MultiChoice and NBC say they have invested almost R3bn on video streaming platform Showmax since April as they seek to counter growing competition in the sector.
MultiChoice, which is the subject of a takeover bid by French broadcaster Canal+, unveiled an updated version of Showmax in January. The new platform is underpinned by technology from US giant NBCUniversal and was made available to new customers on January 23. Existing customers were migrated in February.
The new platform is available in 44 countries.
In a statement issued on Thursday, Africa’s biggest pay TV group said that between April 2024 and the statement date it and NBC had provided $164m in equity funding to Showmax in proportion to their shareholdings.
A new Showmax group was created last year that is 70% owned by MultiChoice and 30% by Comcast-owned NBCUniversal, and powered by its Peacock technology. Expenses for the business, and profits in the future, are shared in the same ratio.
In the year to end-March, Showmax spent R1.4bn, adding to the weight on the groups’ cash resources.
MultiChoice had previously disclosed it and NBCUniversal would spend as much as $187m (about R3.2bn) on the platform.
Showmax’s revenue for the year increased 22% to R1bn, while trading losses rose to R2.6bn. The group said the losses were below the expected range of R3bn-R4bn, with some operational expenditure and depreciation being shifted to the 2025 financial year, given the February launch.
MultiChoice’s erstwhile chair, Imtiaz Patel, received bonus of about R23m for the successful conclusion of the sale of a stake in Showmax to US media firm Comcast, which is owned by NBCUniversal Media.
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