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It was a slow day for the Kingdom in the international press, with the Financial Times examining how media giant MBC’s streaming platform, Shahid, has emerged as the top competitor to Netflix in the Middle East. MBC, which listed early this year on Tadawul, is taking the approach of free programmes funded by advertising instead of a solely subscription-reliant business model, writes the salmon colored paper.
Gone are the days of TV: Television is “not where we’re going to get the growth from”, MBC’s CEO Sam Barnett told FT in an interview. “We’re getting similar [TV] viewership we had in previous years. We’re maintaining market share. It’s the media that is changing…we are seeing the shift of people to using [streaming].” He hit back at critics who described the company as a “parochial Middle Eastern company” that cannot compete with Netflix and other global streaming platforms.
In context- A bigger market share despite unprofitability: Shahid currently holds 22% of tne MENA streaming market, which is valued at USD 1 bn, according to tech advisory Omdia. This places it 5 points ahead of Netflix. The growth in its viewership comes as the streaming business seeks profitability as MBC pours in more investments. Shahid saw SAR 6 mn in losses in 1Q 2024, trimming its losses from SAR 102 mn a year earlier as subscription and advertising revenues grew. Revenues were also up 72% y-o-y over the year to SAR 298 mn due to increased demand on Arab dramas during Ramadan.
