The streaming platform Showmax recorded heavy financial losses between 2023 and 2025, losing about $2.50 for every $1 it generated in revenue, according to recent financial disclosures.

The platform, launched by African pay-TV giant MultiChoice as a competitor to global streaming services such as Netflix, had been positioned as a key player in the continent’s emerging streaming market.

However, financial records indicate that between 2023 and 2025, Showmax generated about $204.29 million in revenue while recording operating losses exceeding $523.53 million.

In 2023, MultiChoice partnered with NBCUniversal, a subsidiary of Comcast, to restructure the platform. The deal created a new entity, Showmax Africa Holdings Limited, headquartered in the United Kingdom to oversee the service’s operations across Africa.

As part of the partnership, NBCUniversal acquired a 30 percent stake in the venture for $29 million. Additional investments followed, including $36 million in 2024 and $85 million in 2025, aimed at funding the platform’s expansion and operational costs.

A major portion of the spending went into technology infrastructure. In 2024, Showmax signed a seven-year licensing agreement worth about $405 million to use the streaming technology developed for Peacock streaming platform, NBCUniversal’s digital service.

The deal covered core technology components such as streaming infrastructure, recommendation algorithms, engineering systems and platform architecture.

Content production and licensing also accounted for a large share of the expenditure. The platform significantly expanded its catalogue of African original films, producing 59 original titles by 2024 and increasing the number to 82 by 2025.

During the same period, content creation and licensing costs reached about $235 million. Additional expenses included staff costs of about $61.6 million, marketing expenses of $72.2 million and miscellaneous operational costs estimated at $221 million.

Despite the heavy investment, revenue growth remained limited. Subscription earnings between 2023 and 2025 stood at approximately $145 million, with total revenue reaching just over $204 million.

MultiChoice had previously projected that Showmax would reach $1 billion in annual revenue within five years and break even by 2027, driven by expansion into markets such as Nigeria, Kenya, Tanzania, Ghana, Uganda and Zambia.

The strategy included increasing African original productions, strengthening partnerships with telecom operators and expanding digital payment channels across the continent.

However, the high cost of building and maintaining a large streaming platform, combined with challenges such as limited broadband access and lower subscription purchasing power in Africa, made profitability difficult.

The financial challenges have now led to the restructuring of MultiChoice’s streaming operations following its acquisition by Canal+.

Industry analysts say the development reflects broader challenges in the global streaming market, where companies must spend heavily on technology and content to remain competitive.