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State of the Video Industry, MENA, 2017–2022

  • Report

  • 64 Pages
  • September 2018
  • Region: Africa, Middle East
  • Frost & Sullivan
  • ID: 4629863

This study recounts the evolving video industry in MENA with the uptake of online video streaming, rise of HD channels and a sluggish Pay TV market. Media companies are plagued by falling advertising revenues, a rich free-to-air (FTA) offering and the additional pressure to launch OTT services to remain competitive in this environment. Global OTT platforms are expanding their footprint in the region with a local play, while local operators team up with telcos to reach large audiences.

The Pay TV market in the MENA region is highly fragmented and under-served due to the lack of adequate content for a diverse demography, rampant piracy, prevalence of FTA channels and a low propensity to pay for services. Although the growth has been steady over the past three years, there has been a slump in the market owing to macroeconomic factors and the geopolitical instability in 2017. The MENA region is still evolving in terms of content and business models for OTT and Pay TV; however, the opportunities for growth are increasing with the adoption of high-tech solutions. This requires local partnerships and vendors to gain access to advanced solutions.

As piracy continues to cause potential revenue losses to producers, high-calibre content encryption solutions will see higher demand. Sports will remain the major driver for adopting Pay TV services in MENA, promoting the adoption of cloud services for faster live broadcast. There is a huge opportunity for global OTT operators to collaborate with vernacular content creators in order to consolidate their market position with a local content offering.

Lack of sufficient payment instruments, low credit card penetration, incoherent government regulations, impending geopolitical unrest, economic downturn in the region owing to a fall in oil prices, high piracy levels in Pay TV and the dependence on legacy systems are some of the challenges for the industry. Some countries have started diversifying their economies by reducing their dependence on oil, promoting tourism and other industries, localizing content to cater to the untapped Arabic community, and deploying advanced analytics and big data to understand their consumer and offer personalized services.

Key Issues Addressed

  • What is the state of the video industry in the MENA region?
  • How are studios, telcos, broadcasters and OTT platforms coping with the evolving video viewing trends?
  • Who are the leading OTT video platforms, satellite operators and telcos in the market?
  • How is the regulatory environment in light of political volatility and disruptions?
  • What is the forecast for the Pay TV and OTT video subscriber base in the market?
  • What are the key technology trends shaping the industry?

Table of Contents

1. Executive Summary
  • Scope of the Study
  • Key Questions this Study will Answer
  • Video Landscape in MENA
  • Pay TV Market Overview - MENA
  • Factors Affecting Video Viewing
  • Video Market Ecosystem
  • Economic Revival through Diversification

2. Market Scenario
  • Key Trends for Pay TV in MENA
  • Major Initiatives by Satellite Pay TV Operators
  • Internet Scenario in MENA
  • Rise of 4G in MENA
  • Social Media Penetration
  • OTT Video Market - Penetration and Adoption Trends
  • Latest Developments in the OTT Video Market
  • OTT Video Market - Content Trends
  • Fibre-to-the-Home/Building (FTTH/B) Landscape
  • IPTV Adoption Levels of Countries
  • IPTV Developments and Challenges

3. Technology Trends
  • Key Technology Trends in MENA
  • HD Adoption
  • Piracy Problem - MENA
  • Watermarking, CAS and DRM for Content Protection
  • Cloud for Video Transmission

4. Regulatory Framework
  • Regional Regulations Impacting the Video Industry
  • Regulations in UAE
  • Regulations in KSA
  • Regulations in Egypt

5. Drivers and Restraints
  • Market Drivers
  • Market Restraints

6. Market Forecasts
  • Forecast on Pay TV Subscriptions
  • Forecast on Online Video Viewers

7. Growth Opportunities and Companies to Action
  • Growth Opportunity 1 - Regional/Vernacular Content
  • Growth Opportunity 2 - Cloud Services
  • Growth Opportunity 3 - Content Protection Solutions
  • Growth Opportunity 4 - Advanced Analytics
  • Strategic Imperatives for the Video Industry in MENA

8. The Last Word
  • Legal Disclaimer

9. Appendix
  • MENA Countries Covered in the Study
  • List of Industry Participants Interviewed
  • List of Exhibits