Market Overview:

Saudi Arabia is the largest country in the Middle East with the 19th largest economy in the world. The KSA Entertainment Market expanded at double digit CAGR on the basis of total customers per year from 2019 to 2022 despite the hit from the Covid 19 pandemic. Under the "Saudi Vision 2030', the Kingdom of Saudi Arabia is on the path to making itself the next hub spot for entertainment, leisure and recreation for its domestic as well as the international market.

The Kingdom has made huge investments in the overall entertainment sector- the film industry, OTT platforms, kids' entertainment and activities such as arcades, trampoline parks, the bowling market, as well as in the technological side of entertainment in the VR industry. The Kingdom has also discontinued its strict policies and is moving towards becoming a more lenient country to align itself with its young population's ideologies. Some of the growth drivers for the industry are introduction and enhancement of innovative and creative concepts, the increasing fondness for immersive content not only in Saudi Arabia but all over the globe together with the rising integration of technology in almost every vertical.

KSA Leisure and Entertainment Market Analysis

KSA touched a notable milestone in the modernization of the entertainment sector by the lifting of the decades-long ban on cinemas. This move has led to the reopening of cinemas across the country, allowing Saudis to experience the magic of the big screen.

With the easing of restrictions and the opening of the entertainment sector, Saudi Arabia has become an attractive destination for international artists and performers. Major concerts, shows, and performances are now regularly held in the country.

The country now hosts a wide range of cultural festivals and events, celebrating arts, music, theater, and other forms of entertainment. These events contribute to fostering a vibrant cultural scene and encouraging local talent.

Significant investments have been made to develop modern entertainment infrastructure, including concert halls, theaters, and venues. This supports the growth of the industry and enhances the overall entertainment experience. The development of the entertainment sector has had a positive impact on tourism in the Kingdom. Tourists are now drawn to the country not only for its historical and cultural attractions but also for its vibrant entertainment offerings

Key Trends by Market Segment:

By Sub-Market: The OTT Market dominated the Leisure and Entertainment Market in KSA in 2020. The major contributing factor was the increasing consumer spending. The OTT platform sector along with other sub markets in the leisure and entertainment industry is expected to grow in the future as KSA is planning to spend $ 64 Bn by 2030 to upgrade and expand its entertainment industry as part of Saudi Vision 2030.

Competitive Landscape:

The OTT Market in KSA is moderately fragmented with the top 3 players acquiring more major market share. The movie theatre market in KSA is moderately concentrated with the top 3 players acquiring ~80% of the market share with MUVI being the market leader basis admissions. The KSA Arcade Market is highly fragmented. With increasing AR and VR technologies, the players in the Arcade market need to update themselves regularly to be the preferable choice by consumers. The Trampoline Player Market is moderately concentrated with the top player holding major market share. The competition factors are the unique games provided in the parks in addition to the availability of basic trampolines such as dodgeball, volleyball, and basketball on trampolines, rock climbing walls and others.

Recent Developments:

The government launched an $64 Bn Fund Under Saudi Vision 2030 to enhance and develop the entertainment and the tourism sector in Saudi Arabia. The initiative also mentions cashback for the film industry basis some requirements to be met by the agencies to encourage domestic as well as international players to take up projects in the Kingdom.

MUVI Cinemas launched Muvi Studios in 2022 with a plan to churn out an average of some 20 feature films per year. Players like VOX Cinemas and Cinepolis plan to invest and expand in the country by launching new screens in Saudi Arabia over the next five years.

Players such as Sparky's, Saffori Land, Sala City, and Others are strengthening their market presence by introducing services such as VR, indoor entertainments and launching collaborative packages for school trips at nominal rates for promotion.

Future Outlook:

KSA Leisure and Entertainment Industry is expected to expand by nearly ~% from 2022 to 2027 owing to the Government initiatives for infrastructure development which are expected to enhance the entertainment sector by attracting investments from the private sector both domestically and internationally.

The average consumer spending on the entertainment and investments are expected to increase in the future that will increase entertainment options & preferences. Virtual reality experiences and other technologically immersive attractions will elevate the consumer experience. With increasing AR and VR technologies, Arcade games are going to get upgraded to a new level of entertainment experience

The Tourism industry is expected to grow multifold which can be leveraged to increase the growth in the entertainment industry as it is one of the major determinants.

There is a demand for original and regional content which poses an opportunity for the establishment of own production houses. Increase in original Arabic and regional content creation, rising partnerships, and increased digital penetration will boost the OTT Market in KSA.

The usage of smart technology like sensors, better material and more elevated experience will cause the KSA Indoor Theme Park Market to grow in the coming years.