MultiChoice’s big Showmax plans

MultiChoice’s plan to make Showmax the top streaming platform in Africa is taking shape, with green shoots showing.

Four years ago, MultiChoice unveiled a strategy to build Africa’s entertainment platform of choice and invest in services to support a broader ecosystem.

The strategy included three core segments, video entertainment, interactive entertainment, and fintech, which are now fully operational.

MultiChoice CEO Calvo Mawela said the company’s focus is now on building on these foundations to drive growth and enhance business efficiency.

One of the key parts of MultiChoice’s new strategy is Showmax, which it is positioning as an African video streaming platform.

MultiChoice launched Showmax 2.0 in February 2024, with support across smartphones, media boxes, game consoles, and smart TV platforms.

The new Showmax was created through a partnership between MultiChoice and Comcast’s NBCUniversal and Sky.

The partnership gives Showmax access to the technology powering NBCUniversal’s Peacock and its content.

In addition to featuring hours of new content, refreshed apps, and user interfaces, Showmax 2.0 offers full HD video and Dolby 5.1 surround sound.

Showmax 2.0 is far superior to its predecessor in terms of technology and content, which will help MultiChoice achieve its goals with the service.

Last year, MultiChoice said it wanted to make Showmax the leading streaming service in Africa.

The company said Africa was the final frontier for subscription video-on-demand (SVOD) growth, which was why many international players are targeting the continent.

Despite the highly competitive market, Showmax is well-positioned for rapid growth because of its competitive advantage.

MultiChoice knows Africa well and has a big lead over its competitors in local content, sporting rights, and commercial infrastructure.

The company is also ramping up its investment in its Showmax platform and local content to ensure it keeps and even extends this lead.

MultiChoice expects Showmax to follow the same 3 to 5–year J-curve as its global peers in the streaming industry.

It wants to generate more than $1 billion in revenue after 5 years, with a trading profit breakeven target in full-year 2027 and EBITDA margins of 25%.

The company is off to a good start. In its latest results, MultiChoice announced that Showmax 2.0 was launched across 44 markets in sub-Saharan Africa.

Almost 100% of the eligible customer base was migrated to the new Showmax platform, and 88% of those migrated had reactivated their accounts in seven weeks.

Showmax revenues for the year grew by 22% to R1.0 billion. This is set to increase significantly as Showmax 2.0 gains traction.

The Market Research Foundation’s (MRF) latest Marketing All Product Survey (MAPS) data suggests that Showmax is winning the war.

It shows that Netflix’s viewership dipped in the first quarter of 2024, while Showmax’s viewership grew during the same period.

MultiChoice is also leveraging its other products to offer consumers more value and attract new clients.

Last month, MultiChoice launched a DStv Internet contract bundle and a Showmax Entertainment subscription for R279 per month for 24 months.

MultiChoice has also partnered with Capitec to offer a 50% discount on Showmax subscription vouchers.

These initiatives bode well for Showmax’s ambitions to become Africa’s leading video streaming platform.

All eyes will be on MultiChoice’s latest results, which will be released next week, to track Showmax’s performance.