With MultiChoice's strategic reorientation, the landscape of African streaming is set to change.
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MultiChoice, part of the global media conglomerate CANAL+ SA, has announced the impending discontinuation of its streaming service Showmax.
This decision, reached by the Showmax Board of Directors, comes after a thorough review of the company's streaming activities and highlights the evolving dynamics of the fiercely competitive streaming market.
Amid increasing pressures and substantial annual losses that have rendered the Showmax business model unsustainable, MultiChoice is prioritising financial discipline and optimising investments to secure its long-term competitiveness.
"The decision to phase out Showmax reflects our focus on building a sustainable, competitive business for the long term," the company stated.
Importantly, MultiChoice has confirmed that the discontinuation of the Showmax service will not lead to any employee retrenchments.
The Group is committed to engaging with staff and supporting them through various transition options, ensuring that personnel are considered during this period of change.
The company has also pledged to continue investing in premium content for its subscribers, alongside technological innovations and strategic partnerships, reinforcing its leadership position in the African entertainment market.
Sales Director at Reach Africa, Leslie Adams, said the streaming industry globally is moving out of its ‘growth at all costs’ phase, which saw it prioritise subscriber count, and into a period where sustainable economics and scale matter far more.
Adams said content costs continue to rise, from premium series to sports rights, which makes it increasingly difficult for platforms to compete without significant scale.
"As a result, consolidation across the sector is inevitable, and we're likely to see more moves like these. At the same time, we’re also seeing more bundling, aggregation, and advertising-supported models emerge as platforms search for new revenue streams.
"For viewers, this likely means fewer standalone services, but stronger platforms, more bundled offerings and a growing mix of subscription and ad-supported viewing options," Adams said.
IOL