Amazon Prime Video is reportedly reducing its operations in Africa and the Middle East, impacting teams in both regions. According to a report by Variety, the company is shifting its focus to European originals.
As a result, Prime Video will no longer produce original content in African and Middle Eastern markets. However, shows that have already been approved will proceed as planned.
Furthermore, the company intends to divide its European team into two groups: the EU Established will concentrate on the U.K., Germany, Italy, France, and Spain markets, while the EU Emerging will oversee operations in Benelux (Belgium, the Netherlands, and Luxembourg), the Nordics, and Central and Eastern Europe, as stated in the report.
Prime Video Europe VP Barry Furlong explained the decision, stating, “We’ve been carefully looking at our business to ensure we continue to prioritize our resources on what matters most to customers. I have carefully evaluated our structure in the region and decided to make some adjustments to our operating model to rebalance and pivot our resources to focus on the areas that drive the highest impact and long-term success.” This was mentioned in an email to staff, as seen by Variety.
“I have listened and considered the feedback received across the teams over the past 12 months; I believe these changes will improve the operational running of our multi-territory business and allow us to be more agile and focused,” Furlong added.
This development comes after Prime Video had previously outlined a strategy to become the leading video streaming player in Africa, signing multi-year licensing agreements with production companies and establishing teams in Nigeria and South Africa.
Amazon Prime Video entered the African market in 2016 as part of its global expansion to over 200 countries, posing significant competition to Netflix. However, during the initial phase, the platform lacked local-language interfaces, subtitling, and original content offerings commonly available in more developed markets. Launching the localized version in Nigeria was a pivotal step in meeting the preferences and expectations of the African audience.
As the third-largest video streaming platform in Africa, Amazon Prime Video aimed to enhance its subscriber base in emerging markets by introducing localized plans. Despite similar initiatives in South Africa, the platform had not commissioned any original content in the Middle East. The strategy involved increased investment in local production, unveiling slates of localized originals, and offering discounted Amazon Prime memberships to customers.
The platform’s entry into Africa for original and licensed content gained traction, with movies like Breath of Life and Jade Osiberu’s Gangs of Lagos receiving critical acclaim and commercial success, respectively. At its peak, Prime Video had over 600,000 subscribers in Africa, with plans to add 1.5 million new subscribers over the next four years, as per Digital TV Research.
Prime Video’s withdrawal from the competition for Africa’s projected 15 million video-on-demand subscribers by 2026 leaves a significant gap in the streaming landscape. Competing platforms such as Netflix, Disney+, Canal+, and Showmax now have the opportunity to capitalize on this absence and potentially gain market share in the ongoing streaming competition for African content and viewership. This shift could reshape the dynamics of the region’s streaming industry, which has proven to be challenging in terms of profitability.
