iWorld

Online video to take lion’s share of video biz revenue in the Gulf by 2025: MPA

GCC video industry revenues are forecast to increase to $2 billion by 2025.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/12/08/z.jpg?itok=lDlS4e_R

KOLKATA: As more people shift to alternative entertainment options, online video business is going to surpass pay-TV in next five-ten years worldwide. A report by Media Partners Asia (MPA) has projected that online video will account for the lion’s share of total video industry revenue by 2025, with both pay-TV and free TV in six Gulf Cooperation Council (GCC) countries. Within the region, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE) will continue to contribute over 70 per cent pay-TV and online video revenues in aggregate by 2025.

According to MPA, the GCC video industry – comprising free TV, pay-TV and online video – will generate revenues of $1.6 billion in 2020, representing a 13 per cent year-on-year contraction with deep declines in TV advertising and subscription, only partially offset by the significant growth of online video. Covid2019 related macro issues have exacerbated headwinds across the TV sector. A rebound is expected in 2022 but the TV industry will face difficulties in the long term. Overall, GCC video industry revenues are forecast by MPA to increase to $2 billion by 2025, a CAGR of 5 per cent from 2020.

MPA vice president Aravind Venugopal said: “The GCC’s vibrant and highly competitive video ecosystem has seen some significant changes in the past few years. Online video services continue to grow, driven by: low-cost pricing; telco partnerships, including hard bundles; and the availability of premium local and global content online, including increased investment into exclusive originals.”

Even with telco partnerships, which help to broaden the customer funnel, the longer-term success of OTT platforms will rest on their ability to retain customers, manage subscriber acquisition costs (SAC) and increase lifetime value (LTV).

“Over the next five years, the focus will move to the acquisition of high LTV subscribers via D2C. Market consolidation is also likely as the GCC region will be unable to support 15+ platforms with many competing in the same customer segments. New entrants into the market such as Disney+ Hotstar and HBO Max, could provide further impetus to industry growth, competitive intensity and consolidation,” he added.

Venugopal also noted that the slow pace of innovation by pay-TV operators combined with high prices of subscription based video services, and the proliferation of broadband have contributed to the decline of pay-TV. IPTV has maintained subscriber growth, driven primarily by hard bundled triple-play services. However, as telcos re-examine their cost structures and investments in content and platforms, there remains an impending threat of the breaking of the hard bundle, which could further endanger pay-TV, he surmised.

The report further states that within the GCC online video sector, three business models have emerged in recent years: freemium operators, led by MBC-owned Shahid, PCCW-owned Viu and Zee’s Weyyak; SVoD operators, led by Netflix, Amazon Prime Video, STARZPLAY, Jawwy TV, Watch iT and OSN Streaming; and AVoD operators, including YouTube and TikTok.

Given the diverse demographics and large expat population in the region, several services targeted at specific language/ethnic groups have also launched in recent years. These include the Indian and South Asian segment, which are key audiences for Zee5, SonyLIV, Eros Now and YuppTV. As platforms seek to further expand their customer base and drive consumption, investment in Arabic originals has become a key battleground. While the Covid2019 pandemic and the economic-political crises in the region have impacted production activities, MPA has forecast that productions will return to normalcy by Q1 2021 as economies recover.

In the telecoms sector, fixed broadband has been relatively insulated from economic woes given its utility-status in UAE and low penetration in KSA. However, mobile services, particularly prepaid, have experienced subscriber declines. The UAE and Qatar leads the region, both in terms of fibre connectivity and penetration with over 90 per cent of homes having access to fixed wired services via fibre. From a mobile perspective, the GCC is well connected, with a highly competitive environment (ex-UAE) keeping retail prices relatively affordable. Data consumption remains fairly high, driven primarily by video services. There remains further scope for growth, especially in markets with low fixed broadband penetration.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/25/img_25012022_163112_800_x_800_pixel.jpg?itok=CCerpMr1
AT&T rolls out fastest consumer broadband at 2-gig, 5-gig speeds

Mumbai: Telecommunication giant AT&T has rolled out the fastest consumer broadband services at new multi-gig speeds of 2-gig and 5-gig for its fiber customers across parts of the network’s footprint. Starting 24 January, AT&T’s nearly 5.2 million customer locations in parts of more than 70...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/24/poker.jpg?itok=YGjrr_w_
National Poker Series set to return with second edition on 6 March

National Poker Series (NPS) India is set to return with its second edition on 6 March. The series has announced a prize pool of Rs 18.5 crore for 84 tournaments across 15 days.

iWorld e-commerce
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/24/trai_0.jpg?itok=HP3OeW4U
Trai directs DPOs to comply with provisions of interconnection regulations

Mumbai: The Telecom Regulatory Authority of India (Trai) has directed all distribution platform operators (DPOs) to ensure compliance with the provisions of the interconnection regulations pertaining to the listing and display of TV channels on the electronic programme guide (EPG). The telecom...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/24/netflix.jpg?itok=3Ck11E1i
Netflix launches ‘Take Ten’ initiative to support emerging filmmakers

Mumbai: Netflix on Monday announced the launch of 'Take Ten,' a short film workshop and competition, that aims to discover and support emerging filmmakers from diverse backgrounds in India. 'Take Ten' is sponsored by Netflix Fund for Creative Equity, which has dedicated $100 million a year over...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/24/trai.jpg?itok=Ozc84E6w
Trai to come up with recommendations to facilitate 5G rollout

Mumbai: The Telecom Regulatory Authority of India (Trai) will soon come up with recommendations to facilitate telecom connectivity and for easing out network rollout issues being faced by telecom companies, especially with regard to 5G.   During a virtual event organised by Digital Infrastructure...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/24/zz.jpg?itok=YkhYKVlQ
‘Akhanda’ becomes most-watched Telugu film on Disney+ Hotstar

OTT streaming service Disney+ Hotstar stated that the film "Akhanda" has garnered the highest viewership and watch time on the platform for a Telugu language title.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/22/gaana.jpg?itok=AQ_HJ_Rn
Podcast consumption on Gaana jumped 40 % YoY in 2021: CMO Shashwat Goswami

If the digital revolution paved the way for the OTT boom, it also provided a fresh impetus to the audio industry to evolve with the changing times. As the habit of consuming content on the go became a lifestyle for people, audio emerged as the most convenient option to keep one entertained and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/21/vi.jpg?itok=sJV18Cgh
Vodafone Idea reports consolidated loss of Rs 7,231 cr in Q3

Vodafone Idea on Friday reported a consolidated loss of Rs 7,230.9 crore for the third quarter ending December 2021. This is up from Rs 4,532.1 crore that the telecom major reported in the corresponding quarter previous year.

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/21/reliance.jpg?itok=mhvpWXWY
Reliance net profit jumps 41 % YoY to reach Rs 18,549 crores in Q3

Mumbai: Mukesh Ambani-led conglomerate Reliance Industries Ltd (RIL) continued its golden run, and posted a net profit of Rs 18,549 crores for the third quarter ended 31 December 2021. This is an increase of 41 per cent from ₹13,101 crore reported a year ago during the same period. The company had...

iWorld Telecom

Sign up for our Newsletter

subscribe for latest stories

* indicates required