MultiChoice Owner Canal+ Shuts Down Showmax After Review, Details Emerge
- Canal+ plans to discontinue Showmax after reviewing MultiChoice’s streaming operations
- The company said the decision is aimed at cutting costs and improving investment efficiency
- MultiChoice assured that no employees will lose their jobs due to the planned shutdown
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The new parent of MultiChoice Group, Canal+, has announced plans to discontinue the Showmax streaming service, as part of efforts to streamline operations and reduce costs.
Source: Getty Images
As reported by Vanguard, the decision followed a review of the company’s streaming business, with the new owner seeking to cut expenses and focus investments on areas considered more sustainable.
No specific shutdown date yet
MultiChoice and Canal+ confirmed the planned shutdown of Showmax. However, the companies did not provide a specific timeline for when the platform would be discontinued.
They said the service would likely be phased out once outstanding legal and operational issues related to the process are resolved.
The company explained that the decision was taken by the Showmax board and aligns with MultiChoice’s strategy to maintain financial discipline while optimising investments in an increasingly competitive and capital-intensive global streaming industry.
MultiChoice assures no loss of jobs
MultiChoice also assured that the move would not lead to job losses within the unit.
Under the terms of the acquisition agreement, Canal+ is restricted from laying off staff for three years after taking over the group.
“The decision to discontinue Showmax services will not involve any retrenchments. The group will be engaging and supporting employees through various transition options,” the company said.
Earlier in January, Canal+ Chief Executive Officer, Maxime Saada, described Showmax as “not a commercial success” during an investor call, adding that the platform had become a major financial burden for MultiChoice.
Despite the planned shutdown, Canal+ said it would continue to invest in premium content, technology and partnerships for MultiChoice subscribers across Africa.
Canal+ acquisition of MultiChoice
French media company Canal+ completed its acquisition of MultiChoice in September last year in a deal valued at about $3 billion.
The transaction created a combined media group with more than 40 million subscribers across nearly 70 countries in Africa, Europe and Asia.
According to Canal+, the merged group employs about 17,000 people globally.
The company said it would release a broader strategic update, including potential operational synergies from the integration, in the first quarter of 2026.
Source: Getty Images
What to know about Showmax
MultiChoice Group launched Showmax in August 2015 as a pan-African streaming service designed to compete with global platforms such as Netflix, Apple TV+, Amazon Prime Video and Disney+, which had expanded into the continent.
In February 2024, MultiChoice relaunched Showmax in partnership with NBCUniversal, using technology from the company’s streaming platform, Peacock.
The relaunch came with significant investment aimed at upgrading the platform’s technology and expanding its content catalogue to better compete with international streaming services.
Both companies collectively injected about $309 million in equity funding into Showmax, largely directed at content production and platform improvements.
However, the investment did not produce the subscriber growth initially projected for investors.
In its final financial results before the Canal+ takeover, MultiChoice disclosed that Showmax’s trading losses had increased by 88%, while revenue generated by the platform declined.
MultiChoice scraps annual price hikes
Legit.ng earlier reported that MultiChoice halted annual price increase for DStv and GOtv subscribers, marking a strategic shift under Canal+ ownership.
Significant subscriber losses prompted Canal+ to prioritise stabilising MultiChoice's customer base amid changing market dynamics.
Future price adjustments hinge on economic factors, though Canal+ aims for growth without immediate price hikes
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
