Warner Bros. Discovery is buying a minority stake in Dubai-based OSN Streaming Ltd. to capture a piece of the fast-growing Middle East entertainment market, Bloomberg News has reported. Warner Bros. will pay $57 million for about a third of OSN Streaming, Joe Kawkabani, chief executive of parent OSN Group, said in an interview.
The transaction will be completed in phases and is still subject to regulatory approval, according to a joint statement. OSN provides global and local series and films, while Warner Bros.’s unit is investing in streaming. The deal will see both firms invest in local content as they seek to attract regional audiences and explore synergies, Kawkabani said.
“We announced a new chapter in OSN’s growth story, with Warner Bros. Discovery becoming a strategic minority investor in OSN Streaming Ltd. This partnership reflects a shared commitment to the future of streaming in MENA – supporting our ongoing expansion, enhancing our premium content offering, and building greater opportunities for local storytelling to thrive”, – said OSN.
Content Production
“Whether it’s producing content, expanding our content library, or creating better content, that’s really the core of the deal,” Kawkabani said. The investment cements a number of partnerships between the two firms. In 2022, OSN signed a multi-year licensing deal with Warner Bros.-owned HBO to exclusively stream and broadcast content from the U.S. pay-TV network. It also secured exclusive rights to Warner Bros.’s film catalog last year.
“I think we can now look at ways we can expand that offering,” Kawkabani said, adding that the new partnership will likely fuel all of those discussions, but they will be on separate commercial terms. Entertainment and technology companies are attracted to the Middle East because of rising disposable incomes and a growing number of young, tech-savvy consumers. Regional firms such as OSN, Abu Dhabi-based Starzplay and Saudi broadcaster MBC Group are competing for local audiences with larger international rivals such as Netflix Inc. and Amazon.com Inc.
Warner Bros. and OSN partnership
OSN Streaming has a majority stake in Anghami Inc., a Middle Eastern rival to Spotify Technology SA and Deezer SA. It is Warner Bros.’ latest investment in its own streaming service in the Middle East after it acquired Turkey’s BluTV in full in 2023 after an initial 35% investment in 2021.
The rationale for the local partnerships is to avoid further fragmentation in a “very crowded streaming market,” said Jamie Cook, executive vice president and managing director of Warner Bros. Discovery for Central Europe, Turkey and the Middle East. Cook said that for Warner Bros. after the OSN Streaming investment in the Middle East, there will be “most likely” no more M&A. “To me, this is the final piece of the puzzle for our entire ecosystem in the region, we just need to get them all working together,” Cook said. “But never say never.”