OTT Video - MENA | Statista Market Forecast

In MENA, revenue in the OTT Video market market is projected to reach US$4.81bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.62%, leading to a projected market volume of US$6.62bn by 2029.
The largest market within this market is Video Streaming (SVoD), which will have a market volume of US$2.31bn in 2024.
In global comparison, most revenue will be generated the United States, amounting to US$133.70bn in 2024.
In MENA's OTT Video market market, the number of users is anticipated to reach 365.2m users by 2029.
User penetration in MENA will be 52.4% in 2024, and it is expected to increase to 60.4% by 2029.
The average revenue per user (ARPU) in MENA's OTT Video market market is projected to be US$16.10 in 2024.
The MENA region is witnessing a surge in OTT video consumption, driven by localized content and increasing internet accessibility among diverse demographics.

Definition:

OTT Video refers to a digital media distribution model where users can access and watch video content at their convenience, usually through an online platform or service. With VoD, users have the flexibility to choose what content they want to watch, when they want to watch it, and how they want to consume it. This allows users to stream or download video content on demand, without the need for traditional broadcasting schedules or physical media. VoD platforms typically offer a wide range of content, including movies, TV shows, documentaries, and other video content, which can be accessed and viewed instantly or stored for later viewing. VoD has become increasingly popular in recent years, offering convenience, flexibility, and a personalized viewing experience for users.

Structure:

The market consists of several markets, namely Video Streaming (SVoD), which is streaming on a subscription basis, Pay-per-View (TVoD), which is paying for digital video content and watch it online, Video Downloads (EST), which is the download of digital video content and OTT Video Advertising, which is the advertising in video streaming.

Additional Information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through purchases and subscriptions. Market numbers for OTT Video can also be found in the video-on-demand market. Key players in the market are companies, such as Netflix, Amazon or Disney+.

Rentals as single transaction or pay-per-view (transactional VoD or TVoD)
Subscription-based services (subscription VoD or SVoD)
Digital purchases via download or permanent cloud storage (electronic-sell-through or EST)
OTT Video Advertising
Free ad-supported streaming TV (FAST) services, such as Pluto TV or Freevee

Pay-TV subscriptions (cable TV, satellite TV, IPTV, DTTV)
Physical home video (DVD & Blu-ray)
Traditional TV advertising

The OTT Video market in the Middle East and North Africa (MENA) region has experienced significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In MENA, there is a growing preference for on-demand video content, as consumers increasingly seek convenience and flexibility in their entertainment options. This has led to a surge in the adoption of OTT video platforms, which offer a wide range of content that can be accessed anytime, anywhere, and on any device. Additionally, the popularity of original and localized content has also contributed to the increasing demand for OTT video services in the region.

Trends in the market: One of the key trends in the MENA OTT Video market is the rise of local and regional players. These companies have been able to cater to the specific preferences and cultural nuances of the MENA audience, offering content that is relevant and engaging. This has resulted in increased competition in the market, as global players also recognize the potential of the MENA region and are investing in localized content and partnerships. Another important trend is the increasing adoption of subscription-based models. Consumers are willing to pay for access to premium content and are looking for affordable and convenient subscription options. As a result, OTT video providers are offering subscription packages that cater to different budgets and preferences, leading to a steady revenue stream for these companies.

Local special circumstances: The MENA region has its own unique set of circumstances that have contributed to the growth of the OTT Video market. For example, the high smartphone penetration rate in the region has made it easier for consumers to access OTT video platforms on their mobile devices. Additionally, the young and tech-savvy population in many MENA countries has been quick to adopt new technologies and embrace OTT video services. Furthermore, the MENA region has a diverse population with different languages and cultural preferences. This has created opportunities for OTT video providers to offer localized content in multiple languages, catering to the specific needs of different countries and communities within the region.

Underlying macroeconomic factors: The OTT Video market in MENA has also been influenced by underlying macroeconomic factors. Economic growth, increasing disposable incomes, and a rising middle class have contributed to the growing demand for entertainment options, including OTT video services. Additionally, improvements in internet infrastructure and the availability of high-speed internet connections have made it easier for consumers to stream video content online. In conclusion, the OTT Video market in the MENA region is experiencing significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The rise of local and regional players, the increasing adoption of subscription-based models, and the availability of localized content have all contributed to the expansion of the market. With the continued development of internet infrastructure and the increasing popularity of smartphones, the OTT Video market in MENA is expected to further grow in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Online video streaming has visibly transformed the global media landscape and impacted viewing behavior around the world. Driven by rapid leaps in internet adoption, widespread availability of mobile devices, and the ever-increasing popularity of online video content, the global video streaming market has experienced unprecedented growth in the last decade. In 2023, the over-the-top (OTT) video revenue reached an estimated 288 billion U.S. dollars, with the United States accounting for the largest share of revenue worldwide. Considering that the list of international streaming services and the catalog of online video content continue to expand at a rapid pace, the number of OTT users worldwide is expected to reach new heights in the future.