Canal+ brands Showmax an ‘expensive failure’

The decision by MultiChoice Group parent company Canal+ to pull the plug on failed streaming service Showmax is expected to help boost cost savings to €250-million in 2026, up from the €150-million Canal+ had guided in January.

This is according to Canal+’s results for the year ended 31 December 2025, released on Wednesday. In the results, Canal+ described Showmax as an “expensive failure” that contributed to a spiral of challenges at MultiChoice.

“After experiencing impressive growth from 2010 to 2023, MultiChoice has faced challenges since the combined effects of macroeconomic factors (currency devaluation in Nigeria, power cuts), a difficult transition to OTT (streaming) with the expensive failure of Showmax and strong inflation across most cost items, especially content, negatively impacted its profitability,” the company said.

“Due to recent initiatives (for example the discontinuation of Showmax), delivery of cost synergies is accelerated and is expected to reach €250-million in 2026.”

Showmax recorded trading losses of R2.6-billion for the year ended 31 March 2024. These ballooned by 88% to R4.9-billion in the year ended 31 March 2025, dragging MultiChoice Group’s trading profit down by 49% to R4-billion last financial year. Subscriber growth and revenue were, by MultiChoice’s own admission, “well short” of the 2025 targets.

MultiChoice’s overall performance has not yet showed signs of a real turnaround under Canal+’s ownership so far. Revenue for 2025 fell 6% to €2.4-billion and the subscriber base shrank from 14.9 million to 14.4 million. Adjusted earnings before interest and tax slid 14% to €159-million.

Voluntary severance

Other levers Canal+ is pulling to wring costs out of MultiChoice include a voluntary severance plan targeting support functions, a restructuring of technology and cybersecurity subsidiary Irdeto, and a rationalisation of the combined group’s real estate footprint.

Canal+ said it is also preparing for its planned secondary listing on the JSE, which it expects to complete before end-June 2026.

Replacing Showmax will be the Canal+ app, which aggregates offerings from Canal+ and other services providers such as HBO and Netflix.

Read: Canal+ unveils big plan to stem DStv’s decline

“The devolution of Showmax is only the beginning. We will eventually roll out the Canal+ app across all MultiChoice countries. ‘One Canal+, one brand’ is our driving philosophy,” said Canal+ chief financial officer Amandine Ferré, in an investor call on Wednesday.  — (c) 2026 NewsCentral Media