KSA Video Streaming Services Market Outlook to 2030

KSA Video Streaming Services Market Overview

• The KSA Video Streaming Services market is valued at USD 2 billion, based on a five-year historical analysis. The market is driven by the surge in internet penetration, which has reached over 90% of the population, and a growing demand for premium and localized content. Government initiatives under Saudi Arabia's Vision 2030, which emphasize digital transformation and the development of ICT infrastructure, have also fueled the rapid growth of this market.

• The dominant cities in the KSA Video Streaming Services market include Riyadh, Jeddah, and Dammam. These cities lead due to their larger populations, higher disposable incomes, and more developed digital infrastructures. Additionally, their younger, tech-savy populations are more inclined to consume digital content, driving the adoption of video streaming platforms. These urban centers have a robust demand for on-demand entertainment, which further solidifies their dominance in this sector.
• Saudi Arabia introduced stricter data privacy regulations in 2024, under the Personal Data Protection Law (PDPL). Streaming platforms must now adhere to stricter guidelines concerning the collection, storage, and use of customer data. Companies found to be in violation of these regulations can face fines of up to $1 million. The enforcement of these rules aims to protect consumers from data misuse, while also fostering trust between streaming platforms and their users. Compliance with these regulations is critical for platforms to maintain operations in the Kingdom.

KSA Video Streaming Services Market Segmentation

By Platform Type: In the KSA, video streaming services are segmented by platform type into Smart TVs, Smartphones/Tablets, and Desktops/Laptops. Smart TVs have emerged as a dominant platform in this market due to the increasing affordability and popularity of smart home technology. Users prefer Smart TVs for their large screen experiences, seamless integration with other devices, and the availability of high-definition content. This segment dominates because consumers are drawn to the convenience of on-demand viewing with built-in applications on Smart TVs, driving substantial market share.

By Subscription Model: The market is segmented by subscription model into SVOD (Subscription Video on Demand), TVOD (Transactional Video on Demand), and AVOD (Advertising Video on Demand). SVOD currently holds the largest share of the market, driven by the success of platforms like Netflix and Shahid VIP. Consumers prefer SVOD for its vast content libraries, ad-free experiences, and the ability to binge-watch content at their own pace. The subscription-based model appeals to users looking for a higher quality viewing experience and exclusive content.

KSA Video Streaming Services Market Competitive Landscape

The KSA Video Streaming Services market is dominated by both international and local players, with global companies like Netflix and Amazon Prime Video competing alongside regional platforms such as Shahid VIP and OSN Streaming. These major players have established strong footholds through strategic partnerships with telecom companies, extensive content libraries, and exclusive streaming rights to popular series and films. This competitive landscape underscores the increasing consolidation and influence of these platforms in the market.

KSA Video Streaming Services Market Analysis

Growth Drivers

• Digital Infrastructure Development: Saudi Arabias ongoing digital transformation is a key driver for the video streaming services market. In 2024, the Kingdoms fiber-optic infrastructure expanded to cover over 3.5 million homes, a significant boost to the internet ecosystem, ensuring seamless streaming experiences. The country's Vision 2030 initiative continues to focus on developing digital infrastructure, with $15 billion allocated for tech innovation and internet expansion.
• Expanding Content Libraries: With increasing demand for diverse and culturally relevant content, streaming platforms have significantly expanded their content libraries. By 2024, leading platforms have collectively invested over $2 billion in acquiring and producing original Arabic content, with a focus on family-friendly and culturally appropriate programming. This investment aligns with the growing number of Arabic-speaking viewers and a surge in demand for regional content.
• Increasing Smartphone Adoption: Smartphone penetration in Saudi Arabia has surged to over 49 million active devices by 2024, as reported by government sources. The proliferation of affordable smartphones, alongside widespread 5G network coverage, is driving the growth of video streaming services. With 90% of the population accessing content on mobile devices, the convenience and accessibility of streaming platforms have made mobile the primary medium for consuming video content in the country.

Challenges

• Stringent Content Regulations: Saudi Arabia enforces strict regulations on digital content, limiting the type of media that can be streamed within the Kingdom. The General Commission for Audiovisual Media (GCAM) has implemented a comprehensive censorship policy that led to the removal of over 200 pieces of content from streaming platforms in 2023-2024. These restrictions pose significant challenges for international platforms seeking to expand in the region, as they must navigate local content approval processes, which increases operational costs and delays in content releases.
• Competition with Pirated Content: Despite government efforts to combat digital piracy, it remains a major challenge in the Saudi streaming market. As of 2024, it is estimated that over 30% of online video content consumed in the Kingdom comes from illegal streaming services. This not only leads to significant revenue losses for legitimate platforms but also reduces the incentive for content creators to invest in the region.

KSA Video Streaming Services Market Future Outlook

KSA Video Streaming Services market is expected to witness significant growth, driven by continuous government support, technological advancements in streaming platforms, and increasing demand for high-quality localized content. The rising investment in 5G technology and the availability of high-speed internet will further support the expansion of video streaming services across Saudi Arabia. As consumer preferences shift towards on-demand viewing, platforms that offer exclusive content and seamless user experiences will remain competitive in this evolving market.

Market Opportunities

• Demand for Localized Arabic Content: There is growing demand for localized Arabic content as audiences seek more culturally relevant programming. Streaming platforms are responding by increasing their investment in Arabic-language shows and films. In 2024, nearly 40% of new content on platforms like Netflix, OSN, and Shahid is expected to be Arabic-language productions. This represents a significant opportunity for content creators and distributors to capitalize on the regions cultural preferences.
• Adoption of AI/ML for Content Personalization: The use of Artificial Intelligence (AI) and Machine Learning (ML) technologies to personalize viewing experiences presents an opportunity for platforms to increase user engagement. By 2024, approximately 70% of Saudi streaming subscribers have reported an improved user experience due to AI-powered content recommendations. With investments in AI technology expected to surpass $1 billion in 2024, platforms are leveraging these tools to analyze viewing patterns and suggest tailored content, enhancing retention rates and boosting overall user satisfaction.