According to new reports, Amazon Prime is reducing its workforce and downsizing local content creation in Africa and the Middle East.
The streaming platform which is not just a popular one but the 3rd largest in Africa says it is undergoing a business model restructuring, prioritizing its European market. Barry Furlong, the Vice President of Prime’s EMEA division, communicated to employees via email, stating the decision aims to concentrate efforts on areas contributing to the most significant impact and long-term success.
While the company is already planning to stop producing local content from sub-Saharan Africa, the Middle East, and North Africa, African shows such as Ebuka Turns up Africa, LOL ZA, and Big Brother Naija which have already been approved from the onset will continue to air.
By 2029, the streaming market in Africa is anticipated to reach a minimum of 18 million paying subscribers, a significant increase from the 8 million customers recorded last year. Despite the growth, Amazon has discovered that streaming adoption is relatively low, mainly concentrated in South Africa and Nigeria.
Amazon has decided to lay off some of its workers but is yet to disclose the number. Speculations are that its decision to withdraw from North and sub-Saharan Africa might have been driven by intense competition in the streaming industry, with Netflix and Showmax aggressively competing for a share of the rapidly expanding audience.
The streaming platform has also shared that the European team is undergoing a re-organization, dividing into two main segments: “EU Established” will concentrate on mature markets such as the UK, Germany, France, and Spain, while “EU Emerging” will focus on growth in Benelux, the Nordics, and Central and Eastern Europe (CEE). Both segments will report directly to Barry Furlong, who serves as the Vice President of Prime Video Europe. Also, the restructuring in Europe could result in a reduction of staff.
Amazon is set to introduce a new position called “Director of EU Content and Programming Strategy,” which will facilitate collaboration between American and international teams in the Amazon MGM Studios pipeline.
For now, we can’t say exactly how African storytellers will take this information from Amazon Prime. However, it doesn’t stop their craft, they only just have to do a bit of re-direction as Amazon Prime takes its stand on this new development.
