Decoding Shahid's Potential & Challenges in 2024
Decoding Shahid's Potential & Challenges in 2024
A Comprehensive look at strengths & weaknesses and market opportunities & threats of the leading streaming service in MENA
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Today’s program
Do you really know Shahid, the streaming service of MBC group? In this edition, I will analyse the platform’s strengths and weaknesses, as well as explore the opportunities and threats within the MENA market.
Strengths spotlight: what are Shahid’s assets?
Weaknesses watch: Shahid’s areas for improvement
Opportunities outlook: Shahid’s path forward
Threats terrain: Shahid’s challenges ahead
And… Action!
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Strengths spotlight: what are Shahid’s assets?
Shahid is a key brand under MBC Group
Shahid is part of MBC Group, the leading broadcaster in the MENA region. The streaming service stands next to several brands, including TV channels, MBC Radio, MBC Studios, MBC Academy, MBC Talent, Platinum Records, Wizzo, MMS, GOBX, DREAM and FLASHWIN.
Being part of such a leading group is one is the strongest strengths for Shahid. This positioning offers synergies and economies of scale on many aspects of the business, including but not limited to content production and content acquisition.
To give you a quick overview, MBC Groups operates several FTA channels reaching 150 million viewers weekly. Its content library holds over 9,200 titles and 380 hours of content produced by MBC Studios. The group dominates the audience share in many countries like in Saudi Arabia with 40% , but also in Egypt, Iraq, Morocco, etc. *
Shahid’s leadership in streaming services
Shahid is the leading SVOD service in the MENA region. It features a rich selection of original and premium Arabic content, premium live sports events and a mix of licensed content from Hollywood, high-quality Turkish shows, South Korea, Bollywood and Latin America TV series. Additionally, Shahid hosts linear and FAST channels airing movies, dramas, comedies, lifestyle shows, and popular series.
This content strategy has contributed to the recent increase in subscriber numbers, growing from 0.1 million subscribers at the end of 2019 to a peak of 3.76 million during Ramadan 2023. As of H1 2023, the total number of SVOD subscribers is 3.4 million, whereas the AVOD monthly average active users is 16 million. This growth trajectory positions Shahid ahead of Netflix, its main international competitor in MENA.*
In terms of market share, Shahid leads the SVOD race in the MENA region with a 23% share as of the end of 2022. Its popularity is strong with high customer satisfaction ratings: 28% of people in the MENA region voting for Shahid equally as Netflix. In Egypt, Shahid surpasses Netflix, with 45% of respondents selecting Shahid. The platform's strong market positioning and customer satisfaction have led to high brand recognition, particularly in KSA and Egypt, where 93% of people recognize Shahid.*
Shahid’s content strategy and focus in 2024
Shahid’s success comes from their focus on premium content while exploring high-demand niches. On one hand, MBC Group plans to improve its content production to release Shahid originals on a regular basis. On the other hand, Shahid keeps adding Western content, Turkish series and plans to increase its acquisition effort on Anime. In order to reach a broader audience and build early brand connections, Shahid is also investing in content that appeals to children.
Additionally, the Group is expanding its portfolio by investing in strategic sports rights. The integration of sports content into Shahid SVOD has already demonstrated success in boosting subscriber numbers and should drive further long-term subscriber growth. The streaming service will most certainly secure additional sports rights in 2024.
These content investments are designed to reduce churn and encourage subscribers to maintain their engagement with the platform. Over time, Shahid’s own productions are expected to play a more significant role in attracting new subscribers to the platform.
Weaknesses watch: Shahid’s areas for improvement
Impact of Shahid's growth on MBC Group
MBC Group's existing content portfolio and investment in new content are key drivers in attracting new subscribers to Shahid. This has led to a significant rise in subscriber numbers and an increase in Shahid SVOD's revenue: from SAR 132 million in 2020, SAR 370 million in 2021, SAR 508 million in 2022, and finally SAR 333 million in the first six months of 2023.*
However, content investments for OTT has also resulted in losses. If Shahid fails to expand its subscriber base enough to ensure a profitable growth in the future, such investments and expenditures might significantly and negatively impact MBC Group’s business performance.
Addressing customer churn
The success of Shahid depends on its capacity to deliver engaging content, market the platform effectively, and provide a high-quality experience for subscribers. But the challenge is not only getting new subscribers. It’s also retaining them over the long term (with their monthly fees ;).
Shahid faced cancellations of 1 million subscriptions in 2020, 0.8 million in 2021, and another 1.0 million in 2022. Despite this, Shahid has successfully grown its subscription numbers, adding 1.8 million in 2020, 2 million in 2021, and 2.4 million in 2022. If Shahid cannot effectively manage this churn rate, it may struggle to increase its subscriber base and ensure long-term profitability.*
Shahid's account sharing challenge
While a single Shahid subscription can be used on up to five devices within a household, excessive account sharing or sharing log-in details with (unauthorized) users could impact the efforts to attract new subscribers. Monitoring account sharing is challenging for all the streamers, and measures taken against it could lead to subscription cancellations. The tough campaign from Netflix to squash password-sharing appears to be working, according to their latest earnings report. Could this solution work in MENA?
As more international and local streaming services enter markets like KSA, Egypt, UAE, and other MENA countries, the cost of accessing several platforms could become a significant amount for families or individuals. This might lead to more account sharing or a shift to AVOD & FAST streaming providers.
Opportunities outlook: Shahid’s path forward
Demographic shift: young base with growing 40+ population
The MENA region's population is expected to reach 512 million by 2027, growing at a CAGR of 1.4%. This population is young, with a median age of just 28 years, embracing digital innovations, technologies and streaming services.*
The demographic segment aged 40 and above in the MENA region is anticipated to account for 33.3% by 2027 (from 30.1% of the population in 2022). Within the GCC, this age group is predicted to rise by 4.8 percentage points during the same period, representing 39.6% of its total population. This trend is also observed in the KSA and the UAE, where the 40+ demographic is expected to increase by 4.7 and 4.5 percentage points, respectively. This demographic, with more disposable income, is becoming tech-savvy and adapting to streaming services.*
OTT penetration in MENA
The OTT penetration in the MENA region was at 4% in 2022, very far from more mature markets like the US (81%). This gap shows an interesting growth potential for Shahid and all the streaming platforms operating in the region.
Dataxis Research predicts a strong growth rate of 18.5% CAGR for the SVOD market, estimating it to hit USD 1.6 billion by 2027. This trend is attributed to the boost from the COVID-19 pandemic, mixed with more content availabilities and increased internet penetration in the region. The AVOD market is set to grow at a 15.3% CAGR, aiming for USD 1.22 billion by 2027.*
Early market entrants are driving the region's OTT growth, with Shahid, StarzPlay,, Netflix and OSN+ leading in popularity due to their exclusive content and extensive libraries. In the past few years, the MENA market has seen several local & international new entrants like WATCH IT, TOD, Apple TV+ and Disney+. This increasing competition is showing a dynamic OTT landscape in the region.
Rising trends in AVOD advertising spend in MENA
Shahid SVOD model offers a stable and scalable revenue stream, that is supposed to expand as its customer base grows. Additionally, Shahid presents advertising opportunities for brands aiming to connect with their target demographic, especially as OTT advertising spend is projected to grow quickly with increasing online viewership and time spent on OTT platforms.
The advertising landscape in the MENA region is anticipated to keep growing. After a decline, TV advertising spending in the region showed signs of recovery in 2022 and is projected to increase at a CAGR of 5.5% from 2023 to 2027. However, TV's share in the overall advertising expenditure is decreasing, dropping from 15% in 2020 to 12% in 2022, and is expected to decrease further to 10% by 2025. Meanwhile, and as mentioned above, AVOD spending in the MENA region, which was around USD 600 million in 2022, should significantly grow and reach an estimated USD 1.22 billion.*
Another interesting point is the demand for Arabic content outside the MENA market. The global Arab-speaking population totals approximately 300 million, with over 40 million Arab speakers in the diaspora outside the MENA region. The largest Arab diasporas are in Brazil (12 million), France (6 million), Indonesia (5 million), Argentina (4.5 million), the US (3.5 million), and Turkey (2.6 million). These regions represent potential markets for Shahid, which is one of the only MENA homegrown platform with an existing global presence.*
Threats terrain: Shahid’s challenges ahead
Challenges coming from the diversity of the MENA Market
The MENA region, with its diverse cultural and linguistic landscape, presents unique challenges for streaming services, particularly in terms of content acquisition, connected TV penetration, and advertising maturity.
Acquiring content for the region is complex, as preferences can significantly differ from one country to another, influenced by different cultural and social norms. This diversity requires a nuanced approach to content curation, where streaming services must find a balance between international appeal and local relevance.
The penetration of connected TVs, which changes widely across the MENA region, impacts the reach and consumption of streaming content. Countries with lower penetration may limit the audience size and engagement, affecting platforms scalability and revenue potential.
The maturity level of the advertising market in the region is another key factor. In countries where digital advertising is less developed, monetizing content through advertising can be challenging. This disparity requires tailored advertising strategies that align with the different markets maturity level.
Increased streaming competition
Shahid competes with several international and local streaming services in many areas like content production and acquisition.
As the number of Arab language content producers available for high-quality production collaborations is limited, other platforms are looking to acquire them. This competition for content and top talent could lead to increased production costs. International competitors like Netflix are also producing Arabic content and adding Arabic subtitles to increase their appeal in the MENA market.
Shahid's future success in competing against existing and new competitors is uncertain. I would say that its ability to compete effectively is dependent on finding a viable cost structure.
the rise of streaming piracy in MENA
In MENA, piracy and copyright violations, especially via unauthorized streaming websites and devices, are a significant threat. The success of streaming services in the region depends on protecting content rights, but efforts to combat these infringements have been challenging.
The problem is particularly important for Shahid, where high-quality content can quickly appear on illegal sites, offering viewers a free alternative to paid subscriptions. This situation is even worse in markets where subscribers are more price sensitive. Legal actions to protect intellectual content rights come with high costs & resources and failure to effectively manage these risks could impact Shahid on the short-term.
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*Data coming from www.mbc.net/ir
That’s all for today, the SWOT analysis of Shahid in 2024. If you enjoyed this breakdown, please consider sharing it with your friends and colleagues!
I hope everyone has a great week, see you online next Monday. Until then, enjoy Killers of the Flower Moon on Apple TV+.
The Streaming Lab is a weekly newsletter exploring the trends that matter to streaming professionals. If you are not already a subscriber, sign up and join 2,300+ others who receive it directly in their inbox every Monday.
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