Showmax price increase

MultiChoice has announced price increases for its Showmax Entertainment plans that will kick in on 1 August 2024.

Its standard Showmax Entertainment plan will increase by 11% from R89 to R99 per month, while the mobile plan will increase by 15% from R39 to R45 per month.

All other prices remain unchanged.

The mobile-only Showmax Premier League service remains at R69 per month.

Showmax’s combined packages that include the Premier League subscription and an Entertainment plan will also not increase.

According to MultiChoice, its current prices were discounted for the relaunch of Showmax. It said this discounted launch pricing would conclude at the end of July.

MultiChoice relaunched Showmax in January and began migrating customers onto “Showmax 2.0” from 12 February 2024.

Showmax had been rebuilt on NBCUniversal’s Peacock platform after the Comcast-owned mass media conglomerate bought a 30% stake in the company last year.

MultiChoice reported that almost 100% of the eligible customer base was migrated to the new Showmax platform, and 88% of those migrated had reactivated their accounts.

Following Showmax’s relaunch, the company announced partnerships with mobile operators across the continent, including MTN in South Africa.

MTN launched Showmax bundles that include a subscription to either the Premier League or mobile entertainment package, with an allocation of data.

MultiChoice told MyBroadband that these prices will also be adjusted, but they have yet to be confirmed.

“As a lifelong football fanatic, I can’t tell you how excited I am for the return of the greatest football league in the world,” said Showmax CEO Marc Jury.

Jury said pricing is something all businesses must review regularly.

“We launched with attractive pricing on the new Showmax platform,” he continued.

“We are thrilled that we’ve been able to keep Showmax Premier League and bundled Showmax plans unchanged, bringing all 380 Premier League matches to millions of football fans in Africa and continuing to focus on making streaming affordable and effortless.”

Showmax’s price adjustment comes shortly after MultiChoice reported a R2.6-billion trading loss for the streaming service.

During its annual financial results released in June, the company revealed that Showmax delivered record single-month growth in March 2024.

Showmax’s paying subscribers grew 16% from relaunch to financial year-end, and it generated R1 billion in revenue during the financial year.

However, it still reported a trading loss, though the company noted that it was better than the expected range of R3 billion to R4 billion.

MultiChoice noted that some operational expenses and depreciation were shifted into the next financial year. It warned that this would result in incremental trading losses.

Although MultiChoice did not release official subscriber numbers for Showmax, it is estimated to be between 700,000 and 1 million.

MultiChoice has told investors that Showmax aims to achieve trading profit break-even in its 2027 financial year.

The pay-TV operator is also targeting revenue of $1 billion (R18 billion) for Showmax by its 2028 financial year-end.

To generate this revenue, Showmax will need to have around 16 million active subscribers who pay an average of R99 per month.

This is no mean feat. Digital TV Research predicted that the total number of video streaming subscribers in Africa will only be 15.6 million users by 2028.

MultiChoice disagrees with this forecast. It said it expects video streaming uptake to undergo exponential growth in Africa.

MultiChoice is so bullish that it is aiming to increase its total subscriber base, including Showmax and DStv subscribers, to 50 million users in 2028.

For Showmax alone, the company has indicated that it aims to have 25 million subscribers on the platform by 2028.

Based on this forecast, Showmax would need to grow its subscriber base by around 100% a year until 2028.

To achieve its targets, Showmax is focusing on acquiring and producing local content in the regions it operates.

During the past year, it ramped up its local content alongside M-Net, Mzansi Magic, Africa Magic, and Maisha Magic.

The streaming service released 59 original movies and TV series in South Africa, Nigeria, Kenya and Ghana.

Popular shows that drove viewership included Tracking Thabo Bester, Koek, The Mommy Club, Youngins, Red Ink, Adulting, Outlaws and Real Housewives of Durban.

The table below summarises the price changes for Showmax that will kick in on 1 August 2024.