OSN slashes entry price point as MENA pay-TV market intensifies
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Rebecca Hawkes
| 15 February 2017

OSN is cutting the cost of its introductory offers and introducing pick ‘n’ mix packages to attract “hundreds of thousands more subscribers” to its pay-TV service in the Middle East and North Africa (MENA).

Prices for OSN packs will now start at €20 for 32 channels, with customers able to customise packs with a selection of sports, movies and entertainment channels, according to budget.

The announcement comes after last year’s management team change, which saw the appointment of Martin Stewart, former director general of Spanish cable operator ONO, as OSN CEO.

“OSN’s ambition is to offer entertainment everywhere, for everyone, at a price that suits every pocket,” said Stewart, launching the ‘newOSN’ pricing, packaging and branding initiative.

“We’ve listened to our customers and we’re delivering what they want, how they want it. Relevant, exclusive and affordable, our new prices and new packs will put the world of OSN – exclusive content and an unmatched viewing experience - within the reach of all,” he added.

Constantinos Papavassilopoulos, senior analyst for IHS Markit, believes the new pricing and customised package offers are long-awaited – notably since late 2015 when OSN’s rival beIN Media added entertainment to its already strong premium sports content.

“OSN has been losing customers since 2015, and a new team has been hired to rescue the operator. OSN’s churn levels have almost doubled since 2014 from around 16% to 30% in 2016,” said Papavassilopoulos.

To counter this, and to attract those previously put off by premium prices, OSN is now offering more affordable entry-level packages – at lower prices than those of beIN Media in some cases.

“For instance in Egypt and Jordan, the OSN introductory package is between 19-48% less expensive than the beIN Media equivalent. Even OSN’s medium-tier packages have very similar prices to beIN Media ones – for instance in Morocco and Algeria, OSN medium-tier packs are only 5-10% more expensive than beIN Media’s. Only the OSN’s premium packs remain considerably more expensive,” said IHS Markit’s Papavassilopoulos.

OSN is also implementing a new packaging strategy, to better reflect what the average viewer wants to see on TV in parts of MENA where pay-TV consumption is still minimal.

“What works for the UAE and Qatar does not work for Egypt, as the Egyptians prefer local content. And what works for Egypt does not works for Morocco and Algeria, as in the Maghreb they like to watch French content. OSN is planning the creation of specific packages for those markets,” said Papavassilopoulos.

OSN, which recently announced an extended content deal with Disney, has indicated it will launch 4K services by the end of 2017, while other moves – such as a revamped over-the-top (OTT) service – may also follow as part of its new business strategy.