Showmax, the video streaming platform owned by MultiChoice, has received a significant boost with $164 million in new equity funding from its parent companies, MultiChoice and NBCUniversal. This latest investment brings the total injection into Showmax to $284 million, signaling a strong push to compete with global streaming giants like Netflix and Disney+ across Africa.
In a recent update on the Johannesburg Stock Exchange (JSE), MultiChoice confirmed that the new funding would cover Showmax’s operating expenses and working budget. Both MultiChoice and NBCUniversal contributed according to their 70% and 30% shareholdings, respectively.
This funding follows Showmax’s impressive milestone in November 2023, when it overtook Netflix in Africa with 2.3 million subscribers compared to Netflix’s 1.8 million. To build on this momentum, Showmax plans to continue investing in content and technology, with the ambitious goal of reaching $1 billion in revenue within five years.
Showmax’s growth is part of MultiChoice’s broader strategy to pivot towards streaming services. Faced with declining subscribers in its traditional pay-TV business, MultiChoice is betting heavily on Showmax and DStv Stream to fuel future growth. The company’s latest financial results show a 9% overall decline in active subscribers, driven by a 13% drop across Africa, particularly in Nigeria, Angola, and Zambia.
With the new investment and support from NBCUniversal, Showmax has set its sights on becoming the leading streaming service in Africa. However, research projections suggest it will be Africa’s second-biggest service in five years.
