Canal+ has decided to shut down Showmax, the African streaming service operated by its newly acquired subsidiary MultiChoice Group, bringing an end to an 11-year effort that once symbolised the continent’s strongest attempt to compete with global streaming platforms. The decision was approved by the Showmax board and communicated to subscribers on Thursday as part of a cost-cutting strategy following Canal+’s $3 billion takeover of MultiChoice.The platform will gradually be phased out over the coming months, although the company has not announced a specific shutdown date while legal procedures linked to the acquisition are still being completed.
In a message sent to customers, the company said the move is intended to strengthen its digital services and secure long-term sustainability in an increasingly competitive streaming industry. MultiChoice also reassured subscribers that the service will continue to run normally for now and that no immediate action is required from users. Regarding existing content and subscriptions, MultiChoice told TechCabal that its team is currently working on a migration plan for subscribers and content, with further details expected to be shared in the coming weeks.
The closure represents the first major restructuring step since Canal+ completed its long-anticipated takeover of MultiChoice last September.Over several years, the French broadcaster gradually increased its stake in the South African pay-TV company before eventually acquiring full ownership in a deal valued at roughly R46 billion ($2.7 billion). Canal+ pursued the acquisition on the belief that Africa remains one of the last major growth markets for television and streaming services.
Following the merger, the combined company now serves more than 40 million subscribers across 70 countries, giving Canal+ a strong presence in a region where pay-TV penetration remains relatively low. Showmax, launched in 2015, was introduced as MultiChoice’s response to global streaming platforms such as Netflix and Amazon Prime Video. The platform initially gained traction by blending international TV series with locally produced African content, and executives once promoted it as Africa’s best chance of building a homegrown streaming giant.
However, in the three years leading up to the Canal+ acquisition, Showmax recorded losses of about €370 million ($428.9 million).Even after undergoing a major relaunch in 2024, the platform continued to face significant challenges. MultiChoice’s final annual results before the takeover showed that Showmax’s trading losses had widened while revenues declined, highlighting the difficulty of running a profitable streaming service in price-sensitive African markets.
These financial struggles were particularly notable given the scale of investment committed to the platform. Earlier in 2024, MultiChoice partnered with NBCUniversal, a subsidiary of Comcast, to relaunch Showmax using the technology behind the US streaming platform Peacock. The partners injected $309 million in new equity, hoping that improved technology and a stronger pipeline of original content would help accelerate subscriber growth.
Source: https://techcabal.com/
