MultiChoice has committed to a $390 million (R6.9 billion) partnership with Peacock, NBCUniversal’s streaming subsidiary, to enhance its Showmax platform. Over the next seven years, MultiChoice will pay this amount in platform fees as part of its strategy to make Showmax Africa’s leading streaming service.
This strategic investment was highlighted in MultiChoice’s 2024 financial results, with the platform fees listed under contingent liabilities. However, MyBroadband reports that these figures may adjust depending on future developments. The partnership grants MultiChoice access to Peacock’s advanced streaming software and services, including crucial capabilities for live sports and premium content delivery.
Strengthening Showmax for the Future
The transformation of Showmax follows MultiChoice’s 2023 agreement with NBCUniversal and Sky, both part of Comcast. In this deal, MultiChoice sold a 30% stake in Showmax to these two entities. The revamped platform will now be powered by Peacock’s infrastructure, a strategic move to compete against global streaming giants like Netflix and Disney+.
MultiChoice CEO Marc Jury explained that the company opted for this partnership instead of building an in-house platform due to a shortage of engineering talent and the need for scalability. By leveraging Peacock’s vast engineering resources, Showmax gains a competitive edge in the increasingly crowded streaming market.
Aiming for Growth in Africa
MultiChoice views Showmax as a key growth driver, especially in Africa. The platform will focus on local content production while also offering international programming, a strategy that it believes will fuel market penetration across the continent. The partnership also allows Showmax to take advantage of MultiChoice’s expertise in live sports broadcasting, an area that appeals to a broad African audience.
In a significant move, Showmax has already launched a mobile-only Premier League football product. This is a part of its plan to capitalize on the region’s growing demand for sports content, a domain where Peacock excels. The US-based platform made history by streaming the NFL Wild Card game in January 2024 to nearly 28 million viewers, demonstrating its ability to handle large-scale live events. MultiChoice expects Showmax to deliver similar experiences to African users.
In summary, the MultiChoice and Peacock partnership positions Showmax for significant growth by leveraging world-class streaming technology, local content production, and live sports broadcasting—key elements that will define its success in the African market.
