Turbulence in African Streaming: The Impact of Showmax's Closure

The South African film and television industry is facing significant upheaval following Canal+'s decision to close its local streaming service, Showmax. This move has left industry professionals questioning the future of content creation in Africa, particularly during the ongoing Joburg Film Festival. The closure follows Canal+'s $2 billion acquisition of MultiChoice, which raised concerns about potential cost-cutting measures. Despite a substantial investment of $309 million into Showmax for content development, the platform failed to meet aggressive growth targets, leading to its demise. The announcement has been met with dismay, with industry insiders expressing feelings of betrayal and fear regarding the future of African streaming.

Variety Magazine

The closure of Showmax is part of a larger trend of consolidation within the streaming industry, which has seen major players like Amazon Prime Video also scale back their operations in Africa. The sentiment among producers is one of loss, as they lament the diminishing options for local content distribution. Paul Buys, a producer, highlighted the devastating impact of losing both Amazon and Showmax, stating, “We have less and less options locally.” The mood at the JBX Talks conference was somber, with calls for collaboration and resilience among filmmakers to navigate these challenges.

Variety Magazine

Despite the setbacks, there are emerging opportunities for African filmmakers. The continent's vast mobile phone penetration presents a potential market for microdramas, which are projected to generate $26 billion in annual revenue by 2030. Cape Town-based production company Both Worlds is exploring this avenue through partnerships with U.S. firm Freeli Films to co-produce vertical series and movies. Thierry Cassuto, executive chairman of Both Worlds, emphasized the need to learn from successful models in other markets while creating unique African narratives.

Variety Magazine

The shift towards vertical storytelling and the integration of technology in production workflows are seen as crucial for the future of African content creation. Elouise Kelly from Viu noted the importance of personalizing content for local audiences, while Neil Brandt encouraged filmmakers to embrace new formats and take risks. The potential for a paradigm shift in storytelling could unlock new revenue streams and audience engagement.

Variety Magazine

Industry leaders have called for unity and innovation in response to the challenges posed by the closure of Showmax. Many believe that collaboration and adaptation to changing consumer preferences are essential for survival. As one producer remarked, “Every fight is a new fight,” highlighting the resilience of African filmmakers in the face of adversity.

Variety Magazine

• “Producers are freaking the fuck out.” — Anonymous Industry Source

Variety Magazine

• “Losing Amazon was devastating. Losing Showmax was devastating. We have less and less options locally.” — Paul Buys, Producer

Variety Magazine

• “We need to see how to personalize it for South Africa and Africa and make it our own.” — Elouise Kelly, Country Manager, Viu

Variety Magazine

• “If you understand it and embrace it, you can find an audience,” he said.” — Neil Brandt, Founding Partner, Storyscope

Variety Magazine

As the industry grapples with the fallout from Showmax's closure, the focus will likely shift towards exploring new partnerships and innovative content formats. The Joburg Film Festival, running from March 3 to 8, will serve as a platform for discussions on the future of African storytelling and the potential for growth in the evolving digital landscape.

Variety Magazine