Aug. 2, 2023

MENA OTT Providers Enjoying Explosive Growth

MENA OTT market surges with $5.69 billion revenue forecast by 2028, Netflix and STARZPLAY lead while upcoming content revolutionizes digital streaming. By: Toh Yan Yun

The Middle East and North Africa (MENA) region is witnessing a remarkable surge in its Over-The-Top (OTT) market. According to eMarketer, MENA’s year-over-year growth is projected to range between 2.9% and 4.0% through 2016. Meanwhile, new forecasts by Digital TV Research (DTVR) predict that MENA’s OTT market will generate a staggering $5.69 billion by 2028, doubling the figure from 2022, which stood at $2.83 billion. Turkey, Israel, and Saudi Arabia are set to be the region's powerhouses, jointly contributing 55% of the region's Subscription Video on Demand (SVOD) revenues by 2028.

Netflix: Leading the charge

Simon Murray, the principal analyst at DTVR emphasises that the number of SVOD subscriptions is predicted to double to 42 million by 2028, up from 21 million at the end of 2022. The MENA region's OTT landscape is currently dominated by Netflix, the global streaming giant, which is projected to further solidify its position with over 5.4 million subscribers in Arab countries by 2027, up from 3.5 million in 2021. The streaming conglomerate is expected to introduce hybrid ad-supported tiers on a pan-Arabic platform, starting in 2024, and has seen immense success with its diverse content strategy. For instance, some of these include edgy Arabic original productions like Al Rawabi School for Girls, Finding Ola, and Perfect Strangers. While the latter faced controversy in socially conservative Egypt due to its portrayal of a gay male character, it has garnered considerable popularity among viewers.

STARZPLAY Arabia: Rising Contender

STARZPLAY Arabia, launched in 2015 as the first Starz-branded SVOD service outside the US, has steadily risen as one of the top three platforms in the MENA region. The service caters to 19 countries across MENA and Pakistan, offering premium Hollywood movies, TV shows, documentaries, and US series, along with live sports, kids’ entertainment, and Arabic content. With over 2.5 million subscribers, the platform boosts an extensive catalogue that includes exclusive STARZPLAY Arabia original content such as Kaboos, Say Yes to the Dress Arabia, Baghdad Central, STARZ original content such as Power, Outlander, and Spartacus, as well as a slate of content with add-ons such as AD Sports, Premier Sports (Rugby), NBA League Pass, and STARZPLAY Sports.

To bolster its vast content library, STARZPLAY Arabia has formed tie-ups with leading global studios the likes of Lionsgate, Warner Bros, and Sony Studios, in addition to collaborations with regional producers like UMS, Eagle Films, and Falcon. The platform has also attracted significant investments. In early 2021, the SVOD service enjoyed independent financing of approximately $25 million from Abu Dhabi-based Ruya Partners, followed by E-Vision’s acquisition of majority equity stake last year.

Shahid VIP: Forging Strategic Partnerships

MBC Group's Shahid VIP streaming service is anticipated to increase its subscriber base from around 2.1 million in 2021 to over 3.4 million by 2027. The platform has collaborated with more than 30 telecommunication operators in the region to provide smart and easy mobile billing for subscribers. Additionally, it has bundled up complimentary subscriptions with core mobile plans through agreements with 12+ telco partners such as Saudi’s STC, Egypt’s Vodafone, and Orange Morocco. Commenting on Shahid VIP's growth, Natasha Matos-Hemingway, Chief Commercial and Marketing Officer at Shahid, emphasizes the significance of their strong partnerships in driving expansion and delivering compelling content and lifestyle experiences to subscribers and fans. With ambitious plans, Shahid VIP is predicted to reach nearly 3 million subscribers by the end of this year, solidifying its position ahead of all other players.

As the MENA OTT market continues its remarkable growth trajectory, providers are poised to cater to the evolving demand of audiences. With increasing internet penetration and growing innovation among content providers, the future looks bright for the region’s industry.

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