Traditional TV & Home Video - Saudi Arabia

In Saudi Arabia, revenue in the Traditional TV & Home Video market market is projected to reach US$543.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.83%, resulting in a projected market volume of US$566.70m by 2029.
The average revenue per user (ARPU) in Saudi Arabia is expected to amount to US$23.38.
In global comparison, most revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV viewers in Saudi Arabia is expected to amount to 25.0m users by 2029.
User penetration in the Traditional TV & Home Video market market in Saudi Arabia is expected to be at 62.1% in 2024.
The average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Saudi Arabia is projected to amount to US$23.38 in 2024.
Saudi Arabia's Traditional TV & Home Video market is witnessing a shift towards digital platforms, reflecting changing consumer preferences and increased internet accessibility.

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 Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Saudi consumers have shown a strong preference for traditional TV and home video entertainment. Despite the rise of digital streaming platforms, many Saudi households still rely on traditional TV channels and physical home video formats such as DVDs. This is partly due to cultural factors, as traditional TV programming often caters to local tastes and preferences. Additionally, the relatively high cost of internet services and limited access to high-speed internet in some areas of the country have also contributed to the continued popularity of traditional TV and home video.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in Saudi Arabia is the increasing demand for high-definition content. As technology continues to advance, consumers are seeking higher quality viewing experiences. This has led to a growing demand for televisions and home video systems that support high-definition formats. Additionally, there has been a shift towards larger screen sizes, as consumers look to recreate the cinematic experience in their own homes. Another trend in the market is the growing popularity of video-on-demand services. While traditional TV channels still dominate the market, there has been a gradual increase in the adoption of video-on-demand platforms. These services offer a wide range of content that can be accessed at any time, providing greater convenience and flexibility for consumers. This trend is expected to continue as internet infrastructure improves and more households gain access to high-speed internet.

Local special circumstances: Saudi Arabia has a unique media landscape, with strict regulations governing content and broadcasting. This has created a market environment that is conducive to the growth of traditional TV and home video. The government plays a significant role in shaping the media industry, and traditional TV channels often receive support and funding from the state. This has allowed these channels to invest in high-quality programming and production, which in turn attracts viewers. Additionally, Saudi Arabia has a large expatriate population, with people from various countries residing in the country. This diversity of cultures and languages has contributed to the demand for traditional TV and home video formats that cater to different preferences and languages. Many international channels are available in Saudi Arabia, providing a wide range of content options for consumers.

Underlying macroeconomic factors: The growth of the Traditional TV & Home Video market in Saudi Arabia can also be attributed to the country's strong economy. Saudi Arabia has one of the highest GDPs in the Middle East, and its citizens have relatively high disposable incomes. This allows consumers to invest in high-quality televisions and home video systems, driving market growth. Furthermore, the government's Vision 2030 initiative, which aims to diversify the Saudi economy, has also had a positive impact on the Traditional TV & Home Video market. The initiative includes plans to develop the entertainment sector and promote cultural activities in the country. This has led to increased investment in the media industry, creating new opportunities for traditional TV and home video providers. In conclusion, the Traditional TV & Home Video market in Saudi Arabia is thriving due to customer preferences for traditional TV and home video formats, the demand for high-definition content and video-on-demand services, local special circumstances such as strict regulations and a diverse population, and underlying macroeconomic factors such as a strong economy and government initiatives.

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.