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Forecast Period
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2025-2029
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|
Market Size (2023)
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USD 8.56 Billion
|
|
CAGR (2024-2029)
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4.20%
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Fastest Growing Segment
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Online
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Largest Market
|
Western
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Market Size (2029)
|
USD 10.92 Billion
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Market Overview
Saudi Arabia Television Market was valued at USD 8.56 billion in 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 4.20% through 2029. The television market in Saudi Arabia
is a dynamic and rapidly evolving industry that reflects the changing media
landscape in the country. Television has long been a primary source of
entertainment and information in Saudi Arabia, and it continues to be a
significant part of the country's media landscape.
The Saudi Arabia television market encompasses a
wide range of television services, including terrestrial broadcasting,
satellite television, cable TV, and over-the-top (OTT) streaming services. The
market is characterized by a growing number of television channels, both
domestic and international, that cater to diverse audiences.
Television content in Saudi Arabia caters to
diverse audiences. While news and religious programming hold a significant
place, entertainment, including drama series, comedy shows, and sports events,
are also popular. The Saudi government has been investing in local content
production, fostering the creation of Saudi-made TV shows and films to promote
local talent and culture.
The Saudi Arabian television market operates within
a regulatory framework overseen by the General Authority for Audiovisual Media
(GCAM). GCAM regulates and monitors television content, ensuring it aligns with
cultural norms and values.
The television market in Saudi Arabia is undergoing
a digital transformation. With the widespread availability of high-speed
internet and the increasing popularity of smartphones and smart TVs, OTT
streaming services have gained prominence. Streaming platforms like Shahid,
Netflix, and Amazon Prime Video have a growing subscriber base in the country,
offering on-demand content and original programming.
The Saudi Arabian television market faces various
challenges, including the need for more original and diverse content,
competition from international streaming services, and the management of
content regulations in the digital age. However, it also presents opportunities
for local content creators, technology providers, and advertisers looking to
tap into a growing and tech-savvy audience.
In conclusion, the television market in Saudi
Arabia is a rapidly evolving industry that reflects the changing media
landscape in the country. With a mix of traditional broadcasting and digital
streaming services, it caters to a diverse and growing audience. As Saudi
Arabia continues to invest in the production of local content and embraces
digital innovations, the television market is poised for further growth and
transformation in the coming years.
Key Market Drivers
Digital Transformation and the Rise of OTT
Platforms
One of the primary drivers of change in the Saudi
Arabia Television Market is the ongoing digital transformation, which has
brought about the rise of Over-The-Top (OTT) platforms and streaming services.
This shift has transformed the traditional television landscape and is
redefining how Saudi audiences access and consume content. Several factors
contribute to this transformation. For instance, in 2023, the Saudi OTT video market, as reported by Arab News, is poised for substantial growth, with expectations to nearly double its current value over the next five years. User penetration in Saudi Arabia has already reached 41.8% in 2023, significantly surpassing the GCC average of around 25%. This indicates a thriving market with immense potential for expansion.
Internet Penetration and Connectivity: Saudi Arabia
has witnessed a significant increase in internet penetration, with a rapidly
growing number of households having access to high-speed broadband connections.
This enhanced connectivity has paved the way for OTT platforms to thrive,
allowing viewers to stream content on multiple devices, including smartphones,
tablets, and smart TVs.
Diverse Content Libraries: Leading global streaming
services like Netflix, Amazon Prime Video, and Disney+ have entered the Saudi
market, offering extensive libraries of content that cater to a wide range of
preferences, from Hollywood blockbusters to local and regional productions.
This diversity has provided viewers with a wealth of entertainment options.
Localization and Arabic Content: OTT platforms have
recognized the importance of Arabic content to engage Saudi audiences. They are
investing in producing and acquiring Arabic-language series, films, and
documentaries, appealing to local tastes and cultural interests.
On-Demand Viewing: OTT services offer the
convenience of on-demand viewing, enabling users to watch content at their own
pace and according to their schedules. This flexibility has resonated with
Saudis, who increasingly prefer to binge-watch their favorite shows or catch up
on missed episodes.
Cord-Cutting and Cord-Nevers: With the rise of OTT
platforms, some Saudi consumers are opting to cut the cord, cancelling
traditional cable or satellite TV subscriptions. A younger generation of
"cord-nevers" has grown up without traditional television services,
further accelerating the shift to streaming.
Expanding Smart TV Market
The proliferation of smart TVs is another
significant driver shaping the Saudi Arabia Television Market. The adoption of
smart TV technology has been instrumental in enhancing the viewing experience
and further facilitating access to digital content. Several factors are
contributing to the growth of the smart TV market in Saudi Arabia. According to Statistically's blog, the viewing demographic in Saudi Arabia leans towards an older audience, with a significant portion of Millennials and Generation X still preferring traditional television, accounting for 59.4% of viewership.
Internet-Enabled Televisions: The availability of
internet-enabled smart TVs has become widespread in Saudi households. These
devices come equipped with built-in apps for popular streaming services, making
it easier for viewers to access online content directly through their
televisions.
User-Friendly Interfaces: Smart TVs are designed
with intuitive user interfaces that allow for seamless navigation through
streaming platforms. Viewers can easily switch between traditional TV channels
and online content, making it a versatile and user-friendly option.
Compatibility with Mobile Devices: Smart TVs often
come with the ability to connect to smartphones and tablets, enabling screen
mirroring, content sharing, and remote control through mobile apps. This
connectivity enhances the overall viewing experience.
High-Quality Displays: Smart TVs boast
high-definition and 4K displays, providing viewers with superior picture
quality and immersive viewing experiences. The demand for larger screen sizes,
including home theater systems, is on the rise.
Gaming and Interactive Features: Some smart TVs
offer gaming and interactive features, attracting a younger demographic of
users who appreciate the ability to play video games, use social media, and
engage with content beyond passive viewing.
Growing Investment in Local Content Production
The Saudi Arabia Television Market is also being
driven by a significant increase in investment in local content production.
This trend is closely aligned with the government's vision for economic
diversification and cultural development, and it has several implications for
the market. According to the study, consumers in Saudi Arabia continue to predominantly engage with linear television, capturing the attention of over 96% of the population. On average, viewers spend approximately 5 hours and 25 minutes daily watching television, marking an increase of nearly 15 minutes compared to the previous year. This uptick is largely attributed to the expanded availability of diverse content genres, which gained significance during the COVID-19 pandemic.
Production Studios and Talent Hubs: The Saudi
government has actively invested in building state-of-the-art production
studios and cultural hubs to support content creators. Initiatives like the
King Abdulaziz Center for World Culture (Ithra) and the Red Sea Film Festival
aim to foster local talent and produce high-quality content.
Regional and Global Partnerships: Saudi content
creators are increasingly collaborating with regional and international
production companies, expanding their reach and making Saudi content accessible
to global audiences.
Quality and Diversity: The investment in local
content has resulted in a diverse range of TV shows, films, documentaries, and
series that cater to various genres and age groups. This diversity ensures that
Saudi audiences have access to content that reflects their cultural identity
and interests.
Cultural Impact: By promoting Saudi stories,
heritage, and values, local content production contributes to the preservation
and promotion of Saudi culture, while also supporting the development of a
thriving creative industry.
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Key Market Challenges
Shifting Consumer Preferences
One of the primary challenges facing the Saudi
Arabian television market is the shifting preferences of consumers, especially
among the younger population. The rise of digital streaming platforms and
video-on-demand services has altered the way people consume content. As a
result, traditional television broadcasters are encountering challenges in
retaining viewers and maintaining advertising revenue.
Younger viewers, in particular, are more inclined
to access content through the internet on various devices, including
smartphones, tablets, and smart TVs. This shift toward digital platforms poses
a challenge to TV broadcasters in terms of adapting their content and
distribution methods to remain competitive. To address this challenge, many
Saudi broadcasters are expanding their online presence and developing apps to
provide on-demand and live streaming services. This allows them to engage with
younger audiences and compete with digital-native platforms.
Regulatory and Content Censorship
Saudi Arabia has strict regulations governing media
and content, including television broadcasts. The Kingdom's conservative
cultural and religious norms influence the content that can be shown on
television. Television broadcasters must navigate a complex regulatory
environment to ensure that their content complies with local norms and values.
This regulatory challenge extends to international
content, which often needs to be censored or modified to meet Saudi standards.
These restrictions can limit the variety and diversity of content available to
viewers, potentially affecting the market's ability to attract a broader
audience. Broadcasters need to strike a delicate balance between providing
appealing content to viewers and adhering to regulatory requirements. As Saudi
Arabia continues to open up to international influences and entertainment, broadcasters
may need to adapt to changing content standards.
Competition and Fragmentation
The Saudi Arabian television market has become
increasingly competitive and fragmented. The proliferation of satellite
television channels, including international channels, has led to a vast array
of content choices for viewers. This fragmentation makes it challenging for
broadcasters to stand out and retain a dedicated audience.
In addition to traditional broadcasters, streaming
platforms and on-demand services have entered the market, intensifying the
competition. Global giants like Netflix, Amazon Prime Video, and local
platforms such as Shahid and Jawwy TV are vying for viewers' attention. This
competitive landscape means that Saudi broadcasters must invest in
high-quality, engaging content to compete effectively. At the same time, they
must address the demands of advertisers who want to reach their target
audiences through diverse channels.
Furthermore, the emergence of social media as a
content consumption platform adds to the challenge. Platforms like YouTube,
Instagram, and TikTok are popular choices for Saudi viewers, and they offer
unique opportunities for content creators and advertisers.
To navigate this challenge, broadcasters in Saudi
Arabia are increasingly focusing on producing original and exclusive content to
attract and retain viewers. Additionally, collaborations with international
content providers and regional media companies can help diversify offerings and
cater to different audience segments.
Key Market Trends
Transition to Digital and Smart TVs
One of the most prominent trends in the Saudi
Arabian television market is the rapid transition from traditional CRT and LED
TVs to digital and smart TVs. This shift is primarily driven by the growing
consumer demand for advanced features and capabilities. Digital and smart TVs
offer high-definition (HD) and ultra-high-definition (UHD) displays, superior
sound quality, and internet connectivity, which enhance the overall viewing
experience.
As the Saudi population becomes more tech-savvy,
there is a rising interest in smart TVs that can access streaming services,
such as Netflix and YouTube, and offer interactive features. The convenience of
accessing a plethora of content on-demand has made smart TVs increasingly
popular, especially among younger consumers.
Moreover, the Saudi government has been promoting
the digital switchover in the television broadcasting system. Analog broadcasting
was officially switched off in 2018, pushing consumers to adopt digital
television services. As a result, there has been a surge in the sales of
digital TVs and the usage of satellite and digital terrestrial television
platforms.
This trend not only benefits consumers but also
opens up opportunities for advertisers, content providers, and manufacturers in
the television industry. Advertisers can leverage the interactive features of
smart TVs to create more engaging and targeted ad campaigns, while content
providers can explore partnerships with streaming services to reach a wider
audience. Television manufacturers, on the other hand, are continuously
innovating to introduce new models with enhanced features, contributing to market
growth.
OTT and Streaming Services
Over-the-top (OTT) and streaming services have
witnessed remarkable growth in Saudi Arabia, fundamentally transforming the way
viewers access and consume content. Services like Shahid, WAVO, and Netflix
have gained popularity as they offer a vast library of content, including
regional and international shows and movies, available on various devices.
The adoption of OTT and streaming services has been
fueled by several factors. First, the Saudi population is increasingly seeking
flexibility in their viewing habits. With OTT services, viewers can watch
content at their own pace and on multiple devices, which is particularly
appealing to the younger demographic.
Second, the COVID-19 pandemic accelerated the shift
to online entertainment. Lockdowns and social distancing measures led to a
surge in demand for streaming services as people spent more time at home. This
trend is expected to continue, with viewers showing a preference for a diverse
range of content accessible from their smart TVs, smartphones, and tablets.
To cater to the growing demand for streaming
content, Saudi production companies are investing in creating original Arabic
content, further enhancing the appeal of OTT services. This not only boosts the
local entertainment industry but also strengthens the international presence of
Saudi content.
Advertisers have also recognized the potential of
OTT platforms for targeted advertising. Data analytics and user insights allow
for precise ad targeting, which can be more effective and cost-efficient than
traditional television advertising. This trend is expected to shape the future
of advertising in the Saudi television market.
Regulatory Reforms and Diversification of Content
Saudi Arabia is experiencing a transformative phase
in its media and entertainment industry, with regulatory reforms contributing
to the diversification of content. The Saudi government's Vision 2030
initiative aims to boost the entertainment sector, diversify the economy, and
reduce the country's dependence on oil revenue.
As a result, the Kingdom has witnessed an influx of
international entertainment events, shows, and concerts. These events not only
attract international talent but also serve as a platform for the local
entertainment industry to flourish. Consequently, there is a growing demand for
television content that aligns with the changing cultural and entertainment
landscape in Saudi Arabia.
The regulatory environment is evolving to
accommodate this shift. Regulatory bodies, such as the General Authority for
Audiovisual Media (GCAM), are working on promoting creativity, cultural
exchange, and adherence to content standards. These changes provide
opportunities for content creators, broadcasters, and streaming platforms to
offer diverse and appealing content while adhering to regulatory guidelines.
One noteworthy development is the licensing of
cinemas in Saudi Arabia, which was previously banned for several decades. The
return of cinemas has not only created a new avenue for entertainment but also
increased the demand for content related to film and cinema.
Segmental Insights
Screen Size Insights
In the Saudi Arabia television market, the
50''-59'' segment has carved out a significant share and continues to enjoy a
strong presence. This particular size range of televisions is a popular choice
among Saudi consumers for various reasons, contributing to its dominance in the
market.
Televisions in the 50''-59'' range offer a sweet
spot for screen size, providing viewers with an immersive and cinematic
experience in the comfort of their homes. Saudi consumers appreciate the larger
screen size for watching their favorite shows, movies, and sports events,
making it a favored choice for family entertainment.
Saudi Arabia has witnessed a surge in affluence and
urbanization over the years. As a result, there is an increasing demand for
larger and more advanced television sets. The 50''-59'' category strikes a
balance between size and affordability, making it an attractive option for
households looking to upgrade their viewing experience.
The 50''-59'' television segment aligns well with
the growing trend of creating home entertainment centers. With the rise of
streaming services, gaming consoles, and the desire for a theater-like
experience at home, Saudi consumers are investing in larger TVs that offer
versatility and compatibility with a range of entertainment options.
Saudi Arabia has a passionate sports and
entertainment culture, with a strong interest in soccer, motor racing, and
international events. The 50''-59'' television size range caters to sports
enthusiasts who want to enjoy the thrill of live matches and events on a larger
screen.
In Saudi households, family entertainment is highly
valued. Larger televisions in the 50''-59'' category accommodate multiple
viewers, making them ideal for family gatherings and watching popular Ramadan
series, which are a significant part of Saudi culture.
Manufacturers have responded to the demand for
larger televisions in Saudi Arabia by incorporating advanced technologies and
features into this size range. Smart TVs with internet connectivity, 4K and 8K
resolution, and enhanced sound systems are readily available, enhancing the
overall viewing experience.
Saudi consumers often seek to replicate the
cinematic experience within the confines of their homes. The 50''-59''
televisions are well-suited for this purpose, offering a large enough screen to
enjoy movies and series with high-definition visuals and immersive sound.
Retailers in Saudi Arabia often run promotions and
discounts on televisions in the 50''-59'' range, making them more accessible to
a broader consumer base. These promotions, combined with the variety of brands
and models available, contribute to the segment's substantial share in the
market.
Sales Channel Insights
The online segment has emergence as a fastest growing segment in the Saudi Arabian television market, transforming the way consumers
access and interact with television content. This shift can be attributed to
various factors, including the increasing internet penetration, the growth of
online streaming platforms, and changing consumer preferences.
Saudi Arabia has witnessed remarkable growth in
internet penetration and connectivity over the past decade. With a tech-savvy
population and widespread access to high-speed broadband and mobile internet,
more consumers have turned to online platforms for their television content.
This increased connectivity has created a favorable environment for online
television services to thrive.
The surge in popularity of online streaming
services has been a game-changer in the Saudi Arabian television market.
Platforms like Netflix, Amazon Prime Video, and local services such as Shahid
have made it easy for viewers to access a vast library of content, from
international movies and TV shows to regional and Arabic content. The
convenience of streaming content on-demand and across multiple devices has
attracted a large and growing subscriber base.
To cater to the diverse preferences of Saudi
Arabian viewers, online streaming platforms have invested in producing and
licensing localized content. This includes Arabic-language series, films, and
documentaries that resonate with the cultural and linguistic nuances of the
region. By offering such content, online platforms have significantly expanded
their share of the television market in Saudi Arabia.
The availability of Smart TVs and mobile devices
has made it easier for consumers to access online television content. Smart TVs
come equipped with pre-installed streaming apps, allowing viewers to seamlessly
switch between traditional broadcasts and online content. Additionally, the
widespread use of smartphones and tablets has enabled on-the-go streaming,
further boosting the online television segment.
Online television platforms provide features for
personalization and interactivity that traditional broadcast TV often cannot
match. Viewers can create profiles, receive tailored recommendations, and
engage with interactive content, such as live chats and polls during shows.
This level of engagement appeals to a tech-savvy audience and has contributed
to the growing share of online TV.
While online television gains momentum, traditional
television broadcasting has faced certain challenges. Viewership of scheduled
broadcasts has declined as many consumers prefer the flexibility of choosing
when and what to watch. This shift has prompted traditional broadcasters to
adapt and explore online distribution as well, blurring the lines between the
two segments.
The Saudi Arabian government has recognized the
growing significance of online content delivery and has put in place
regulations to govern online media and streaming services. These regulations
aim to ensure that online content adheres to cultural and societal norms and
values while fostering a competitive and innovative media environment.
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Regional Insights
The western region of Saudi Arabia holds a
largest share in the country's television market, contributing to the
nation's robust and rapidly evolving media landscape. Several factors
contribute to the Western region's prominence in this sector, making it a
pivotal player in the Saudi Arabian television market.
The Western region, including major cities like
Jeddah and Mecca, holds cultural and economic significance in Saudi Arabia. It
is home to a diverse and cosmopolitan population, including expatriates from
various backgrounds. This cultural diversity is reflected in the content and
programming preferences of the region's television viewers, making it a hub for
content creation and consumption.
The Western region is an economic powerhouse in
Saudi Arabia, with Jeddah serving as a major commercial and financial center.
The region's economic prosperity has led to increased consumer spending on
television and entertainment services. Residents in this area have the
financial capacity to invest in advanced television technology and premium
content.
Jeddah, in particular, has emerged as a media and
entertainment hub in Saudi Arabia. It is home to numerous production companies,
broadcasting studios, and media outlets. This concentration of media
infrastructure has contributed to the Western region's significance in the
television market. It is the epicenter of content creation and dissemination,
catering to a wide range of tastes and preferences.
As a gateway to the holy cities of Mecca and
Medina, the Western region witnesses a significant influx of tourists and
pilgrims. This global connectivity has led to a demand for international
television content and news channels. Television providers in the region often
offer a diverse array of channels, including international ones, to cater to
the diverse needs of the population and visitors.
The Western region is characterized by a diverse
demographic landscape, with residents hailing from various cultural backgrounds
and nationalities. This diversity translates into a wide range of programming
preferences, with viewers seeking content that aligns with their cultural,
linguistic, and entertainment needs. Television providers in the region
recognize this diversity and tailor their offerings accordingly.
The Western region has embraced technological
advancements in the television industry. This includes the adoption of
high-definition (HD) and ultra-high-definition (UHD) television sets, smart
TVs, and streaming services. These technological innovations have led to an
increased demand for high-quality content, further solidifying the region's
significance in the television market.
The Western region often hosts major sports events,
entertainment festivals, and cultural exhibitions. These events draw both
national and international attention, leading to a surge in television
viewership. Sports enthusiasts and entertainment aficionados in the region rely
on their televisions to stay connected with these events, contributing to the
market's growth.
Recent Developments
- In 2023, Samsung Electronics announces the launch its lineup of Neo QLED 8K, Samsung OLED, sound devices, and monitors in
the Saudi market. The new lineup was unveiled earlier this year at Samsung’s
Unbox & Discover event on April 05, where it showcased the latest
innovations in smart connectivity, sustainability initiatives, premium viewing,
and gaming experiences.
- In May 2024, TCL Electronics introduced its latest range of products, specifically designed for the Middle East and Africa markets. Among the new offerings are the QD-Mini LED TVs, renowned for their exceptional picture quality..
Key Market Players
- United Matbouli
Group
- Zagzoog For Home
Appliance
- LG Electronics
Saudi Arabia LLC
- Alesayi
Electronics Co. Ltd.
- Modern
Electronics Company Limited
- Sony Middle East and Africa FZE
- Al Jabr Holding
Co
- Huawei Tech
Investment Saudi Arabia Co. Ltd.
- Al Emam Distribution Co Ltd.
- Samsung
Electronics Saudi Arabia Ltd
|
By Screen Size
|
By Display Type
|
By Sales Channel
|
By Region
|
- 50''-59''
- 40''-49''
- 39'' and Below
- Above 59''
|
|
- Supermarkets/Hypermarkets
- Multi Branded Stores
- Online
- Others
|
- Western
- Northern & Central
- Eastern
- Southern
|
Report Scope:
In this report, the Saudi Arabia television market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Saudi Arabia Television Market, By Screen Size:
o 50''-59''
o 40''-49''
o 39'' and Below
o Above 59''
- Saudi Arabia Television Market, By Display Type:
o LED
o OLED
o Others
- Saudi Arabia Television Market, By Sales Channel:
o Supermarkets/Hypermarkets
o Multi Branded Stores
o Online
o Others
- Saudi Arabia Television Market, By Region:
o Western
o Northern & Central
o Eastern
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the Saudi
Arabia television market.
Available Customizations:
Saudi Arabia Television Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Saudi Arabia Television Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]