DStv Owner’s High-Stakes Showmax Gamble Backfires as Losses Mount

Nearly three years after MultiChoice placed its future growth hopes on Showmax, the company’s ambitious streaming strategy has failed to deliver, raising serious questions about the platform’s sustainability and the group’s long-term direction.

Facing a steady decline in its traditional pay-TV subscriber base at DStv and GOtv, and intensifying competition from global streaming giants such as Netflix and Amazon Prime Video, MultiChoice opted for a high-risk pivot. Showmax was positioned as the company’s primary growth engine — a “do-or-die” move aimed at securing relevance in an increasingly digital entertainment market.

In May 2023, then-MultiChoice executive Yolisa Phahle outlined bold projections to investors. She said Showmax was expected to generate $1 billion (approximately R18 billion at the time) in annual revenue within five years, driven by a target of 16 million subscribers. The platform was also projected to achieve a 25% EBITDA margin, a level of profitability that would rival established global streaming services.

Africa, Phahle argued, represented the “final frontier” for subscription video-on-demand (SVOD) growth. Despite Netflix’s early lead, she maintained that Showmax’s local content strategy and understanding of African audiences would give it a decisive competitive advantage. MultiChoice went further, stating that Showmax would help the group reach a combined subscriber base of 50 million users by 2028.

Strategic partnership and early optimism

To accelerate this turnaround, MultiChoice sold a 30% stake in Showmax to Comcast subsidiary NBCUniversal, a deal that became effective on 4 April 2023. The transaction valued the stake at $29 million (R536 million), with MultiChoice retaining a 70% controlling interest.

The partnership was intended to provide technological and operational muscle, with Showmax rebuilt on NBCUniversal’s Peacock streaming platform. At the time, management acknowledged that Showmax would incur trading losses in its early years, but projected that these losses would peak and begin declining by the 2025 financial year.

That assumption has proven deeply flawed.

Losses deepen instead of narrowing

In its most recent financial results, MultiChoice reported that Showmax’s trading loss deteriorated sharply, worsening by 88% from R2.6 billion to R4.9 billion. Revenue moved in the opposite direction, falling from R1.027 billion to R753 million.

According to the company, the increased losses reflect the “start-up nature of the business,” driven by a sharp rise in content and platform costs. The results were further impacted by strategic reversals, including the discontinuation of Showmax Pro — a package that included selected SuperSport content — and the termination of Showmax’s diaspora offering outside Africa during the second half of the 2024 financial year, ahead of a planned relaunch.

While the Peacock platform was intended to modernise Showmax’s infrastructure, it came at a substantial cost. For the 2025 financial year, MultiChoice reported Peacock platform fees of R5.819 billion, down from R6.825 billion the year before as certain licence obligations were fulfilled. Even so, the scale of these costs has continued to weigh heavily on the group’s financial performance.

To keep the platform afloat, NBCUniversal has provided increasing levels of financial support. During the 2025 financial year alone, Showmax received $85 million (R1.552 billion) in equity funding from NBCUniversal, more than double the $36 million (R687 million) injected the previous year. This funding is reflected as non-controlling interests in MultiChoice’s consolidated financial statements.

Despite this support, MultiChoice still recognised a R1.5 billion net loss attributable to Showmax in its latest financial year. Given its 70% ownership, this implies total Showmax losses of approximately R2.15 billion.

Growing investor concern and missed targets

The scale of the losses has alarmed investors and lenders, particularly in light of MultiChoice’s broader funding obligations. The company has a R12 billion multi-party term loan facility, intended to fund working capital and support the Showmax relaunch. Management acknowledged that lenders are increasingly concerned about the impact of Showmax’s funding requirements on loan covenants.

While MultiChoice has reiterated its commitment to scaling the business, managing costs, and navigating the investment curve toward breakeven, the reality on the ground tells a different story. The company admitted that Showmax’s subscriber growth and revenue were “well short of the 2025 targets,” underscoring how far actual performance has fallen behind earlier projections.

An uncertain future under Canal+ ownership

The failure of Showmax to meet its targets has intensified scrutiny following the acquisition of MultiChoice by French media giant Groupe Canal+ last year. Investors and analysts are now questioning whether Canal+ will continue to back the loss-making streaming platform or pursue a strategic reset.

Canal+ has so far declined to outline its plans for Showmax, stating that it needs time to fully assess MultiChoice’s internal operations. However, reports from Bloomberg last year suggested that Canal+ was considering acquiring Comcast’s 30% stake in Showmax, a move that could signal either renewed commitment or a restructuring of the platform’s role within the broader group.

For now, Showmax stands as a cautionary tale of an ambitious digital transformation that has yet to pay off. What was once billed as MultiChoice’s growth engine has become a significant financial drag, leaving the company — and its new owner — facing difficult decisions about the future of streaming in Africa.