Are MENA SVOD Players Ready for Ad-Supported Tiers?
Are MENA SVOD Players Ready for Ad-Supported Tiers?
At least 2 of them are.
Hey streamers 👋
This week, I'm exploring the potential of Ad-supported tiers in the MENA region and sharing the local and international SVOD platforms that seem ready to launch this model.
Today’s program
The streaming business models in MENA
Why Netflix and OSN+ may be ready for Ad-supported tiers
So what?
And… Action!
The streaming business models in MENA
One way to understand the streaming media ecosystem in MENA is by listing all the launches over the years. I’ve added this data into my latest chart, called “The Rise of Streaming in MENA”:
So, what can we learn from this chart?
The streaming landscape in MENA is expanding, with a mix of homegrown platforms (Shahid, OSN+, STARZ ON, etc.), international services (DAZN, Tabii, ShemarooME, etc.), and global giants (Netflix, Prime Video, Disney+, etc.).
Speaking of new services, I’ve just added a (very) recent launch: Al Jazeera Media Network started its new digital platform, “Al Jazeera 360,” yesterday!
Another way to analyze the ecosystem is by categorizing streaming services based on their business models. I called this one “Hybrid is the new SVOD”":
As you can see, already half of the local platforms now operate an hybrid model, combining SVOD and/or AVOD with FAST and Ad-supported SVOD.
What stands out is the relatively low number of platforms offering Ad-supported tiers. Only 2 local platforms currently offer packages with ads at a lower price:
Smashi TV: 18 AED/month vs 30 AED
WATCH IT: 2.49 USD/month vs 9.99 USD
I’ve included their subscription pages below, with plans & pricing details:
Meanwhile, the global giants available in the region - Netflix, Prime Video, Disney+, and Apple TV+, haven’t yet introduced Ad-supported tiers in MENA, even though most have done so in other markets:
Netflix: US, UK, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, and Spain
Prime Video: US, UK, Australia, Austria, Canada, France, Germany, Italy, Mexico, and Spain.
Disney+: US, UK, Denmark, France, Germany, Italy, Norway, Spain, Sweden, Switzerland.
That’s the current state of the ecosystem. Now, let’s look ahead and anticipate how it might change.
I believe 2 SVOD platforms are likely to introduce Ad-supported tiers very soon: OSN+ and Netflix. Here’s why:
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Why Netflix and OSN+ may be ready for Ad-supported Tiers
Let’s begin with the local player, OSN+.
Like Sauron in The Rings of Power, this platform has had many names: OSN GO, Wavo, OSN Streaming, and now OSN+. However, one thing that has remained the same is their business model. OSN+ has consistently operated as a pure SVOD service.
I remember an event in Dubai where someone asked CEO Joe Kawkabani whether OSN+ might adopt a hybrid model in the future. While he didn’t give a direct yes or no, he explained OSN+ unique positioning in the MENA region as a provider of very premium entertainment.
And that’s true - they’re the exclusive platform for HBO shows and some of the most highly regarded series like Game of Thrones, House of the Dragon, Westworld, The White Lotus, The Last of Us, Succession, or Chernobyl.
What they announced 3 months ago was quite intriguing: instead of introducing a cheaper plan, they launched a new Premium Plan with enhanced features (4K UHD and Dolby Atmos) at a higher price—AED 55.99 per month (compared to AED 39.99 for the Standard Plan).
This makes me think - if they’re already offering 2 plans, Standard and Premium, why stop there? It would make sense for them to introduce another tier - cheaper and ad-supported.
The challenge would be to secure the rights for all their premium titles and find a viable model for this new tier.
Now, let’s move on to the global giant everyone knows - Netflix.
This time, we have something concrete to discuss as Netflix has already launched its Ad-supported plan in several countries. Let’s have a look at the plan options in the US, UK and UAE:
Netflix US
Standard with ads: $6.99/ month
Standard: $15.49/ month
Premium: $22.99/ month
Netflix UK
Standard with adverts: £4.99/ month
Standard: £10.99/ month
Premium: £17.99/ month
Netflix UAE
Basic: 29 AED/month
Standard: 39 AED/month
Premium: 56 AED/month
As you can see from these plans, the differences are not just in pricing. While the basic plan in MENA allows 1 supported device and 720p streaming quality, the standard with Ads plans in the US and UK allow 2 supported devices, 1080p quality, and downloading on 2 devices.
Yes, users will have to watch ads, but they get more features at a lower price.
Why Netflix would launch an Ad-supported tier in the MENA region? Expanding the potential audience and capturing more market share in countries where a pure SVOD model may be less attractive.
So what?
While there are several hybrid players in the MENA market, most prefer to keep AVOD and SVOD separate. Shahid, the streaming service of MBC Group, is a good example of this approach.
The platform is accessible to everyone, even without a subscription, allowing them to target a wide range of countries and audiences.
About 10-20% of their content is kept behind a paywall, including sports content, premium channels, and their original productions.
And guess what? This approach is working. According to their latest Key Performance Indicators:
Shahid SVOD subscribers reached 4.61 million by the end of June 2024, with the platform adding over 630,000 new subscribers in the first 6 months of the year.
Meanwhile, AVOD revenues more than doubled in the 1st half of 2024, reaching US$ 31 million, compared to the same period in 2023, with now 18 million active AVOD users.
Why now is a better time to launch an Ad-supported tier?
The main change I’ve noticed for most of the local streaming services is that AVOD was traditionally used as a marketing tool to attract users to the platform and convert them to SVOD. Today, Ad-supported models are expected to stand on their own as viable revenue streams.
In some countries, audiences are more price-sensitive. Introducing a cheaper, ad-supported tier could make a significant difference in encouraging these users to subscribe.
The advertising market in MENA is more mature now. With the growth of streaming services and their expanding active user bases, platforms can finally offer the scalability that advertisers have been waiting for.
Additionally, CTV penetration continues to rise in the region, especially in the UAE and Saudi Arabia. This growth will likely motivate SVOD platforms to introduce their own Ad-supported tiers.
Perhaps it’s also time to bring premium FAST channels to MENA and offer users a different way to watch content. For example, OSN+ could offer linear channels featuring premium series.
What other platform do you think is ready to launch its Ad-supported tier in the MENA region, and why? Hit reply and share your thoughts!
That’s all for today, are MENA SVOD players ready for Ad-supported tiers? If you found this breakdown valuable, spread the word and share it with your network!
I hope everyone has a great week, see you online next Monday. Until then, enjoy IN VOGUE THE 90s on Disney+, an A-list cast reveal the inside story of the ‘90s most celebrated fashion an pop culture moments.
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