MultiChoice is shutting down its online streaming platform Showmax.
Image: File
French media giant Canal+ said Thursday it would discontinue loss-making South African streaming service Showmax after acquiring its owner MultiChoice, the continent's largest pay-TV enterprise.
The streaming platform, launched by MultiChoice in 2015, is available in at least 44 African countries and has been a home for African films and TV series.
"MultiChoice, part of CANAL+ SA ... today announces the forthcoming discontinuation of the Showmax service," Canal+ said in a statement.
"The substantial annual losses experienced by the Showmax business have proved unsustainable."
The move would not cause any job losses, the statement said, adding MultiChoice planned to deploy its own "in-house large-scale streaming platform" for African and international customers.
Showmax confirmed the discontinuation in an email sent to subscribers saying the move aimed to ensure "long-term sustainability in an increasingly competitive streaming environment".
Leslie Adams, Sales Director at Reach Africa, a leading Connected TV (CTV) and streaming specialist highlighted that the closure reflects broader trends in global streaming.
“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.
"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.”
The September buyout of MultiChoice by Canal+, valued at around $3 billion (R48 billion), created a group present in 70 countries across Africa, Europe and Asia with a workforce of 17 000 serving more than 40 million subscribers.
The company said it was the largest transaction ever undertaken by Canal+.
Already the sector's leader in French-speaking African countries, the French company said at the time of the acquisition that MultiChoice was the leader in the continent's English- and Portuguese-speaking regions.