Canal+ Shutters Showmax Amidst Cost-Cutting Measures

Canal+, following its acquisition of Africa’s MultiChoice pay-TV group, is set to discontinue the Showmax video streaming service, which MultiChoice operated in partnership with NBCUniversal. The decision comes after a comprehensive review of MultiChoice's streaming activities, with a specific closure date yet to be announced due to ongoing legal considerations. MultiChoice launched Showmax in August 2015 to compete with global streaming giants such as Netflix and Amazon Prime Video. Despite a significant investment of approximately $309 million into retooling the platform and content creation since its relaunch in February 2024, Showmax failed to meet growth and subscriber targets, leading to its eventual closure.

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The decision to shut down Showmax aligns with Canal+'s broader strategy to achieve €400 million in cost reductions by 2030. MultiChoice's financial reports indicated that Showmax's trading losses had increased by 88%, with revenue declining significantly prior to Canal+'s takeover. Canal+ CEO Maxime Saada described Showmax as “not a commercial success,” emphasizing the need for financial discipline in an increasingly competitive streaming environment. The closure is part of Canal+'s efforts to optimize investments and focus on profitable ventures.

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Despite the discontinuation of Showmax, MultiChoice has assured that no staff layoffs will occur; instead, Showmax employees will be reassigned within the company. The group has begun rebranding Showmax Originals to various DStv linear TV channels, including Africa Magic and M-Net. This transition aims to retain original content while shifting focus to more established platforms within MultiChoice's ecosystem.

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The closure of Showmax has raised concerns among South African filmmakers and content creators. An award-winning director expressed disappointment, stating that Showmax was a vital platform for showcasing bold and authentic stories that other broadcasters were reluctant to support. The loss of Showmax is viewed as a significant blow to the local film industry, which is already facing challenges. Critics argue that Canal+ has not provided sufficient assurance that it will fill the gap left by Showmax, leaving creators with limited opportunities.

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Canal+ has committed to continuing investment in premium content and technological innovation for MultiChoice subscribers. The company has also announced a strategic partnership with Netflix, allowing Canal+ to bundle Netflix subscriptions with its pay-TV offerings across 24 Sub-Saharan African countries. Further details regarding content offerings and platform upgrades are expected to be shared in the future.

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“Showmax was one of the only platforms available to us that was willing to back stories that were bold and authentic in a market that has traditionally always played things safe,” — Award-winning South African director-producer

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“The decision to discontinue Showmax services will not involve any retrenchments.” — MultiChoice statement

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“not a commercial success” — Maxime Saada, Canal+ CEO

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