• MultiChoice has committed to paying R6.9 billion ($390 million) in platform fees over seven years to Peacock, a subsidiary of Comcast-owned NBCUniversal, for providing its streaming software and services to its revamped Showmax platform.
• This strategic investment, disclosed in MultiChoice’s 2024 financial results, is part of its plan to position Showmax as Africa’s leading streaming platform. 
• These platform fees were listed under its contingent liabilities and contractual obligations, although MyBroadband reports that the company has clarified that this figure could change depending on future updates.
• The agreement enables MultiChoice to use Peacock’s content streaming software and managed services, crucial for handling live sports and premium content.

The transformation of Showmax follows MultiChoice’s April 2023 agreement with NBCUniversal and Sky, both subsidiaries of Comcast. 

MultiChoice sold a 30% stake in Showmax to the two entities as part of the deal. The revamped Showmax platform will now run on Peacock’s infrastructure, a decision MultiChoice made to compete with global streaming giants.

MultiChoice’s CEO, Marc Jury, explained that this partnership enables Showmax to benefit from Peacock’s extensive engineering resources. 

He noted that while MultiChoice considered building an in-house platform, it opted to collaborate with Peacock due to a shortage of engineering talent and the need for scalability.

MultiChoice expects Showmax to be a cornerstone of its future growth, particularly across Africa, where local content and sports broadcasts will drive market penetration. 

With a combined $284 million investment from NBCU and MultiChoice, Showmax is expected to achieve its ambitious targets. The company has forecast that Showmax will reach $1 billion (R17.7 billion) in net revenue by 2028. 

In the last financial year, Showmax generated R1 billion ($56.5 million), up from R820 million ($46.3 million) the previous year. MultiChoice aims for Showmax to break even by 2027, with a projected EBITDA margin of 25% and free cash flow margins of 20%.

To become Africa’s leading streaming platform, Showmax plans to focus on local content production alongside international programming. 

It has already launched a mobile-only Premier League football product, capitalising on MultiChoice’s established expertise in live sports broadcasting.

One of Peacock’s key strengths is its ability to stream live sports at scale, an asset that aligns well with Showmax’s goals. The platform made history in the US by streaming the NFL Wild Card game in January 2024 to nearly 28 million viewers. 

MultiChoice believes Peacock’s technology will ensure Showmax can deliver similar top-tier sports content to its users across Africa.