Dubai-based Starzplay, the Middle East and North Africa's fastest-growing video streaming service, is eyeing an initial public offering by 2024, propelled by a surge in demand during the pandemic.
The move is part of wider growth plans to double its revenue and subscribers within three to four years, Maaz Sheikh, co-founder and chief executive of Starzplay, told The National.
Revenue grew 50 per cent year-on-year in 2020, he said, declining to disclose current or target amounts. It ended the year with 1.83 million subscribers and is targeting nearly 4 million by 2024.
"We realised that what we've accomplished so far, though extensive, is scratching the surface," Mr Sheikh said. "There's a lot more growth in the region and a lot more opportunity to come."
To fund its expansion, the six-year old company secured $25 million in debt financing from Abu Dhabi-based Ruya Partners, an independent alternative investment firm focused on private credit in developing markets.
"The primary purpose of this investment is to produce Arabic content and build awareness through marketing of our service in Gulf markets," Mr Sheikh said. "Going from 2million to 5 million subscribers in the next five years has to come from Arabic content."
Starzplay is working with Image Nation Abu Dhabi to produce its first original show and expects to start shooting the Arabic mini-series this year, following a delay due to the Covid-19 pandemic. Produced in the UAE with on-screen and behind-the-cameras talent mainly from the country, the pan-regional show will focus on folks tales from the UAE, Saudi Arabia, Oman and Morocco.
"Starzplay is our first investment in tech ... we take a view to understand the sector, positioning of the company in that sector and the management team executing the strategy," Rashid Siddiqi, co-founder and managing partner of Ruya Partners, said in an interview. "All of those boxes for Starzplay [score] very high marks."
While the streaming service platform serves the Middle East and North Africa region, the four key markets that fuelled its growth are the UAE, Saudi Arabia, Egypt and Morocco, which continue to be focus areas, Mr Sheikh said. Starzplay recently expanded its presence in Iraq and Libya with more locally-relevant content and intensified marketing.
Starzplay says it holds 32 per cent market share of the subscription video on demand (SVOD) services in the Mena region with ambitions to grow its geographic reach and subscriber base.
"We're very close to profitability and we're on a solid trajectory towards a successful IPO," Mr Sheikh said.
Under its current projections, the company expects to break even by the end of 2021 and to record its first full year of profitability in 2022, the executive said.
A listing is also on the cards, though he said it is too early to decide where the shares will be floated.
"We’ve set a roadmap for three years, if we maintain the current growth rate and profitability metrics," Mr Sheikh said.
The Covid-19 pandemic brought with it a surge of subscribers that subsequently ebbed before picking up in September, he said.
The executive pointed to two patterns of consumer behaviour changes during the pandemic, one temporary and the other more enduring.
At the start of the virus outbreak, movement restrictions that forced families to stay at home prompted them to seek out more entertainment options.
"In terms of consumption, we grew more in the six weeks between March and April than in the past six years from new and existing users," he said, noting that more people logged in per account and consumption increased by up to four-fold. "This is a temporary trend, this lift is not sustainable, and as the economy opens up and people venture out more, we expect this type of peak to level off."
The more enduring trend is the brand exposure that it gained during this period.
"What the pandemic did is it created organic demand for our service. There is no substitute for that. This is where I'm very excited about what the future holds for us," Mr Sheikh said. "Because what the last six months did for us, we couldn’t achieve with hundreds of thousands of dollars in ads."
Starzplay is not seeking further financing to back its growth in the next three to four years, as the $25m from Ruya Partners "gives plenty of growth capital and breathing room to proceed comfortably", he added.
Ruya Partners, based at Abu Dhabi Global Market, is a portfolio investment of Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Company and Falcon Edge Capital.
"We evaluated the business model of Starzplay, which shows great promise for growth, especially with the rising popularity of SVOD in the region," Mirza Beg, co-founder and managing partner of Ruya Partners, said in a statement.
Starzplay, which was founded in 2015, has secured $125m in equity funding through Starz, a Lionsgate company, State Street Global Advisors and technology investment firms SEQ Capital Partners and Delta Partners.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
The specs: 2017 Maserati Quattroporte
Price, base / as tested Dh389,000 / Dh559,000
Engine 3.0L twin-turbo V8
Transmission Eight-speed automatic
Power 530hp @ 6,800rpm
Torque 650Nm @ 2,000 rpm
Fuel economy, combined 10.7L / 100km
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
BRIEF SCORES:
Toss: Nepal, chose to field
UAE 153-6: Shaiman (59), Usman (30); Regmi 2-23
Nepal 132-7: Jora 53 not out; Zahoor 2-17
Result: UAE won by 21 runs
Series: UAE lead 1-0
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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%3Cp%3EEtihad%20Airways%20operates%20seasonal%20flights%20from%20Abu%20Dhabi%20to%20Nice%20C%C3%B4te%20d'Azur%20Airport.%20Services%20depart%20the%20UAE%20on%20Wednesdays%20and%20Sundays%20with%20outbound%20flights%20stopping%20briefly%20in%20Rome%2C%20return%20flights%20are%20non-stop.%20Fares%20start%20from%20Dh3%2C315%2C%20flights%20operate%20until%20September%2018%2C%202022.%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20Radisson%20Blu%20Hotel%20Nice%20offers%20a%20western%20location%20right%20on%20Promenade%20des%20Anglais%20with%20rooms%20overlooking%20the%20Bay%20of%20Angels.%20Stays%20are%20priced%20from%20%E2%82%AC101%20(%24114)%2C%20including%20taxes.%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
History's medical milestones
1799 - First small pox vaccine administered
1846 - First public demonstration of anaesthesia in surgery
1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases
1895 - Discovery of x-rays
1923 - Heart valve surgery performed successfully for first time
1928 - Alexander Fleming discovers penicillin
1953 - Structure of DNA discovered
1952 - First organ transplant - a kidney - takes place
1954 - Clinical trials of birth control pill
1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.
1998 - The first adult live-donor liver transplant is carried out
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
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%3Cul%3E%0A%3Cli%3EInform%20your%20doctor%20about%20your%20plans.%C2%A0%3C%2Fli%3E%0A%3Cli%3EAsk%20about%20your%20treatment%20so%20you%20know%20how%20it%20works.%C2%A0%3C%2Fli%3E%0A%3Cli%3EPay%20attention%20to%20your%20health%20if%20you%20travel%20to%20a%20hot%20destination.%C2%A0%3C%2Fli%3E%0A%3Cli%3EPlan%20your%20trip%20well.%C2%A0%3C%2Fli%3E%0A%3C%2Ful%3E%0A
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
The Two Popes
Director: Fernando Meirelles
Stars: Anthony Hopkins, Jonathan Pryce
Four out of five stars
COMPANY%20PROFILE
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THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Who is Allegra Stratton?
- Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
- Took up a public relations role for Chancellor Rishi Sunak in April 2020
- In October 2020 she was hired to lead No 10’s planned daily televised press briefings
- The idea was later scrapped and she was appointed spokeswoman for Cop26
- Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
- She has strong connections to the Conservative establishment
- Mr Sunak served as best man at her 2011 wedding to Mr Forsyth
More from UAE Human Development Report:
Real estate tokenisation project
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