By Claire Moraa
- Comcast has partnered with Multichoice to capture the African streaming market through Showmax and plough a $1B revenue by 2028
- Showmax commands about 886K subscribers in 13 African countries compared to Netflix’s 2.1M subscribers in 54 countries as of 2021
Comcast (CMCSA +0.41%) is getting its feet wet and tapping into the African market. This comes after a partnership with Multichoice where Comcast acquired a 30% share. Multichoice is Africa’s biggest entertainment company where Showmax is an offspring. Showmax has quickly become Africa’s favorite streaming platform and now sets its eyes on the $1B revenue mark in the next four years.
Why This Matters: While this may be an ambitious goal, especially in a fiercely competitive African video streaming industry, where global firms, major telecoms, and several country-specific apps vie for viewership, Showmax stands tall. Despite its main rival Netflix pulling a diversity stunt to boost subscribership, Showmax has been able to capture nearly 39% of the market share while Netflix drops to 33.5%.
While Showmax caters to African interests by curating local shows that appeal to their audience, this is not the only trick up its sleeve. The subscription fee has also played a crucial role in driving its subscriber growth. For $4.47 a month, you get access to the Showmax basic plan compared to Netflix’s $6.99. The pricing plan becomes heavily discounted if you go for the three-month, six and annual plans.
Now, with Comcast’s support and investment, Showmax likely aims to enhance its content offerings, technology infrastructure, and marketing efforts to capture a larger share of the African streaming market.
Situational Awareness: Showmax’s ability to dethrone Netflix as Africa’s most popular streaming platform is a testament of thriving in a competitive market regardless of the financial muscle its competitor had. However, this early success should be taken with a pinch of salt. Targeting underserved regions or demographics can help capture additional subscribers and drive revenue growth. With the right strategy and execution, Showmax could well be on its way to becoming a global streaming powerhouse in the years to come.
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