GCC Online Entertainment Market

GCC Online Entertainment Market Size and Share:

The GCC online entertainment market size was valued at USD 11.75 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 76.81 Billion by 2033, exhibiting a CAGR of 21.50% from 2025-2033. The market is primarily driven by enhanced internet connectivity, proliferation of mobile devices, growing interest in tailored digital content, technological advancements, expanding streaming services, strategic alliances, focus on regional content focus, and supportive government policies.

The main driver of the market in the GCC is the increasing penetration of high-speed internet and mobile connectivity in the Gulf region, which is increasing access to online entertainment platforms. Furthermore, the rising usage of smartphones and tablets enhances the convenience associated with entertainment services, thereby attracting consumers. For example, a recent study reveals that Generation Alpha in the UAE is significantly influencing the digital economy through online shopping and e-gaming. Children aged 8-15 in the UAE spend 47% of their allowances on e-gaming, surpassing their peers in the UK, US, and China, who allocate 28% on average. Moreover, the consumption of digital content, such as video streaming, gaming, and music platforms, has changed the face of entertainment, with consumers opting for on-demand content aligned to their specific preferences.

In addition, inflating disposal incomes in the GCC countries allows a larger percentage of the population to invest in subscriptions and premium services, which is supporting market growth. The proliferation of social media platforms and the creation of user-generated content have further accelerated the market by encouraging engagement and interaction among users. The implementation of government initiatives to support digital infrastructure and ease of doing business in the GCC contribute to the growth of the market. For instance, on August 12, 2024, Ooredoo Kuwait celebrated the successful launch of its digital entertainment platform in collaboration with the Kuwaiti Ministry of Information and FASTtelco, a subsidiary of Ooredoo Kuwait. Within 90 days of the trial broadcast, the platform attracted over 6 million views from audiences in 186 countries, showcasing Kuwait's TV and radio content. This achievement demonstrates how the country's digital infrastructure is progressing.

GCC Online Entertainment Market Trends:

Growth of Video Streaming Services

The market is witnessing rapid growth in video streaming services. Platforms such as Netflix and Amazon Prime and regional players like Shahid and OSN are all expanding their offerings to cater to the diverse preferences of local audiences. Increasing availability of high-quality content, including international blockbusters, Arabic dramas, and exclusive shows, has attracted a broad viewership, thereby expanding the GCC online entertainment market size. With the choice of monthly or yearly subscription plans, these flexible models cater to different income groups for accessing premium content. The supportive government initiative and collaborations with online streaming services are providing an impetus to the market. For example, on January 16, 2024, Saudi Arabia's Ministry of Media launched the documentary Horizon on Netflix, showcasing the Kingdom's rich wildlife and biodiversity. Produced in collaboration with the National Center for Wildlife, the documentary highlights Saudi Arabia's efforts in preserving endangered species and restoring ecosystems. Residents of the GCC countries also prefer entertainment content being viewed on mobile devices, computers, or smart TVs rather than other media and appliances. Therefore, the OTT platforms invest considerably to upgrade user experience in these devices by developing high-definition content and cross-device compatibility.

Expansion of Mobile and Cloud Gaming

The expansion of mobile and cloud gaming is also significantly impacting the GCC online entertainment market share. The highly tech-savvy, digitally connected population, especially the younger population of this region, has turned gaming into a central mode of entertainment. The region's large smartphone penetration and strategic partnerships enhance esports. According to an industry report, on August 30, 2024, MOONTON Games and the Saudi Esports Federation (SEF) signed a memorandum of understanding to advance esports in Saudi Arabia. The partnership aims to augment the local esports ecosystem through initiatives in marketing, tournaments, and community development. The collaboration further strengthens the relationship between MOONTON and Saudi Arabia's growing gaming sector. In addition to this, there are cloud gaming platforms through which users can play high-quality games without expensive gaming consoles or powerful computers. These services utilize the power of the cloud to deliver games directly to smartphones and tablets and offer seamless gaming experiences. Moreover, the incorporation of augmented reality and virtual reality technologies enhances the gaming experience in the region.

Focus on Local and Culturally Relevant Content

The growing focus on local and culturally relevant content is reshaping the GCC online entertainment market trends. As the region shifts into a better digitally integrated society, there is a growing demand for entertainment relating to the cultural values of the local audience, along with their traditions and preferences. According to an industry report, a major shift in streaming preferences is seen. In the first quarter of 2024, approximately 71% of Saudi Arabian online media users are streaming locally produced content. This trend has led to local platforms like Shahid and STC TV surpassing international services such as Netflix in market share. Notably, Shahid's catalog includes nearly 50% local content, while Netflix's Saudi Arabian catalog comprises 96% foreign content, highlighting the challenge for global platforms to cater to local preferences. Therefore, international platforms are increasingly focusing on producing and promoting content according to the values, customs, and languages of the Gulf region to appeal to more local audiences. This includes films, series, and documentaries that show regional stories, historical narratives, and contemporary issues. Moreover, the partnerships between international content creators and local producers are on the rise, ensuring that global content is tailored to meet regional tastes and sensitivities. The demand for culturally relevant content is also being fueled by the younger generation, who are seeking entertainment that reflects their identity, lifestyle, and values.

GCC Online Entertainment Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC online entertainment market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on form, revenue model, and device.  

Analysis by Form:

• Video
• Audio
• Games
• Internet Radio
• Others

Videos lead the market with around 43.6% of market share in 2024. Video content has emerged as the dominant format in the market due to high smartphone penetration, fast internet connectivity, and the growing young, technology-savvy population. Platforms such as YouTube and TikTok attract consumers with their short-form videos. Other platforms, such as Netflix and Amazon Prime, facilitate premium on-demand streaming. Videos are a famous media form for storytelling, advertising, and influencer-driven campaigns, as it allows brands and creators a direct line to audiences. With live streaming and interactive video formats, viewer engagement has also been improved, which shows a shift in consumer preferences. Also, the availability of localized content, such as Arabic language videos and culturally resonant themes, is accelerating the growth of the market.

Analysis by Revenue Model:

• Subscription
• Advertisement
• Sponsorship
• Others

Subscription-based revenue models feature as a significant component of the GCC online entertainment market due to the increasing usage of streaming platforms and gaming services. Users in the GCC region are attracted to premium content provided through monthly or yearly subscription plans, which usually include special series, movies, and advertisement-free experiences. This type of model appeals to people seeking quality and convenience and helps to build loyalty and steady revenue for providers. The GCC's high internet penetration and inflating disposable income levels contribute to the success of subscription services, making them a preferred choice for companies aiming to offer consistent and scalable content delivery. Additionally, the model aligns with local preferences for on-demand entertainment, catering to culturally relevant and globally trending content.

The advertisement-driven model is another key revenue stream in the market due to the growing digital audience and high social media engagement in the region. Platforms like YouTube, Instagram, and TikTok monetize content by integrating targeted ads and advertisers' focus on high-spending demographics. With a young, tech-savvy population, ad-based revenue allows companies to provide free or low-cost services while generating substantial income through click-through rates, impressions, and sponsored content. This model is particularly effective for attracting users to commit to subscriptions, thereby creating a diverse user base.

Sponsorships are becoming increasingly important for entertainment providers, especially in gaming and eSports. Companies partner with brands to sponsor content creation, events, or exclusive collaborations that can provide a customized approach. Sponsorship allows the brand to become visible and creditworthy as it collaborates with influential figures, events, or platforms within the region. The immense investment from regional and international brands through marketing provides an impetus to the market. Sponsorship deals are beneficial for the creators as they enable different avenues of revenue streams while connecting to their audience through authentic, tailor-made content.

Analysis by Device:

• Smart Phones
• Smart TVs, Projectors, and Monitors
• Laptop, Desktop, and Tablets
• Others

Smart phones lead the market with around 46.5% of market share in 2024. Smartphones are critical devices in the market. With the increasing tech-savvy consumers and mass adoption of 4G and 5G connectivity, these devices are the primary gateways through which digital can be accessed. Streaming platforms, gaming applications, and social media platforms are optimized for mobile use, which enables easy access to video content, music, and other interactive experiences. Smartphones offer portability and convenience suitable to the fast pace of life. Additionally, High-resolution displays and powerful processors on smartphones positively impact smartphone usage. Localized applications and mobile-optimized platforms are designed with the aim of attracting region-specific audiences.

Country Analysis:

• Saudi Arabia
• UAE
• Qatar
• Kuwait
• Oman
• Bahrain

In 2024, Saudi Arabia holds the largest market share. Saudi Arabia is the market leader in the GCC online entertainment market, with a large population and rapid digital transformation. The country is responsible for a significant share of the regional demand due to economic strength and the presence of the tech-savvy youth demographic. The Kingdom's Vision 2030 initiative has driven investments in digital infrastructure, increasing internet penetration and expanding access to online platforms. Global and regional companies view Saudi Arabia as a primary market for launching services, as its audience shapes regional consumption patterns. Also, strategic partnerships with international streaming services and expansions ensure the growth of online entertainment in the region. For example, on January 26, 2024, MBC Group's Shahid OTT platform announced the expansion of its advertising solutions to enhance opportunities for brands targeting its growing audience base. The platform introduced advanced advertising formats, including interactive ads and tailored campaigns, to increase engagement and maximize brand visibility. Moreover, inflating disposable incomes further fuels growth in digital subscriptions and content consumption, which is also shaping trends across the GCC's entertainment sector.

Key Regional Takeaways:
 

Kingdom of Saudi Arabia (KSA) Online Entertainment Market Analysis  

Saudi Arabia plays a crucial role in the online entertainment market in the GCC region. Being the largest economy in the region, it has emerged as a leading player with an increased demand, which also drives innovation in digital content. The country's young and technologically active population raises the trends of online streaming services, gaming, and social media consumption. Growing investments in the entertainment sector and the implementation of government initiatives result in diversification and digital transformation, thereby opening opportunities for local and international platforms. Also, there is an increased focus on supporting local talent and empowering emerging filmmakers, particularly through initiatives, which is positively impacting the market. For example, on September 5, 2024, Netflix and the Arab Fund for Arts and Culture (AFAC) launched the "Women in Film - Bring Your Story to Life" initiative. It is a Pan-Regional Empowerment Vehicle for Young Arab Female Filmmakers. It supports up to 25 filmmakers from Saudi Arabia, UAE, Egypt, Jordan, and Kuwait and gives them a budget to make one short fiction film; a group will have USD25,000 each. Participants will be provided comprehensive support through script consultations before the shoot, in-person editing, and post-production sessions in Saudi Arabia before the shoot. Companies such as Netflix and YouTube, and regional actors such as Shahid and OSN have benefited from the need and provide various pieces of content suited to taste and preference. 

United Arab Emirates (UAE) Online Entertainment Market Analysis  

The UAE plays a more crucial role in the GCC online entertainment market, taking its position as a business and cultural hub for developing digital innovation and content development. The UAE's diverse population comprises large expatriate communities with massive demands for different ranges of online content, such as films, series, gaming, and live shows. The country's digital infrastructure and extensive use of smartphones support the market growth. Also, strategic subscription plans and marketing strategies by key players in the region facilitate the expansion and create lucrative opportunities for the market. For example, OSN+, a Dubai-based satellite TV company, launched a new premium plan on June 10, 2024, offering 4K UHD and Dolby Atmos for enhanced viewing experiences. The plan provides access to high-quality content, making it a competitive offering in the regional streaming market. Moreover, the support of creative industries through initiatives like the Dubai Media City and the hosting of international events, such as the Dubai International Film Festival, makes the region a leader in the GCC entertainment landscape.

Competitive Landscape:

The competitive landscape of the market is characterized by rapid growth, driven by high smartphone penetration, and increasing demand for diverse digital content. Major trends include the expansion of localized content catering to regional tastes and a surge in video streaming, gaming, and live event platforms. Also, strategic collaborations and partnerships with key market players are enhancing the market outlook. For example, on March 12, 2024, Quickplay announced a partnership with Saudi Telecom Company (STC) to launch "BITS," a new platform offering personalized digital experiences for sports and entertainment fans. Through the partnership, the companies aim to improve STC's content offerings and provide streaming services of the highest quality. By using Quickplay's technology, BITS will help to provide a more personalized experience for users, helping fuel the growing digital entertainment market in Saudi Arabia. The market also sees innovation in subscription models and advertising strategies to attract and retain users. Regulatory frameworks and cultural preferences shape the offerings and strategies in this dynamic sector.

The report provides a comprehensive analysis of the competitive landscape in the GCC online entertainment market with detailed profiles of all major companies, including:

• Amazon Web Services Inc. (Amazon.com Inc.) 
• Meta Platforms Inc 
• Google Inc. 
• Netflix Inc. 
• Rakuten Inc. 
• Sony Corporation (Sony Corp.) 
• Spotify Technology S.A. 
• Tencent Holdings Ltd. 
• Ubisoft Entertainment SA 
• The Walt Disney Company

Latest News and Developments:

• August 15, 2024:  TOD, a subscription-based OTT platform, entered into a multi-year agreement with Iraqi digital platform 1001, granting 1001 exclusive distribution rights for TOD packages in Iraq. This collaboration aims to enhance TOD's reach and engagement within the region. From August 15, 2024, 1001 subscribers will have access to premium TOD services, such as TOD Mobile, TOD, and TOD 4K packages, through tied-up add-on options.

GCC Online Entertainment Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC online entertainment market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC online entertainment market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC online entertainment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.