OTT Video Path to Success MENA

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With the increasing market saturation, churn has become one of the main concerns of SVOD services globally and cancelling an SVOD service has never been easier compared to Pay TV subscription. In this context, we see different customers behavior from hooping around the different platform or simply cancelling out their service from the saturation of the number of subscription. As per Park associates, we see very high concurrent SVOD subscriptions in the US that can reach a mean average of more than 6 per household and it found that in in Q1 2021, the average OTT subscription in US is roughly 2.5 years and correlates with age - Older consumers were found to subscribe to fewer services but keep them for a longer period. By contrast, younger consumers may subscribe to a larger number of services but are more likely to churn through them. That said, the similar crowded landscape in MENA will result in overwhelmed consumers in the region will become more aware about their “self-created bundle” of SVOD services and the composition of the streaming service bundle they consume on a monthly basis could become more “seasonal”, with consumers tracking specif show content they want to watch and going in and out of services based on that. Aggregate & bundle complementary content… an opportunity yet to be well explored New Monetization Models?

SVOD subscription saturation Leads to Customers churning

Customers are self-budnling SVOD. Lead to customer hoping among services

Multiple Subscription is complementary. Opportunity for service aggregation business model

SVOD services bundling potential

On a positive note, data shows that customers adding new additional OTT services to their self-bundle is mainly for complementary content reasons rather than

substitutional. This should open up new realities in the media ecosystem among existing and new OTT Video players for partnering among themselves through big bundling opportunities

as well as the emergence of SVOD content aggregator platforms offering a universal search feature to help customers navigate among their bundled subscription.

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OTT Video Success Path in MENA: How can SVOD be more relevant and create long-term value

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