Photo: Projected MENA OTT and video revenues by 2022
Photo: Projected MENA OTT and video revenues by 2022

MENA OTT revenues to quadruple by 2022

Middle East & North Africa OTT TV episodes and movies will generate revenues of $1.75 billion by 2022; more than quadruple the $428 million recorded in 2016, according to Digital TV Research.

The research group’s latest report on the MENA market projected that SVOD (Subscription Video on Demand) revenues will reach $1.23 billion by 2022 (or 70% of the OTT total) – nearly $1 billion more than the 2016 total (accounting for 56% of OTT revenues).

Digital TV Research forecasts 17.27 million SVOD homes by 2022, up from 3.74 million recorded by the end of 2016. Turkey will remain the leader by some distance, having established a major local player as far back as 2011.

Top six platforms in the region

The top six regional platforms (Netflix, Amazon Prime Video, Icflix, Starz Play, Iflix and Shahid Plus) will account for 39% of the region’s SVOD subscribers by the end of 2022, up from 34% in 2016. Extracting Israel and Turkey, these six platforms will account for 78% of SVOD subscribers by 2022 – down from 88% in 2016.

Netflix will be the largest pan-regional SVOD platform by 2022, with an expected 3.26 million paying subscribers. This is more than quintuple the 2016 total. Longer-established Icflix will cross 2 million subscribers by 2022 – quadruple its 2016 total. Starz Play will add a further 1.60 million.

Growth powered by mobile operators

The company said that SVOD platforms could gain considerable economies of scale by signing distribution deals with mobile operators. Deals between mobile operators and SVOD platforms are already prevalent in the region.

Posted by Chris Dickinson, technology journalist and editor of the Always On blog. 1st September 2017.