SINCE April 2024, MultiChoice and Comcast have invested $164 million into the African streaming platform, Showmax. This partnership, which includes NBCUniversal and Sky, began in April 2023 and aims to make Showmax the leading video-on-demand platform in Africa.
NBCUniversal now holds a 30 percent stake in Showmax, providing the platform with a wealth of content from Peacock, Universal Pictures, and Sky. By March 2024, total investment in Showmax had reached $284 million, with a 22 percent increase in revenue, bringing in $54 million over the year.
Showmax’s growth despite losses
Despite the revenue growth, Showmax still posted losses of $147 million. However, these losses were lower than expected due to delays in operational expenses. In a bid to streamline its services, Showmax discontinued its more expensive Showmax Pro service, which led to a 16 percent increase in subscribers following its relaunch in February 2024.
Looking ahead, MultiChoice remains optimistic about Showmax’s future. With 88 percent of migrated subscribers actively paying, the company aims to generate $1bn in revenue within the next five years. Additionally, they are targeting 25 million subscribers by 2028, planning to double their subscriber numbers each year and break even by 2027.
While MultiChoice has set ambitious goals, some industry experts are more cautious. They predict that Africa’s total streaming market will only grow to 15.6 million users by 2028. Nonetheless, MultiChoice is confident that the continent’s streaming market is primed for rapid growth, with Showmax positioned to lead the way.
By leveraging its strategic partnerships and the rising demand for streaming services in Africa, Showmax is poised to become the dominant video-on-demand platform on the continent, capitalising on Africa’s expanding digital economy.
