MultiChoice is shutting down its online streaming platform Showmax.
Image: File
MultiChoice is shutting down its online streaming platform Showmax, which it had hoped would compete with Netflix, telling subscribers on Thursday that the service will be discontinued.
The South African and regional pay-television giant has been undergoing major shake-ups since it was bought by Canal+ last year, with the merger taking effect this year. Among other changes, MultiChoice said SuperSport will no longer be responsible for procuring sports content, while it is also likely to shift its channel line-up.
The biggest change, however, has seen MultiChoice pull the plug on Showmax, a platform in which it has invested heavily over the past few years following its relaunch in 2024. Officials at Canal+ have reportedly said previously that Showmax has not been a successful venture.
“Following a comprehensive review, the Showmax board has taken the decision to discontinue the Showmax service in the near future. This decision reflects our focus on strengthening our overall digital offering and ensuring long-term sustainability in an increasingly competitive streaming environment,” MultiChoice said in an email to Showmax subscribers.
Although there will be no immediate interruption to current services, with subscribers expected to continue streaming, the curtain is expected to come down on Showmax in the coming months.
The discontinuation of Showmax comes against bullish sentiment by PwC over the African and South African streaming market. PwC said last year that the African sector will largely outpace the global 2024–2029 compound annual growth rate of 3.7%, with Nigeria remaining the fastest-growing market in Africa with a 7.2% growth rate over the period.
South Africa is adjudged to be the largest entertainment and media market on the continent, amid projections that it will reach R321.2 billion by 2029, although at a slower growth rate of 3.5%. Kenya is expected to grow at a rate of 5.2% to a market size of $5.2 billion by 2029.
Platforms such as Netflix, Amazon and others were seen rapidly expanding in South Africa, PwC said last year. South Africa had been projected to add a total of 1.4 million new subscribers by 2029, but this was before the now-announced shutdown of Showmax.
MultiChoice said that this move “may raise questions,” explaining that it was prioritising Showmax subscribers in its decision-making. The company is now “working on plans to ensure clear communication and a smooth transition” when the time comes.
“We will share further details well in advance, including timelines and any future steps, should they be required,” it said.
MultiChoice under Canal+ reckons, however, that “streaming remains central” to its strategy, although it remains to be seen what format its new streaming ventures will take or whether the company will adopt a completely different approach through an acquisition.
MultiChoice had indicated that Showmax posted R2.6 billion in trading losses for the year to the end of March 2024. This worsened to R4.9 billion a year later, denting the parent company’s profitability prospects as it also suffered mass migration by subscribers from the DStv pay-television platform.
“We will continue to invest in premium content, technology innovation and partnerships to deliver the best possible entertainment experience to our customers,” said MultiChoice.
Stronger roll-out and uptake of 5G in South Africa and across Africa has been aiding streaming and video-on-demand services. However, according to PwC, quicker roll-outs of 5G are being hindered by multiple factors, including regulation, affordability, geography and investment.
BUSINESS REPORT