KSA Television Market Outlook to 2030

KSA Television Market Overview

• The KSA Television market has seen steady growth, currently valued at USD 8.5 billion, fueled by an increased demand for Smart TVs and advanced display technologies, including OLED and 4K UHD screens. This growth is primarily driven by changing consumer preferences, where users are investing in home entertainment solutions that provide high-quality visual experiences. A strong consumer base in Saudi Arabia, combined with rising disposable income, is reinforcing demand across various segments of the television market.

• Major demand hubs for televisions in KSA include Riyadh, Jeddah, and Dammam. These cities dominate the market due to their higher population density, urban infrastructure, and substantial disposable incomes, supporting consumer investments in premium television models. Riyadh, the economic hub, particularly sees high demand, with a focus on OLED and large-screen Smart TVs, which are popular for their advanced features and high-definition visuals.
• Saudi Arabias General Commission for Audiovisual Media strictly enforces content regulations to align with cultural values, impacting foreign and local content production. Compliance with these regulations is mandatory, requiring that content avoids sensitive topics. This framework shapes the types of programs available, with majority of imported media undergoing local adjustments before airing, emphasizing the role of regulation in influencing content in the Saudi television market

KSA Television Market Segmentation

By Screen Type: The market is segmented by screen type into LED, OLED, QLED, and LCD. Currently, LED televisions dominate the market due to their cost-effectiveness, energy efficiency, and accessibility across different income groups. LED televisions offer a balance of affordability and quality, which appeals to a large portion of the market. Brands have established significant production and distribution networks for LED TVs, reinforcing their strong market presence.

• By Screen Size: The market is also categorized by screen size into below 32 inches, 32-45 inches, 46-55 inches, and above 55 inches. Televisions in the 46-55 inches range currently have the highest market share, driven by consumers' preference for home entertainment systems that offer an immersive viewing experience without the high costs associated with larger screens. These models strike a balance between size and affordability, making them highly popular in households.

KSA Television Market Competitive Landscape

The KSA Television market is characterized by a mix of global and regional players, with international companies dominating the market through their innovation and extensive distribution networks. Companies like Samsung, LG, and Sony have a significant presence, capitalizing on their technological advancements and brand reputation to cater to a diverse consumer base.

KSA Television Market Analysis

Growth Drivers

• Internet Penetration and Digital Connectivity: Saudi Arabia's internet penetration reached 99%, supported by government investments in digital infrastructure, like the National Fiber Optic Network project, expanding connectivity nationwide. Enhanced connectivity has enabled broader access to digital services, such as video streaming, providing a robust foundation for the growth of the television market as consumers increasingly adopt online viewing habits. Government investments in digital infrastructure, projected at USD 15 billion under Saudi Vision 2030, reinforce these developments by improving broadband speed and coverage, which directly benefits streaming platforms and smart TV usage in the region.
• Rise in OTT Platforms: OTT platform consumption in Saudi Arabia has seen a marked increase as viewers embrace platforms like Shahid and Netflix. The nation ranks among the top OTT consumers in the MENA region, with 10 million active users as of 2023, driven by high smartphone and smart TV adoption. The expansion of these services highlights an opportunity for local and international content providers as the government continues to improve digital access and invests in bandwidth enhancements. This transformation underpins the increasing popularity of on-demand content in the Saudi TV market.
• Government Investments in Local Content Production: Saudi Arabias focus on content creation is evident through the government's investment of over USD100 million in local media production in 2023, aiming to boost culturally relevant content. This investment supports regional content that adheres to local values while enhancing the presence of Saudi creators on national and international platforms. The initiative, aligned with Vision 2030, strengthens the television market by fostering a cultural connection through content that appeals to local audiences while promoting Saudi Arabia as a media production hub

Challenges

• Competition from Global Streaming Platforms: International streaming services like Netflix, which hold significant shares in the Saudi market, present substantial competition to local content providers. As Saudi audiences favor diverse content, local providers find it challenging to meet the variety and production quality offered by global players. The saturation of international platforms with established viewer bases limits the market share for local services, further intensifying the competition and pushing local firms to adapt content strategies.
• Regulatory Restrictions in Audiovisual Media: Saudi Arabias strict regulatory environment, enforced by the General Authority for Audiovisual Media, imposes content restrictions to align with cultural standards. These regulations often delay the release of certain programs and restrict international content that may conflict with local values. As such, this regulatory framework poses significant hurdles for international OTT platforms seeking seamless entry into the Saudi market, requiring local adaptations and approvals

KSA Television Market Future Outlook

The KSA Television market is projected to witness growth driven by technological advancements, the rise in Smart TV adoption, and an increased demand for 4K and 8K resolutions. Over the coming years, the market is expected to benefit from government initiatives supporting digital transformation and growing investments in high-definition home entertainment. This demand shift is likely to reinforce the market's steady expansion, especially within the 46-55 inch screen size and LED and OLED segments.

Future Market Opportunities

• Expansion in Arabic Content: The Saudi government has prioritized the production of Arabic content, with a focus on increasing Saudi-produced shows to comprise 50% of televised content in the next five years. Initiatives like the Red Sea Film Festivals USD 14 million fund for regional creators amplify this direction. This movement not only strengthens cultural resonance in media but also positions local content in global markets, enhancing the visibility and appeal of Arabic television series and shows.
• Demand for On-Demand and Personalized Viewing: On-demand viewing in Saudi Arabia has seen notable growth, with local preferences shaping platform offerings toward customizable and on-demand services. In 2023, Saudi subscribers on OTT platforms totaled 10 million, highlighting the shift toward personalized viewing options that align with individual preferences. This consumer trend is also pushing traditional providers to adopt similar models to retain viewership in a changing media landscape