MultiChoice is making significant strides in its quest to position Showmax as the leading streaming service in Africa. This follows a strategic plan unveiled four years ago to establish itself as the continent’s top entertainment platform while investing in a broader ecosystem of services.
The strategy encompasses three primary segments: video entertainment, interactive entertainment, and fintech, all of which are now fully operational. MultiChoice’s CEO, Calvo Mawela, emphasised leveraging these foundations to drive further growth and enhance overall business efficiency.
A key focus of MultiChoice’s renewed strategy is Showmax, which aims to establish itself as a go-to African video streaming platform. In February 2024, MultiChoice launched Showmax 2.0, supporting various devices, including smartphones, media boxes, game consoles, and smart TVs.
This updated version of Showmax was developed through a partnership with Comcast’s NBCUniversal and Sky, which grants Showmax access to the cutting-edge technology that powers NBCUniversal’s Peacock platform.
Showmax 2.0 boasts a wealth of new content, enhanced apps, and a revamped user interface, complete with full HD video and Dolby 5.1 surround sound. The advancements in technology and content position Showmax 2.0 as a significant improvement over its predecessor, aligning with MultiChoice’s goals for the service.
Last year, MultiChoice set a clear objective to make Showmax the continent’s leading streaming service. The company recognised Africa as the final frontier for subscription video-on-demand (SVOD) growth, prompting interest from many international players.
Despite stiff competition, Showmax is strategically positioned for rapid growth, thanks to MultiChoice’s deep understanding of the African market and its strong lead in local content, sports rights, and commercial infrastructure. The company is increasing its investment in the Showmax platform and local content to maintain and build upon this advantage.
MultiChoice anticipates that Showmax will mirror the 3—to 5-year J-curve experienced by its global streaming counterparts. It aims to achieve over US$1 billion in revenue within five years, reach a trading profit breakeven by 2027, and establish EBITDA margins of 25%.
The early results are promising. MultiChoice’s latest announcement revealed that Showmax 2.0 was successfully launched across 44 sub-Saharan African markets, with nearly all eligible customers transitioning to the new platform. Within the first seven weeks, 88% of the migrated users had reactivated their accounts.
Showmax revenues surged by 22%, which is expected to rise as Showmax 2.0 continues to gain popularity. Recent data from the Market Research Foundation’s (MRF) Marketing All Product Survey (MAPS) indicates that Showmax is gaining ground in the streaming war; while Netflix’s viewership declined in early 2024, Showmax’s audience grew during the same timeframe.
Additionally, MultiChoice is leveraging its other products to enhance consumer value and attract new clients. Last month, the company introduced a competitively priced DStv Internet contract bundle alongside a Showmax Entertainment subscription.
Moreover, MultiChoice has partnered with Capitec and is offering a 50% discount on Showmax subscription vouchers, further solidifying its strategy to become Africa’s top video streaming platform.
The upcoming release of MultiChoice’s latest financial results will provide further insights into Showmax’s performance and progress toward its ambitious goals.
