MultiChoice Group has recently announced the appointment of Andrea Zappia, a distinguished executive from Sky, as the Chairman of its streaming platform, Showmax.
This strategic move comes on the heels of MultiChoice’s recent collaboration with Comcast, a partnership aimed at challenging industry giants like Netflix Inc. and expanding its revenue footprint across the African continent. Andrea Zappia, who previously served as the chief executive officer of Sky’s new markets and businesses, officially assumed the role of chairman this month, having joined the MultiChoice board in September.
Showmax, already operational in 50 African countries, embarked on a significant relaunch of its services, leveraging the support and technology provided by Comcast. MultiChoice’s CEO, Calvo Mawela, has articulated the ambitious goal of generating $1 billion in revenue from the streaming service within the next five years. This underscores the company’s commitment to capitalizing on the growing demand for streaming services in the African market.

The collaboration between MultiChoice and Comcast, along with NBCUniversal and Sky, was forged in March, aiming to tap into the burgeoning African audience, which boasts the world’s fastest-growing population. Currently, MultiChoice holds a 70% stake in Showmax, with Comcast holding the remaining 30% and the option to increase its ownership stake, as explained by Mawela. The partnership also aligns with the broader trend of Africans, particularly the younger and tech-savvy demographic, turning to their mobile devices for a range of services, from banking to entertainment.
As part of the revamped offering, Showmax will be integrated into the Peacock streaming platform and feature English Premier League content, catering to the growing interest in football among African audiences. This strategic alignment with popular and globally recognized content is poised to enhance Showmax’s appeal and competitiveness in the market.
Marc Jury, the CEO of Showmax, emphasized the synergies brought about by the collaboration between Comcast and MultiChoice. He highlighted the intention to amalgamate international experience with local insights, positioning the streaming service as a formidable player in the African market. The overarching strategy is to significantly scale the business, leveraging the strengths of both partners to create a unique and compelling streaming experience for consumers.
In a bid to address recent financial setbacks, MultiChoice is counting on the revitalized Showmax to bolster its revenue streams. Notably, the company reported a net loss of 1.32 billion rand ($72.4 million) for the six months ending September 30, 2023. This marks the third consecutive semi-annual loss for MultiChoice, and the company attributes these financial challenges to various factors.
One of the significant hurdles faced by MultiChoice is the foreign exchange difficulties in Nigeria. The decision in mid-June to allow the Naira to trade more freely against the dollar resulted in a 40% devaluation. Consequently, MultiChoice had to revalue inter-group loans, leading to substantial foreign exchange losses. The volatility in currency exchange rates added another layer of complexity to the company’s financial landscape.
In addition to the currency woes in Nigeria, MultiChoice encountered operational challenges in South Africa, where rolling blackouts contributed to a 5% decline in the number of active days per subscriber. The persistent power outages adversely impacted the company’s financial performance during the specified period, creating a compounding effect on the overall results.
Despite these challenges, MultiChoice remains optimistic about the future, with the Showmax revitalization and the strategic partnership with Comcast positioned as key drivers for growth. The company is actively addressing operational and market-specific challenges, demonstrating a commitment to adapting to the dynamic landscape of the African media and entertainment industry. As MultiChoice navigates the complexities of the market, the collaboration with Comcast is poised to play a pivotal role in shaping the trajectory of Showmax and, consequently, MultiChoice’s position in the highly competitive streaming landscape.
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