Canal+ to Shut Down Showmax in Cost-Cutting Strategy Following Multichoice Acquisition
Canal+ is set to discontinue Showmax, the pan-African streaming platform it inherited following its acquisition of MultiChoice Group, marking a strategic shift away from direct competition in the global streaming market.
The decision follows a comprehensive review of the streaming service’s commercial performance, with the company confirming to Variety that Showmax will be shut down “soon” as part of broader restructuring efforts aimed at reducing operational costs and strengthening its balance sheet.
Showmax, which launched in 2015, had been positioned as Africa’s answer to global streaming giants such as Netflix. However, the platform struggled to meet subscriber growth expectations despite significant investments to expand its technology and content offerings.
In 2024, MultiChoice and its partner NBCUniversal jointly invested about $309 million into a relaunch of the service, adopting technology from Peacock to improve user experience and scale distribution across African markets.
Despite the investment, Showmax’s financial performance deteriorated. In its final financial results before the Canal+ takeover, the platform’s trading losses surged by 88% while revenue declined, highlighting the growing pressure on the streaming venture.
Chief Executive Officer of Canal+, Maxime Saada, recently described Showmax as “not a commercial success,” noting that its closure forms part of a broader plan to achieve cost savings of about €400 million by 2030.
Strategic shift
Rather than competing directly in the global streaming market, Canal+ is expected to pivot toward an aggregation strategy focused on partnerships and bundled services.
As part of this approach, the company is expanding its distribution alliance with Netflix, enabling the streaming platform to be bundled with traditional pay-TV offerings across sub-Saharan Africa.
In addition, several productions previously developed as Showmax Originals are expected to be repurposed for broadcast on MultiChoice-owned channels such as Africa Magic and M-Net.
By discontinuing the standalone streaming service, Canal+ aims to cut operating costs and stabilise the financial position of the combined entity ahead of its financial results announcement scheduled for March 11.
Under the acquisition agreement, no immediate layoffs are expected, with staff currently working on the platform to be reassigned within the wider MultiChoice and Canal+ operations for at least three years.
Implications for Africa’s creative industry
Industry analysts say the closure represents a significant setback for Africa’s creative sector, particularly for filmmakers and content creators who relied on streaming platforms to finance large-scale local productions.
Showmax had been regarded as one of the few platforms willing to fund ambitious African storytelling projects that traditional broadcasters often considered commercially risky.
Its shutdown follows the earlier withdrawal of Amazon MGM Studios from African content production in 2024, further narrowing opportunities for high-budget local television projects across the continent.
Canal+ is expected to outline additional details regarding its expanded content strategy and the official shutdown timeline for Showmax when it releases its financial results on March 11.
