In an expected move in the African streaming landscape, MultiChoice has officially announced the termination of its flagship streaming service, Showmax.
The decision, described as the result of a “comprehensive review,” marks a stunning end to the platform that once stood as the continent’s primary challenger to global streaming titans.
The curtain is falling on Showmax due to what the company calls “substantial annual losses” that have “proved unsustainable” in a “capital-intensive global streaming environment.” The board’s decision underscores a brutal new reality: in the war for viewers’ attention, even a homegrown giant could not withstand the financial firepower of its international rivals.
“We want to reassure our Showmax subscribers that they are our priority as we evolve our services to deliver a superior streaming experience,” the company stated, suggesting that the death of Showmax is merely a prelude to a new beginning.
This evolution is intrinsically linked to a complex web of corporate rivalries and alliances.
Showmax, 70% owned by MultiChoice, was developed in a high-profile strategic alliance with Comcast – a global broadcasting behemoth and, crucially, a direct competitor of MultiChoice’s new parent company,
CANAL+. Comcast, through its subsidiary NBCUniversal, had acquired a 30% stake in Showmax to help fend off the likes of Netflix and Amazon. Now, with MultiChoice firmly under the CANAL+ umbrella, that alliance has been dissolved.
For consumers, the change will be seamless, not silent. The company confirmed the decision “will not involve any retrenchments,” with employees being supported through “various transition options.” The ultimate goal is for CANAL+ to deploy its own “large-scale streaming platform” to consolidate its leadership in Africa.
Showmax is being shut down, not to retreat, but to be reborn under a new flag. The final episode of one streaming service is the pilot for another.
Also read: GUGU LOURIE | Canal+ looks set to shed MultiChoice’s noncore assets
Gugu Lourie
Let’s get straight to the point: Canal+ is getting ready to sell off parts of the MultiChoice business that don’t fit.
The biggest clue of the possible sell-off emerged at the weekend, though I saw the smoke months ago when the French media giant was finalising its takeover of MultiChoice. At the time, I noted that some parts of the MultiChoice business model would not be compatible with that of Canal+.
Speaking to the Sunday Times, Canal+ boss Maxime Saada revealed that the Showmax streaming service, MultiChoice’s much-hyped 2023 partnership with Comcast, wasn’t making money. In fact, he admitted, the streaming service was “losing a lot of money”.
Showmax is 70% owned by Multichoice, which is now owned by Canal+.
