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MultiChoice's Showmax is shutting down after 11 years, with the company citing huge losses and failure to meet subscriber growth targets.
The decision comes after a strategic review aimed at strengthening its overall digital offerings and ensuring long-term sustainability in a competitive streaming environment 1 2 The platform, launched in 2015, was conceived as MultiChoice's answer to global streaming services such as Netflix and Amazon Prime Video.
Despite investing $309 million in equity funding in 2024, Showmax struggled to gain traction, accumulating losses of about €370 million (S$428.9 million) in the three years leading up to the Canal+ takeover MultiChoice has assured subscribers that their service will continue uninterrupted for now, and no immeiate action is required. The company is working on a subscriber and content migration plan, which will be communicated in the next few weeks. The shutdown is part of Canal+'s cost-cutting measures, aimed at saving about €400m by 2030 .
Key points:
• Showmax will be wound down in the coming months, with no job losses due to a three-year retrenchment ban in the takeover agreement.
• MultiChoice will focus on its television channels, including Africa Magic, M-Net, and Mzansi Magic.
• The decision reflects the challenges of building a profitable streaming business in price-sensitive African markets.
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