Showmax Receives Major Equity Boost to Compete in Africa’s Streaming Market

Showmax CEO and MultiChoice South Africa CEO, Marc Jury

Showmax, the video streaming platform operated by MultiChoice, has secured $164 million (R2.8 billion) in equity funding to enhance its competitive stance against global video-on-demand platforms such as Netflix and Disney+. This follows a partnership formed in March 2023 between MultiChoice and Comcast's NBCUniversal and Sky, aiming to make Showmax the leading streaming service in Africa.

Comcast, through NBCUniversal, holds a 30% equity stake in Showmax and provides ongoing support via the licensing of its Peacock platform and content from NBCUniversal, Universal Pictures, and Sky. Both MultiChoice and NBCUniversal are contributing funding to Showmax during its investment phase, with contributions based on their respective shareholdings. This funding is provided periodically, as needed, depending on Showmax’s working capital and budget, up to a capped amount.

As of March 31, 2024, MultiChoice and NBCUniversal had contributed $120 million (R2 billion) in equity funding, with an additional $164 million (R2.8 billion) provided thereafter. MultiChoice, listed on the Johannesburg Stock Exchange (JSE), aims to position Showmax as a top streaming platform in Africa, although research indicates it may become the continent’s second-largest streaming service within five years.

A report by Digital TV Research projects that Sub-Saharan Africa will see a significant rise in paying video-on-demand subscriptions, growing from seven million in 2023 to 16 million by 2029.

Source: Admire Moyo / ITWeb