Showmax shuttered its doors in Africa as MultiChoice was losing a lot of money by keeping it on the air. The streaming service that served as a joint venture with Comcast's NBCUniversal and Sky was hoping to become Africa's version of Netflix.
The problem part with these endeavours is that Africa isn't seen as a booming economy for streaming. This is due to low broadband in some markets as well as high data costs.
While consumers can trust that eMedia Investments and SABC will continue funding the local economy through its eVOD and SABC+ streaming service. Fact of the matter is because of these challenges seen in Africa they need to diversify.
Subscriptions and advertising alone can't help sustain its operations while it may work for Netflix and Amazon Prime Video as they're bigger brands. SABC+, eVOD and even Showmax had to subject themselves to these obstacles in Africa.
eMedia Investments and SABC still have to rely on their cable networks to re-coperate the costs. In some instances, they have to find a partner that is willing to help them build their content slate.
Amazon Prime Video was at one point a Showmax competitor commissioning content in Africa now they just license finished content. While Netflix continues funding the local economy these endeavours had been reduced.
MultiChoice, SABC and eMedia Investments continue to be the lifeline for these endeavours in South Africa. If one of them were to go six feet under, it's less likely that Netflix will just step up and fill up the gap left by DStv.
If you look at DStv, they have Mzansi Magic, Moja Love, Via, KykNET, SABC News and WildEarth. Netflix is not going to produce content to that scale if MultiChoice were to shut down especially if it's not going to make them money.
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