The current and future television broadcast outlook in the MENA region is influenced by several factors, such as the impact of COVID-19, the shift to digital media, the consumer preferences, the regulatory environment and the competitive landscape.
According to PwC‘s MENA Entertainment & Media Outlook 2020-2024 the television industry segments in the region are expected to have mixed performance in the next five years. Traditional TV and home video revenues are projected to decline by 1.9% between 2019 and 2024, reaching $3.5 billion, as more consumers cut the cord and switch to online streaming services. TV advertising revenues are expected to grow by 2.4% in the same period, reaching $3.7 billion, as TV remains a popular and trusted source of news and entertainment for many people in the region. OTT video revenues are forecast to increase by 28.5% between 2019 and 2024, reaching $2.1 billion, as more local and international players enter the market and offer more choice, convenience and personalization for consumers.
The COVID-19 pandemic has accelerated the shift to digital media, as consumers spent more time at home and sought more on-demand content. The pandemic also disrupted the production and distribution of TV content, affecting the availability and quality of programming. However, some TV broadcasters in the region have adapted to the changing environment by investing in digital platforms, producing more original and local content, partnering with OTT players and offering flexible pricing and bundling options.
The consumer preferences in the region are also evolving, as younger and more educated audiences demand more diverse, engaging and relevant content that reflects their culture, values and interests. They also expect more interactivity, personalization and socialization from their TV viewing experience. Therefore, TV broadcasters need to understand their audience segments and cater to their needs and expectations.
The regulatory environment in the region is also a key factor that affects the television broadcast outlook. Some countries in the region have strict rules on content censorship, licensing, taxation and data protection that may limit the growth and innovation of TV broadcasters. However, some countries are also taking steps to support the development of the TV industry by easing regulations, promoting local production, attracting foreign investment and fostering collaboration among stakeholders.
The competitive landscape in the region is also dynamic, as new entrants and existing players vie for market share and audience attention. Some of the leading players in the region include MBC Group, OSN, beIN Media Group and Rotana Media Group, which offer a range of TV channels, OTT platforms and content production capabilities. They face competition from international players such as Netflix, Amazon Prime Video, Disney+ and Starzplay, which offer global content libraries and original productions. They also compete with local players such as Shahid, Wavo, Jawwy TV and Watch iT!, which offer more localized content and pricing options.
In summary, the television broadcast outlook in the MENA region is influenced by several factors that create both opportunities and challenges for TV broadcasters. The industry is expected to see a divergence between digital and physical media spending, as well as between different segments of consumers. TV broadcasters need to adapt their strategies, business models and content offerings to capture the growth potential in the region.
