South Africa’s MultiChoice has disclosed that it and Comcast subsidiary NBCUniversal will collectively invest US$177 million into Showmax during its current financial year.
The company explained that both Showmax owners are providing funding in proportion to their shareholding to ensure their equity stakes remain at 70% (MultiChoice) and 30% (NBCUniversal).
If you recall, MultiChoice announced in March 2023 that it was selling a 30% stake in its video streaming service Showmax to NBCUniversal.
Under the terms of the deal, Showmax gets access to the technology powering NBCUniversal’s Peacock and a slate of Comcast-owned content. This includes content from Sky, Universal Pictures, and NBC.
Neither MultiChoice nor Comcast have disclosed the initial sum NBCUniversal paid for its 30% stake in Showmax.
However, MultiChoice has revealed how much the companies will pump into Showmax until its financial year-end on 31 March.
Before its announcement on Thursday, MultiChoice said that the companies had already provided US$20 million in funding for Showmax.
On 2 February 2024, MultiChoice and NBCUniversal will provide another US$30 million in equity funding to Showmax, each in proportion to their shareholdings.
A lot is riding on the success of Showmax’s relaunch on the Peacock platform. MultiChoice told investors last year that they expect it to generate US$1 billion in net revenue in 5 years.
Its first major push to generate revenue growth is the launch of Showmax Premier League — a smartphone-only product that gives subscribers access to every English Premier League football game for a reasonable monthly fee.
