Anghami is the pioneering legal music streaming platform in the Middle East and North Africa (MENA), established in 2012 by Elie Habib and Eddy Maroun. It has become a leading player in the regional music streaming industry by addressing local needs and adapting its business model to the unique challenges of the MENA market.
Business Model Overview
Freemium Model: Anghami operates on a freemium model, offering a vast library of over 100 million songs for free with ads. For a subscription fee, Anghami Plus provides an ad-free experience, offline listening, high-quality audio, and exclusive content.
Localization: The platform tailors its services to the cultural and economic contexts of different MENA countries, including offering daily subscription plans where credit card access is limited.
Partnerships with Telecom Companies: Anghami has formed over 47 partnerships with telecom providers to boost customer acquisition and facilitate subscription payments. These partnerships often bundle Anghami subscriptions with mobile data plans, addressing the low credit card penetration in many MENA countries.
Diverse Revenue Streams: Revenue is generated from direct subscriptions, advertising, and telecom partnerships, reducing reliance on a single revenue source.
Early Growth Strategies
Addressing Market Needs: Anghami tackled the prevalent issue of music piracy in the MENA region by offering a legal alternative, attracting users who were previously engaged in illegal downloading.
User-Centric Features: The platform focused on enhancing user experience by allowing users to freely choose their content and continuously updated features based on user feedback, which helped reduce churn rates and foster loyalty.
Leveraging Competition: The entry of global players like Spotify and Deezer in 2018 increased market awareness of streaming services, benefiting Anghami by driving growth and prompting further innovation. Anghami experienced an 80% growth in its user base over three years as a result.
Strategic Investments and Funding: Anghami raised significant funds from telecom companies and venture capital firms, which supported its content library expansion and marketing efforts.
Going Public: In 2022, Anghami became the first Arab tech company listed on NASDAQ. This move provided access to a broader range of capital and supported its growth and innovation ambitions.
Summary
Anghami’s business model combines localization, diverse revenue streams, and strategic telecom partnerships. Its early growth strategies focused on addressing market needs, enhancing user experience, leveraging competition, and securing investments.
These efforts have positioned Anghami as a leader in the MENA music streaming market, with continued growth and innovation supported by its public listing.