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OTT Video in Africa and the Middle East: Entry of international players stimulates competition while content remains key differentiating factor

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OTT Video in Africa and the Middle East: Entry of international players stimulates competition while content remains key differentiating factor

Summary

"OTT Video in Africa and the Middle East: Entry of international players stimulates competition while content remains key differentiating factor", a new Telecom Insider report by GlobalData offers a thorough study of the OTT video market in the AME region. The report analyses different OTT video service providers operating in the region on various parameters such as business model, content offerings, challenges and opportunities.

Adoption rate of OTT video services is gorwing in the AME region with increases in smartphone and pay-TV penetration, development of broadband infrastructure and 4G/LTE rollout. The OTT video market in AME region is witnessing strong competition between international and regional players. An extensive international and regional content portfolio will be a key competitive advantage for OTT service providers and help them increase their subscriber base. Low penetration of credit cards and lack of localised content are the some of the key challenges faced by the OTT players in the AME region.

The report consists of following sections -
- The OTT video market: This section provides a general analysis of OTT services, including taxonomy and a look at business models and content provision for AME markets.
- The OTT video in Africa & the Middle East: This section examines more specifically the regions markets, including pay-TV household penetration, service provider profiles, business models and OTT mobile opportunities. The section also provides results from the GlobalData OTT Video Market Attractiveness Index, comparing the main OTT markets on different parameters such as infrastructure, demand and socioeconomic factors, and profiles a number of OTT service providers.
- Case Studies: Three case studies are presented of the leading OTT service providers in the region which includes Netflix, STARZ play and Shahid.net. These case studies focus on the business models, strategies and best practices.
- Key findings and recommendations: It consists of a Summary of key findings and a set of recommendations for telecom operators, mobile operators and pure-play OTT players.

Scope

- Adoption patterns in the OTT video markets in GCC, MENA and Sub-Saharan Africa vary significantly, influenced by factors such as differences in broadband, pay-TV and 4G adoption rates and income levels.
- Telecom operators, broadcasters, media companies and pay-TV operators have expanded into the OTT video market by launching new standalone services or services that complement their existing portfolios.
- OTT service providers have been partnering with telcos to leverage their existing billing relationship as well as targeting the telcos existing customer base.
- SVoD and hybrid that include SVoD are a prominent business model in the region. Hybrid business models comprising AVoD, SVoD and TVoD have been more successful in the region.

Reasons to buy

- Offers a comprehensive and detailed understanding of over-the-top video (OTT) services in the AME markets.
- Taking a forward-looking approach, the report investigates business models and the variety of OTT service providers, looking in particular at the various challenges and opportunities facing them, with examples from OTT providers in the region.
- To study the AMEs most attractive OTT markets, this report draws on GlobalDatas proprietary OTT Video Market Attractiveness Index, which ranks markets globally based on infrastructure, demand and socioeconomic factors.
- Provides telcos with actionable analysis of trends, while the case studies of five OTT providers in Africa and the Middle East provide a resource for more detailed planning.
- The key findings and recommendations highlight crucial forward-looking trends in OTT, to allow OTT pure plays and telecom network operators develop effective longer-term OTT strategies.
- Boasts of high presentation quality that allows it to be turned into presentable material immediately, for the executive-level audience.

TABLE OF CONTENTS

Executive summary 5
Section 1: OTT Video Market 6
OTT video pricing and business models 7
OTT service providers 8
Content provision in the connected era 9
Challenges and opportunities 10
Section 2: OTT Video in Africa & the Middle East 11
OTT video market in Africa & the Middle East 12
OTT Video Market Attractiveness Index 13
OTT service provider profiles 15
OTT business models 16
OTT mobile opportunity 17
Section 3: Market detail: Case studies 18
Netflix 19
STARZ Play 21
Shahid.net 23
Section 4: Key Findings and Recommendations 26
Section 5: Appendix 29

List Of Tables

EXHIBIT 1: OTT video business models 7
Exhibit 2: Types of OTT providers 8
Exhibit 3: OTT content provision for the connected consumer 9
Exhibit 4: OTT video challenges and opportunities, Africa & the
Middle East
10
EXHIBIT 5: Pay-tv household penetration, select markets, 2016 12
Exhibit 6: Sub-indexes of the OTT Video Market Attractiveness
Index, 2016
13
Exhibit 7: OTT Video Market Attractiveness Index scores, 2016 14
Exhibit 8: OTT service provider profiles by industry 15
Exhibit 9: Common OTT models; examples 16
Exhibit 10: Mobile subscriptions by technology, AME, 2014-2021 17
Exhibit 11: Netflix OTT checklist, 2016 19
Exhibit 12: Netflix subscription pricing, 2016 20
Exhibit 13: Etisalat data plan supporting Netflix in Nigeria 20
Exhibit 14: STARZ Play markets, 2016 21
Exhibit 15: STARZ Play OTT checklist, 2016 21
Exhibit 16: STARZ Play partnership with regional operators 22
Exhibit 17: Shahid.net OTT checklist, 2016 23
Exhibit 18: Shahid Plus on Samsung devices, 2016 24

List Of Figures

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