Digital TV Research’s latest report reveals a grim future for the pay-TV industry in the Middle East and North Africa (MENA) region. The report suggests that MENA’s pay-TV revenues will experience a sharp decline of US$1.6 billion between the peak year 2016 and 2029, primarily due to the increasing influence of Over-The-Top (OTT) platforms and the rampant issue of piracy.
Although the number of pay-TV subscribers is expected to grow by 3 million in the same period, reaching a total of 18 million, the overall pay-TV revenues for the 20 MENA countries are anticipated to fall by 43% from US$3.8 billion in 2016 to US$2.2 billion in 2029. This decline is expected to result in a reduction in Average Revenue Per User (ARPU).
The report shows that 13 out of the 20 countries will experience a decline in revenue between 2023 and 2029, with Turkey and Israel contributing almost half of the total pay-TV revenues for 2029.
The outlook for pay-TV revenues in the 13 Arabic-speaking countries is particularly noteworthy, with a projected total of US$802 million by 2029, half of the US$1.57 billion recorded in 2016. Turkish revenues are expected to reach US$707 million in 2029, reflecting a US$203 million decrease from 2016. Meanwhile, pay-TV revenues in Israel are poised to drop from US$1.14 billion to US$376 million over the same period.
Simon Murray, Principal Analyst at Digital TV Research, commented on the findings: “Legitimate pay-TV penetration has always been low in most MENA countries, but the decline is accelerating as pay-TV subscribers convert to OTT platforms.”
