Research suggests that by 2027, there will be more than 36m SVOD subscriptions in MENA.
By Craig Buckland who is a Technical Director at Broadcast Traffic Systems.
The MENA region has always been a hotbed for innovation and growth, and the streaming industry is no exception. Advancements in broadcast technology and the proliferation of high-speed internet have resulted in the disruption of traditional playout in favour of flexible streaming services.
On-demand streaming has enjoyed perpetual success over the last decade, and research suggests that by 2027 there will be more than 36m SVOD subscriptions in MENA alone. Subscription platforms have secured their position in the market, but consumers now expect more for less, and ad-supported content is fulfilling the demands of viewers in terms of both cost and personalisation options.
Cost is a significant factor in purchasing decisions, and the ability to access a vast library of content without any financial commitment is hugely beneficial. Likewise, when cost-savings are teamed with the ability to consume shows and movies tailored to specific interests, ad-supported channels present a highly attractive proposition for consumers.
AVOD has been a popular option for consumers; however, as they begin to turn their attention to more interest-based content, FAST channels are quickly becoming a favourable alternative. If viewers have a preference for cooking shows or want to binge-watch classic horror films, FAST channels provide the ideal platform to immerse themselves in.
The streaming revolution
Although there are similarities, FAST channels offer a compelling alternative to viewing models that consumers are accustomed to. Combining the benefits of linear TV with the flexibility of on-demand streaming, FAST channels provide consumers the flexibility to tailor viewing experiences to individual needs, with options to pause, rewind and fast-forward through content.
In the culturally diverse MENA region, delivering content that resonates is crucial to attracting and retaining viewers. Providing a curated selection of localised and globally popular shows and movies along with live TV allows channel providers to target and satisfy a wider audience, without tying them into a subscription model.
The digital investment
Globally, there has been a significant rise in investment in digital advertising, and MENA is following the same trend. FAST channels are providing new opportunities to reach wider audiences, and revenue streams are increasing as a result. Despite offering free content, providers can attract many viewers, which in turn presents a unique opportunity for brands to promote their products or services to a diverse and engaged audience.
The FAST model also presents a flexible and dynamic advertising experience for advertisers. Unlike traditional linear TV advertising, which requires pre-planned schedules, FAST channels allow advertisers to adjust their advertising campaigns in real time. This flexibility makes it possible to adapt advertising messages to changing circumstances and ensure that ads are delivered to the right viewers at the right time.
With the use of data-driven targeting techniques, advertisers can target specific audience segments based on their interests, behaviour and demographic characteristics. This makes it possible to create highly personalised and relevant ads that resonate with viewers, which in turn increases engagement and enhances the overall effectiveness of advertising campaigns.
More than monetisation
Although the monetisation opportunities and potential ROI from FAST channels seem favourable, it’s crucial not to overlook the technological requirements. Despite some overlaps with other types of streaming services, the unique business model of FAST TV channels requires specific skills and expertise. They generate revenue from ad sales, so a deep understanding of both channel management and ad sales operations is crucial. A strong knowledge of content licensing and compliance is another important skill when operating FAST channels. Different regions have different advertising and broadcasting rules and regulations, so relevant knowledge of different markets will ensure your channel is fully compliant.
As an innovative and evolving market, MENA is well-positioned to lead the way in the FAST race. As better connectivity envelops the region, channel providers will be presented with more opportunities to reach larger audiences over a range of devices. The months ahead will bring broadcasters and advertisers closer, to provide innovative viewing solutions to a thriving young demographic.
