According to a recent report by Variety, Amazon Prime, the global streaming giant, is undergoing layoffs and reducing its local content production in Africa and the Middle East.
The restructuring aims to refocus on the European market, with Barry Furlong, Vice President of Prime’s EMEA division, citing a need to concentrate on areas that contribute to the platform’s highest impact and long-term success.
The extent of the impact on the workforce remains unclear.
While approved shows like “Ebuka Turns Up Africa” will continue, Amazon Prime will cease approving local shows in sub-Saharan Africa, the Middle East, and North Africa.
Despite Africa’s streaming market projected to reach 18 million paying customers by 2029, with Netflix and Showmax leading with a combined 75% market share, streaming penetration remains low, mainly concentrated in South Africa and Nigeria.
In 2021, Amazon Prime had an estimated 575,000 sub-Saharan customers, projected to reach 1.9 million in 2026. Initially aspiring to be the biggest streaming platform in Africa, Amazon Prime had ambitious plans, including partnerships with local production studios such as Anthill, Inkblot, and Greoh.
However, the platform’s shift in strategy poses a challenge to the emerging business model where tech-focused professionals finance or create Nollywood movies for international streaming platforms.
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The move by Amazon Prime adds complexity to the landscape, especially as African streaming platforms face challenges.
Platforms like Video Play, Telkom One, and Kwese TV have shut down, and reports suggest a decline in user numbers for IrokoTV, Africa’s oldest streaming service. Despite investments, IrokoTV’s CEO, Jason Njoku, noted a $30 million investment in Nigeria had not yet yielded profits for the service as of December 2022.
(TECHCABAL)