Amazon Prime, a global streaming giant, is set to undergo a significant restructuring in Africa and the Middle East, according to a report by Variety. The third-largest streaming platform in Africa is redirecting its focus towards the European market, a decision communicated to staff by Barry Furlong, Vice President of Prime’s EMEA division.

Furlong emphasized the need to concentrate on “areas that drive the highest impact and long-term success,” leaving the extent of the impact on the workforce uncertain.

”We’ve made the decision to focus on the areas that drive the highest impact and long-term success,” Barry Furlong explained.

While approved shows like “Ebuka Turns Up Africa” will continue, Amazon Prime is discontinuing the approval of local content in sub-Saharan Africa, the Middle East, and North Africa.

The African streaming market is projected to grow substantially, reaching at least 18 million paying streaming customers by 2029, up from 8 million last year. However, despite this potential, Netflix and Showmax currently dominate with a combined 75% market share.

Africa’s streaming market is expected to reach 18 million paying customers by 2029, highlighting the competitive landscape.

Initially entering the African market in December 2021 with ambitious goals, Amazon Prime faced setbacks despite early successes. The estimated 575,000 sub-Saharan customers in 2021 were projected to increase to 1.9 million by 2026.

Early on, Amazon Prime hired staff and formed partnerships with local production studios, such as Anthill, Inkblot, and Greoh. However, the decision to scale back operations poses challenges to a growing business model where tech-focused professionals finance and create content for international streaming platforms.

”We have a dedicated local content strategy for the continent, from originals to licensing with top-tier producers,” explained Ned Mitchell, Prime’s head of originals for Africa.

The ambitious partnership with Jade Osiberu’s Greoh initially showed promise, with a three-year deal making Osiberu’s content exclusive to Amazon Prime. The success of ‘Gangs of Lagos,’ breaking records and becoming the 9th most-watched non-English title on Prime within two months, showcased potential.”

Jade Osiberu’s ‘Gangs of Lagos’ became the 9th most-watched non-English title on Prime.

This strategic move by Amazon Prime adds complexity to a business landscape where tech professionals finance Nollywood movies. Successes like Netflix’s ‘The Black Book’ demonstrate the potential of this model. Simultaneously, African streaming platforms have faced challenges, with notable closures like Video Play, Telkom One, Kwese TV, and a decline in IrokoTV’s user base.

”Despite a $30 million investment in Nigeria, IrokoTV has yet to profit from the country,” shared Jason Njoku, CEO of IrokoTV.

As Amazon Prime redefines its strategy, the implications for the streaming landscape in Africa and the Middle East remain to be seen.