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OSN Chief on How the Middle East Pay-TV and Streamer Is Keeping a Competitive Edge After Disney+ Launch

  2024-03-07 varietyNick Vivarelli44430
Introduction

Dubai-based pay-TV and streamer OSN launched its rebranded OSN+ streaming service in March 2022 — and then lost some mom

OSN Chief on How the Middle East Pay-TV and Streamer Is Keeping a Competitive Edge After Disney+ Launch

Dubai-based pay-TV and streamer OSN launched its rebranded OSN+ streaming service in March 2022 — and then lost some momentum when Disney+, the following June, pulled out its premium content and started a standalone platform in the Middle East.

However, OSN remains a leading small-screen outlet for prime Hollywood scripted fare in 22 territories across the Middle East and North Africa. In March 2023, they extended their relationship with Warner Bros. Discovery, forging a new multi-year licensing deal that makes them the exclusive home for HBO content such as “Succession” in the region. And, they’ve retained rights to Paramount+ shows, plus a slate of Sky Studios and Peacock Originals produced by NBC Universal — among other Hollywood deals firmly in place — as well as recently expanding their exclusive partnership with ITV Studios in the U.K.

OSN has has also been producing high-end Arabic originals, such as the Arabic adaptation of NBCUniversal’s hit legal drama “Suits,” though they are less active on this front than its main competitors.

Roughly a year after beginning to bear the brunt of the disruption caused by the Disney+ launch in the Middle East, OSN CEO Joe Kawkabani spoke to PvNew about how he’s bolstering other Hollywood ties while navigating the region’s increasingly crowded premium TV field.

How have things been going over the past year in terms of subscribers?

We’ve seen more and more subscribers come to the platform. According to many studies, we are one of the top three services in the region in terms of top of mind, awareness and propensity to buy. And we’ve seen great engagement. I think in the last 12 months, our engagement measured by hours viewed is up by 40%. And we’re still trending upwards. We’re not where we want to be yet; but I think all trends, all numbers, are pointing in the right direction.

Can you give me a figure for your streaming subs?

I am not allowed to disclose that information. But what I can tell you is that OSN as a business overall is especially driven by the growth in streaming in addition to what we have on the linear side. Combined, we are now at the highest number of subscribers we’ve ever had. I think that’s a good indicator of how healthy the business is right now, at least in terms of subscribers and people buying our services.

What’s the balance in terms of relevance between OSN’s pay-TV and streaming sides?

We have two products effectively on the market right now. We have OSN+, which is a pure streaming service as you would know it. And that’s the product we’ve discussed. But we also rebranded recently our [linear] air business as OSNtv and we’ve launched a new box. Now, customers don’t need a satellite and cables to enjoy our content. They can all enjoy it on the box, which they plug into the internet. In terms of relevance, that part of the business, the OSNtv part, is still relevant for us. Whether it is the product we sell directly via our boxes or whether it is done through partners like the telcos, it is still relevant from a revenue perspective. However, having said that, the growth that we are seeing in subscribers is mostly on the streaming side.

In terms of brand identity, OSN has always been associated with Hollywood. Is this starting to change after losing premium Disney content?

OSN is primarily known for its great Western content and it still is. Historically, that’s the genesis of the company itself. And we find ourselves right now, two-and-a-half decades later, still having a very strong relationship with the Hollywood studios. That’s been a good advantage that we benefit from and we’ve preserved this position. Yes, it’s unfortunate that we did lose the Disney exclusivity. We still carry Disney channels on OSN. But you’re right, Disney launched its own streaming service [in the Middle East]. They decided they didn’t want to work with partners and wanted to go global and also do that here in the B2C market. But I’m glad to report that that’s not the attitude that all studios have. Good for us, and good for our subscribers as well because the last thing you want is a plethora of another 10 streaming services coming up [in the Middle East] offering Hollywood content. The customer doesn’t want that, and the studios are not going to be able to all compete. So OSN still has a great value proposition sitting in the middle and saying: “We aggregate, we create and we present; we localize and then we serve the audience here.” And a testament to that is our ability to not only extend but expand our relationship with Warner Brothers Discovery, obviously also on the HBO side, which is among the most sought out content. Their series do fantastically well here in the region. We’ve also announced an extended and expanded deal with NBCUniversal, which also has Sky and Peacock. And we did the same with MGM, and so on. We’ve managed, if you will, to solidify our position as the platform for premium Western content in the region.

What are the top Hollywood shows on OSN?

Over the last year, I think the combination of “Game of Thrones” and “House of the Dragon” has done very well. People continuously rewatch these shows and we have a lot of interaction. And if I look at this year in particular, “The Last of Us” was the biggest show we’ve had at the beginning of 2023. And now more recently, the last season of “Succession” has been a big hit.

This interviewhas been edited and condensed.

(By/Nick Vivarelli)
 
 
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