Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Streaming service Showmax reports $141M in trading losses

Article Image
Pan-African streaming service Showmax, owned by South Africa's MultiChoice Group, has reported trading losses of 2.6 billion South African rand (US$141 million) for the year ended March 31, 2024.

The streaming platform was revamped in February 2024, with the promise of a variety of local and international shows including Showmax Originals, a new international content slate, and a football streaming plan.

MultiChoice said the new-look Showmax was showing encouraging early traction and delivered record single-month growth in March 2024, with the paying subscriber base growing 16% from the migrated base at relaunch to year-end.

"The commencement of the Showmax investment cycle reduced the group's trading profit by R1.4 billion [$76 million]," MultiChoice said in its annual results statement.

It also spent R1.7 billion ($92 million) on 'platform technology advances' related to MultiChoice's partnership with US-based Comcast as part of the Showmax revamp.

Multichoice said Showmax's trading losses of R2.6 billion (US$141 million) were actually below its R3 billion-R4 billion ($163 million-$217 million) guided range it had prepared for.

Showmax was revamped in February 2024, with new Showmax Originals, an new international content slate and a football streaming plan.   (Source: Image by freepik).
Showmax was revamped in February 2024, with new Showmax Originals, an new international content slate and a football streaming plan.
(Source: Image by freepik).

Back in June 2023, MultiChoice said it planned to invest heavily to grow Showmax with aspirations to make it the leading streaming service in Africa.

Showmax is taking on streaming giants like Netflix, Amazon Prime and Disney+ that are expanding their reach across the continent.

Subscribers dwindle under economic pressure

Apart from streaming, Multichoice also runs satellite television services DStv and GOtv which broadcast across Africa.

The Multichoice Group saw a 9% decline in active subscribers, with a 5% drop in South African subscribers and a 13% decline in 'the Rest of Africa' business "as mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment" it said.

Multichoice Group is facing struggles in Nigeria where its active DStv subscribers in the country declined by 18% over the past year.

Earlier this month Nigeria's Competition and Consumer Protection Tribunal fined the pay-TV operator, 150 million naira (US$95,550) for disobeying an order not to hike prices of its DStv and GOtv packages. It also ordered Multichoice to give Nigerians a one-month free subscription on DStv and GOtv.

The group is also in the midst of a takeover bid by French pay-TV company Canal+, which is a major shareholder looking to buy all the shares in Multichoice it does not already own.

Related posts:

*Top image source: Image by freepik.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Vodacom Tanzania unveils Digital Accelerator Program winners

Mobile operator Vodacom Tanzania has announced the season three winners of its Digital Accelerator Program.

Story

AI's potential in African agriculture, energy and climate action GSMA

A new GSMA report examines the huge potential for artificial intelligence to support Africa's socio-economic growth in areas including agriculture, energy and climate action.

More Innovation hub

Latest video

More videos

Guest Perspectives

Story

Leadership Lessons: Networking towards career advancement

By Nollie Maoto

Nollie Maoto, First Rand Group's compliance chief data and analytics officer and Africa Tech Festival Leadership Council member, reflects on the importance of networking for career growth especially for African women in data analytics.

Story

Leadership Lessons: The importance of mentorship for career growth

By Nollie Maoto

Nollie Maoto, First Rand Group's compliance chief data and analytics officer and Africa Tech Festival Leadership Council member, reflects on the importance of mentorship for career growth for African women in data analytics.

More Guest Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Cyber Revolution Summit
August 9, 2024
Gaborone, Botswana
Africa Tech Festival 2024
November 12-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Follow us on X

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002