Traditional TV & Home Video - GCC

In the GCC, revenue in the Traditional TV & Home Video market market is projected to reach US$1.37bn in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.67%, leading to a projected market volume of US$1.41bn by 2029.
The average revenue per user (ARPU) in this market is expected to amount to US$36.40.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV viewers in the GCC is projected to amount to 40.1m users by 2029.
User penetration in the Traditional TV & Home Video market market in the GCC is expected to be at 62.3% in 2024.
Additionally, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in the GCC is projected to amount to US$36.40 in 2024.
In the GCC region, traditional TV and home video consumption are declining as audiences increasingly favor digital streaming services over conventional broadcasting.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in GCC is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region play a crucial role in the growth of the Traditional TV & Home Video market. With a rising middle class and increasing disposable income, consumers are increasingly looking for high-quality entertainment options within the comfort of their homes. Traditional TV and home video platforms provide a wide range of content choices, including local and international programming, movies, sports, and documentaries, catering to the diverse preferences of consumers in the region. Trends in the market also contribute to the growth of the Traditional TV & Home Video market in the GCC. The adoption of smart TVs and streaming devices has become increasingly popular, allowing consumers to access a variety of content from different sources. This trend is driven by the convenience and flexibility offered by these devices, as well as the increasing availability of high-speed internet connections in the region. Additionally, the demand for high-definition and 4K content is on the rise, as consumers seek enhanced viewing experiences. Local special circumstances also influence the development of the Traditional TV & Home Video market in the GCC. The region has a strong preference for Arabic content, including TV shows, movies, and documentaries. This preference for local content has led to the growth of local production studios and content providers, catering to the specific needs and cultural preferences of the GCC population. Furthermore, the region has a high concentration of expatriates, who often seek content from their home countries, leading to a diverse range of programming options in the market. Underlying macroeconomic factors also contribute to the growth of the Traditional TV & Home Video market in the GCC. The region has witnessed significant economic growth and development in recent years, leading to an increase in disposable income and consumer spending. This has resulted in a higher demand for entertainment options, including traditional TV and home video platforms. Additionally, the GCC governments have invested in infrastructure development, including the expansion of high-speed internet connectivity, which has further facilitated the growth of the market. In conclusion, the Traditional TV & Home Video market in the GCC is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for high-quality entertainment options, the adoption of smart TVs and streaming devices, the preference for local and international content, and the region's economic growth are driving the expansion of the market.

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.

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