MultiChoice shuts down Showmax after 11 years

Pay TV company MultiChoice has notified its subscribers that it is discontinuing its streaming service Showmax after 11 years in operation.

In an email, the company said that no action was required from them, adding that they can continue streaming their favourite shows on the platform.

"Following a comprehensive review, the Showmax Board has taken the decision to discontinue the Showmax service in the near future," reads part of the email.

"The decision reflects our focus on strengthening our overall digital offering and ensuring long-term sustainability in an increasingly competitive streaming environment."

The company did not however say when its operations would cease but said it would share more information in the near future.

MultiChoice, in a statement, cited losses as the reason for shutting down Showmax, saying it had been unable to sustain it and wanted to focus on its other interests.

"The substantial annual losses experienced by the Showmax business have proved unsustainable," said MultiChoice.

The platform was hailed as Africa's Netflix for its local content, having been launched in Kenya in August 2015.

Kenyans could pay for it using mobile money, with packages ranging from Sh200 to Sh800, which included mobile plans and English Premier League coverage, a fan favourite in the country.

The platform was key to Kenyans working in the film sector, launching shows and series that proved to be must-watch for a section of Kenyans.

The move to discontinue the service comes months after Showmax's parent company MultiChoice was acquired by French company Canal+, which already had a similar platform running in 30 countries.

In their last financial report, Showmax generated Sh6 billion in revenue but made a Sh17 billion loss.

The growth of Netflix, Apple TV, Disney+ and Prime Video on the African continent ate into their target audience.

A February 2024 deal between Showmax and NBCUniversal saw its relaunch, which cost millions in retooling the platform and channelled more money into producing content, but it did not bear much fruit as subscriber numbers kept dropping.

Canal+ has been on a cost-cutting mission and Showmax is their latest victim.

Staff who had been employed will stay on for three years, as the deal between MultiChoice and Canal+ during the takeover stated that there would not be any firings in the three years following the takeover.

The staffers will be re-assigned to other positions within MultiChoice.

Some of the original channels under Showmax, such as M-Net, kykNet, Mzansi Magic Originals and Africa Magic, have been rebranded and will be moved to sister company DStv.