Showmax shutdown highlights Africa's streaming financial challenges

MultiChoice's streaming platform Showmax is being wound down after a decade of losses, generating $204.29 million in revenue between 2023-2025 but recording over $523.53 million in operating losses. The platform lost $2.50 for every $1 earned during this period, spending heavily on a $405 million Peacock technology licensing deal, $235 million on content, and $72 million on marketing. Showmax's strategy relied on aggressive expansion across Africa through telecom partnerships, but structural challenges like lower subscription purchasing power and limited broadband penetration made profitability elusive. The shutdown follows Netflix and Amazon Prime Video scaling back African operations, demonstrating streaming's long-term potential remains constrained by current market realities.

SOURCE: https://techcabal.com/2026/03/09/for-every-1-showmax-made-it-lost-2-50/