The latest move of Canal+ comes on the heels of the company stripping SuperSport, another subsidiary of MultiChoice, of acquisition rights…
By Adedamola Jones Adedayo
Canal+ has decided to discontinue the services of Showmax, a pan-African streaming platform and subsidiary of South Africa’s MultiChoice.
This decision was taken after a review of Showmax’s fiscal records, with the French media company highlighting “substantial annual losses” as motivators.
Canal+ became owners of MultiChoice in a deal worth an estimated $2 billion last September, which came with the prospects of stretching the scope and productivity of the South African outfit. However, reports of the unsustainable business of running Showmax have justified Canal+’s move to shut down the streaming platform.
Confirming the announcement, the Showmax Team delivered an email addressed to Showmax customers explaining that the decision remains part of the vision to enrich their digital products while facilitating “long-term sustainability in an increasingly competitive streaming environment”. The email also assured subscribers to keep using their current service, which still remains uninterrupted, maintaining that any further major steps to be taken will be communicated.
The email further read: “We understand that this news may raise questions. Showmax subscribers are a priority for us, and we are working on plans to ensure clear communication and a smooth transition when the time comes… Streaming remains central to our strategy. We will continue to invest in premium content, technology innovation and partnerships to deliver the best possible entertainment experience to our customers”.
This latest move of Canal+ comes on the heels of the company stripping SuperSport, another subsidiary of MultiChoice, of acquisition rights about two weeks ago and moving the rights acquisition decision-making from South Africa to its Paris headquarters, in a bid to cut costs.
Launched in 2015 and available across at least 40 markets on the continent, Showmax has maintained a reputation as Africa’s leading video-on-demand network. Its current operational model dates back to February 2024, when it reopened with heavy backing from Comcast.
This shutdown is the latest in a pattern of streaming services struggling to survive in the African market, following Amazon Prime Video’s scale-down in funding for local content as well as staff cuts in 2024 and Netflix’s strategic though unofficial pullback, despite a recent increase in local streaming options, with platforms like Kava and EbonyLife On Plus.
However, in a statement to Variety, Canal+ has noted that the decision will not necessitate layoffs as Multichoice provides affected staff with transition options. According to reports, layoffs are not allowed for a period of three years, in line with the Canal+ acquisition agreement with MultiChoice.
Showmax continues to operate in the meantime, with no interruptions to the service. An official shutdown date is yet to be announced.