Universal Pictures Enters Deal for Saudi Distribution
Universal Pictures International and the Emirates-based entity, Majid Al Futtaim Distribution, will now be partnering for releases in both Saudi Arabia and other GOC countries, including the UAE, Egypt, Bahrain, Kuwait, Oman, and Qatar. This will not impact their existing distribution agreements with Four Star Films for the Cyprus and Lebanon areas. Brandon Blake, entertainment lawyer at Blake & Wang P.A, unpacks the new deal.
February 2023 Start Date
The entire Middle Eastern global region has seen rapid growth in their local Box Office over the past year. Majid Al Futtaim Distribution, in particular, also handles Warner Bros Discovery titles for the region, and is one of the largest distribution groups operating in the area. Their parent company also owns the area’s largest exhibition chain, VOX Cinemas.
Bringing 600 screens across 8 markets to the table, they also hold a wealth of entertainment and leisure experiences. They are widely thought of to be one of the most ambitious, and possibly also forward-thinking, distribution partners in the area.
Emerging Market
While the streaming market, unlike the wider film distribution market, is currently mining Africa and parts of Asia for new subscribers, the overall mood of the Middle Eastern film market has definitely turned in recent years. While the strong Islamic modesty laws in many of these areas have demanded altered releases, or outright rejected popular titles, it too presents a geographic area with an emerging middle class keen for greater access to international entertainment markets. Arab streaming markets, for example, have seen a 29% growth in the last year. SVOD revenue in the area is expected to reach $667M by 2026- relatively small growth compared to some areas, but still a nice slice of the new market pie for those willing to offer tailored packages for the area.
Overall, it’s interesting to see even more distribution arms move into the Middle Eastern area, and it’s a growth sector that could be well worth watching in coming years.
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