Mutlichoice will shut down its movie streaming service Showmax.
According to communication sent to customers, the company has experienced substantial losses such that the Showmax business is no longer sustainable.
MultiChoice says it will rather focus on strengthening its digital offerings.
The service will be uninterrupted in the short-term, and customers have been assured that the transition will be smooth.
Commenting the move, Leslie Adams, sales director at Reach Africa, says: “The streaming industry globally is moving out of its ‘growth at all costs’ phase, which saw it prioritise subscriber count, and into a period where sustainable economics and scale matter far more.
“Content costs continue to rise, from premium series to sports rights, which makes it increasingly difficult for platforms to compete without significant scale.
“As a result, consolidation across the sector is inevitable, and we’re likely to see more moves like these.
“At the same time, we’re also seeing more bundling, aggregation and advertising-supported models emerge as platforms search for new revenue streams.
“For viewers, this likely means fewer standalone services, but stronger platforms, more bundled offerings and a growing mix of subscription and ad-supported viewing options.”