French owner cited ’substantial annual losses’ in its reasoning for the regional service
Canal+ is to close African streamer Showmax, months after completing its deal to acquire parent MultiChoice.
The move follows “a comprehensive review” of the streamer’s activities with its “substantial annual losses” proving “unsustainable”, the French company said.
It also comes two months after Canal+ chief exec Maxime Saada told investors that the streamer had not been commercially suuccesful.
Paris-based Canal+, which acquired MultiChoice in September, said it was focused on building “competitive business for the long term in an increasingly demanding global streaming environment.”
No date has been set for the closure of Showmax, which was launched in South Africa in 2015 and went on to be rolled into more than 40 countries across the continent.
It partnered with NBCUniversal in 2024, with the US studio taking a 30% stake and helping to relaunch the service built on Peacock’s platform.
Numerous originals were ordered such as Reyka, Adulting and Catch Me A Killer as the company looked to attract subscribers, with north of $300m ploughed into the service to make it a success, according to local reports.
Latest figures showed revenue had declined by 88% year on year, however, as global players such as Netflix and Disney+ competed for subscribers.
Showmax originals are being rebranded for Multichoice’s pay TV platforms but no job losses will result from the closure. Canal+ agreed in its takeover deal for MultiChoice not to cut staff for the first three years of its ownership.
The company added it would “engaging and supporting” employees through “various transition options.”
Canal+ said that it would “continue to invest in premium content for MultiChoice subscribers, technological innovation and strategic partnerships to consolidate its leadership in the African entertainment market.”
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