MEA SVOD Revenues to Increase Tenfold

LONDON: SVOD revenues across the Middle East and Africa are expected to increase from $124 million in 2015 to $1.24 billion in 2021, according to Digital TV Research.

The Middle East & Africa OTT TV and Video Forecasts report estimates that Turkey will remain market leader covered, with $257 million in SVOD revenues by 2021. Turkey will contribute $264 million, with South Africa bringing in a further $222 million and Israel $187 million more.

The firm forecasts 19.59 million SVOD homes across 28 countries in the region by 2021, up from only 15,000 in 2010 and 2.79 million expected by end-2016. Total OTT TV and video revenues will reach $1,795 million in 2021, up from only $13 million recorded in 2010 and $277 million in 2015. SVOD’s dominance is expected to grow to 69 percent of the OTT total in 2021, from 45 percent in 2015. OTT TV and video advertising revenues will be limited in the Middle East and Africa, though, as few free-to-air broadcasters have deep online archives, Digital TV Research noted.

Simon Murray, principal analyst at Digital TV Research, said: “Middle East & Africa OTT TV and video will still be an immature sector by 2021. However, 2016 is a watershed year—the year that OTT really started to take off.”

He continued: “Fixed broadband penetration is low in many of the region’s countries, so more OTT viewing will take place on smartphones. Digital TV Research forecasts that 304 million smartphone subscribers will be watching OTT TV and video at least once a month by 2021—more than triple the 2015 total and up from 5 million in 2010.”