Canal+ has announced the discontinuation of the Showmax streaming service, citing heavy financial losses as the primary reason. The platform, relaunched in 2024 with Comcast's Peacock technology, recorded R4.9-billion in trading losses for the financial year ending March 2025. Canal+ plans to replace it with its own super-aggregator app featuring bundled content from multiple providers.
The decision to discontinue Showmax comes after significant investments failed to yield commercial viability. MultiChoice, now under Canal+ control following its acquisition, described the move in a statement that emphasized no retrenchments and continued commitment to premium content. However, the underlying issue was financial: Showmax's losses escalated from R2.6-billion in the previous financial year to R4.9-billion in the year ending March 2025, equivalent to about R13.4-million per day. This surge, up 88%, dragged MultiChoice's overall trading profit down by 49%.
Revenue for the period stood at roughly R750-million, meaning the service spent more than R6 for every rand earned. The 2024 relaunch partnered with Comcast's NBCUniversal, incorporating Peacock's technology at a cost of R1.7-billion for customization and R3.3-billion total for the overhaul, plus ongoing quarterly licensing fees. Despite claiming 39% of the regional market share, challenges in Africa's streaming landscape—such as inconsistent connectivity, mobile-first usage, high data costs, and price sensitivity—prevented sufficient subscriber revenue to cover these Western-market-oriented expenses.
Canal+ CEO Maxime Saada referred to Showmax as 'not a commercial success.' The company aims to deploy its proprietary myCanal and TV+ apps as a super-aggregator, bundling linear TV, live sports, and third-party services like Netflix, Disney+, and Apple TV+. This shift eliminates Comcast's 30% stake and associated costs, including a $85-million write-down. Canal+ acquired MultiChoice at a premium, committing to R7.5-billion in annual synergies, with the Showmax closure aiding this goal.
Leslie Adams, sales director at Reach Africa, noted the streaming industry's transition from growth-at-all-costs to sustainable economics, predicting consolidation, bundling, and ad-supported models. MultiChoice stated that further details would follow as plans finalize.
