MultiChoice ramps up investment in Showmax’s streaming services

Signage at DSTV MultiChoice, Randburg. Picture: Karen Sandison Independent Newspapers

Signage at DSTV MultiChoice, Randburg. Picture: Karen Sandison Independent Newspapers

Published Sep 27, 2024

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MULTICHOICE Group said yesterday it and NBCUniversal Media (NBCU) had since April 1, 2024, substantially ramped up their investment by $164 million (R2.83 billion) to make Showmax the leading streaming service in Africa.

By the end of March 2024, the two companies had provided $120 million (R2.07 billion) in equity funding over a year, each in proportion of their respective shareholdings, to develop Showmax’s services, a statement said yesterday.

MultiChoice had entered into an agreement with Comcast Corporation (Comcast) subsidiary NBCU and Sky in March 2023 to form a partnership with the aim of driving Showmax to become the leading streaming service in Africa.

NBCU acquired a 30% equity stake in Showmax Africa Holdings (SMAH), and provided support through the licensing of its Peacock platform and content from NBCU, Universal Pictures, Peacock and Sky.

MultiChoice, through a subsidiary, MultiChoice Group Holdings, and Comcast, through NBCU, were providing funding to SMAH during its investment phase.

Equity funding was provided as required - either monthly or at other intervals - depending on SMAH’s working capital requirements and near-term budget, subject to a maximum capped amount.

BUSINESS REPORT