A strategic move within Amazon Prime Video sees the streaming giant scaling back its operations in Africa and the Middle East (MENA), prioritizing resources for European originals and restructuring its international business accordingly.
The move, announced in an email to staff by Prime Video Europe VP Barry Furlong, aims to “rebalance and pivot resources to focus on the areas that drive the highest impact and long-term success.” The shift entails several key changes. Firstly, Amazon Prime Video will be scaling back its content production and staff presence in Africa and the Middle East (MENA).
While existing projects like “LOL ZA” and “Ebuka Turns Up Africa” will continue, the development and greenlighting of new local originals in Sub-Saharan Africa, the Middle East,and North Africa is likely to be put on hold for the foreseeable future.
Secondly, the European team will be restructured into two distinct segments. “EU Established” will focus on established markets like the UK, Germany, France, and Spain, while “EU Emerging” will target growth in Benelux, the Nordics, and Central and Eastern Europe (CEE). Both segments will report directly to Barry Furlong, the Vice President of Prime Video Europe.
Thirdly, the European restructuring may lead to staff reductions, although the exact number of potential layoffs remains unclear.
Finally, Amazon plans to create a new executive role titled “Director of EU Content and Programming Strategy.” This individual will be responsible for bridging the gap between U.S. and international teams within the Amazon MGM Studios pipeline.
This reprioritization comes as a surprise, considering Prime Video’s recent investments in Africa and MENA. Dedicated country teams in Nigeria and South Africa, multi-year licensing deals, and partnerships with local production studios all pointed towards ambitious expansion plans. Africa, in particular, was a focus, with projected market growth to 18 million paying subscribers by 2029.
However, challenges remained. With Netflix and Showmax holding a combined 75% market share, Amazon faced stiff competition. Streaming penetration is also low, concentrated in South Africa and Nigeria. Prime’s estimated 575,000 sub-Saharan customers in 2021, projected to reach 1.9 million by 2026, fell short of lofty goals.
This retreat reflects a global shift within Amazon’s streaming strategy. Facing a saturated market in the U.S., the company is looking towards international expansion for growth. Europe, with its established markets and potential for further penetration, appears to be the new focus.
The impact of this move on African storytellers and the continent’s nascent streaming industry remains to be seen.While already greenlit projects will move forward, the halt on new originals could stifle creativity and limit opportunities. Nevertheless, it’s important to remember that streaming penetration in Africa is still in its early stages. Local players like Showmax and upcoming entrants like Disney+ could fill the void left by Prime Video’s retreat, fostering a diverse and vibrant African streaming landscape.
This evolving scenario emphasizes the dynamic nature of the global streaming market, where players constantly adapt and change to scale through fierce competition and seize emerging opportunities.
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