Canal+, the new owner of Multichoice Group, is set to discontinue Showmax, the video streaming platform, as part of a broader cost-cutting drive.
According to reports, the decision comes after a review of the company’s streaming operations, with Canal+ seeking to reduce expenses and streamline its business.
MultiChoice and Canal+ confirmed the planned shutdown of the streaming service.
While the companies did not provide a specific timeline, the service is expected to be discontinued soon as legal and operational issues are resolved.
According to the company, the decision was made by the Showmax board and reflects the continued focus of MultiChoice on financial discipline and investment optimization, in an increasingly competitive and capital-intensive global streaming environment.
Multichoice assured that shutting down Showmax would not affect employees of the unit.
As part of its agreement to take over MultiChoice, Canal+ is not allowed to get rid of any staff for a period of three years.
“The decision to discontinue Showmax services will not involve any retrenchments. The group will be engaging and supporting employees through various transition options,” Multichoice said.
Canal+ CEO Maxime Saada had earlier in January described Showmax as “not a commercial success,” noting during an investor call that the platform had become a significant financial burden for MultiChoice.
However, Canal+ said it would “continue to invest in premium content for MultiChoice subscribers, technological innovation and strategic partnerships to consolidate its leadership in the African entertainment market.”
“Further details regarding our expanded content offering and platform upgrades will be shared in due course. We want to reassure our Showmax subscribers that they are our priority as we evolve our services to deliver a superior streaming experience,” it added.
