MultiChoice Group has announced plans to shut down its video-on-demand streaming service, Showmax, as part of efforts to rein in costs and restructure loss-making units within the company, while assuring that the move will not result in job losses.
The entertainment giant has reportedly invested more than R3 billion in the Showmax project since its launch in 2015. The future of the platform had been uncertain following the takeover of MultiChoice by French broadcaster Canal+ in September, which prompted a review of the company’s business structure and investments.
In a statement, the company said the Showmax board of directors decided to phase out the streaming service as part of a broader strategy focused on financial discipline and investment optimisation in an increasingly competitive global streaming market.
“The substantial annual losses experienced by the Showmax business have proved unsustainable,” the company said, adding that the move reflects its focus on building a sustainable and competitive business for the long term.
Since taking control of the company, Canal+ has been exploring ways to consolidate its video-on-demand offerings in order to compete more effectively with global streaming giants such as Netflix, Disney, and Amazon.
The group is also considering the development of a single streaming “super app” that would bring its various video streaming services together on one platform for both African and international audiences.
Showmax had recently undergone a major upgrade powered by technology from NBCUniversal, owned by Comcast, which launched in February 2024 in an effort to strengthen the platform’s position as one of Africa’s largest streaming services.
Under the current structure created in 2023, MultiChoice owns 70 percent of Showmax while NBCUniversal holds 30 percent, with both companies sharing operational costs and potential future profits.
