The presentation provides data, insight and analysis on the state of the online subscription video market in the MENA region. It compares the basic data of the market like subscriptions, revenues and ARPUs with the relevant basic data of the pay TV market in the MENA region. It profiles all the main OTT players in MENA providing details of their pricing and content strategy, their localization initiatives and their partnerships with the local telcos and pay TV operators. It provides the split in subscription and revenues for the most recent year (2017) for all major online subscription video services. It analyzes the competitive status in MENA in reference to major international players like Netflix and Amazon and to local services like Shahid Plus, Wavo and icflix.
The online subscription video (OTT subscription) market in MENA is on a growing spree and on a record-breaking disposition. In 2017, it went over 1 million subscriptions (1.38 million) for the 1st time, representing a 48% growth over 2016. Revenues went over $100 million in 2017, also for the 1st time, representing a 44% y-o-y growth.
IHS Markit expects OTT subscriptions to reach 5 million in 2022, presenting a CAGR of 34.4% between 2016 and 2022. Revenues in 2022 will reach half a billion $, a CAGR of 36.6% since 2016. In 2017 OTT subscriptions, judging by size, were equal to one third of the size of pay TV subscriptions, however, they will equal 50% of the size in 2020 and 67% in 2022.
Netflix and Amazon Prime Video together had a market share of 18% in 2017. International services like STARZ Play Arabia and local service Shahid Plus were faring better than Netflix in the region. However, Netflix and Amazon Prime Video are quick learners and IHS Markit expects Neyflix to be the market leader in 2022.
Principal Research Analyst, Service Providers & Platforms
Mr. Constantinos Papavassiliopoulos, principal research analyst at IHS Markit, covers television market developments.