OTT Video - Saudi Arabia | Statista Market Forecast

In Saudi Arabia, revenue in the OTT Video market market is projected to reach US$461.80m in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 6.75%, leading to a projected market volume of US$640.10m by 2029.
The largest market within this market is OTT Video Advertising, which is anticipated to have a market volume of US$203.30m in 2024.
In a global context, the majority of revenue is expected to be generated the United States, amounting to US$133.70bn in 2024.
Within the OTT Video market market in Saudi Arabia, the number of users is forecasted to reach 28.7m users by 2029.
User penetration in this market will be 62.2% in 2024 and is projected to increase to 71.7% by 2029.
The average revenue per user (ARPU) in the OTT Video market market is expected to be US$19.82 in 2024.
Additionally, the usage share of YouTube is estimated to account for 18.0% of the Videostreaming (SVoD) market in Saudi Arabia in 2023.
Saudi Arabia's OTT video market is experiencing significant growth, driven by increasing internet penetration and a burgeoning demand for diverse, localized content.

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 Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Saudi Arabia has a young and tech-savvy population, with a high smartphone penetration rate. This has led to a growing demand for online video content, as consumers increasingly turn to OTT platforms for their entertainment needs. The convenience and flexibility offered by OTT services, such as the ability to watch content anytime, anywhere, and on any device, have made them extremely popular among Saudi consumers.

Trends in the market: One of the key trends in the OTT Video market in Saudi Arabia is the increasing popularity of local content. Saudi Arabia has a rich cultural heritage and a thriving film industry, and there is a growing demand for content that is relevant to the local audience. OTT platforms are capitalizing on this trend by investing in the production and acquisition of local content, which is attracting a large number of subscribers. Another trend in the market is the rise of video-on-demand services. Saudi consumers are increasingly opting for on-demand content, as it allows them to watch their favorite shows and movies at their own convenience. This has led to a decline in traditional linear TV viewership, as more and more people are cutting the cord and switching to OTT platforms.

Local special circumstances: Saudi Arabia has a relatively low cinema penetration rate compared to other countries in the region. This has created a gap in the market, which OTT platforms are filling by offering a wide range of movies and TV shows. Additionally, the recent lifting of the ban on cinemas in Saudi Arabia has created new opportunities for OTT platforms to collaborate with local cinemas and offer exclusive content to their subscribers.

Underlying macroeconomic factors: The growth of the OTT Video market in Saudi Arabia can be attributed to several underlying macroeconomic factors. Firstly, the country has a high disposable income, which allows consumers to spend more on entertainment. Secondly, the government has been actively promoting the digital economy and investing in infrastructure development, which has facilitated the growth of the OTT market. Finally, the increasing internet penetration rate and the availability of high-speed internet connections have made it easier for Saudi consumers to access OTT platforms and stream video content. In conclusion, the OTT Video market in Saudi Arabia is witnessing significant growth, driven by customer preferences for convenience and local content, as well as the underlying macroeconomic factors. With the increasing popularity of OTT platforms and the rising demand for online video content, the market is expected to continue its upward trajectory 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 market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market 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 market 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 market. 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.