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Pay TV revenues slump hits MENA

Pay TV revenues in the MENA region have fallen by 12% since 2016 to a total of just under US$3bn in 2019, according to new figures.

The downward trajectory is set to continue in the years ahead, with overall revenues in 2025 likely to be lower than those in 2019 – US$2.8bn vs US$3bn – according to a report from Digital TV Research.

For the 13 Arabic-speaking countries of the region, pay TV revenues fell by 15%, from US$1.2bn in 2016 to US$1.05bn in 2019. However, the total is expected to recover to US$1.3m by 2025.

Within those three years, pay TV subscriptions in the region fell by 5% to 3.6 million but are expected to reach 4.7 million by 2025.

Simon Murray, principal analyst at Digital TV Research, cited Saudi Arabia’s 2018 ban on Qatar-based beIN Sports, alleging abuse of its dominant position in sports coverage – a move the latter has claimed is politically motivated.

“Saudi Arabia is the only country in the region to officially ban beIN. However, beIN’s business in other countries has been adversely affected,” said Murray. “Even when the ban is lifted, we believe that an unofficial ban will remain. As beIN suffers, it is reducing its expenditure on top events, thus making it less attractive to potential subscribers.”

OTT platforms have provided considerable competition to the traditional pay TV sector in the region’s two largest markets: Israel and Turkey.

Digital TV Research expects Israel to have lost 24% of its pay TV subscribers between 2015 to 2025 and forecasts that the country’s pay TV revenues will halve from over US$1bn in 2015 to US$524m in 2025. Israel’s OTT sector is expected to grow significantly as a result.

The research also found that the Turkish pay TV market has been shaken by greater competition. Local pay TV revenues will be US$761m in 2025, 16% lower than 2016. However, the number of pay TV subscribers is forecast to grow from 7.2 million in 2019 to 7.9 million in 2025.

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