MultiChoice and Comcast, the US-based parent of NBCUniversal and the UK’s Sky,) to invest a combined total of $177 million (R3.3 billion) into Showmax during this financial year.
MultiChoice is reintroducing its streaming platform, Showmax, which has been developed in collaboration with Comcast, a global broadcasting powerhouse and a direct competitor of Canal+, with its US-based parent company NBCUniversal and the UK’s Sky.
Comcast has already acquired a 30% stake in Showmax, a video streaming service.
MultiChoice belives that the new partnership brings some of the world’s best content and technology to streaming customers across its footprint in sub-Saharan Africa.
The company added that changing the game for streaming on the continent, the re-launched Showmax also provides an opportunity to capture the best of both partners’ capabilities and competitive advantages to deliver a differentiated subscription video-on-demand (SVOD) service, that offers world-class entertainment at affordable prices to millions of African consumers.
MultiChoice has disclosed the funding commitment for Showmax until its financial year-end on 31 March.
Before Thursday’s announcement, the companies had already injected $20 million (R375 million) into Showmax.
On 2 February 2024, MultiChoice and NBCUniversal will inject an additional $30 million (R563 million) in equity funding into Showmax, each in proportion to their respective shareholdings.
“Further equity funding, capped at $127 million (R2.4 billion), with MultiChoice bearing 70% or up to $88.9 million (R1.7 billion), is anticipated for the remainder of MultiChoice’s financial year ending 31 March 2024.”
The new Showmax is 30% owned by Comcast and 70% held by Multichoice. The new holding company is known as Showmax Africa Holdings Limited (SMAH).
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