Canal+, the new owner of Multichoice Group, is set to discontinue Showmax, the video streaming platform, as part of a broader cost-cutting drive.
According to reports, the decision comes after a review of the company’s streaming operations, with Canal+ seeking to reduce expenses and streamline its business.
MultiChoice and Canal+ confirmed the planned shutdown of the streaming service.
While the companies did not provide a specific timeline, the service is expected to be discontinued soon as legal and operational issues are resolved.
What they are saying
According to the company, the decision was made by the Showmax board and reflects the continued focus of MultiChoice on financial discipline and investment optimization, in an increasingly competitive and capital-intensive global streaming environment.
Multichoice assured that shutting down Showmax would not affect employees of the unit.
As part of its agreement to take over MultiChoice, Canal+ is not allowed to get rid of any staff for a period of three years.
- “The decision to discontinue Showmax services will not involve any retrenchments. The group will be engaging and supporting employees through various transition options,” Multichoice said.
Canal+ CEO Maxime Saada had earlier in January described Showmax as “not a commercial success,” noting during an investor call that the platform had become a significant financial burden for MultiChoice.
However, Canal+ said it would “continue to invest in premium content for MultiChoice subscribers, technological innovation and strategic partnerships to consolidate its leadership in the African entertainment market.”
- “Further details regarding our expanded content offering and platform upgrades will be shared in due course. We want to reassure our Showmax subscribers that they are our priority as we evolve our services to deliver a superior streaming experience,” it added.
Flashback
MultiChoice launched Showmax in August 2015 as a pan-African streaming platform to compete with global services such as Netflix, Apple TV+, Amazon Prime Video, and Disney+ that were expanding into the continent.
- In February 2024, the company relaunched the platform in partnership with NBCUniversal, leveraging the technology behind Peacock, the U.S. media company’s streaming platform.
- The relaunch came with significant investment aimed at strengthening the platform’s technology and expanding its content library to compete with global streaming giants.
- MultiChoice and NBCUniversal collectively injected about $309 million in equity funding into Showmax, largely directed toward content creation and platform upgrades.
However, the investments failed to deliver the aggressive subscriber growth targets promised to investors. In its last financial results before the Canal+ takeover, MultiChoice disclosed that Showmax’s trading losses had widened by 88%, while revenue from the platform declined.
What you should know
French company Canal+ had in September last year finalized its acquisition of Multichoice Group in a landmark deal estimated at $3 billion.
The acquisition cemented the combined group’s position as a global media powerhouse serving over 40 million subscribers across nearly 70 countries in Africa, Europe, and Asia.
- Together, the companies said they would employ about 17,000 people. Canal+ said it would provide a detailed strategic update, including synergies from the integration, in the first quarter of 2026.
- According to Canal+, the combined group would focus heavily on investment in local content, sports broadcasting, and digital innovation, positioning itself as a major player in both traditional pay-TV and the fast-growing streaming market.
The company also plans to leverage MultiChoice’s expertise in navigating African consumer trends and regulatory frameworks to strengthen its operational base across emerging markets.
