Saudi Arabia Digital Media Market Outlook to 2030

Saudi Arabia Digital Media Market Overview

• The Saudi Arabia digital media market is valued at USD 1.35 billion, driven by an increasing adoption of digital platforms, including OTT (over-the-top) streaming services, social media, and digital advertising channels. This growth is heavily influenced by the country's high internet penetration rate, government initiatives promoting digital transformation as part of Vision 2030, and a rapidly growing youth population that consumes vast amounts of digital content. The rise in e-commerce and mobile internet usage further accelerates digital media's expansion, making Saudi Arabia one of the key digital economies in the Middle East.
• The cities of Riyadh, Jeddah, and Dammam lead the digital media market due to their advanced technological infrastructure and concentrated urban populations, which actively engage with digital content and services. Riyadh, as the capital, benefits from significant government support for digitalization and is home to many corporate headquarters. Meanwhile, Jeddah and Dammam, with their bustling commercial environments, have seen a surge in digital advertising and e-commerce activities, making them crucial hubs for the sector's growth. These cities also have a large youth demographic that fuels the demand for digital entertainment and social media.
• As part of Vision 2030, the Saudi government has introduced several digital content development programs aimed at fostering local content creation. In 2024, SAR 1 billion was allocated to support the development of local digital media, including initiatives to train local creators and provide grants for digital content production. These programs are part of a broader effort to build a sustainable digital media ecosystem that reflects Saudi culture and values.

Saudi Arabia Digital Media Market Segmentation

• By Platform Type: The market is segmented by platform type into over-the-top (OTT) platforms, social media platforms, e-commerce platforms, and digital news platforms. OTT Platforms dominate this segment, driven by the popularity of streaming services such as Netflix, Shahid, and YouTube. These platforms are favored by the growing youth population, who prefer on-demand content. The increasing availability of affordable data packages and high internet speed further boosts OTT platform adoption, solidifying its market dominance.

• By Content Type: The market is segmented by content type into video streaming, audio streaming, digital advertising, and digital publications. Video Streaming leads the content type segment as a result of growing demand for localized Arabic content on platforms like Shahid, alongside global offerings from Netflix and YouTube. The high consumption of video content, especially among the youth, contributes significantly to this sub-segment's dominance. The rise in video content creation for platforms such as TikTok and Instagram also enhances its influence within the market.

Saudi Arabia Digital Media Market Competitive Landscape

The Saudi Arabia digital media market is dominated by several key players that influence content creation, distribution, and digital advertising. These companies, both local and international, play a pivotal role in shaping the market landscape. Companies like Shahid (a local favorite), Netflix, YouTube, and STC Digital Media have established strong positions due to their ability to cater to local preferences, as well as their integration with global content networks.

Saudi Arabia Digital Media Industry Analysis

Growth Drivers

• High Internet and Mobile Penetration: Saudi Arabia has experienced significant digital transformation, with over 95% of the population now connected to the internet. As of 2024, there are more than 41 million mobile connections, reflecting a high mobile penetration rate. The rise in mobile usage is directly linked to the government's Vision 2030 initiative, which aims to increase digital infrastructure across the kingdom. The high mobile and internet usage facilitates the expansion of digital media consumption, especially with a growing youth population and an increasing shift toward online platforms for content and services.
• Growth in E-commerce and OTT Platforms: E-commerce in Saudi Arabia has grown significantly, driven by the high internet penetration and digital infrastructure. In 2024, online retail sales reached SAR 45 billion, influenced by rising consumer demand for digital services. Additionally, OTT platforms have become a central part of the digital media ecosystem, with Saudi users streaming billions of hours of video content. OTT consumption is boosted by the ease of access through smartphones and tablets. This shift indicates strong demand for digital services, enhancing opportunities for digital content creators and advertisers.
• Shift Toward Digital Advertising: Digital advertising is growing rapidly in Saudi Arabia, particularly through social media platforms like Instagram, Snapchat, and YouTube, which have large user bases. In 2024, digital advertising expenditure is estimated to surpass SAR 5 billion as brands increasingly shift their budgets from traditional to digital channels. The growth is further fueled by the expanding youth population, which represents 65% of the total population and is highly engaged in online activities, driving demand for personalized, targeted digital ads.

Market Challenges

• Limited Monetization of Digital Content: Despite high internet usage, monetizing digital content in Saudi Arabia remains a challenge due to limited local payment infrastructure and digital regulations. Many content creators and platforms struggle to generate significant revenue from subscriptions or advertisements. In 2024, digital content revenue from local creators remained under SAR 1 billion, indicating underperformance in monetization strategies compared to international standards. This suggests that the local digital economy lacks robust mechanisms for financial support and revenue generation.
• Data Privacy and Cybersecurity Concerns: Saudi Arabia faces increasing concerns regarding data privacy and cybersecurity, especially with the growth of digital platforms and services. In 2024, cyberattacks in the country increased by 30% year-over-year, leading to significant financial and reputational damage for businesses in the digital media space. The Saudi government has implemented strict data privacy regulations, such as the Personal Data Protection Law (PDPL), but challenges remain in ensuring robust enforcement and creating awareness among digital platform operators.

Saudi Arabia Digital Media Market Future Outlook

Over the next five years, Saudi Arabia's digital media market is expected to experience substantial growth, driven by continuous government efforts to support digital transformation, advancements in technology like 5G, and increased consumer demand for localized digital content. With a rising youth population, higher mobile internet penetration, and the diversification of digital media platforms, this market is poised to see significant development across OTT platforms, social media, and digital advertising. The country's ongoing investment in infrastructure, such as smart cities and enhanced digital services, will further accelerate the expansion of the digital media sector.

Future Market Opportunities

• Growth in Arabic Content Creation: There is significant potential for growth in Arabic digital content creation, with the government actively encouraging local content development through various initiatives. In 2024, Arabic content comprised only 2% of global digital content, even though over 400 million people speak Arabic. This presents a major opportunity for local content creators and platforms to produce culturally relevant material, supported by government funding and incentives aimed at increasing the production and consumption of Arabic media.
• Expanding Usage of social media for Business: social media is becoming a critical tool for business operations in Saudi Arabia, particularly for small and medium enterprises (SMEs). In 2024, over 80% of Saudi businesses used social media platforms for marketing and customer engagement, reflecting the increasing importance of digital channels for commercial activities. This growing reliance on social media for business purposes offers opportunities for platform developers and digital advertisers to target this expanding market segment.