On Thursday, January 18, 2024, news broke out that global streaming platform, Amazon Prime, is halting local content production in Africa, one year and four months after it launched.
Here’s what we know about the development that’s sparked a flurry of reactions from Nigerians who’ve come to love the streaming platform’s originals: Gangs of Lagos, Breath of Life, Last One Laughing and She Must Be Obeyed.
What’s happening?
According to Variety, Prime Video, the third largest streaming platform in Africa, is restructuring its business model and shifting focus to its European market. In an email to local staff, Barry Furlong, vice president of Prime’s EMEA division, said that the decision was made to help the business shift focus to areas with the highest impact.
“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.”
Deadline reports that Gideon Khobane, director of Prime Video Africa, has exited his role, while Head of Originals for Africa and the Middle East, Ned Mitchell, and Director of Content Acquisition and Head WW Major Studio Licensing Strategy, Ayanna Ionian, have taken up new roles.
Other staff members in Sub-Saharan Africa have been informed that there will be job cuts after a consultation period that’s currently underway.
Does this mean Prime Video will stop operating in Africa?
The streamer will continue to operate in the region. However, the restructuring might mean a complete halt on locally produced content from Sub-Saharan Africa, the Middle East and North Africa.
What about projects that were underway?
Shows such as “LOL ZA”, “Ebuka Turns Up Africa” and Tiwa Savage’s “Water and Garri”, had been greenlit before this announcement was made. And they’re still on the slate.
In 2022, ace director, Jade Osiberu signed a three-year deal with the streaming platform to include production of original TV series and feature films. It’s unclear how many titles have been greenlit from the deal.
The streamer also signed a three-picture deal with Nigerian production house, Nemsia Films in 2022. The first title of the deal, Breath of Life, debuted on the streaming app in December 2023. After 30, the second title of the deal, and sequel to Before 30, has been approved and funded, while there’s little known about the third title expected from the deal.
A trail of multinational exits
Prime Video joins a number of multinationals that have packed up shop or been forced to restructure their position in the Nigerian market because of the unfavourable economy.
According to Digital TV research, Africa’s streaming market is projected to hit at least 18 million subscribers by 2029. Prime Video follows behind market leaders, Netflix and Showmax, with a subscriber count expected to hit 3.1m in 2029. In 2021, the streamer was estimated to have around 575k subscribers, which was projected to reach 1.9 million in 2026.
Like the streaming platform, pharmaceutical giant, GlaxoSmithKline (GSK), announced its exit from Nigeria, after 51 years in business. Procter & Gamble (P&G) followed suit four months later when it announced its return to an import-only model. In March 2023, Unilever exited the home care and skin cleansing market in Nigeria for a more sustainable and profitable business model.
The shifting economic landscape continues to force multinationals to reconsider their investment position in the Nigerian market, raising questions about how harsh economic conditions impact the nation’s market attraction.
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