Amazon Prime, the global streaming giant, is undergoing a significant restructuring, as reported by Variety. The company is cutting staff and reducing its local content production in Africa and the Middle East. According to Barry Furlong, the vice president of Prime’s EMEA division, the decision aims to concentrate on the European market and prioritize areas that contribute to the highest impact and long-term success. The exact number of affected employees remains unclear.
While approved shows like “Ebuka Turns Up Africa” will still be released, Amazon Prime will cease approving local shows in sub-Saharan Africa, the Middle East, and North Africa. Despite the retreat, Amazon Prime will maintain its presence in Africa, focusing on the European market.
The African streaming market is expected to reach at least 18 million paying customers by 2029, up from 8 million in the previous year. Netflix and Showmax currently dominate the market with a combined 75% share. However, streaming penetration remains low, with most customers concentrated in South Africa and Nigeria. By 2029, only 7.7% of African households are projected to subscribe to at least one streaming platform.
In 2021, Amazon Prime had an estimated 575,000 sub-Saharan customers, with projections indicating a rise to 1.9 million by 2026. The company initially entered the African market in December 2021 with ambitious goals, hiring staff and forming partnerships with local production studios. Despite the initial momentum, the decision to scale back in Africa presents a challenge to the emerging business model where tech-focused professionals finance and create Nollywood movies for international streaming platforms.
Notably, Amazon Prime had established partnerships with Nigerian studios like Anthill, Inkblot, and Greoh. The three-year deal with Jade Osiberu’s Greoh was particularly noteworthy, leading to the exclusive availability of Osiberu’s content on Amazon Prime. However, with the scaling back, African streaming platforms face new challenges, as demonstrated by the closure of platforms like Video Play, Telkom One, and Kwese TV. Even IrokoTV, Africa’s oldest streaming service, reported a significant decline in active users, raising concerns about the sustainability of the streaming industry in the region.
