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INTRODUCTION
Statistics are phenomenal, SVOD subscribers reached a little more than 1 Billion subscriptions globally in 2021-Q1 and expected to grow by 50% by 2026. We have seen in less than 2 years the entry in the US market of Disney + and Apple TV + , Warner Media and NBC Universal launched HBO Max and Peacock and recently Viacom CBS launched Paramount + , and Discovery with Discovery + . Many are rolling out globally and are expected to enter the Middle East markets in the future challenging the existing regional players in an already crowded video streaming market. In parallel to this OTT video hype, a feeling is emerging that could jeopardize this media revolution. Viewers are overwhelmed with all of the new options available; the Horowitz survey finds that 50% of TV content viewers feel that there are too many streaming services and are confused and struggling to keep connected to their favorite content.
The hype level has been increasing dramatically around the growth of OTT Videos as a global trend and consequently the proliferation of the cord-cutting phenomena, i.e., the consumer behavior of “cutting” pay-tv services at home which started in the US in the last decade and spread across other markets notably the MENA region and UAE.
The emergence of this new digital media reality created tremendous pressure on the content owners and big studios, forcing them out of their comfort zone to break up with their traditional way of doing business. Many started to get into the race of launching their DTC streaming platforms, with one objective in mind: Stop Netflix, but realizing later than copying the ramping up Netflix model is a strategic decision to survive and grow in this new emerging media world. SVOD is now the new norm in the TV/Video industry becoming a preferred way for customers to consume their content lead by the emergence of Netflix and the disruption it commanded in the entertainment landscape and the overall media value chain through its Direct to Consumer (D2C) model.
Figure 1: Gross SVOD & Net SVOD Subs (Millions)
Success Path Framework In this paper we will understand the SVOD situation in the MENA region, discuss strategic tips and the framework path to success for existing and new SVOD streaming players in MENA. How they need to adapt their strategy to be able to grow, compete, monetize their assets better and combat emerging streaming fragmentation.
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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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