Canal+ Calls Showmax An Expensive Failure As MultiChoice Cuts Losses

The future of streaming in Africa is shifting once again. Canal+, the French media giant that now controls MultiChoice, has bluntly described the once-ambitious Showmax platform as an “expensive failure”, signalling a decisive break from one of the company’s biggest digital bets.

The move comes as Canal+ looks to tighten costs across the MultiChoice business while reshaping its long-term streaming strategy across the continent.

Showmax Shutdown Expected To Boost Cost Savings

According to Canal+’s latest financial results for the year ending December 2025, scrapping Showmax is expected to help accelerate cost savings at MultiChoice.

The company now projects cost synergies of about €250 million by 2026, a jump from the €150 million target announced earlier this year.

For Canal+, the decision is part of a wider restructuring effort aimed at improving profitability at the African pay-TV giant. Executives say Showmax became one of the key financial drains during MultiChoice’s transition from traditional satellite television to online streaming.

The platform’s losses tell the story. Showmax reported trading losses of R2.6 billion for the year ending March 2024. A year later, those losses ballooned by 88 percent to R4.9 billion.

The financial hit had a major knock-on effect. MultiChoice’s trading profit dropped sharply, falling 49 percent to R4 billion in its last financial year.

A Tough Period For MultiChoice

The Showmax setback comes at a time when MultiChoice has been navigating several headwinds across its African markets.

In its results statement, Canal+ pointed to a combination of economic pressures and operational challenges that have weighed heavily on the company. Currency devaluation in major markets such as Nigeria, ongoing electricity disruptions in parts of Africa, and rising content costs have all squeezed margins.

At the same time, the shift toward streaming has proven more difficult than expected.

Subscriber growth on Showmax fell well short of the company’s own targets for 2025, while revenue from the platform also failed to meet expectations.

Overall, MultiChoice’s performance remains under pressure. Revenue for 2025 declined by 6 percent to €2.4 billion, while the group’s subscriber base slipped from 14.9 million to 14.4 million.

Adjusted earnings before interest and tax also dropped by 14 percent to €159 million.

Cost Cutting And Restructuring Under Canal+

Showmax is not the only area facing changes.

Canal+ has also introduced a voluntary severance programme targeting certain support roles within the company. The group is restructuring its technology and cybersecurity subsidiary Irdeto and reducing its global real estate footprint as part of a broader efficiency drive.

The goal is clear. Canal+ wants to streamline MultiChoice and position the business for a more sustainable future in an increasingly competitive global streaming market.

A New Streaming Strategy For Africa

With Showmax out of the picture, Canal+ plans to replace it with its own global streaming platform.

The Canal+ app will eventually be rolled out across MultiChoice markets and will bring together content from multiple partners, including services such as HBO and Netflix.

The strategy reflects Canal+’s vision of consolidating its entertainment ecosystem under a single brand.

Company executives have described the shift as part of a wider effort to unify the group’s global offering.

The message from the new owners is clear. Instead of competing with fragmented platforms, the focus is now on building one integrated streaming service across Africa.

What This Means For DStv And African Viewers

For South African viewers, the move signals another major change in the evolution of local streaming and pay television.

Showmax was originally launched by MultiChoice in 2015 as the company’s answer to global players like Netflix. Over the years it became one of the continent’s most recognisable streaming brands, known for local originals and African storytelling.

But the economics of streaming are brutally competitive. With global platforms pouring billions into content and technology, regional services have struggled to keep pace.

Now, under Canal+ leadership, MultiChoice is betting that scale and consolidation will work better than running its own standalone streaming service.

The company is also preparing for a secondary listing on the Johannesburg Stock Exchange, which Canal+ expects to complete before the end of June 2026.

For the African entertainment industry, the closure of Showmax marks the end of a significant chapter in the continent’s streaming experiment. But it also signals the beginning of a new phase in the battle for viewers across Africa’s rapidly evolving digital media landscape.

{Source:Tech Central}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com