Study from Dataxis stated that growth was short of potential because of overwhelming presence of FTA content and lack of connectivity in certain countries.
Subscription-based video on demand (SVOD) is forecasted to account for 14 million subscribers in 2023 in the Middle East, from around three million in 2017. Turkey, Saudi Arabia and UAE will continue to count among the leading countries in terms of subscribers and revenues. Dataxis’ latest research sheds light on the evolution of the digital video market in the Middle East, which is expected to grow significantly in the next five years.
The release stated that even though the blended average revenue per user (ARPU) remains under $5 in the region, digital video revenues are foreseen to increase substantially, with SVODs subscription revenues accounting for almost 90% of the total in 2023.
The study however states that the market remains far from reaching its full potential. The strong take off observed in the region, the authors state, must be seen in relation with the overwhelming presence of free-to-air content and with the persistent lack of connectivity in certain countries. The market is thus expected to continue to rise provided that the deployment of broadband and a notable change in habits spread throughout the region.
