Starzplay reports 'record' rise in revenue and subscribers in 2021 on new sports content

Video streaming platform is bullish about 'another strong year' in 2022 with the launch of fresh programming, CEO says

Maaz Sheikh, chief executive of Starzplay, is extremely optimistic about growth this year. Ruel Pableo / The National

UAE-based Starzplay, the Middle East and North Africa's fastest-growing video streaming service, attracted more subscribers and earned higher revenue last year driven by the addition of new sports content in September.

The platform's annual revenue grew 40 per cent in 2021, and it ended the year with 1.97 million subscribers, up from 1.83 million in 2020, and just below its target of 2 million subscribers, Maaz Sheikh, co-founder and chief executive of Starzplay, told The National on Thursday.

"2021 was a record year for us, in terms of revenue and subscriber base, as we continue to grow the business," Mr Sheikh said. "The fourth quarter was really strong because of the new sports channels."

Starzplay won exclusive rights for football competitions such as AFC Asian Cup and Fifa World Cup 2022 qualifiers, which led to an increase in its app downloads. It ranked first in the UAE entertainment chart and the overall chart for all categories within the UAE Apple App Store in the fourth quarter.

Starzplay is bullish about "another strong year" in 2022 as it seeks to add new sports events to its platform.

It also expects "high consumption" during the busy viewership month of Ramadan and plans to announce two to three new Arabic original content productions during the year, Mr Sheikh said.

"We are looking at another record year, we're a high-growth company and we're looking to set new records across our subscriber base and revenue," the chief executive said. "We're confident to beat last year's numbers."

The company is co-producing with Image Nation Abu Dhabi a new Arabic show called Urban Legends (an Arabic title is still in the works) that will be launched after Ramadan. The pan-regional show will weave urban legends from across the Arab world with the aim of "taking local stories and telling them on a global stage".

Starzplay also expects to make several sports content announcements in the coming months, in partnership with Abu Dhabi TV, as it looks to build on football and basketball offerings while cricket remains a strong draw, the executive said.

"Sports and original Arabic content is the theme of the year," Mr Sheikh said.

Chelsea's Ben Chilwell, Reece James, Kai Havertz and Tammy Abraham celebrate with the trophy after winning the Champions League in May. Reuters

Emma Raducanu won the US Open women's singles title after beating Leylah Fernandez in September. PA

Joint gold medallists Mutaz Essa Barshim of Team Qatar and Gianmarco Tamberi of Team Italy celebrate on the podium during the medal ceremony for the Men's High Jump on day ten of the Tokyo 2020 Olympic Games. Getty

Red Bull's Max Verstappen celebrates winning the Abu Dhabi Grand Prix and the Formula One world championship on Yas Island on December 12. Reuters

Tiger Woods' car is towed away in Los Angeles in April after the crash that smashed his leg. Getty

Denmark players react as Christian Eriksen receives medical attention after collapsing during their Euro 2020 match against Finland in June. Reuters

Barcelona's Argentinian forward Lionel Messi cries at the start of a press conference announcing he is leaving the club for Paris Saint-German in August. AFP

Manchester City's Fernandinho with the Premier League trophy in May. PA

Quarterback Tom Brady celebrates with the Vince Lombardi Trophy after the Tampa Bay Buccaneers defeated the Kansas City Chiefs to win Super Bowl LV. EPA

New Zealand's Ajaz Patel celebrates with his teammates after taking ten wickets against India in the second Test cricket at the Wankhede Stadium in Mumbai. AFP

Tyson Fury got up from the canvas to destroy Deontay Wilder in their trilogy fight for the WBC heavyweight title at T-Mobile Arena in Paradise, Nevada on October 9, 2021. Reuters

Rachael Blackmore celebrates winning the Grand National at Aintree, the first female winner, riding Minella Times. Reuters

Tunisia's Ons Jabeur celebrates becoming the first Arab woman to capture a WTA title with victory against Daria Kasatkina of Russia in the Viking Classic Birmingham at Edgbaston Priory Club in Birmingham, England, in June. Getty

Tunisian swimmer Ahmed Hafnaoui was a sensation at the Tokyo Olympics, winning a gold medal in the 400m freestyle after being the slowest qualifier. AFP

Italy celebrate with the trophy after they beat England 3-2 on penalties to win the Euro 2020 final at Wembley. PA

UAE Team Emirates rider Tadej Pogacar of Slovenia celebrates on the podium after winning the yellow jersey and the Tour de France. Reuters

Phil Mickelson, aged 50, became the oldest man to win a major title as he claimed the US PGA Championship at Kiawah Island amid extraordinary scenes in May. Getty

Glover Teixeira celebrates his victory over Jan Błachowicz in their championship light heavyweight bout at UFC 267 at Etihad Arena, Yas Island, Abu Dhabi. Chris Whiteoak / The National

Australia's Glenn Maxwell, left, celebrates hitting a four to win the Twenty20 World Cup final against New Zealand in Dubai. AP

Egyptian forward Mohamed Salah enjoyed another sensational year of goalscoring for Liverpool, including this effort against arch rivals Everton at Goodison Park. Getty

USA captain Steve Stricker celebrates with his team and the Ryder Cup trophy after victory against Europe at Whistling Straits, Wisconsin, in September. PA

During the fourth quarter of 2021, Starzplay recorded a five-fold increase in the number of monthly subscribers, following the addition of new sports content in September, it said in a statement on Thursday.

Average revenue per user increased 30 per cent amid rising subscriptions to more sports packages, particularly Premier Sports League (live rugby) and the ICC Men’s T20 World Cup 2021.

During the UAE-Lebanon game in September, Starzplay said it set a record for the number of new subscribers and consumption as a measure of minutes spent on the platform, beating the previous peak posted in April 2020.

"We saw a 10-time lift in the number of new people who signed up for our entertainment service for that day of the Lebanon-UAE match. That was a surprising element for us," Mr Sheikh said.

Funds spent on marketing content and driving app downloads or traffic to the website can be re-directed to sports, as there is an organic demand created by events such as an India-Pakistan cricket match, he said.

A proportion of the subscribers who join for the sports content also sign up for entertainment packages.

"It has a viral effect, it builds awareness for us and takes us to a new audience that we previously hadn’t attracted," Mr Sheikh said.

Last year, Starzplay partnered with the Abu Dhabi Investment Office (Adio) to establish its headquarters in the UAE capital. The partnership is part of Adio’s Dh2 billion ($545 million) Innovation Programme.

Under the programme, Adio awarded Starzplay financial incentives, including rebates on high-skilled payroll, tech-related capital expenditure and other operating expenditure. Non-financial incentives included help with establishing the headquarters and engaging with Abu Dhabi partners.

The key is "developing the right content in partnership with key partners like Etisalat and Abu Dhabi TV", Mr Sheikh said on Thursday.

"For us, it's about digging deeper into the partnerships we have and unlocking value … together."