Finding A Means to Connect with Consumers
The Distribution Challenge
A key challenge facing MENA’s subscription-based content providers is the struggle to connect with end users and fulfil transactions. In a bid to ameliorate the problem and better reach out to consumers, MENA’s content providers are forging alliances with MENA’s telcos. It is a trend that is growing: hardly surprising given the mutually beneficial nature of such alliances. From a content provider POV, these offer access to consumers they can’t easily reach (and also simplify the billing process). For the telcos, co-opting premium content is a way to differentiate their triple or quad play offering – at a time when cut-throat competition between providers has the effect of commoditising the provision of telephony and broadband.
A good example is Amazon’s entry into the UAE in mid-2019. Underlining the point made in the previous paragraph, Ovum analysts explain that leading MENA telco Du “is offering discounted access to Amazon Prime Video for all customers.”
Netflix and Starz Play have similar arrangements with Du while Starz Play also has alliances with Ooredoo and Etisalat. In Egypt, mobile operator Orange partners with another SVOD player Icflix – while Viu has partnered with pan-regional mobile firm Zain. There’s a similar pattern in North Africa where Iflix partnered with telco Inwi in Morocco. The process of alliance building is not limited to SVOD/domestic telco partnerships either. In a bid to stay relevant to consumers, PayTV provider OSN launched its own SVOD offering (Wavo) and also signed an agreement to carry Netflix via its platform.
MENA’s content providers are consolidating their alliances with telcos in a bid to connect with consumers.
