Web streaming portals in UAE still packing in viewers even as life resumes
STARZPLAY PACKS IN MORE GROWTH IN LAST THREE MONTHS THAN IT DID IN FIVE YEARS
Business Editor
Everyone’s still tuning in. Or nearly everyone. Web streaming portals are yet to see a sudden and sharp drop in viewer numbers, or in the number of minutes they consume on programming, as offices and other commercial activity in the UAE gradually headed back to pre-lockdown levels.
And whatever dip is happening is something streaming service providers can live with, according to Maaz Shaikh, CEO of StarzPlay.
“Yes, there’s been some easing off from the peak, which was in mid-April,” he said. “But that easing off is happening only after consumption has grown 4x from the January numbers. Right now, it’s still at about 3.5x times January.
“[Even with full social and work activity resuming], we do not see a moderation that will take streaming numbers below 2.5x/2.75x times what it was in January.”
StarzPlay have the numbers to show for it — its “paid” subscribers shot up to 1.7 million in the Middle East at the end of the first quarter, from around 1 million at the end of 2019. Average daily consumption per user is at a solid 110 minutes [from 35 minutes in January], which market sources say would be the current average for the industry in the UAE/ Gulf markets.
Call it the new normal for web-based video on demand services delivered right to the screen of your choice, and at any time you decide to watch. Just about every consumer category has been impacted by the Covid-19 and the efforts taken to slow down — and reverse — its spread.
A few handy winners
But those categories that benefited add up to a handful. Online grocery was a clear beneficiary, so was anything digital that helped with remote working and schooling. Makers of hand sanitisers and face masks have never had it better … and it’s the same for video streaming apps.
And demand was such every competing brand benefited. “An established brand like Netflix
had no issues with brand or content awareness,” said
Shaikh.
“The entire industry benefited from the last three months, although some players benefited disproportionately. But especially during Ramadan, consumption picked up for everyone.
“What the last three months did for us was build awareness for our brand and its content — something we had been working for the last five years to achieve. This awareness is going to endure.”
StarzPlay’s efforts did get a boost from its alliances with local/regional telecom providers. What these did was help it get through to viewers in markets like Egypt or Morocco at a much faster pace than trying to break through on its own. More so now.
“Everyone has a mobile phone — so, since everyone subscribes with a telecom operator, they could as easily sign up with us,” said Shaikh.
“As nations in the region went into full lockdown, we became the most accessible service
in terms of billing. Because they didn’t need credit cards to sign up — just the monthly payments arrangements with their telecom providers were enough.”
Currently, 35-40 per cent of StarzPlay subscribers come through these tie-ups, which is much higher than the industry average. “In these months, this channel grew the most in absolute numbers for us,” said Shaikh.
“But what was surprising was the percentage growth in subscribers using credit cards
or Apple Pay — and that’s purely because of Covid-19.
“It meant people who were reluctant to use credit cards online started using it. Because as they became more comfortable ordering groceries online, they ended up paying for their other needs. And web video on demand was one.”
Increased competition
The web streaming space in the UAE and Gulf is starting to look a lot more crowded than when StarzPlay launched in 2015. The Netflix onslaught continues, and with more than a little help from its growing Arabic programming content. There’s a reenergized OSN, armed with a Disney+ deal. HBO, part of WarnerMedia, lurks with some of the most eye-catching programming.
Will this mean the cost of doing business is going to go sky high? Can StarzPlay, which is principally a UAE based startup, compete?
“I don’t think that’s an issue,” the CEO said. “Look at how the industry operates — Disney licensed its Disney+ content to OSN. But at the same time, Disney also has its content running on our platform. This will be the most likely approach going forward as well.
“Same with Warner and HBO. We do have a partnership for a selection of their shows, including the DC Comics franchise. Big US studios will keep working with local partners to monetise their content.”
What the last three months did for us was build awareness for our brand and its content — something we had been working for the last five years.”
Maaz Shaikh
| CEO of StarzPlay