The Digest:
Canal+ is set to discontinue the video streaming platform Showmax as part of cost-cutting measures following its acquisition of MultiChoice, according to a Variety report. The decision was made by the Showmax board to reflect "financial discipline and investment optimisation" in an increasingly competitive global streaming environment. Showmax, launched across Africa in August 2015, was relaunched in February 2024 in partnership with NBCUniversal using Peacock's technology, with about $309 million invested in equity funding. However, the platform struggled to meet subscriber growth targets, with trading losses worsening by 88% in MultiChoice's last annual results before the takeover. Despite the shutdown, MultiChoice confirmed no job losses will occur due to a three-year retrenchment ban in the takeover agreement. The company has begun rebranding Showmax Originals for its television channels including Africa Magic, M-Net, and Mzansi Magic. The shutdown follows Amazon MGM Studios' January 2024 decision to stop commissioning new African original content.
Key Points:
- Showmax's closure marks the end of a major African streaming platform after nearly 11 years.
- The $309 million investment failure highlights challenges of competing with global giants in Africa.
- No job losses provide some relief despite the platform's demise.
- Content will migrate to traditional TV channels, signaling a strategic retreat from streaming.
- The move follows broader industry trends of streaming contraction and consolidation.
Sources: Variety Report
