for streaming growth, given a low penetration of subscription VOD services in most emerging markets. However, the slow growth so far has pushed some streaming services to limit efforts.

Profit outlook for telco-OTT partnerships remains positive. Thailand had the most subscription and revenue growth in the region last year, followed by Indonesia, the Philippines, Vietnam, Malaysia, and Singapore. And with 5G rollouts across the region that encourage patronage from consumers and businesses alike, telcos and OTTs can remain confident. OTTs like Disney, Netflix, Prime Video and WeTV as well as local players like Galaxy Play and Vivamax remain competitive.

Streaming markets across the Middle East and Southeast Asia have an upward, though slow, trend. While it may take a while for telcos and OTTs before significant revenue can be attained, data reflects significant potential for the markets.

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