OTT players in MENA take the FAST path

Early November, evision, the media and entertainment arm of e&, announced the launch of Starz On, an OTT platform offering access to 50 FAST and Linear channels as well as thousands of hours of free content. In the intricate landscape of the Middle East and North Africa (MENA), the development of Free Ad-Supported Streaming TV (FAST) and Ad-Supported Video on Demand (AVOD) reflects a strategic response to the complex tapestry of consumer behaviour and to the diverse socio-economic dynamics. Across this region, where each country has its own distinct cultural landscape and economic complexities, can online free services emerge as a central force, not just offering entertainment but enabling both content accessibility and profitability? While the AVOD market is currently dominated by Youtube and Facebook Watch, with 34% and 30% of population penetration in the region respectively, the introduction of additional FAST and AVOD services is still in full swing. Yet, a pivotal challenge arises for broadcasters to harness their full potential. Taking that digital step would enable them to adapt their offer to the new demands of their audience and grow the revenues generated on each of their titles. As consumers increasingly embrace streaming, platforms are diversifying their models, such as Shahid (MBC) which offers premium subscriptions, AVOD content and FAST channels. Thus, what is the potential for AVOD and FAST channels in the region? FAST channels: great potential, yet to be exploited? FAST channels are linear television channels integrated into OTT platforms for streaming consumption with specific ad insertion. The development of FAST channels is still in its early stages in the MENA region but offers a number of advantages. First, viewer behaviour has changed over the years, opening up great potential for this type of service. The historical preference for free services in the region and the growing consumption of online content are signs of a promising market. Then, given the lack of reliable audience measurement tools in traditional television broadcasting, going digital makes it possible to gather more information about people's viewing habits, and to identify the most popular IPs. By creating these digital channels, broadcasters can gain a better understanding of local audiences and therefore provide ad sales houses and advertisers with more metrics. Finally, this new model helps to monetise assets that were already broadcasted on linear television but can now be offered on FAST to leverage digital ad spendings. However, even if the technological barriers remain fairly low, investments are required to create the channel, bring content to users and enable ad targeting possibilities with the proper softwares and AI tools. Shahid is currently the local player offering the most FAST channels, with a total of 64 by November 2023. The Saudi actor...