SVOD in MENA: The Art of Pricing
SVOD in MENA: The Art of Pricing
Current Pricing Strategies and Future Trends in MENA's SVOD Market
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Today’s program
At the start of each year, I review the prices of the SVOD services in MENA. It's a useful initial benchmark, especially given the expected changes in the streaming landscape throughout this year.
The power of SVOD in MENA's streaming market
Today's SVOD pricing strategies in MENA & UAE
SVOD pricing trends for 2024
And… Action!
The power of SVOD in MENA's streaming market
SVOD continues to be the key model in the local streaming ecosystem in MENA. Among the 45 homegrown streaming services that I closely monitor across the region, a majority of them operate an SVOD models. This domination still reflects a broader trend in the digital media landscape in MENA, where consistent and predictable revenue streams are highly valued.
Below is an illustration of the current complexity of the streaming landscape in MENA, in terms of business models. However, I believe this complexity is a good thing for consumers. There are now many ways for everyone to enjoy premium content.
I can observe a shift within the MENA region's streaming landscape: 11 of the 29 SVOD streaming services have evolved into hybrid models, integrating AVOD, FAST and/or Ad-Supported SVOD packages next to their “classic” SVOD tier. I anticipate this trend to grow in 2024.
This hybrid movement isn't just a local phenomenon, it's also a key strategy among international platforms active in the region, particularly those from India.
This evolution is also true for global platforms across the world, but not (yet) in MENA. The global 4 giants available in the region (Netflix, Disney+, Prime Video and Apple TV+) remain exclusively SVOD in their approach. Among these, Netflix, Disney+, and Prime Video have already moved or are transitioning to hybrid models in their primary markets. However, it's unlikely that these platforms will adopt an hybrid model in the MENA region in 2024. Similarly, Apple TV+ is expected to continue its pure SVOD model.
Today's SVOD pricing strategies in MENA & UAE
A good way to better understand the pricing strategies of SVOD services in the MENA region is to list them next to each other.
In the following graph, I've compiled the local MENA streaming services, categorizing them based on their entry-level subscription packages. It's important to note that this list is based on UAE prices and excludes packages that are exclusively for mobile users.
My observations:
TOD is the SVOD service offering the most expensive basic package. They have revised their pricing strategy several times, and the most recent update includes the following tiers: A mobile pack priced at $10, the standard TOD package at $18 and the premium TOD 4K option at $30 per month.
The 'All-in-1' On Demand Combo from Switch TV, priced at AED 59.99, might seem costly. However, the strategy employed by the streaming service of Etisalat UAE, takes a different approach. They provide several subscription options, including daily, weekly, and monthly packages. Additionally, they have a range of more affordable packages tailored to specific interests like sports, lifestyle, kids' content, Arabic programming, and a mix of Asian and Western content.
The three leading local streaming services Shahid, STARZPLAY, and OSN+ share a similar strategy for their entry-level pricing, each priced at AED 39.99 per month. It's important to note that both Shahid and STARZPLAY's base packages do not include sports content. For subscribers interested in a more comprehensive offering, including both entertainment and sports, these services offer their “Ultimate” packages. STARZPLAY's ultimate package is currently available at a discounted rate of AED 33.33 per month, down from AED 59.99, while Shahid's equivalent package is offered at AED 79.99 per month.
WATCH IT has simplified its pricing structure from six options down to just two. The first is a pure SVOD option: the “Premium - No Ads” package, normally priced at 10 USD but currently discounted to 7.99 USD. The second is the Ad-supported SVOD package “ Standard - with Ads”, typically 6 USD, now offered at a discounted rate of 2.49 USD.
Among the global streaming giants, Disney+ has the highest entry-level subscription fee, set at AED 39.99. This is in contrast to Netflix's Basic plan at 29 AED, Apple TV+'s subscription priced at 27.99 AED, and Prime Video's more affordable rate of 16 AED.
Both stc tv (KSA, Bahrain and Kuwait) and Jawwy TV (rest of MENA) offer an attractively priced entry-level package known as 'Lite,' which is available at just USD 5.40.
The pricing for niche Kids’ streaming services is different from player to player: Roya Kids is available at $2.99, while both Spacetoon Go Plus and PG Kids are priced at $4.99 each. Additionally, Majid TV has now been integrated into the new ADtv platform, which operates on an Ad-supported model only.
If you have any questions regarding the pricing strategies of other services, feel free to respond to this email and I'll be happy to provide more information.
SVOD pricing trends for 2024
What can we expect from the future pricing strategies in the MENA region?
Mobile packages: TOD launched a Mobile package last year, making its premium Sports much more affordable at $10 per month. Shahid also offers mobile packages in Tunisia, Morocco, Sudan & Egypt. I would expect to see more mobile packages at a cheaper price this year .
Add-ons/Super aggregation: This approach is gaining traction in India, and a similar trend could emerge in the MENA region. Such a model might be a solution to the market's fragmentation, where over 40 local streaming services are trying to establish their presence.
Sports offerings: Over the past few years, several platforms have introduced Sports packages: Shahid at AED 69.99, STARZPLAY, whose package is priced at 39.99 AED but currently discounted to 20 AED, and TOD, which has recently combined its Entertainment and Sports offerings.
The question now is, which other service should launch its sports package in 2024?
Ad-supported SVOD: As we should not expect the global players to launch their Ad-supported SVOD models in the region this year, could local streaming services take this opportunity to offer more budget-friendly packages?
That’s all for today, the analysis of SVOD pricing strategies in MENA & UAE. 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 The Walking Dead Daryl Dixon, exclusively available on STARZPLAY. If you want to see zombies in Paris, go watch it now. The first episode is free ;)
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