MENA OTT video market set for major growth

Market could grow to 265 million viewers by 2020, according to Frost & Sullivan
MENA OTT video market set for major growth, News, Content management

Share

The boom in smart phone and Internet penetration is transforming traditional television (TV) viewership patterns in the Middle East and North Africa (MENA) region, creating a vast, fertile market for over-the-top (OTT) video services. In addition to government support for Internet ubiquity and large-scale digital transformation, the presence of a large, young population that is well acquainted with mobile technology is attracting significant investments to this market.

“Competition is heating up in the market as key participants are figuring out the best-fit revenue models,” said Frost & Sullivan Digital Transformation Research Analyst Aafia Bathool. Research director Vidya S Nath added: "Currently there are 75 million viewers with only 2.3 million paying subscribers throughout the region, indicating a slow conversion of registered to paid viewers. However, this could potentially grow to 20 million by 2020."

The team opines that strategic alliances among stakeholders, an optimum mix of local and international content, competitive pricing, and a sophisticated, user-friendly interface will all go a long way in increasing service adoption and accelerating market growth. With international players like Netflix and Amazon Prime Video having a regional footprint, the onus is on local players such as STARZ Play, beIN Sports Connect, MBC Shahid, OSN GO, icflix, and others to formulate compelling content strategies to consolidate their position in the market.

Over-the-top (OTT) Video Services to Transform TV Viewing in Middle East and North Africa, Forecast to 2021 is part of Frost & Sullivan’s Digital Media Growth Partnership subscription. The study presents a competitive analysis of key stakeholders in the online video market across 17 MENA countries. It discusses the market scenario and growth prospects of major participants, new entrants, and the role of telecom services in transforming the way TV content is consumed. It analyses viewership patterns, content preferences, and devices most used for online video consumption, and forecasts revenue and subscriber base growth from 2016 to 2021.

While overall Internet penetration levels have rocketed, the lack of uniformity in broadband availability hinders the provision of OTT services to various countries that have a large installed base of legacy technology. Besides, viewers are accustomed to free-to-air (FTA) channels and pirated online videos due to the lack of a regulatory framework. The consequent sluggish uptake of paid subscriptions has slowed the return on investment on OTT services, giving pause to several broadcasters.

The customer experience and user interface in the MENA OTT market needs to be richer and more user friendly to win more subscribers. OTT companies can overcome these shortcomings by adopting effective methods for personalization and customization, and employing analytical tools. In its current stage of evolution, OTT is heavily reliant on TV for advertising and content. Service providers that develop a hybrid model that combines TV and OTT will entrench themselves in the market.

“The escalating demand from a tech-savvy population for quality international and exclusive Arabic content is encouraging OTT video service providers to stream videos and other big-ticket events, such as live sports, online,” noted Bathool. “The pricing, data analytics, and video quality will determine the OTT market leader in the next five years.”

 

Most Popular

Editor's Choice

Big-3 SVOD Original Content Spending to Triple by 2022
According to a new report, the Big-3 SVOD players – Netflix, Hulu, and Amazon Prime Video will triple their content budgets from licensed content to originals, to spend $10 billion annually by 2022.
Interview with Khulud Abu Homos, CEO Arab Format Lab
Interview with Khulud Abu Homos, CEO Arab Format Lab, about the need for creating new Arabic content formats and content with an international appeal.
The digital world — an opportunity, not a threat, for broadcasters
Opinion on Digital Transformation by Brian Morris, Vice President and General Manager of Global Media & Entertainment Services, Tata Communications

Don't Miss a Story

You may also like

NBC selects FileCatalyst to enable Winter Games Remote Production
NBC Olympics will utilize FileCatalyst technology to move data over a 5 Gbps link between headquarters in Stamford, Connecticut, and the NBC Olympics compound at the International Broadcast Center in PyeongChang.
Discovery Networks selects Pebble Beach for Playout and Content Management of all MENA Channels
Pebble Beach Systems announced at CABSAT 2018 that the playout of all Discovery Networks MENA’s channels is now under the control of a new 8 channel fully redundant Marina system
MBC completes migration of its entire playout operation to Pebble Beach Systems Marina automation control
Originally an ADC facility, MBC initially deployed a Pebble Beach Systems Neptune playout automation solution several years ago. The phased migration across to Marina automation was completed late in 2017.
Abu Dhabi Media Upgrades for the Future with Imagine Communications
Imagine Communications is providing a full upgrade of the central technical facilities at Abu Dhabi Media. The new installation provides an end-to-end broadcast chain, from ingest to delivery.