Groupe Canal+ CEO Maxime Saada has candidly addressed the financial challenges facing Showmax, admitting that the MultiChoice-owned streaming platform has failed to achieve commercial success. During a recent investor call following Canal+’s acquisition of MultiChoice, Saada noted that the service has been a significant financial drain, losing substantial capital over the past several years.
Read: iCAUR charges into South Africa: Chery’s lifestyle EV brand set for May debut
Reducing Showmax’s deficit is now a primary target for the “cost synergies” Canal+ hopes to achieve through its takeover. Saada’s critique focused on several key areas:
- Over-Investment: High spending on marketing, content, and technology has not translated into the expected commercial returns.
- Significant Savings: While exact figures weren’t disclosed, Saada confirmed that reducing Showmax’s budget would contribute “significantly” to the group’s overall cost-cutting goals.
- Balanced Approach: Canal+ aims to improve the platform’s economics without aggressively slashing costs in a way that would trigger a mass exodus of subscribers.
The situation is complicated by Showmax’s ownership structure. Relaunched in February 2024, the platform is a joint venture between MultiChoice (70%) and Comcast’s NBCUniversal (30%), utilizing the technology behind the Peacock streaming service. Saada indicated that Canal+ is currently in discussions with Comcast regarding the future of the venture but noted that he must remain cautious out of respect for their partnership.
Despite MultiChoice’s efforts to position Showmax as a “Netflix killer” in Africa, the platform has faced uphill battles that have hampered profitability:
See also
- Low Broadband Penetration: Limited internet access across the continent restricts the potential user base.
- Disposable Income: Economic pressures have made subscription services a luxury for many.
- Content Wars: Intense competition for rights against global giants like Disney+ and Netflix has kept content costs high.
Canal+ is not abandoning its African ambitions, but it is clear that the “growth at any cost” era for Showmax is over. Investors are looking toward March 11, 2026, when Canal+ is scheduled to release its full-year results and provide a comprehensive strategic update on the future of MultiChoice and its streaming assets.
