Amazon Prime Video is said to be scaling back its operations in Africa and the Middle East in a move that will affect teams in the two regions. according to a variety reportthe company will focus on European prototypes.
Following the changes, Prime Video will no longer contract originals in African and Middle Eastern markets. However, shows with the green light will continue as scheduled.
In addition, the company plans to split the European team into two groups: the EU established to focus on the UK, Germany, Italy, France and Spain markets, and the EU emerging to oversee operations in the Benelux ( Belgium, the Netherlands and Luxembourg). , the Scandinavians and Central and Eastern Europe, the report said.
“We are taking a hard look 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 direct our resources to focus on the areas with the highest impact and long-term success,” said Prime Video Europe VP , Barry Furlong. according to an email to staff seen by Variety.
“I have listened and considered the feedback I have received from teams over the past 12 months. I believe these changes will improve the operational function of our business in many areas and allow us to be more agile and focused,” said Furlong.
In a sharp turn of events, the revamp comes months after Prime Video claimed it had mapped out a strategy to become the biggest Africa video streaming player after signing multi-year licensing deals with production companies and building teams in Nigeria and South Africa.
It is interesting to note that Amazon Prime Video entered the African market in 2016 as part of its global expansion to more than 200 countries, presenting substantial competition to Netflix’s simultaneous global launch. Until about 18 months ago, the service in the region lacked local language interfaces, subtitles and original content offerings typically found in more developed markets. The launch of the local version in Nigeria marked an important step in meeting the preferences and expectations of the African audience.
As Africa’s third largest video streaming platform, Amazon Prime Video has aimed to strengthen its subscriber base in emerging markets by launching local plans. While similar projects were introduced in South Africa, the platform had not commissioned original content in the Middle East. The strategy included increased investment in local production, unveiling local prototype boards and offering discounted Amazon Prime memberships to customers.
The platform’s foray into Africa for original and licensed content has garnered attention and success, with films such as Jade Osiberu’s “Breath of Life” and “Gangs of Lagos” achieving critical acclaim and commercial success, respectively. At its peak, Prime Video had more than 600,000 subscribers in Africa, according to Digital TV Research, with plans to add 1.5 million new subscribers over the next four years.
Prime Video’s exit from producing local content leaves a significant gap in the streaming landscape, where competing platforms compete for Africa projected 15 million video-on-demand subscribers by 2026. As such, the new development could reshape the dynamics of the region’s streaming industry as platforms dedicated to creating local content, notably Showmax, Netflix and Canal+, capitalize on Prime Video’s reduced presence and potentially gain market share in the ongoing streaming war for African content and views.
