MENA pay TV revenues to keep falling

Pay TV revenues for the 20 countries in the Middle East and North Africa (MENA) have fallen over the past five years and will continue to decline for the next five, according to UK-based Digital TV Research.

Source: Digital TV Research

The analyst’s Middle East & North Africa Pay TV Forecasts report found that pay TV revenues in the region fell by 14% between 2016 and 2020 to US$2.74bn and will continue to decrease to US$2.52bn by 2026. The latter figure is 23% down on 2016.

Turkey makes the most revenue from pay TV in the region, with an estimated forecast of US$752m by 2026. This will be 17% lower than the peak year of 2016, however, and will come despite the number of pay TV subscribers growing to 7.6 million in 2026 from 7.3 million in 2020.

In Israel, where cord-cutting is increasing, pay revenues are expected to total US$493m in 2026, half of the total in 2016. The country will lose 28% of its subscribers between 2020 and 2026, as its OTT sector grows significantly.

Within the 13 Arabic-speaking countries, meanwhile, pay TV revenues will remain at about US$1bn in 2026, despite subscriber numbers increasing by 18% to four million.

Simon Murray, principal analyst at Digital TV Research, said: “Five countries will contribute 78% of the region’s pay TV revenues in 2026. Turkey and Israel together will supply nearly half of the total. There are few winners. Eight of the 20 countries will lose revenues between 2020 and 2026.”