OSN+, Anghami merge to create Middle East streaming giant

Kuwait’s OSN Group has agreed to merge its premium content streaming platform OSN+ with the Middle East music streaming service platform Anghami in a deal that is set to create the region’s largest entertainment streaming services amid growing competition from global players such as Netflix and Spotify.

The deal, which is backed by OSN’s $50m (KWD15.4m) investment in Anghami, will bring together over 120 million registered users, and 2.5 million paying subscribers with $100m (KWD1m) in revenue, KIPCO said in a statement.

The investment will make OSN a majority shareholder in the merged entity. Anghami will continue to be listed on the NASDAQ following the merger while OSN will continue to run its linear business, OSNtv, separately with Joe Kawkabani as group CEO.

The transaction is subject to regulatory and anti-trust approvals and the integration of OSN+ and Anghami is expected to be finalised in early 2024.

“Joining forces with OSN+ is a leap in Anghami’s journey to reinvent entertainment in the Arab World.  We’re bringing together technology, music and video to build a comprehensive media ecosystem,” said Elie Habib, co-founder of Anghami, who will take over as CEO of the merged platform.

The combined streaming platform will offer consumers unprecedented aggregation of the best and latest in premium movies, TV shows, music and podcasts while providing a rich and seamless user experience.

“Combining OSN+ content with Anghami’s technology enables us to deliver the best of entertainment all in one place for our customers, ensuring we are continuously evolving our offering to meet their needs,” said Kawkabani.

He said the merger of the two home-grown entities, with an unmatched understanding of the local market, will revolutionise the Middle East’s streaming landscape.

OSN+,Anghami set up streaming giant

Meanwhile, with rising disposable incomes and an increasingly large, young digital-savvy population, the Middle East is an attractive market for entertainment and technology companies.

Regional firms such as OSN, Abu Dhabi-based Starzplay, Qatar’s TOD and Dubai-based Shahid are vying for local audiences along with larger international rivals such as Disney+ and Prime Video.

The Middle East region’s media and entertainment market was valued at $35.1bn in 2020, and expected to reach $69.8bn by 2026, growing at a CAGR of 12.79 per cent, according to ReportLinker.

Anghami went public 18 months ago via a $40m merger with a special purpose acquisition company (SPAC) Vistas Media Acquisition Company.

The music streaming platform boasts a catalogue of over 100 million songs and podcasts, with exclusives from artists such as Amr Diab, while OSN+ has over 18,000 hours of content and exclusive partnership deals with HBO, NBC Universal, Paramount, and leading Arab and Turkish studios.

With customer-centricity at the core, the new platform will be committed to offering the best and most unique product and content experience in the region. It will allow customers to listen to music and watch a movie via the same app.

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