The recent partnership between Warner Bros Discovery and Dubai’s OSN Streaming may indicate a significant shift in the Middle East’s entertainment landscape, according to media insiders. Warner Bros announced on Monday that it would acquire a one-third stake in OSN Streaming for $57 million, a subsidiary of Orbit Showtime Network Group.

OSN is one of more than 50 streaming services currently operating in the Middle East, competing with international giants like Netflix and Amazon Prime, as well as local rivals such as Starzplay. OSN Group CEO Joe Kawkabani remarked that the industry may see either a reduction in the number of players or a trend toward consolidation and strengthening of existing services.

In 2022, a unit of the state-owned telecommunications company e&—formerly known as Etisalat—along with Abu Dhabi holding company ADQ, purchased a majority stake in Starzplay for $420 million. Last April, OSN completed a $55 million investment in Anghami, securing a 55 percent stake in the music streaming service.

According to Research and Markets, the streaming market in the Middle East and North Africa is projected to grow at a compound annual growth rate of 11 percent from 2023 to 2029, with subscriptions expected to rise to 26 million, up from 14 million in 2023. Jamie Cooke, executive vice president and managing director for Warner Bros’ Central Europe, Turkey, and Middle East business, expressed concern about the potential influx of new streaming services, stating that it may not be beneficial for consumers.

The partnership with OSN, which still requires regulatory approval, aims to enhance local and regional content production. Experts believe that other international companies may seek to enter the Middle East market by leveraging local expertise, potentially leading to further consolidation. Starzplay CEO Maaz Sheikh highlighted that the Arab media landscape is now impossible to ignore, both for its original content production and financial opportunities.

OSN broadcasts a variety of programming from major networks such as Paramount Global and the BBC, alongside regional content in Arabic and Turkish. The company solidified its relationship with Warner Bros in 2022 by signing a multi-year licensing deal that granted it broadcasting and streaming rights for several HBO shows. This partnership was further strengthened when OSN was granted exclusive access to the Warner film catalog.

Kawkabani noted that many in the industry are likely reassessing their strategies in light of the Warner Bros agreement, suggesting that future collaborations must provide mutual benefits to OSN and its partners.