Warner Bros. Discovery is making a significant move in the Middle Eastern entertainment sector by acquiring a minority stake in Dubai-based OSN Streaming Ltd. The company is investing $57 million for approximately one-third of OSN Streaming, as confirmed by Joe Kawkabani, the chief executive officer of OSN Group, in a recent interview.

This transaction will occur in stages and is subject to the necessary regulatory approvals, according to a joint statement from both companies. OSN is known for providing a mix of global and local TV series and films, while the specific unit Warner Bros. is investing in focuses on streaming services.

Both Warner Bros. and OSN plan to invest in locally-produced content to attract regional viewers and explore potential synergies. According to Gulf News, Kawkabani emphasized that the deal aims to enhance content creation, library expansion, and overall quality. He stated, “Whether it’s a production of content, or expanding our content library, or creating better content, this is really the angle of the deal.”

This investment strengthens the ongoing partnership between Warner Bros. and OSN. In 2022, OSN signed a multi-year licensing agreement with HBO, a Warner Bros.-owned entity, to exclusively broadcast and stream its content. Additionally, OSN secured exclusive rights to Warner Bros.’ film catalog in the previous year.

Kawkabani noted that this new partnership would likely lead to further discussions on expanding their offerings, although these would be approached under separate commercial terms. The Middle Eastern market is attracting entertainment and technology companies due to rising disposable incomes and a growing population of young, tech-savvy consumers.

Regional competitors like OSN, Abu Dhabi-based Starzplay, and Saudi broadcaster MBC Group are vying for local audiences, facing competition from major international platforms such as Netflix Inc. and Amazon.com Inc. Notably, OSN Streaming also holds a majority stake in Anghami Inc., a local rival to Spotify Technology SA and Deezer SA.

For Warner Bros., this investment is part of a broader strategy in the Middle East, following its complete acquisition of Turkey’s BluTV in 2023, after initially investing 35 percent in 2021. Jamie Cooke, executive vice president and managing director for Warner Bros. Discovery’s Central Europe, Turkey, and Middle East business, explained that local partnerships are essential to avoid fragmentation in a “very crowded stream marketplace.”

Cooke further indicated that there is “probably not” going to be more mergers and acquisitions in the Middle East after the OSN Streaming investment. He concluded, “This is for me the final piece of the puzzle for our whole ecosystem in the region; we just need to make them all work together. But never say never.”