French media giant Canal+ Group is reportedly preparing to shut down the African video streaming platform Showmax as part of cost-cutting measures following its acquisition of MultiChoice Group, the parent company of popular pay-TV services such as DStv and GOtv.
According to an exclusive report by the entertainment industry publication Variety, the move is part of a broader restructuring strategy being implemented after Canal+ completed its takeover of MultiChoice, creating one of the largest entertainment companies operating across Africa and Europe.
The acquisition, which had been in the works for several months before its completion, gave Canal+ a controlling stake in MultiChoice and placed the French broadcaster in charge of reviewing the company’s major operations. Since assuming control, Canal+ executives have been evaluating the financial performance of various divisions within the group, including its streaming business.
Financial Pressures Behind the Decision
Industry insiders say the potential shutdown of Showmax is largely tied to the high operational costs and persistent financial losses associated with running a competitive streaming platform.
Streaming services require heavy investments in technology infrastructure, licensing rights, and the production of original content in order to compete with global platforms such as Netflix, Amazon’s Prime Video, and The Walt Disney Company’s Disney+.
Despite significant investments and a major relaunch in recent years, Showmax reportedly struggled to achieve the level of subscriber growth needed to offset these costs.
Financial disclosures prior to the Canal+ takeover revealed that the platform had recorded substantial annual losses, raising concerns among investors about its long-term sustainability.
As part of its post-acquisition strategy, Canal+ is now focusing on reducing operational expenses and consolidating services across the group. Analysts say the closure of Showmax could help the company cut costs while concentrating resources on more profitable areas of the business.
What Happens to Showmax Content
If the shutdown proceeds as reported, much of the content originally produced for Showmax is expected to be redistributed across MultiChoice’s traditional television channels.
Some of the channels likely to host this content include Africa Magic, M‑Net, Mzansi Magic, and kykNET, which already broadcast a wide range of African films, series, and reality television programmes.
This move suggests that Canal+ may prioritize strengthening the company’s traditional pay-TV broadcasting model rather than maintaining a costly streaming platform competing with global services.
Employees to Be Reassigned
Despite the expected closure, reports indicate that employees working on the streaming platform will not face immediate job losses.
Under the terms of the acquisition agreement, MultiChoice is reportedly restricted from carrying out major layoffs for a period following the takeover. As a result, staff currently working within the Showmax division are expected to be reassigned to other departments within the company.
End of a Major African Streaming Venture
Launched in 2015, Showmax was widely regarded as one of Africa’s most ambitious attempts to build a home-grown streaming service capable of competing with global platforms.
The platform offered a mix of international movies, television series, documentaries, sports programming, and locally produced African originals. Over the years, it gained recognition for supporting African filmmakers and content creators by providing a dedicated platform for locally produced entertainment.
In 2024, the service underwent a major technological overhaul aimed at expanding its reach across African markets and improving streaming quality. However, even with the relaunch, the platform continued to face intense competition from international streaming giants with far larger production budgets.
