A report by Pyramid Research suggests that the great broadband service and local content is the reason for the increase of over the top video (OTT).
Broadband penetration in the Arab world has seen services such as ICFLIX which has grown its market from MENA region to the US, a huge success.
“OTT video is a revitalizer that will create additional revenue sources while improving customer loyalty and lifetime value,” says Houda Bostanji, Analyst at Pyramid Research. Arab markets are seeing new initiatives from content providers, local aggregators and telcos.
In July 2013, Google announced the launch of a dedicated content hub on YouTube that is tailored to the Middle East and North Africa, bringing together over 500 Arabic TV shows. OSN, the MENA region’s leading pay-TV provider, was the first in the region to introduce video on demand on smartphones in July 2013. A tailored MENA strategy combined to actions differentiating from competitors will drive success for market participants, she notes.
West Africa has seen also different local content services such as Iroking music service and Iroko TV for Nigerian movies.