According to research firm Ovum, the number of subscription-based online video users is expected to grow from 100 million to 180 million in 2019. Meanwhile, subscription based video streaming revenues in Middle East are expected to grow over 25 per cent annually to 2019, accounting for over 70 per cent of the overall over-the-top (OTT) market revenues in the region.

The research firm underlines that video streaming services can gain from two-thirds of Arab population which is under 30 years of age and are heavy users of entertainment content, particularly, video. Despite the availability of free and pay-TV channels, there is a lack of quality Western TV and streaming movie content at low prices in the region. Current subscription video on demand services in the Middle East overwhelmingly originate from telecoms, pay TV operators, and broadcasters.

Ovum expects non-native services to lead to intense competition in this space and therefore in order to compete, local services will have to invest in original content, improved user experience, and competitive pricing to maintain market share. In such a scenario, the acquisition of exclusive content will become crucial. Live sporting events will continue to attract the biggest audiences in the Middle East, exclusive movies and high-end dramas can significantly differentiate individual streaming services. Further, subscription streaming can target narrow interest groups and monetise niche native and expatriate audiences more effectively than traditional distribution channels whose economics tend to rely on larger audiences. Credible subscription streaming services with strong content relationships will be well-positioned to gain market share in a rapidly growing sector over the next five years.