Subscription video-on-demand revenues in the Middle East and Africa region are forecast to reach $1.24 billion in 2021, a 10X increase of the $124 million they generated in 2015.
A new report from Digital TV Research -- Middle East & Africa OTT TV and Video Forecasts – said total OTT TV and video revenues will reach $1.8 billion in 2021; up from only $13 million recorded in 2010 and $277 million in 2015.
SVOD will gain the lion’s share of those revenues, increasing to 69% of the OTT total in 2021 from 45% in 2015.
DTVR said OTT TV and video advertising revenues would be limited in the Middle East and Africa as few free-to-air broadcasters have deep online archives.
And, despite the rapid growth through 2021, the market will remain nascent, with plenty of room for further expansion.
“Middle East & Africa OTT TV and video will still be an immature sector by 2021. However, 2016 is a watershed year – the year that OTT really started to take off,” said Simon Murray, Principal Analyst at Digital TV Research.
The region remains behind more mature markets that have based a significant amount of growth on fixed high-speed broadband.
Much of MEA will, instead, see growth that focuses on mobile networks, especially as 4G becomes more commonplace.
“Digital TV Research forecasts that 304 million smartphone subscribers will be watching OTT TV and video at least once a month by 2021,” said Murray. “More than triple the 2015 total and up from 5 million in 2010.”
The researcher expects Turkey to remain the region’s market leader with some $257 million in SVoD revenues by 2021.
From the $1.518 billion 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.
DTVR forecasts 19.59 million homes across 28 countries in the region by 2021, up from only 15,000 in 2010 and 2.79 million expected by end-2016.
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