The move is expected to increase cost savings to €250 million by 2026, up from €150 million previously projected, according to Canal+’s financial results for the year ended 31 December 2025.
Canal+ said MultiChoice’s profitability had come under pressure in recent years due to several factors, including currency depreciation in key markets such as Nigeria, electricity shortages in South Africa, rising content costs and the company’s costly push into streaming.
“After experiencing impressive growth from 2010 to 2023, MultiChoice has faced challenges since the combined effects of macroeconomic factors (currency devaluation in Nigeria, power cuts), a difficult transition to OTT (streaming) with the expensive failure of Showmax and strong inflation across most cost items, especially content, negatively impacted its profitability,” the company said.
Showmax had been central to MultiChoice’s strategy to compete in the global streaming market and expand its digital audience across Africa.
However, the platform recorded steep and rising losses in recent years. It posted a trading loss of about $72 million (R1.2 billion) in 2023, which widened to $156 million (R2.6 billion) in 2024 and surged further to $294 million (R4.9 billion) in 2025.
In total, the streaming service accumulated about $522 million (R8.7 billion) in trading losses over three years.
At the same time, Showmax’s revenue declined from about $61.6 million (R1.027 billion) to $45.2 million (R753 million), highlighting the challenges African media companies face when competing with global streaming giants that spend heavily on content and technology.
The losses also weighed on MultiChoice’s wider financial performance. The company’s trading profit fell by nearly half to about $240 million (R4 billion) in its last financial year.
Ambitious plans fell short
MultiChoice had once positioned Showmax at the centre of its future growth strategy. The company argued that Africa represented one of the last major growth markets for subscription video-on-demand services and projected that the platform would help it reach 50 million subscribers by 2028.
To accelerate its streaming ambitions, MultiChoice sold a 30% stake in Showmax to U.S. media giant NBCUniversal, a subsidiary of Comcast, in 2023 while retaining a controlling 70% stake.
The partnership also included a seven-year technology licensing agreement to run Showmax on a branded version of the Peacock streaming platform, a deal that committed MultiChoice to platform fees of about $410 million (R6.83 billion).
Despite the investment, subscriber growth and revenue failed to meet expectations.
Canal+, which is in the process of acquiring MultiChoice, has since moved to exit the loss-making streaming strategy.
“We recently announced that we were exiting the loss-making Showmax contract,” the company said.
The French broadcaster plans to replace Showmax with the Canal+ streaming app, which will combine its own content with programming from global platforms including Netflix and HBO.
“The devolution of Showmax is only the beginning. We will eventually roll out the Canal+ app across all MultiChoice countries. ‘One Canal+, one brand’ is our driving philosophy,” Canal+ chief financial officer Amandine Ferré said during an investor call.
The streaming shutdown forms part of a broader effort to cut costs and streamline operations at MultiChoice.
Other measures include voluntary severance packages for some employees, restructuring the group’s technology and cybersecurity subsidiary Irdeto, and consolidating office space across the business.
The changes come as MultiChoice faces slowing growth across its African markets. Canal+ reported that the group’s revenue declined 6% to €2.4 billion ($2.59 billion) in 2025, while its subscriber base dropped from 14.9 million to 14.4 million.
The company is also preparing for a secondary listing on the Johannesburg Stock Exchange, expected before June 2026.
For now, Showmax subscribers have been told they can continue using the service while plans for the transition are finalised.
“You can continue streaming as usual, and no action is required from you at this time,” the platform said in a message to customers.
