Since Showmax\u2019s launch in 2015, it has achieved a compound average growth rate (CAGR) of around 35%\u00a0 in terms of subscriber numbers.<\/p>\n
It has onboarded about 125,000 subscribers per year on average.<\/p>\n
Showmax\u2019s Africa growth estimates put the expected CAGR at 90.4% for each of the next 5 years \u2013 this is an unprecedented level of growth for the company.<\/p>\n
Showmax\u2019s subscriber growth was largely achieved in South Africa, one of the richest countries in Africa with a national broadband coverage of over 90%.<\/p>\n Digital TV Research predicts that the total number of video streaming subscribers in Africa will only be\u00a015.6 million users<\/strong>\u00a0by 2028, significantly less than what Showmax will require to meet its target.<\/p>\n According to the Global System for Mobile Communications Association, only 21% of the sub-Saharan African population had smartphones. However, only 17% of the 21% were connected to a mobile network.<\/p>\n The World Bank estimates that only 36% of Africa\u2019s total population had access to broadband internet in 2022.<\/p>\n Broadband is also relatively expensive in Africa, with 1 GB costing 3.5% of the region\u2019s monthly GDP per capita.<\/p>\n This is well above the international target price of 2% for 1 GB of broadband, making it inaccessible for many, especially for the poorest continent in the world.<\/p>\n Streaming services are inaccessible without network connectivity, and Africa, being underserviced, is likely going to be a more difficult market for streaming services to penetrate.<\/p>\n Internet access is becoming cheaper and more accessible to lower-income individuals, and Africa\u2019s network landscape will most likely change.<\/p>\n However, Sub-Saharan Africa has poor network infrastructure access and has a low-income population with very little disposable income to spend on entertainment.<\/p>\n Companies like Showmax, therefore, face some harsh realities that will make Africa a much more difficult market to penetrate than what they have experienced in South Africa.<\/p>\n It will especially make MultiChoice\u2019s 50 million subscriber goal very difficult to achieve.<\/p>\n MultiChoice has also said it has an ambitious plan to generate $1 billion (R19 billion) within the next 5 years with its Showmax 2.0 service.<\/p>\n PwC recently released its outlook for Africa\u2019s media and entertainment market. It looked at South Africa, Nigeria, and Kenya \u2013 the biggest streaming markets in Africa.<\/p>\n Currently, South Africa and Nigeria alone cater to 54% of Africa\u2019s total video streaming market, with the remainder being scattered between 33 countries.<\/p>\n In this report, PwC predicts that these three markets will reach a total size of R9.5 billion in 2027 \u2013 considerably lower than the R19 billion target set for Showmax.<\/p>\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/02\/Showmax-implied-subscriber-growth-from-Africa-rollout.jpg\")
<\/a><\/p>\nConnectivity issues<\/h2>\n
$1 billion ambitions<\/h2>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/02\/PwC-streaming-outlook-2024-2029.jpg\")
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