Showmax being integrated into DStv – Sources

Showmax is being integrated into DStv, industry sources have told MyBroadband.

It is expected that Showmax’s video services will become available on DStv’s digital platforms, and there is speculation this may result in a bundling of Showmax with DStv subscriptions.

This may also mean the availability of content previously exclusive to DStv through a video streaming package – without the need for a satellite TV subscription – said a source.

The reports of the integration have led to further speculation that Naspers may also plan a full merger of Showmax into MultiChoice.

Collaboration

Spokespeople for Showmax and MultiChoice confirmed that a collaboration was on the cards, but declined to provide further details.

“We’re looking at opportunities for DStv and Showmax to work more closely on digital entertainment products to the benefit of both sets of customers,” said the companies.

“There’s no specific details to share at this point.”

Naspers launched Showmax in South Africa in 2015, four months before Netflix announced its global launch.

Showmax currently has offices in the UAE, The Netherlands, the Czech Republic, South Africa, Kenya, and Poland.

During its past financial year, MultiChoice reported nearly R11 million in sales to Showmax – down from nearly R21 million the previous year.

It also reported purchasing over R417 million in goods and services from Showmax in the past year, up from nearly R194 million the previous year.

Naspers previously told MyBroadband these figures represent intercompany sales for items such as content, licence fees, and support costs.

When Showmax launched, the sharing of resources between it and DStv – including content rights and staff – was expected.

However, the two services would compete against one another for subscribers.

It looks as though this strategy may change if Naspers integrates Showmax into DStv.

Now read: Showmax launches first original series

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Showmax being integrated into DStv – Sources