And How it is Signalling New Opportunities for investment
The Content Boom
As the market expands and competition intensifies, investment in content is growing. In PayTV, market leader beIN Media is spending around $1.5 billion a year on content rights, according to IHS Markit. Of this around $1 billion goes on live sport.
OSN, beIN’s major PayTV rival, has been shifting its focus away from heavy-reliance on sport. However new CEO Patrick Tillieux still recognises the importance of strong content as a differentiator. IHS Markit notes that OSN is “re-orientating its investment to obtain rights which better tailor for a female and family audience. OSN is also focusing on signing partnerships with local content producers and content owners. In 2019, 15-20% of OSN’s content is in Arabic language which the PayTV operator plans to increase to 30% over the next two years.”
The content investment boom is also evident in the SVOD market, where the likes of Netflix, Starz Play and Amazon Prime are all jockeying for poll position. Echoing its strategy in other regions, Netflix has started investing in Arabic-language originals – with 2019’s Paranormal its third local production.
MBC has not stood by idly. At the start of 2019, it appointed Johannes Larcher as MD, Digital and VOD websites, with a remit to grow the company’s own VOD brands Shahid and Shahid Plus. Commenting, MBC Group CEO Sam Barnett explained “our challenge is to boost the volume of premium video content both from MBC Studios and further afield, upgrade our technology and extend our distribution.”
Proof of MBC’s ambition is that it is producing the world’s first Arabic-language soap, Inheritance, from a dedicated studio in twofour54, the well-established media zone in Abu Dhabi (more below). The soap is slated to shoot for 250 days of the year, and is expected to generate over 200 jobs in the first year.
beIN Media is spending around $1.5 billion a year on content rights, $1 billion of which goes on live sport.
Netflix has stepped up its investment in Arabic content, just recently launching its third local production, Paranromal.
Former Eastenders showrunner, Tony Jordan, will head up world's first Arabic soap opera.
