Showmax Announces August Price Hike

MultiChoice parent company of Showmax has announced that the prices for its Showmax Entertainment plans will be increased starting from 1 August 2024. This announcement comes as the company seeks to achieve significant financial targets in the coming years.

Starting in August, the standard Showmax Entertainment plan will see an 11% increase, raising the monthly subscription fee from R89 to R99. Meanwhile, the mobile plan will experience a 15% hike, increasing from R39 to R45 per month. All other pricing plans will remain unchanged, including the mobile-only Showmax Premier League service, which will stay at R69 per month.

Despite these price increases, Showmax remains more affordable than traditional DStv. However, Showmax's reliance on user internet data can be a disadvantage, especially in Zimbabwe, where data costs are high. In contrast, South African users benefit from a partnership between DStv and MTN, offering special Showmax bundles to mitigate data expenses. 

Showmax has an estimated subscriber base of between 700,000 and 1 million. MultiChoice has set ambitious goals for the streaming service, aiming to achieve trading profit break-even by the 2027 financial year. Furthermore, the company targets a revenue milestone of $1 billion (R18 billion) by the end of the 2028 financial year. To reach this target, Showmax will need approximately 16 million active subscribers, each paying an average of R99 per month.

Achieving these targets is challenging. Digital TV Research has forecasted that the total number of video streaming subscribers in Africa will only reach 15.6 million by 2028. However, MultiChoice is optimistic, predicting exponential growth in video streaming uptake across the continent.

One of Showmax's main advantages in Africa is its extensive catalog of African content and the inclusion of Premier League matches. This unique offering helps differentiate it from competitors like Netflix and Amazon Prime.

This price adjustment comes as MultiChoice faces a decline in its subscriber base amid increasing competition from other streaming platforms. In June 2024, the company reported a 9% decrease in total active subscribers for the fiscal year ending March 2024 (FY24).

Despite the challenges, MultiChoice remains committed to expanding Showmax's footprint in the streaming market, leveraging its strengths in local content and strategic partnerships to attract and retain subscribers.`11