Out With the Old: Why MultiChoice Shut Down Showmax for a New Future

The headquarters of MultiChoice Group Ltd. in Randburg, South Africa, on Tuesday, April 9, 2024. Canal+ made a formal bid for MultiChoice that values the African broadcaster at $2.9 billion as it seeks to expand its presence on the youngest and fastest growing continent. Photographer: Mzingenkosi Sibanda/Bloomberg via Getty Images

For over ten years, Showmax was a household name for online entertainment across Africa. If you wanted to stream local movies, popular series, or international reality shows on your phone or laptop, Showmax was the go-to app.  

However, a massive change has shaken up the African entertainment world. MultiChoice the giant company behind DStv and GOtv has officially shut down Showmax.  

The decision marks a completely new strategy for the company. MultiChoice is shifting its focus away from cheap, standalone apps toward premium streaming and digital financial services.

Why Did Showmax Close?

Streaming movies over the internet is a tough business. Global giants like Netflix and Disney+ spend billions of dollars every year to make shows, creating intense competition.

Even though MultiChoice invested lots of money into Showmax, the platform was losing a substantial amount of money each year. After being bought by a French media company called Canal+, MultiChoice reviewed its business and decided that keeping Showmax open was simply costing too much. To survive and make a profit in the long run, they needed a more sustainable plan.  

The New Strategy: One Home for Streaming

Instead of running a separate app, MultiChoice is moving everything into one premium home: DStv Stream.  

Instead of losing your favorite African stories, popular Showmax Originals like Wura and The Real Housewives are moving over to the DStv Stream app.  

MultiChoice’s strategy is to get customers to upgrade to premium packages that combine regular television, live sports, and internet streaming into a single service. To help with the transition, they have even been offering former Showmax users special discounts and free trials to try out DStv Stream.  

Moving Beyond TV: Payments and Tech

MultiChoice isn’t just focusing on movies and series anymore. The company realizes that to grow in Africa, it needs to offer more than just television.

Because MultiChoice reaches millions of homes every day, it is using its massive network to expand into digital payments, fintech (financial technology), online education, and even sports betting. By doing this, MultiChoice hopes to become a digital partner that helps you pay for things and manage your daily life, not just a company that entertains you on the weekend.  

What This Means for You

If you love watching TV, the era of having lots of small, cheap apps from the same company is coming to an end. Big companies like MultiChoice are cleaning up their platforms to offer bigger, high-quality apps that do everything at once.

While saying goodbye to Showmax might feel like the end of an era, it is actually the start of a much bigger, more digital future for African entertainment and technology.