Sylvia Duruson
MultiChoice has revealed a substantial R6.9 billion ($390 million) commitment to NBCUniversal’s Peacock platform. The seven-year agreement secures streaming software and services for MultiChoice’s revamped Showmax platform. This information emerged from MultiChoice’s 2024 financial report, though the company notes the final amount may adjust with future developments.
The partnership stems from an April 2023 agreement between MultiChoice and Comcast subsidiaries NBCUniversal and Sky. The deal included selling a 30% stake in Showmax to these entities. Peacock’s technology infrastructure now powers the transformed Showmax platform, equipping it to deliver premium content and live sports broadcasts.
Marc Jury, MultiChoice’s CEO, highlighted the strategic reasoning behind choosing Peacock over developing an internal solution. The decision addressed both engineering talent limitations and scalability requirements. The partnership grants Showmax access to Peacock’s extensive engineering capabilities and proven infrastructure.
The financial commitment reflects MultiChoice’s ambitious vision for Showmax across Africa. Combined with NBCUniversal’s contribution, the total investment reaches $284 million. This funding supports Showmax’s target of achieving $1 billion (R17.7 billion) in net revenue by 2028. Recent financial results show promising growth, with revenue increasing from R820 million to R1 billion in the last fiscal year.
Showmax’s financial projections include breaking even by 2027. The platform aims for a 25% EBITDA margin and 20% free cash flow margins. These targets align with MultiChoice’s strategy to establish Showmax as Africa’s premier streaming service through local content creation and international programming.
The platform has already launched specialized offerings, including a mobile-only Premier League football product. This development leverages MultiChoice’s established sports broadcasting expertise. Peacock’s technology proves particularly valuable in this area, demonstrated by its successful streaming of the NFL Wild Card game to nearly 28 million US viewers in January 2024.
Looking ahead, Showmax plans to maintain its dual focus on local content and international programming. The platform benefits from Peacock’s proven capability to handle large-scale live sports broadcasts. This technological foundation positions Showmax to deliver high-quality streaming services across Africa, supporting MultiChoice’s expansion strategy in the competitive streaming market.
