The boom in smartphones and Internet use is transforming traditional TV viewing patterns in the Middle East and North Africa, according to the Frost & Sullivan report, “OTT Video Services to Transform TV Viewing in MENA – Forecast to 2021”. Although the change in the region is much slower than in other parts of the world.
There is government support for Internet accessibility and large-scale digital transformations are taking place in the region. The presence of a young population, that is well acquainted with mobile technology, is attracting significant investment in the OTT market. However, the lack of uniformity in broadband availability in the region, is hindering the provision of OTT services in countries that have a large installed base of legacy technology. Also, viewers are accustomed to free-to-air channels and to pirated online videos, possible due to the lack of a regulatory framework. Accordingly, there has only been a gradual uptake of OTT paid subscriptions and this has resulted in lower returns on investment in OTT services for several broadcasters.
In its current stage of evolution in the region, OTT is heavily reliant on TV for advertising and content. Service providers that develop a hybrid model that combines TV and OTT will entrench themselves in the market F&S believes. Also, the customer experience and user interface in the region’s OTT market needs to be richer and more user friendly, in order to gain more subscribers.
Frost & Sullivan believes that strategic alliances among stakeholders, with a mix of local and international content, competitive pricing, and a sophisticated, user-friendly interface will help increase service adoption and accelerate market growth. International content providers like Netflix and Amazon Prime Video have a regional footprint, so the onus is on local players such as Starz Play, beIN Sports Connect, MBC Shahid, OSN GO, icflix, and others to formulate strategies to consolidate their position in the region’s market.
Aafia Bathool, a research analyst from Frost & Sullivan, stated that currently there are 75 million viewers with only 2.3 million paying subscribers throughout the region, indicating a slow conversion of registered to paid viewers. However, he believes that this figure could potentially grow to 20 million by 2020.
There is low uptake of OTT services in the region
