Amazon Prime, the streaming giant, has made a surprising decision to scale back its operations in Africa and the Middle East. This move comes just a few years after the company entered these markets with ambitious plans to become the dominant streaming platform.
Initially, Amazon Prime had partnered with local production studios to create original content tailored to the African and Middle Eastern audiences. However, the company has now decided to lay off staff and halt production of local content.
This decision is particularly surprising given the projected growth of the African streaming market. Experts predict that the number of streaming subscribers in Africa will triple by 2025. So, why is Amazon pulling out of these promising markets?
There are a few possible reasons for Amazon’s retreat. One possibility is the low streaming penetration in Africa. Currently, only a small percentage of Africans have access to reliable internet and devices necessary for streaming.
Additionally, Netflix and Showmax have already established themselves as the leading streaming platforms in Africa, making it difficult for Amazon to compete.
Whatever the reasons, Amazon’s decision to scale back its operations in Africa and the Middle East is a blow to the local creative industries. The company’s investments had helped to boost the production of high-quality African content. Now, with Amazon pulling out, the future of these productions is uncertain.
