MultiChoice has announced that it will shut down Showmax, ending the streaming platform that was once positioned as the centrepiece of its growth strategy in Africa.<\/p>\n\n\n\n
The Showmax board made the decision following a comprehensive review of the company’s streaming activities, MultiChoice, now part of French media giant Groupe Canal+, said in a statement.<\/p>\n\n\n\n
MultiChoice said the substantial annual losses experienced by the Showmax business had proved unsustainable in an increasingly competitive and capital-intensive global streaming environment.<\/p>\n\n\n\n
“The decision to phase out Showmax reflects our focus on building a sustainable, competitive business for the long term in an increasingly demanding global streaming environment,” the company said.<\/p>\n\n\n\n
“The decision to discontinue Showmax services will not involve any retrenchments. The Group will be engaging and supporting employees through various transition options.”<\/p>\n\n\n\n
In an email to subscribers, Showmax assured that there would be no immediate interruption of its existing service.<\/p>\n\n\n\n
“You can continue streaming as usual, and no action is required from you at this time. We understand that this news may raise questions,” it stated.<\/p>\n\n\n\n
“Showmax subscribers are a priority for us, and we are working on plans to ensure clear communication and a smooth transition when the time comes.”<\/p>\n\n\n\n
The notice said that MultiChoice would share further details well in advance, including timelines and any future steps, should they be required.<\/p>\n\n\n\n
The announcement follows months of increasingly blunt assessments from Canal+ leadership about Showmax’s financial performance since the French group took control of MultiChoice in September 2025.<\/p>\n\n\n\n
Canal+ CEO Maxime Saada said in January that Showmax was not a commercial success, describing its underperformance as obvious given the heavy investment in marketing, content, and technology.<\/p>\n\n\n\n
Canal+ Africa CEO David Mignot followed in February, confirming that Showmax could not continue in its current form and that the business was simply not working from a financial perspective.<\/p>\n\n\n\n
Mounting losses<\/h2>\n\n\n\nDavid Mignot, Canal+ Africa CEO<\/figcaption><\/figure>\n\n\n\n
The writing had been on the wall since MultiChoice’s 2025 financial year results revealed the scale of Showmax’s losses, which had ballooned by 88% from R2.6 billion to R4.9 billion.<\/p>\n\n\n\n
Revenue generated during that period was approximately R750 million \u2014 a fraction of the $1 billion (roughly R16.5 billion) annual target that former MultiChoice executive Yolisa Phahle had set in May 2023.<\/p>\n\n\n\n
Phahle had projected that Showmax would reach 16 million active subscribers paying an average of R99 per month, with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 25%.<\/p>\n\n\n\n
MultiChoice invested billions in the platform’s relaunch, including R1.7 billion in platform advances to customise the Peacock streaming technology it licensed through a partnership with Comcast’s NBCUniversal and Sky.<\/p>\n\n\n\n
Under that deal, struck in March 2023, NBCUniversal acquired a 30% stake in a new Showmax entity while MultiChoice retained 70%.<\/p>\n\n\n\n
Showmax 2.0 launched across 44 African markets in February 2024 with new branding, subscription tiers, and an expanded local content catalogue that included 21 Showmax Originals from four African countries.<\/p>\n\n\n\n
Despite recording 44% year-on-year growth in paying subscribers in the 2025 financial year, the growth was insufficient to offset rising content and platform costs.<\/p>\n\n\n\n
Revenue was also negatively affected by the discontinuation of legacy products, such as Showmax Pro and its diaspora services overseas, ahead of the platform’s relaunch.<\/p>\n\n\n\n
MultiChoice itself acknowledged that subscriber growth and revenues were well short of its 2025 targets, while lenders raised concerns about the impact of ongoing Showmax funding requirements on loan covenants.<\/p>\n\n\n\n
The company had taken out a R12 billion multi-party term loan facility to fund its working capital and support the relaunched Showmax business.<\/p>\n\n\n\n
Showmax’s failure to gain traction<\/h2>\n\n\n\nYolisa Phahle, former Showmax CEO<\/figcaption><\/figure>\n\n\n\n
MultiChoice originally launched Showmax in South Africa in August 2015 as one of Africa’s first major subscription video-on-demand platforms, pre-empting Netflix’s expansion into the continent.<\/p>\n\n\n\n
For several years, it operated as a modest complement to DStv, but MultiChoice decided to scale it dramatically as its core satellite television business began losing subscribers.<\/p>\n\n\n\n
The company argued that Africa was the final frontier for streaming growth, with more than 450 million smartphone users and 250 million football fans representing a significant untapped market.<\/p>\n\n\n\n
“It is critical that we make our move now before others reorganise themselves and make a play for Africa,” former MultiChoice Group CEO Calvo Mawela said at the time.<\/p>\n\n\n\n
That growth never materialised at the scale required, and the gap between global streaming economics and African infrastructure realities proved wider than MultiChoice had anticipated.<\/p>\n\n\n\n
Canal+ said it would continue investing in premium content for MultiChoice subscribers, as well as technological innovation and strategic partnerships to consolidate its position in the African entertainment market.<\/p>\n\n\n\n
The company said the move was consistent with its ambition to deploy its own in-house large-scale streaming platform capable of meeting the expectations of African and international consumers.<\/p>\n\n\n\n
Canal+ operates its own streaming app across more than 30 countries and has been exploring the possibility of rolling it out in markets where MultiChoice operates.<\/p>\n\n\n\n
Further details on expanded content offerings and platform upgrades will be shared in due course, MultiChoice said, adding that Showmax subscribers are a priority as the company evolves its services.<\/p>\n","protected":false},"excerpt":{"rendered":"
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