*In breaking news, MultiChoice has announced that streaming service Showmax will be phased out following a “comprehensive review of its streaming activities”.
In a statement released on Thursday morning, the new owners of MultiChoice, CANAL+ SA, said the decision was made by the Showmax board of directors and “reflects the continued focus of MultiChoice, a CANAL+ Company, on financial discipline and investment optimisation, in an increasingly competitive and capital – intensive global streaming environment”.
The board said the substantial annual losses experienced by the Showmax business are unsustainable, thus the decision to “focus on building a sustainable, competitive business for the long term in an increasingly demanding global streaming environment”.
It said the MultiChoice, a CANAL+ Company will deploy its in-house large-scale streaming platform capable of meeting the expectations of African and international consumers.
The good news is that no jobs will be lost in the process.
Meanwhile, Leslie Adams, sales director at Reach Africa (a connected TV and streaming specialist), the streaming industry globally is moving out of its ‘growth at all costs’ phase, which saw it prioritise subscriber count, and into a period where sustainable economics and scale matter far more.
“Content costs continue to rise, from premium series to sports rights, which makes it increasingly difficult for platforms to compete without significant scale,” he says. “As a result, consolidation across the sector is inevitable, and we’re likely to see more moves like these. At the same time, we’re also seeing more bundling, aggregation and advertising-supported models emerge as platforms search for new revenue streams. For viewers, this likely means fewer standalone services, but stronger platforms, more bundled offerings and a growing mix of subscription and ad-supported viewing options.”
*Story updated at 14.45pm with comment from Leslie Adams, Reach Africa.
