StarzPlay eyes 2023 IPO as Saudi business surges 40% during pandemic

Maaz Sheikh, founder and CEO of StarzPlay. (Supplied)
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Updated 04 February 2021
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StarzPlay eyes 2023 IPO as Saudi business surges 40% during pandemic

  • Video streaming service plans to use its latest $25m in funding to finance more Arabic content

RIYADH: StarzPlay, the Middle East’s fastest-growing entertainment streaming channel, is eyeing an initial public offering (IPO) by 2023 amid plans to double its business.

The main rival to American content platform streaming service Netflix in the Middle East, StarzPlay saw its business soar during the coronavirus disease (COVID-19) pandemic, as lockdowns, social distancing and travel restrictions left users with little to do apart from slump in front of a TV and binge-watch their favorite shows.

In an interview with Arab News, Maaz Sheikh, founder and CEO of StarzPlay, said Saudi Arabia was the platform’s fastest-growing market.

“Our subscriptions in the Kingdom have increased 40 percent in 2020 as against 2019,” he said, adding that Saudi Arabia and the UAE combined accounted for 75 percent of StarzPlay’s total revenue. “We don’t expect that to change; we expect it to continue to grow,” he said.

“In Saudi Arabia, we believe we are in the very early days of adoption of the service, and we are just scratching the surface. We believe the next five years are going to be even stronger. We have a lot more opportunity in the Kingdom,” the CEO said.

The company is aiming to double its revenue and subscribers within the next few years. To fund its ambitious plans, this week it announced its first independent debt financing in the region, amounting to $25 million, from Abu Dhabi-based alternative investment firm Ruya Partners.

The funds will be used to strengthening the company’s geographic and customer reach, acquire and produce original content and maximize long-term value for its stakeholders.

This investment marks the first time that StarzPlay has attracted debt financing from a regional investor. Launched in 2015, it previously raised $125 million from global industry investors, including American cable company STARZ and Boston-based investment management firm State Street Global Advisors.

Sheikh said some of the funding will be used to invest in producing more Arabic content. “Although we carry about 2,500 hours of Arabic content today, going forward we plan to double the volume of the content in the Kingdom, the UAE and Bahrain,” he said.

The company is aiming to partner with Saudi producers, such as Jeddah-based AlSadaf Company for TV Series Production, YouTube multichannel network Merakatt and many more across Bahrain and the UAE.

StarzPlay said its market share of the video-on-demand subscription services sector in the Middle East is around 33 percent. While the number of Saudi subscribers has increased, users in the Kingdom are also some of their biggest TV watchers, binging an average of 51 minutes per day, compared to an average of 38 minutes across its entire platform.

Looking to the future, Sheikh said StarzPlay is aiming to grow by 30 percent in 2021, and he has ambitions to launch a stock market listing within the next few years. “The current projections for us are two to three years away. By then, we believe we will be well-financed and well-capitalized.”

Currently, StarzPlay reaches over 1.8 million paying subscribers and is installed on more than six million devices. Accounting for a market share of more than 32 percent, the platform recorded exceptional growth in 2020, with independent research showing a growth of 141 percent in the number of unique users last year, the company said in a statement on Wednesday.


Ukraine marks four years since Russian invasion

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Ukraine marks four years since Russian invasion

  • Tuesday’s anniversary is expected to see the head of the European Commission, Ursula von der Leyen, and the president of the European Council, Antonio Costa, in Kyiv to mark the occasion

KYIV, Ukraine: Ukraine was on Tuesday marking the fourth anniversary of Russia’s full-scale invasion, with a show of solidarity from its staunchest allies and no immediate end in sight to Europe’s bloodiest conflict since World War II.
Tens of thousands of lives have been lost since the Kremlin ordered troops into Ukraine on February 24, 2022, confident of a quick victory but not expecting the fierce resistance that followed.
The worldwide fallout of the war has been immense, with many European countries increasing their own defense spending in anticipation of a possible confrontation of their own with Russia.
But diplomatic talks between the two sides, relaunched last year by the United States, have so far failed to halt the fighting, which has devastated Ukraine and left it facing the mammoth task — and bill — of reconstruction.
Tuesday’s anniversary is expected to see the head of the European Commission, Ursula von der Leyen, and the president of the European Council, Antonio Costa, in Kyiv to mark the occasion.
Both said they would take part in a “commemoration ceremony” and visit the site of a Ukrainian energy facility damaged by Russian strikes before attending a meeting with President Volodymyr Zelensky.
They are also due to take part in a videoconference meeting with Kyiv’s allies — the so-called “Coalition of the Willing” which includes Britain, France and Germany.

- Impasse -

Russia, which currently occupies nearly 20 percent of Ukrainian territory, bombs civilian areas and infrastructure on a daily basis.
The Russian bombardment has sparked the worst energy crisis since the start of the invasion, during a bitter winter.
Kyiv’s Western allies have slapped heavy sanctions on Moscow, forcing it to redirect its key oil exports toward new markets, particularly in Asia.
Despite heavy losses, Russian troops have in recent months advanced slowly on the frontline, particularly in the eastern Donbas region, which has been the epicenter of the bloody fighting and which Moscow wants to annex.
US-brokered talks are ongoing, with Zelensky unwavering in his demands for security guarantees from Washington before any talk of “compromise,” including on territory, with Russia.
Russia, though, has rejected Ukrainian proposals for the deployment of European troops in Ukraine after any ceasefire deal.
President Vladimir Putin has repeatedly warned that he will pursue his objectives by force if diplomacy fails.

- Reconstruction -

The grinding four-year war has devastated Ukraine, which even before the fighting was one of the poorest countries in Europe.
According to a joint World Bank, European Union and United Nations report with Kyiv, published on Monday, the cost of post-war reconstruction is estimated at around $558 billion over the next decade.
Russia justified sending troops into Ukraine to prevent Ukraine’s ambition to join NATO, arguing that Kyiv’s membership of the transatlantic alliance would threaten its own security.
On Monday, during a medal ceremony to mark “Defenders of the Fatherland Day,” Putin insisted that his soldiers were defending Russia’s “borders” in Ukraine, to ensure “strategic parity” between powers and fight for the country’s “future.”
Ukraine, a former Soviet republic, for its part considers the war to be a resurgence of Russian imperialism aimed at subjugating the Ukrainian people.
In an interview with the BBC broadcast on Sunday, Zelensky said he believed Putin had “already started” World War III.
“Russia wants to impose on the world a different way of life and change the lives people have chosen for themselves,” he told the British public broadcaster.