Prime Video’s African About-Face, Netflix’s Intellectual Property Madness, and Why African Producers Are Considering ‘What Comes Next’ as Streaming Providers Change Course Must Read Most Popular Subscribe to Diverse Newsletters More from Our Brands

The anticipated rush of African creatives sparked by Netflix’s entry into the market in 2016 has not fully come to fruition, although the influx of investment from local and global streaming platforms has nonetheless been transformative for Africa’s screen industries. Budgets, production values ​​and directors are on the rise, and hit films – such as Netflix’s Nigerian thriller “The Black Book” and South African teen drama “Blood & Water” – highlight the power of global streaming services in bringing African stories to audiences. all over the world. .

However, as evidenced by Amazon Prime Video’s abrupt withdrawal from the African market in January, when the streaming giant announced it was changing course to focus on “emerging” markets in Europe, a continent that was poised to reap a windfall from blockbuster deals. With deep companies. Streaming platforms also find themselves at the mercy of those companies’ sometimes volatile streaming strategies. “It feels like a studio system,” says producer Leila Swart of Johannesburg-based Yellowbone Entertainment. “It’s an unforgiving space.”

First, the good news: Competition on the continent — particularly between Netflix, which announced last spring that it had spent about $175 million on African productions since 2016, and South African pay-TV giant MultiChoice’s Showmax service — has proven the old adage of higher numbers. satellite channels. The tide lifts all boats. The demand for premium local content to attract African subscribers has sparked an arms race between the strongest competitors in the market to attract the continent’s best talent. Netflix has signed multi-title deals with an amazing array of African creators, while Showmax plans to unveil more than 1,300 hours of original African programming on the service in 2024 alone.

“The streaming war between Netflix and Showmax is good for us, there’s no doubt about that,” says Dan Jawitz of South African production company Known Associates Entertainment. “It has made a huge difference,” adds Stan Joseph, whose Ocher Moving Pictures — which signed a deal with Netflix last year to adapt several books for the streaming service alongside director Akin Omotoso ( Rise ) — recently released the crime drama “Coming Soon.” “Night Comes” on stage. “It’s much easier to do the work now. You’re certainly able to make programs in a fair and reasonable way, where not everyone feels they have to sacrifice to get a film or series made.

Joseph is among producers who credit Netflix’s investment in local talent as much about cultivating relationships as it is about cutting checks, while many say Showmax’s local platform in Africa is particularly attuned to the needs of the local market. Meanwhile, Prime Video, on its short trip to the continent, is said to have put together a dedicated team that was committed to making big, bold changes for African creatives.

However, most of that team has been unceremoniously axed — “downsized” in senior-level parlance — in a move no one saw coming, and the same streamers whose checkbooks underwrite the African production boom also have significant influence over the types of projects . Which gets the green light. Netflix’s recent shift towards IP-based fare will see a host of sequels and spin-offs hitting the streaming device in the coming months — Kunle Afolayan’s “Aníkúlápó” and EbonyLife Studios’ “Òlòtūré” are among the popular titles that will return in some form — but some creators Content They lament the trend towards genre-based box-ticking and commercially-leaning intellectual property that doesn’t incentivize creative risks. Ultimately, as Yellowbone’s Swart points out, this is all “uncharted territory.” “As much as we don’t necessarily know what the audience will like, neither do the streamers,” she says. “It’s a lot of trial and error.”

Prime Video’s turnaround in Africa — “alarming,” “alarming” and “devastating,” according to attendees at the Joburg Film Festival this week — represents a dramatic example of how easy it is for a technology company with a multi-trillion-dollar valuation to upend an emerging market. after. ; All it takes is a few strokes of the pen in the name of “pivot” or “rebalancing” to dash hopes and undo deals that were scheduled months or years from being concluded. Simon Murray, principal analyst at Digital TV Research, points out how the investor revolt that sparked the big Netflix correction of 2022 has forced many streaming platforms to rein in their globe-spanning ambitions.

“They got scared because Wall Street started to pressure them, saying, ‘I don’t care if you’re grabbing subscribers with a fistful.’ When are you actually going to make some money?” he says. “They’ve cut back on launches in developing markets quite clearly. “It basically focuses more on rich countries around the world, and that is not in Africa’s interest.”

Last month, Canal Plus failed in a takeover bid for MultiChoice – in which it has a stake of more than 30% – in a move which nonetheless raised the prospect of a joint venture between the two media conglomerates that could create a truly quality African broadcasting platform. Global reach. (“They’ll give it another try,” Murray says. “And they’ll probably do two or three more rounds.”) Meanwhile, the recent deal between MultiChoice and Paramount+ to create a branded hub for U.S. studio content on the Showmax platform highlights the cautious progress. It is manufactured by the remaining global players and they are eyeing the African market. “These platforms won’t launch in Africa on their own, because they don’t think there’s enough money,” Murray says. “The gains are not there.”

While news of Prime Video’s withdrawal surprised the African filmmaking community, it was no less shocking to the company’s competitors, with Showmax CEO Mark Jory admitting. diverse Last month he said he was “surprised” by the decision. “To make real inroads in Africa, you have to be here, and you have to be relevant to the local markets,” he said. Ben Amadason, vice president of content for the Middle East and Africa at Netflix, also advised companies trying to make an impact in the African market to be patient. “I think the move to streaming and on-demand entertainment is still in its early stages,” says Amadason. diverse. “At Netflix, we remain focused on running our business in Africa for the long term.”

For streaming services looking to gain a foothold in what remains the world’s last untapped market, Africa is a long play. While there is certainly optimism to be gleaned from Murray’s prediction of 16 million VOD subscribers in Africa by 2029 – up from just 8 million at the end of last year – this number represents just a drop in the ocean on a continent with a population of over 1.2 billion people. . Optimistic forecasts for subscriber growth in Africa point to positive demographic trends – a large youth population, ubiquitous mobile phones, and a growing middle class – but there are formidable hurdles along the way. Broadband connectivity must improve, and data costs must be reduced significantly, before the full potential of Africa’s nascent live streaming market can be unleashed.

Currently, African content creators are reaping the benefits of competition to attract new subscribers, and it stands to reason that no matter how great the challenges are, streaming companies will continue to push into the African market as growth in other regions stagnates. However, for filmmakers who increasingly rely on a few streaming platforms to make up for financial shortfalls in their cash-strapped local industries, decisions made at distant corporate headquarters often leave them in the lurch.

“A lot of streamers have changed their strategy – even Netflix has changed their strategy since they’ve been here,” said one well-known director who requested to remain anonymous. “Sometimes they’ve been more optimistic. Sometimes they’ll scale back a little bit, see how the market responds, and come back more bullish.”

“Everything is still upside down,” they added. “We’re basically trying to figure out what comes next.”