After many years of business as usual, the Saudi media sector was poised for radical change under Saudi Vision 2030. The current intent is to develop the media sector to enrich the lives of the Saudi population and become the region’s content hub.Get more news about
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The new vision centers on a set of rigorous strategic objectives that Saudi Arabia is pursuing, specifically:
With the new vision, generational change, and technological evolution, there is rapidly growing demand for various entertainment content. In parallel, there is a massive increase in direct-to-consumer platform and content options for end users. Saudi Arabia needs to ensure that the growing demand is met and capitalized in the national economy. In this report, we provide a view on the Saudi media sector across multiple segments by highlighting current trends and challenges and giving a perspective on how to ensure sustainable growth and economic value retention.
From our definition of the media market, we exclude all adjacencies, such as telco, e-commerce, and technology enablers. Our focus is on core media segments, including video, audio, publishing, advertising, and gaming, with multiple subsegments in each, as shown in figure 1.The current size of the Saudi media sector is SAR 17.4 billion, which leads the Middle East and North Africa (MENA) media market with about 30 percent of the market share (see figure 2).
Currently, the in-scope media sector is valued at SAR 12.4 billion. The sector has shown rapid growth across digital-heavy segments, with an average CAGR of 26 percent over the past five years (see figure 3).
Traditional segments are stagnating, in part due to cannibalization that has come about because of the growth of digital segments, specifically in the video and newspaper segments. For example, in the video segment, the market previously dominated by free-to-air (FTA) is increasingly being populated by the new over-the-top television players (OTT).
Despite substantial growth and one of the largest media sectors in the region, the retention share is only about 14 percent, significantly lower than that seen in leading global markets (see figure 4).