MultiChoice has high aspirations for the relaunch of Showmax 2.0 in February

Showmax, a streaming platform owned by MultiChoice, has revealed its content lineup for the revamped “Showmax 2.0”. Set for launch in February, Showmax will boast 1,300 hours of original African content and introduce the continent’s first independent Premier League mobile streaming plan.

The revamp aims to build on Showmax’s current momentum, as it has recently outpaced Netflix to become the continent’s leading platform. This successful relaunch could bring good news to its parent company MultiChoice, which is currently facing a falling share price, write-downs on investments, market exits and a drop in subscribers to its core service, DStv.

Last year, MultiChoice announced significant investments in Showmax 2.0. During its end-of-year financial results in March 2023, MultiChoice revealed plans to withhold dividends from shareholders to fund the relaunch, followed by a further $27 million injection in November 2023.

Johannesburg-based markets analyst, Jimmy Moyaha, states, “As subscriptions to their primary offering, DSTV, stagnate, streaming has seen a surge for them and others.” He emphasizes that “the affordability and quality of services catering to consumer demand will be decisive for the company’s success.”

MultiChoice has set ambitious objectives for its streaming service, Showmax. The company aims to transform Showmax into the leading streaming platform on the continent, projecting a revenue of $1 billion within five years. It also plans to expand its subscriber base to 50 million from its current count of 1.8 million, representing a massive increase of 3,700% over the next five years.

Despite experiencing subscriber growth, Showmax still has considerable ground to cover before achieving profitability. As per Daily Investor, a market analysis publication, Showmax earned revenues of roughly $27 million in the first half of MultiChoice’s 2024 financial year, from November 2022 to November 2023.

However, the service reported a substantial net loss of approximately $75 million, leading to a net loss margin of 144%.