marketing campaigns and strategic business partnerships proved to be instrumental in new customer and view acquisition . We intend to continue focusing our efforts on those fronts in 2024 .”
Those non-Gulf markets are also very attractive to MBC . The company says : “ The appeal for Arabic content is global and the total addressable market outside of the MENA region is significant . Worldwide , the total Arab-speaking population is around 300 million , while the Arab-speaking diaspora outside of the MENA region is made up of more than 40 million people . The countries with the largest Arab diaspora outside of the MENA region are Brazil ( 12 million ), France ( 6 million ), Indonesia ( 5 million ), Argentina ( 4.5 million ), the US ( 3.5 million ) and Turkey ( 2.6 million ). All these markets are addressable target markets for , in particular , the Group ’ s streaming platform which is already operating globally .”
The market for Shahid is very different from its conventional Free-To-Air satellite viewing . The demography of the MENA region has a significantly higher percentage of younger people compared to developed economies . The MENA region has a median age of 28 years , with 29.8 % of the population 14 years old or younger , 40.1 % between the ages of 15 and 39 , and only 30.1 % are 40 years or older as of 2022 . As such , 69.9 % of the MENA population is under 40 years of age . As a result , the Group ’ s online streaming platform , Shahid , has a large addressable target group of younger people who increasingly watch series , movies and TV shows over the Internet rather than on FTA TV . Furthermore , younger people generally show a higher preference for other digital services such as video games and music streaming , which the Group has also started to invest in . SPORTS . Shahid is also home to premium live sports , such as Roshn Saudi League , Formula 1 , NFL , AFC Champions League and other sporting events . The Group ’ s premium content has resulted in significant subscriber growth in the past few years . The number of subscribers has increased from 0.1 million as at December 31 2019 to 1.0 million as at December 31 2020 , and to 2.1 million as at December 31 2021 . The number of subscribers increased further to 2.9 million as at December 31 2022 and reached a record high of 3.76 million during Ramadan 2023 . One of Shahid ’ s main competitors , Netflix , increased from 0.9 million as at December 31 2019 to 1.5 million as at December 31 2020 and to 2.1 million as at December 31 2021 . The number of Netflix subscribers has remained steady at 2.2 million as at Q1 2023 .
MBC admits that churn on Shahid is a worry ( 1 million cancelled in 2022 , for example ). One of its challenges is maintaining the exclusivity of Shahid content while avoiding the inevitable churn if subscribers know the ‘ exclusivity ’ will only last a few weeks before popping up on MBC1 .
For MBC , its core broadcasting success breeds further success . For example , its MBC Academy and MBC Talent have sourced talents from the talent shows aired on the Group ’ s platforms such as The Voice and Arab Idol , and have connected young Saudi talent to opportunities in the entertainment , music and media industries , respectively . It has created numerous new ‘ stars ’ and celebrities and while not every hour tops the ratings , the reality is that most do . And it is MBC that everyone else attempts to emulate . FOREIGN . As well as transmitting 19 channels to the overall MENA region , MBC ’ s Studios Production division is looking for foreign business , not least a considerable interest from South Korea . Saudi Arabia , like many other nations and regions , offers considerable financial rebates for incoming productions ( currently around 40 % of the local costs ).
One 2023 production ( Desert Warrior , a 7th Century historical epic ) managed to attract top-flight talent including Sir Ben Kingsley . MBC is also embracing Ultra HD and it started offering video content in Ultra HD in 2022 for its digital streaming services . During Ramadan 2023 , as many as seven of MBC ’ s most popular Ramadan shows were available in Ultra HD quality . In May 2023 , Shahid streamed its first Ultra HD live sports event .
MBC is also investing in Egypt-specific material . For example , for Egypt , the Group partially tailors its content to the local audience which results in challenges associated with content production and acquisition and can represent a significant expense , says the company . PIRACY . Balanced against all this upside is the near-perpetual worries over piracy of material . Piracy is commonplace throughout the region unfortunately . MBC says : “ There is a significant amount of piracy and copyright
“ The Arab world ’ s production landscape is more vibrant , with each country contributing its unique flavour .” - Hasan R Sayed Hasan , Master Media TV
theft in the MENA region , in particular due to the widespread use of streaming websites that violate copyright laws by failing to license copyrighted content , while allowing for the illegal streaming , downloading and peer-topeer sharing of such content . In addition , certain local television channels in several locations within the MENA region will air movies or TV shows for which a licence has not been obtained . If piracy of the Group ’ s content reaches significant proportions and the Group ’ s content is made available on the Internet or on other digital platforms or TV channels without obtaining a licence , viewers may not be inclined to watch the Group ’ s TV channels , use its platforms or purchase its subscriptions , which would decrease the revenue the Group earns from those services .”
MBC admits that piracy is something of a ‘ whack a mole ’ problem . No sooner is one site prosecuted than others pop up . “ Even if the Group were to successfully bring lawsuits against well-known illegal streaming websites based on copyright infringement , many more websites providing illegal streaming opportunities under different domains continue to emerge every year . In addition , even though the Group incurs losses as a result of piracy , enforcing copyrights on smaller websites or even individuals is generally not a commercially viable strategy .” DEMAND . That ’ s the bad news , but as Hasan R Sayed Hasan ( founder and CEO at Master Media TV ) and its well-regarded Dubai-based production facility reminds us , there is a great deal of more positive news . “ The Arab world ’ s media production landscape is becoming more and more vibrant , with each country or region contributing its unique flavour . Demand for Arabic content is continuously increasing , fuelled by growing interest in high-quality local content by Arab audiences , and by the rapid growth of international and regional OTT streaming platforms who are competing to acquire and produce exclusive and original local content to enrich their libraries and increase local subscriptions and viewership . At the same time , each region grapples with its unique set of obstacles , from economic instability to creative dilemmas .”
He adds that Egypt and the Levant have been traditionally the primary media production hubs in the Arab world , especially for content that travels throughout the region , predominantly feature films and drama series ,
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