Growing smartphone and Pay-TV penetration, 4G rollouts, increasing broadband penetration and presence of regional and international OTT service providers are the key factors driving the adoption of OTT services in the AME region. Limited credit card ownership, lack of localized content, lower income levels in numerous AME countries and piracy issues are some of the key challenges hindering the adoption of OTT video services in the region.
Adoption patterns in the OTT video markets in GCC, MENA and Sub-Saharan Africa vary significantly, influenced by factors such as differences in broadband, pay-TV and 4G adoption rates and income levels. The OTT video market in AME features strong competition between regional players such as icflix, istikana, iROKOtv and Shahid.net and international players such as Netflix and STARZ Play. An extensive portfolio of both local and foreign content will be a key competitive advantage that will help OTT service providers to differentiate themselves and attract more subscribers.
Telecom operators, broadcasters, media companies and pay-TV operators have expanded into the OTT video market by launching new standalone services or services that complement their existing portfolios. For example, OTT service eLifeON offered by UAE-based telco Etisalat will help it increase monetization of data services, while pay-TV operator OSN offers its OTT service Go with an aim to serve the segment untapped by its pay-TV services. This has helped providers offer subscribers access to OTT video content across multiple platforms and augment the conventional linear TV viewing experience.
Increasing mobile data penetration creates a potential expanded addressable market for OTT video providers. Many countries in the AME region have limited fixed broadband infrastructure and we believe mobile will be a key medium to access OTT video content as a result of increasing 3G/4G coverage, expected decline in data tariffs and increasing availability of sub-$50 smartphones.
The OTT video market in AME is quite dynamic with the presence of both international and regional players. OTT players should focus on investing in improving the variety of content as well as enhancing user experience for subscribers. An effective blend of regional and international content will help OTT video service providers attract more subscribers in the AME region. This is particularly relevant as international players such as Netflix and STARZ Play expanding to the AME market thereby increasing the level of competition in the market. Content offerings will be the prime differentiating factor for subscribers when selecting their OTT service providers.
The report “OTT Video in Africa and the Middle East: Entry of international players stimulates competition while content remains key differentiating factor” offers a thorough study of the OTT video market in the AME region. Moreover, this report provides a general analysis of OTT services, and a look at business models and content provision for AME markets.
Additionally, this report provides the following analysis:
- Examines more specifically the region’s markets, including pay-TV household penetration, service provider profiles, business models and OTT mobile opportunities.
- Provides OTT Video Market Attractiveness Index, comparing the main OTT markets on different parameters such as infrastructure, demand and socioeconomic factors, and profiles a number of OTT service providers.
- Helps to study the AME’s most attractive OTT markets.
Companies mentioned in this report: Netflix, STARZ Play, Etisalat, MBC, OSN, beIN, icflix, istikana, Shahid.net, Samsung, Ooredoo, Vodafone Egypt, Maroc Telecom, Orange Tunisia, Viva Bahrain.
- Adoption patterns in the OTT video markets in GCC, MENA and Sub-Saharan Africa vary significantly, influenced by factors such as differences in broadband, pay-TV and 4G adoption rates and income levels.
- Telecom operators, broadcasters, media companies and pay-TV operators have expanded into the OTT video market by launching new standalone services or services that complement their existing portfolios.
- OTT service providers have been partnering with telcos to leverage their existing billing relationship as well as targeting the telco’s existing customer base.
- SVoD and hybrid that include SVoD are a prominent business model in the region. Hybrid business models comprising AVoD, SVoD and TVoD have been more successful in the region.
Reasons to buy
- Offers a comprehensive and detailed understanding of over-the-top video (OTT) services in the AME markets.
- Taking a forward-looking approach, the report investigates business models and the variety of OTT service providers, looking in particular at the various challenges and opportunities facing them, with examples from OTT providers in the region.
- To study the AME’s most attractive OTT markets, this report draws on the author’s proprietary OTT Video Market Attractiveness Index, which ranks markets globally based on infrastructure, demand and socioeconomic factors.
- Provides telcos with actionable analysis of trends, while the case studies of five OTT providers in Africa and the Middle East provide a resource for more detailed planning.
- The key findings and recommendations highlight crucial forward-looking trends in OTT, to allow OTT pure plays and telecom network operators develop effective longer-term OTT strategies.
- Boasts of high presentation quality that allows it to be turned into presentable material immediately, for the executive-level audience.
Section 1: OTT Video Market
OTT video pricing and business models
OTT service providers
Content provision in the connected era
Challenges and opportunities
Section 2: OTT Video in Africa & the Middle East
OTT video market in Africa & the Middle East
OTT Video Market Attractiveness Index
OTT service provider profiles
OTT business models
OTT mobile opportunity
Section 3: Market detail: Case studies
Section 4: Key Findings and Recommendations
Section 5: Appendix
List of Exhibits
Exhibit 1: OTT video business models
Exhibit 2: Types of OTT providers
Exhibit 3: OTT content provision for the connected consumer
Exhibit 4: OTT video challenges and opportunities, Africa & the Middle East
Exhibit 5: Pay-tv household penetration, select markets, 2016
Exhibit 6: Sub-indexes of the OTT Video Market Attractiveness
Exhibit 7: OTT Video Market Attractiveness Index scores, 2016
Exhibit 8: OTT service provider profiles by industry
Exhibit 9: Common OTT models; examples
Exhibit 10: Mobile subscriptions by technology, AME, 2014-2021
Exhibit 11: Netflix OTT checklist, 2016
Exhibit 12: Netflix subscription pricing, 2016
Exhibit 13: Etisalat data plan supporting Netflix in Nigeria
Exhibit 14: STARZ Play markets, 2016
Exhibit 15: STARZ Play OTT checklist, 2016
Exhibit 16: STARZ Play partnership with regional operators
Exhibit 17: Shahid.net OTT checklist, 2016
Exhibit 18: Shahid Plus on Samsung devices,