MultiChoice Announces Shutdown of Showmax

MultiChoice has confirmed that it will discontinue Showmax, bringing an end to the streaming platform that was once central to its expansion plans across Africa.

The decision was made by the Showmax board after an extensive evaluation of MultiChoice’s streaming operations, according to a statement from the company, which is now owned by French media group Canal+.

MultiChoice explained that the streaming service had been generating significant annual losses, making it difficult to sustain in a global market that is both highly competitive and requires heavy investment.

The company said shutting down Showmax forms part of its strategy to focus on building a stronger and more sustainable business capable of competing in the demanding global streaming industry.

No Job Cuts Planned for Employees

Despite the closure, MultiChoice confirmed that employees will not face retrenchments. Instead, the company plans to work with staff to explore various transition opportunities.

Subscribers were informed by email that the service will continue to operate for now, meaning viewers can keep using the platform as usual without taking any immediate action.

The message acknowledged that the announcement may raise concerns but assured users that they remain a priority. MultiChoice said it is preparing plans to ensure a smooth transition and will communicate any important updates or timelines well in advance.

Canal+ Leadership Criticises Showmax Performance

The announcement comes after several months of criticism from Canal+ leadership regarding Showmax’s financial performance since the French broadcaster completed its takeover of MultiChoice in September 2025.

In January, Canal+ CEO Maxime Saada said the service had not achieved commercial success, noting that its weak performance was clear given the heavy spending on marketing, technology, and content.

A month later, Canal+ Africa CEO David Mignot reiterated that Showmax could not continue in its current structure, saying the business model was financially unsustainable.

Mounting Losses Highlight Financial Struggles

Financial reports had already highlighted the scale of the problem. In the 2025 financial year, Showmax’s losses increased sharply by 88%, rising from R2.6 billion to R4.9 billion.

During the same period, the platform generated roughly R750 million in revenue – far below the ambitious $1 billion (about R16.5 billion) annual target set in 2023 by former Showmax executive Yolisa Phahle.

Phahle had predicted the service would eventually attract around 16 million paying subscribers, each spending an average of R99 per month, while maintaining an EBITDA margin of about 25%.

Billions Invested in Showmax Relaunch

MultiChoice had invested heavily in relaunching the platform. This included spending about R1.7 billion to adapt Peacock streaming technology, which it licensed through a partnership with NBCUniversal and Sky, both owned by Comcast.

Under that agreement in March 2023, NBCUniversal took a 30% stake in the revamped Showmax business while MultiChoice kept a 70% share.

The upgraded version of Showmax launched in February 2024 across 44 African countries, introducing new branding, different subscription tiers, and a broader catalogue of African content, including 21 original productions from four countries.

Subscriber Growth Fails to Offset Rising Costs

Although the platform managed to grow its paying subscriber base by 44% during the 2025 financial year, the increase was not enough to balance the rising costs of content production and platform development.

Revenue was also affected by the removal of older offerings, such as Showmax Pro and international diaspora services, ahead of the relaunch.

MultiChoice admitted that both subscriber numbers and revenue fell significantly short of the targets set for 2025. At the same time, lenders expressed concern about the impact that continued funding for Showmax could have on the company’s loan agreements.

The group had secured a R12 billion multi-party term loan to fund its operations and support the relaunched streaming service.

Showmax’s Ambitious Streaming Vision

Showmax originally launched in South Africa in August 2015 as one of the continent’s first major subscription video-on-demand services, even before Netflix expanded into Africa.

Initially, it served as a complementary service to DStv. However, as satellite TV subscriptions began to decline, MultiChoice attempted to transform Showmax into a large-scale streaming platform.

The company believed Africa represented a major growth opportunity for streaming, pointing to the continent’s more than 450 million smartphone users and roughly 250 million football fans as an untapped market.

At the time, MultiChoice leadership stressed the need to act quickly before other global competitors expanded their presence in Africa.

Canal+ Plans a New Streaming Strategy for Africa

However, the expected growth did not materialise at the scale required, and the realities of infrastructure and market conditions across Africa made the economics of streaming far more challenging than anticipated.

Canal+ said it will continue investing in premium content, new technology, and partnerships to strengthen MultiChoice’s position in the African entertainment sector.

The company added that the decision also aligns with its broader goal of deploying its own large-scale streaming platform that can serve both African and international audiences.

Canal+ already operates a streaming service in more than 30 countries and has been considering introducing it in territories where MultiChoice currently operates.

MultiChoice said more information about expanded content options and platform developments will be announced later, emphasising that existing Showmax subscribers remain an important priority as the company reshapes its services.

Watch this space for updates in the Streaming category on Running Wolf’s Rant.