Middle East Advertising-Based Video on Demand (AVOD) Market
Description
Middle East Advertising-Based Video on Demand (AVOD) Market Overview
The Middle East Advertising-Based Video on Demand (AVOD) Market is valued at USD 1.3 billion, based on a five-year historical analysis and benchmarked against regional online video and streaming revenues within the wider Middle East media and entertainment market. This growth is primarily driven by the increasing penetration of the internet, the rise of mobile devices, and a growing preference for on-demand and mobile-first video content among consumers. The shift from traditional satellite and cable TV to over-the-top (OTT) and digital platforms, along with a rapid increase in programmatic and connected TV (CTV) advertising, has significantly contributed to the expansion of the AVOD market in the region. Key players in this market include countries like Saudi Arabia and the United Arab Emirates, which dominate due to their high disposable incomes, advanced fiber and 5G digital infrastructure, and a young, tech-savvy population with high video consumption. Saudi Arabia accounts for close to two-fifths of the regional media and entertainment revenue, while smartphone penetration in core Gulf markets exceeds 90%, underpinning strong demand for streaming and ad-supported video. The presence of major international streaming services and strong regional platforms such as Shahid, OSN+, Starzplay, and YouTube, combined with telecom-bundled offers and local broadcasters’ OTT extensions, further enhances the market's growth potential in these regions. In 2023, content and media services in Saudi Arabia continued to be governed by the Implementing Regulations of the Audio-Visual Media Law, issued by the General Commission for Audiovisual Media (GCAM) in 2019, which set licensing and content standards for on-demand and audiovisual media services operating in the Kingdom. Under these rules, on-demand and streaming platforms distributing in Saudi Arabia are required to obtain appropriate audiovisual media service licences, comply with national content classification and censorship guidelines, and align with local cultural, religious, and language standards, encouraging investment in Arabic and locally relevant content catalogs. While various local investment and cultural programs under Vision 2030 incentivize Saudi content development, platforms generally respond through voluntary content quotas, commissioning of Saudi productions, and partnerships with local studios rather than a fixed statutory percentage obligation on AVOD catalogues.
Middle East Advertising-Based Video on Demand (AVOD) Market Segmentation
By Content Type: The content type segmentation of the AVOD market includes various categories such as Movies, TV Shows and Series, Short-Form & User-Generated Content, Sports & Live Events, News & Current Affairs, Kids & Family, and Others. Among these, TV Shows and Series are currently dominating the professionally produced, long-form AVOD segment due to the increasing demand for binge-watching, serialized storytelling, and catch-up viewing of network and satellite TV shows. The rise of platforms offering exclusive series, premium Arabic dramas, Turkish and Asian series, and localized originals has significantly influenced consumer preferences, leading to a surge in viewership in this segment, particularly in Saudi Arabia and the UAE. By Device Type: The device type segmentation includes Smart TVs & Connected TV Devices, Smartphones, Tablets, Laptops and Desktops, and Gaming Consoles & Other Connected Devices. The Smartphones segment is leading the market, driven by the widespread use of mobile devices for streaming content and regional smartphone penetration levels above 90% in key Middle Eastern markets. The convenience of accessing AVOD services on-the-go, telco-zero-rated or bundled video packages, and the increasing availability of high-speed fiber and 5G networks have made smartphones the preferred choice for consumers in the region for both short-form and long-form ad-supported video.
Middle East Advertising-Based Video on Demand (AVOD) Market Competitive Landscape
The Middle East Advertising-Based Video on Demand (AVOD) Market is characterized by a dynamic mix of regional and international players. Leading participants such as Shahid (MBC Group), OSN+ (OSN Group), Starzplay, Netflix, Amazon Prime Video, YouTube, MBC Group, beIN CONNECT (beIN Media Group), TOD (beIN Media Group), Disney+, Viu, Jawwy TV (stc Group), Watch iT!, ADtv (Abu Dhabi Media), EshailSat / Other Regional Free AVOD & FAST Channels contribute to innovation, geographic expansion, and service delivery in this space.
Shahid (MBC Group)
2010 Dubai, UAE OSN+ 2012 Dubai, UAE
Starzplay
2015 Dubai, UAE
Netflix
1997 Los Gatos, USA
Amazon Prime Video
2006 Seattle, USA
Company
Establishment Year
Headquarters
Group Size (Regional / Global, Large, Medium, Small)
Monthly Active Users (MAUs) in Middle East
Daily Active Users (DAUs) and Watch-Time per User
Average Revenue Per User (ARPU) – Ad-Supported
Ad Fill Rate and Effective CPM (eCPM)
Customer Acquisition Cost (CAC)
Middle East Advertising-Based Video on Demand (AVOD) Market Industry Analysis
Growth Drivers
Increasing Internet Penetration: The Middle East has seen a significant rise in internet penetration, reaching approximately 80% of individuals using the Internet, according to the International Telecommunication Union. This increase has facilitated access to AVOD platforms, enabling more users to engage with on-demand content. The region's internet user base is estimated at over 200 million people when aggregating Arab States and neighboring Middle East markets. Enhanced connectivity, particularly in urban areas, supports the growth of AVOD services, driving advertising revenue. Rising Demand for On-Demand Content: The demand for on-demand content in the Middle East is surging, with a reported one third of consumers preferring streaming services over traditional television. This shift is driven by changing viewing habits, particularly among younger demographics. The region's population, with over one third under 30 years old in many Middle East and North Africa countries, is increasingly seeking personalized content experiences. As a result, AVOD platforms are expanding their libraries, catering to diverse tastes and preferences, which in turn attracts more advertisers looking to reach these audiences. Growth of Mobile Streaming Services: Mobile streaming services are experiencing rapid growth in the Middle East, with mobile broadband subscriptions in the Arab States region exceeding 400 subscriptions per 100 inhabitants, implying well over 150 million mobile broadband subscriptions in total. This trend is fueled by the increasing affordability of smartphones and data plans. As consumers increasingly access AVOD content via mobile devices, advertisers are capitalizing on this trend by creating mobile-optimized ad campaigns. The convenience of mobile streaming is reshaping content consumption patterns, making it a critical driver for the AVOD market's expansion in the region.
Market Challenges
Intense Competition from Subscription Services: The AVOD market in the Middle East faces fierce competition from subscription-based services, which are gaining traction among consumers. Major players like Netflix and Disney+ are investing heavily in local content, making it challenging for AVOD platforms to retain viewers. It is expected that subscription services will capture over 40% of the streaming market share, compelling AVOD providers to innovate and differentiate their offerings to attract and maintain audiences. Regulatory Hurdles: Regulatory challenges pose significant obstacles for AVOD platforms in the Middle East. Governments are increasingly implementing content censorship policies, which can restrict the availability of certain content. It is estimated that over 30% of AVOD content may face regulatory scrutiny, impacting the diversity of offerings. Additionally, compliance with advertising standards and data protection regulations complicates operations, requiring AVOD providers to navigate a complex legal landscape to succeed in the region.
Middle East Advertising-Based Video on Demand (AVOD) Market Future Outlook
The future of the AVOD market in the Middle East appears promising, driven by technological advancements and evolving consumer preferences. As internet penetration continues to rise, more users will engage with AVOD platforms, leading to increased advertising revenues. Furthermore, the growing trend of mobile-first strategies will enhance user experiences, making content more accessible. The market is likely to see innovations in interactive content and personalized advertising, which will further attract viewers and advertisers alike, fostering a dynamic ecosystem.
Market Opportunities
Partnerships with Local Content Creators: Collaborating with local content creators presents a significant opportunity for AVOD platforms. By leveraging regional talent, platforms can offer culturally relevant content that resonates with local audiences. This strategy not only enhances viewer engagement but also attracts advertisers seeking to connect with specific demographics, potentially increasing ad revenues significantly. Expansion into Emerging Markets: Expanding into emerging markets within the Middle East can provide AVOD platforms with new growth avenues. Countries like Iraq and Yemen, with increasing internet access, represent untapped audiences. By tailoring content and advertising strategies to these markets, AVOD providers can capture a share of the growing demand for on-demand services, enhancing their overall market presence and profitability.
Please Note: The report will take approximately 4–6 weeks to prepare and deliver.
Update cycle typically involves:
Dataset refresh & triangulation from credible public sources + paid databases where applicable.
Competitive mapping (platform coverage, business model, revenue/traffic proxies where available, key vertical splits)
Validation pass to ensure numbers are directionally consistent (and avoid “stale” assumptions)
Finalizing the PDF + Excel with clear assumptions and definitions.
The Middle East Advertising-Based Video on Demand (AVOD) Market is valued at USD 1.3 billion, based on a five-year historical analysis and benchmarked against regional online video and streaming revenues within the wider Middle East media and entertainment market. This growth is primarily driven by the increasing penetration of the internet, the rise of mobile devices, and a growing preference for on-demand and mobile-first video content among consumers. The shift from traditional satellite and cable TV to over-the-top (OTT) and digital platforms, along with a rapid increase in programmatic and connected TV (CTV) advertising, has significantly contributed to the expansion of the AVOD market in the region. Key players in this market include countries like Saudi Arabia and the United Arab Emirates, which dominate due to their high disposable incomes, advanced fiber and 5G digital infrastructure, and a young, tech-savvy population with high video consumption. Saudi Arabia accounts for close to two-fifths of the regional media and entertainment revenue, while smartphone penetration in core Gulf markets exceeds 90%, underpinning strong demand for streaming and ad-supported video. The presence of major international streaming services and strong regional platforms such as Shahid, OSN+, Starzplay, and YouTube, combined with telecom-bundled offers and local broadcasters’ OTT extensions, further enhances the market's growth potential in these regions. In 2023, content and media services in Saudi Arabia continued to be governed by the Implementing Regulations of the Audio-Visual Media Law, issued by the General Commission for Audiovisual Media (GCAM) in 2019, which set licensing and content standards for on-demand and audiovisual media services operating in the Kingdom. Under these rules, on-demand and streaming platforms distributing in Saudi Arabia are required to obtain appropriate audiovisual media service licences, comply with national content classification and censorship guidelines, and align with local cultural, religious, and language standards, encouraging investment in Arabic and locally relevant content catalogs. While various local investment and cultural programs under Vision 2030 incentivize Saudi content development, platforms generally respond through voluntary content quotas, commissioning of Saudi productions, and partnerships with local studios rather than a fixed statutory percentage obligation on AVOD catalogues.
Middle East Advertising-Based Video on Demand (AVOD) Market Segmentation
By Content Type: The content type segmentation of the AVOD market includes various categories such as Movies, TV Shows and Series, Short-Form & User-Generated Content, Sports & Live Events, News & Current Affairs, Kids & Family, and Others. Among these, TV Shows and Series are currently dominating the professionally produced, long-form AVOD segment due to the increasing demand for binge-watching, serialized storytelling, and catch-up viewing of network and satellite TV shows. The rise of platforms offering exclusive series, premium Arabic dramas, Turkish and Asian series, and localized originals has significantly influenced consumer preferences, leading to a surge in viewership in this segment, particularly in Saudi Arabia and the UAE. By Device Type: The device type segmentation includes Smart TVs & Connected TV Devices, Smartphones, Tablets, Laptops and Desktops, and Gaming Consoles & Other Connected Devices. The Smartphones segment is leading the market, driven by the widespread use of mobile devices for streaming content and regional smartphone penetration levels above 90% in key Middle Eastern markets. The convenience of accessing AVOD services on-the-go, telco-zero-rated or bundled video packages, and the increasing availability of high-speed fiber and 5G networks have made smartphones the preferred choice for consumers in the region for both short-form and long-form ad-supported video.
Middle East Advertising-Based Video on Demand (AVOD) Market Competitive Landscape
The Middle East Advertising-Based Video on Demand (AVOD) Market is characterized by a dynamic mix of regional and international players. Leading participants such as Shahid (MBC Group), OSN+ (OSN Group), Starzplay, Netflix, Amazon Prime Video, YouTube, MBC Group, beIN CONNECT (beIN Media Group), TOD (beIN Media Group), Disney+, Viu, Jawwy TV (stc Group), Watch iT!, ADtv (Abu Dhabi Media), EshailSat / Other Regional Free AVOD & FAST Channels contribute to innovation, geographic expansion, and service delivery in this space.
Shahid (MBC Group)
2010 Dubai, UAE OSN+ 2012 Dubai, UAE
Starzplay
2015 Dubai, UAE
Netflix
1997 Los Gatos, USA
Amazon Prime Video
2006 Seattle, USA
Company
Establishment Year
Headquarters
Group Size (Regional / Global, Large, Medium, Small)
Monthly Active Users (MAUs) in Middle East
Daily Active Users (DAUs) and Watch-Time per User
Average Revenue Per User (ARPU) – Ad-Supported
Ad Fill Rate and Effective CPM (eCPM)
Customer Acquisition Cost (CAC)
Middle East Advertising-Based Video on Demand (AVOD) Market Industry Analysis
Growth Drivers
Increasing Internet Penetration: The Middle East has seen a significant rise in internet penetration, reaching approximately 80% of individuals using the Internet, according to the International Telecommunication Union. This increase has facilitated access to AVOD platforms, enabling more users to engage with on-demand content. The region's internet user base is estimated at over 200 million people when aggregating Arab States and neighboring Middle East markets. Enhanced connectivity, particularly in urban areas, supports the growth of AVOD services, driving advertising revenue. Rising Demand for On-Demand Content: The demand for on-demand content in the Middle East is surging, with a reported one third of consumers preferring streaming services over traditional television. This shift is driven by changing viewing habits, particularly among younger demographics. The region's population, with over one third under 30 years old in many Middle East and North Africa countries, is increasingly seeking personalized content experiences. As a result, AVOD platforms are expanding their libraries, catering to diverse tastes and preferences, which in turn attracts more advertisers looking to reach these audiences. Growth of Mobile Streaming Services: Mobile streaming services are experiencing rapid growth in the Middle East, with mobile broadband subscriptions in the Arab States region exceeding 400 subscriptions per 100 inhabitants, implying well over 150 million mobile broadband subscriptions in total. This trend is fueled by the increasing affordability of smartphones and data plans. As consumers increasingly access AVOD content via mobile devices, advertisers are capitalizing on this trend by creating mobile-optimized ad campaigns. The convenience of mobile streaming is reshaping content consumption patterns, making it a critical driver for the AVOD market's expansion in the region.
Market Challenges
Intense Competition from Subscription Services: The AVOD market in the Middle East faces fierce competition from subscription-based services, which are gaining traction among consumers. Major players like Netflix and Disney+ are investing heavily in local content, making it challenging for AVOD platforms to retain viewers. It is expected that subscription services will capture over 40% of the streaming market share, compelling AVOD providers to innovate and differentiate their offerings to attract and maintain audiences. Regulatory Hurdles: Regulatory challenges pose significant obstacles for AVOD platforms in the Middle East. Governments are increasingly implementing content censorship policies, which can restrict the availability of certain content. It is estimated that over 30% of AVOD content may face regulatory scrutiny, impacting the diversity of offerings. Additionally, compliance with advertising standards and data protection regulations complicates operations, requiring AVOD providers to navigate a complex legal landscape to succeed in the region.
Middle East Advertising-Based Video on Demand (AVOD) Market Future Outlook
The future of the AVOD market in the Middle East appears promising, driven by technological advancements and evolving consumer preferences. As internet penetration continues to rise, more users will engage with AVOD platforms, leading to increased advertising revenues. Furthermore, the growing trend of mobile-first strategies will enhance user experiences, making content more accessible. The market is likely to see innovations in interactive content and personalized advertising, which will further attract viewers and advertisers alike, fostering a dynamic ecosystem.
Market Opportunities
Partnerships with Local Content Creators: Collaborating with local content creators presents a significant opportunity for AVOD platforms. By leveraging regional talent, platforms can offer culturally relevant content that resonates with local audiences. This strategy not only enhances viewer engagement but also attracts advertisers seeking to connect with specific demographics, potentially increasing ad revenues significantly. Expansion into Emerging Markets: Expanding into emerging markets within the Middle East can provide AVOD platforms with new growth avenues. Countries like Iraq and Yemen, with increasing internet access, represent untapped audiences. By tailoring content and advertising strategies to these markets, AVOD providers can capture a share of the growing demand for on-demand services, enhancing their overall market presence and profitability.
Please Note: The report will take approximately 4–6 weeks to prepare and deliver.
Update cycle typically involves:
Dataset refresh & triangulation from credible public sources + paid databases where applicable.
Competitive mapping (platform coverage, business model, revenue/traffic proxies where available, key vertical splits)
Validation pass to ensure numbers are directionally consistent (and avoid “stale” assumptions)
Finalizing the PDF + Excel with clear assumptions and definitions.
Table of Contents
80 Pages
- 1. Middle East Advertising-Based Video on Demand (AVOD) Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. Middle East Advertising-Based Video on Demand (AVOD) Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. Middle East Advertising-Based Video on Demand (AVOD) Market Analysis
- 3.1. Growth Drivers
- 3.1.1 Increasing Internet Penetration
- 3.1.2 Rising Demand for On-Demand Content
- 3.1.3 Growth of Mobile Streaming Services
- 3.1.4 Expansion of Advertising Budgets in Digital Media
- 3.2. Restraints
- 3.2.1 Regulatory Challenges
- 3.2.2 Competition from Subscription-Based Models
- 3.2.3 Limited Content Availability
- 3.2.4 Consumer Privacy Concerns
- 3.3. Opportunities
- 3.3.1 Partnerships with Local Content Creators
- 3.3.2 Expansion into Emerging Markets
- 3.3.3 Technological Advancements in Streaming
- 3.3.4 Increasing Adoption of Smart TVs
- 3.4. Trends
- 3.4.1 Shift Towards Personalized Advertising
- 3.4.2 Growth of Interactive Content
- 3.4.3 Rise of Short-Form Video Content
- 3.4.4 Increased Focus on Data Analytics for Targeting
- 3.5. Government Regulation
- 3.5.1 Content Licensing Requirements
- 3.5.2 Advertising Standards and Guidelines
- 3.5.3 Data Protection Regulations
- 3.5.4 Taxation Policies on Digital Advertising
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. Middle East Advertising-Based Video on Demand (AVOD) Market Segmentation, 2024
- 4.1. By Content Type (in Value %)
- 4.1.1 Movies
- 4.1.2 TV Shows
- 4.1.3 Sports
- 4.1.4 Documentaries
- 4.1.5 Others
- 4.2. By Device Type (in Value %)
- 4.2.1 Smart TVs
- 4.2.2 Mobile Devices
- 4.2.3 Laptops and Desktops
- 4.2.4 Streaming Devices
- 4.3. By Advertising Format (in Value %)
- 4.3.1 Video Ads
- 4.3.2 Display Ads
- 4.3.3 Sponsored Content
- 4.4. By User Demographics (in Value %)
- 4.4.1 Age Groups
- 4.4.2 Gender
- 4.4.3 Income Levels
- 4.5. By Subscription Model (in Value %)
- 4.5.1 Free Ad-Supported
- 4.5.2 Paid Subscription
- 4.5.3 Hybrid Models
- 4.6. By Region (in Value %)
- 4.6.1 North Africa
- 4.6.2 Gulf Cooperation Council (GCC)
- 4.6.3 Levant
- 4.6.4 Other Middle Eastern Countries
- 5. Middle East Advertising-Based Video on Demand (AVOD) Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1 Shahid
- 5.1.2 OSN
- 5.1.3 Starzplay
- 5.1.4 Netflix
- 5.1.5 Amazon Prime Video
- 5.2. Cross Comparison Parameters
- 5.2.1 No. of Subscribers
- 5.2.2 Revenue
- 5.2.3 Content Library Size
- 5.2.4 Advertising Revenue
- 5.2.5 Market Share
- 6. Middle East Advertising-Based Video on Demand (AVOD) Market Regulatory Framework
- 6.1. Content Licensing Standards
- 6.2. Compliance Requirements and Audits
- 6.3. Certification Processes
- 7. Middle East Advertising-Based Video on Demand (AVOD) Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. Middle East Advertising-Based Video on Demand (AVOD) Market Future Segmentation, 2030
- 8.1. By Content Type (in Value %)
- 8.2. By Device Type (in Value %)
- 8.3. By Advertising Format (in Value %)
- 8.4. By User Demographics (in Value %)
- 8.5. By Subscription Model (in Value %)
- 8.6. By Region (in Value %)
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