MultiChoice is shutting down its streaming platform, Showmax, after eleven years of operation.
The decision taken by the company was communicated to Showmax subscribers today.
“We’re writing to inform you of an important update regarding Showmax,” the streaming platform said in the mail sent to its subscribers.
“Following a comprehensive review, the Showmax Board has taken the decision to discontinue the Showmax service in the near future.”
MultiChoice said the move is a reflection of its bid to “focus on strengthening our overall digital offering and ensuring long-term sustainability in an increasingly competitive streaming environment.
“Importantly, at the moment there will be no interruption to your current service. You can continue streaming as usual, and no action is required from you at this time”.
While it did not provide a timeline for the discontinuation of the Showmax streaming service, MultiChoice said subscribers remain their “priority”.
“We understand that this news may raise questions. Showmax subscribers are a priority for us, and we are working on plans to ensure clear communication and a smooth transition when the time comes.
“We will share further details well in advance, including timelines and any future steps, should they be required,” the subscription video-on-demand, over-the-top streaming service said.
Showmax was launched in 2015 in South Africa but has, over the years, spread rapidly across the continent, operating in scores of countries.
Last year, South African authorities approved the takeover of MultiChoice by pay-TV powerhouse and StudioCanal parent company Canal+.
That move paved the way for the French media giant to acquire Africa’s largest pay-TV group, which includes DStv and GOtv.
Under the terms of the deal, Reuters reported that Canal+ has made a mandatory cash offer of ZAR 125 ($7.11) per share to acquire all outstanding ordinary shares of MultiChoice not already owned by the French media group.
The approved conditions include public interest commitments aimed at enhancing the participation of historically disadvantaged persons (HDPs) and small, micro, and medium enterprises (SMMEs) in South Africa’s audiovisual sector. The commitments also guarantee sustained investment in local general entertainment and sports programming.
Canal+ and MultiChoice are now set to implement a structural arrangement, unveiled in February, which addresses local ownership regulations under South Africa’s Electronic Communications Act.
The plan includes the separation of MultiChoice’s South African broadcasting licensee, MultiChoice, into an independent, HDP-majority-owned entity.
