The year 2020 was one of transition in every sector, thanks to the Covid-19 Pandemic and the subsequent lockdowns, and rarely was it more evident than in the boost that consumer electronic activity witnessed.
According to the PricewaterhouseCoopers report Projections from the World Entertainment & Media Outlook 2021, cinema and theater revenues fell 71% in 2020, while Netflix gained 37 million net subscribers.
Saudi Arabia steps up
Global sales in the entertainment and media sector decreased from $2.1 trillion in 2019 by around 3.8% to $2 trillion in 2020, the world’s largest annual decline.
The report also referred to Saudi Arabia’s growth after the cinema ban came to a halt in 2018 because entertainment is one of the pillars of Vision 2030, as it is aimed at strengthening the country’s function of being an international entertainment and event center in the service and tourism sectors.
Saudi Arabia is looking to be an essential base of entertainment companies and talents, and an attractive investment environment by building strong partnerships to create, develop, and invest in all Saudi-related platforms, including infrastructure and installations, with a view to regulatory development.
In June 2019, Netflix launched its first Arab production on global platforms, to the delight of the region’s Arab audiences and entertainment sector.
It was “The Jinn,” a supernatural drama about a group of young people who meet two Jinns —supernatural characters — while exploring Jordan’s past.
Powerful Arabic competitors: Starzplay!
As Netflix woos the Arab audience, other international platforms like Amazon Prime and Disney Plus produce or provide Arabic content in the Middle East.
Then there are Arab-based platforms such as Starz Play, Wavo, and OSN, which have become local competitors to Netflix.
MBC, the Saudi-owned media company, is also a challenger, having created original movies and series, and expanded its broadcasting services with “Shahid” and “Shahid Plus.”
These helped MBC increase its subscribers by 43% from Ramadan 2020 to Ramadan 2021. Its services were also expanded to include the United States and Canada.
Difficult situation
Integral, a digital sports and entertainment company, has launched Jawwy TV, an OTT platform for the MENA region, to influence and attract the Arab audience. However, as the number of users grows, the competition is expected to heat up.
Iflix was one of the victims, leaving the MENA region two years after its launch in 2017 as it could not replicate the success of its primary market in Southeast Asia.
The Iflix platform had a troubling experience since the Arab market was in the early stages of digital transformation when it was launched in 2013 in the UAE.
Notably, those platforms do not compete with traditional television, as Starzplay Cofounder and CEO Moaz Sheik told AFP in 2019: “What we are trying to do is provide more and more relevant Arabic content.”
Mukul Krishna, the digital media manager at Frost & Sullivan, noted that 85-90% of Middle-East viewers watch TV, and only 25-30% turn to online video platforms.
Netflix Alternatives in the Middle East
Starzplay: In 2015, Starzplay Arabia was launched in Dubai, and now has more than 700,000 subscribers. It produces a wide selection of hit movies for adults and children.
Furthermore, Starzplay has developed features that allow customers to watch series and movies even when they are not connected to the internet.
OSN Network: OSN Play, was launched in 2012, marking the company’s first move into the video-streaming industry.
In 2013, OSN added the OSN WAVO service, allowing users to access popular films, shows, sports, and the live OSN TV channels.
MBC Shahid: The Shahid platform, which was launched in 2012, has grown in popularity throughout the Arab world owing to its presentation of MBC entertainment programs such as The Voice and Arabs Got Talent, as well as translated and subtitled films and series.
The premium subscription-based service Shahid PLUS — now Shahid VIP — was launched in 2014, providing users with a variant of the free video-on-demand service.
Broadcast Demand: The UAE and Saudi Arabia make up a significant part of the demand-for-streaming services, and together account for 49% of all MENA subscriptions, according to IHS Markit’s report Pay TV & Online Video Report Mena 2019.
The revenue from online streaming subscriptions is expected to outpace paid TV subscriptions such as OSN and beIN by 2025.
Netflix is working hard to attract the Arab viewership. It produces films for singers and actors in Arab countries and buys exclusive rights for older broadcasting content such as Adel Imam’s plays, which the audience loves.
The future is glowing
The aforementioned PWC report estimates a growing number of viewers on digital video platforms in the Arab countries and around the globe.
As a result, the global entertainment and media sector will boost its revenues by 6.5% in 2021, particularly with many governments heading for new closures. In 2022, sales are predicted to rise by 6.7%.
The Research and Markets Company’s Report on SVOD MENA notes that there will be 27.16 million paid subscriptions on live video platforms for 20 countries in the MENA by 2025, up from 10.95 million at the end of 2019.
Netflix is expected to stay on top of the competition because its total number of subscribers is expected to double to 9.81 million by 2025.