Tenfold increase of SVOD revenues expected in the Middle East and Africa

OTT tvA tenfold revenue increase of Middle East and Africa (MEA) subscription video on demand (SVOD) is expected in the next five years, with 2016 flagged as a ‘watershed year’ for over the top (OTT) content in the region by Digital TV Research. SVOD’s dominance is expected to grow to 69% of the OTT total in 2021, from 45% in 2015.

This market is pegged to grow from $124m in 2015 to close to $1.25bn, with the report highlighting Turkey as the market leader driving $257 million of SVOD revenues by 2021. By 2021, the region will be hosting nearly 20m SVOD homes across 28 countries up from only 15,000 in 2010 and the nearly 3m expected by the end of 2016.

Total OTT TV and video revenues will make an astronomical leap by 2021, reaching $1.8bn compared to the mere $13 million recorded in 2010 and $277 million in 2015. From the $1,518 million in OTT revenues to be added between 2015 and 2021, Turkey will contribute $264 million, with South Africa bringing in a further $222 million and Israel $187 million more.

Unlike Western Europe for example, OTT TV and video advertising in the region will remain an immature sector in 2021, while revenues will be limited as few free-to-air broadcasters have deep online archives.

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

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