EXCLUSIVE: Why Canal Plus Is Pulling Back on Showmax Without Pulling the Plug
Once the centre of the story, the platform is now being asked to stay small and behave
Canal Plus did not hedge its language. Maxime Saada told analysts that Showmax was not a commercial success and confirmed that investment would be cut across marketing, content, and technology. The comment followed months of integration work after Canal Plus completed its takeover of MultiChoice in September 2025.
This was not rhetorical positioning. It was an accounting conclusion. Showmax, reviewed alongside every other cost line, did not justify continued spending at previous levels. The platform remains active, but its role has narrowed.
The math that now governs everything
Canal Plus has tied the acquisition to explicit financial outcomes. More than EUR 400 million in annual cost synergies by 2030. Over EUR 300 million in additional free cash flow. An estimated EUR 8 billion global cost base under optimisation in 2025.
Those targets leave little room for businesses that absorb cash without predictable returns. Streaming platforms fall into that category. They demand ongoing content spend, continuous marketing, and constant technical maintenance. Returns arrive late, if at all.
EBITA synergies are expected to exceed EUR 150 million in 2026, climb above EUR 300 million in 2028, and reach more than EUR 400 million by 2030. Free cash flow impact follows the same direction, rising to EUR 300 million by 2030. Every unit inside the group is being judged against that curve.
Showmax inside a cost programme
Saada said Canal Plus would be careful not to lose valuable subscribers. That caution frames the cuts. Showmax is not being dismantled. It is being constrained.
Marketing spend is likely to be trimmed to markets with proven retention. Content budgets will lean harder on shared libraries and lower-cost formats. Technology investment will focus on stability rather than expansion.
The platform moves from growth vehicle to support layer. It exists to reduce churn and extend bundles, not to define strategy.
Africa did not change the economics
Showmax’s case always rested on scale across Africa. Population growth, mobile access, and local content were expected to carry the model. Canal Plus now serves more than 40 million subscribers following the acquisition and has stated an ambition to reach 50 million to 100 million over time.
That scale, however, does not dissolve the limits of streaming revenue. Average income per user remains tight. Payments are uneven. Content costs do not fall fast enough. These constraints shape returns long before subscriber ambition becomes relevant.
Canal Plus appears to accept that pay television and hybrid offerings align better with these conditions. Streaming alone does not.
Where savings are actually coming from
The early gains from the takeover underline priorities. Canal Plus has already achieved EUR 80 million in free cash flow savings in 2026. The sources are operational. Debt renegotiation. Hardware pricing. New content partnerships. Broadcast and IT consolidation.
Implementation costs to realise the broader synergies are modest. EUR 35 million in 2026. EUR 40 million in 2028. EUR 20 million in 2030. These are controlled expenses tied to integration, not open-ended digital bets.
Showmax did not feature as a driver of these savings. It appeared as an expense to be contained.
A platform with a narrower purpose
Showmax now sits within defined boundaries. It can support retention. It can extend group content reach. It cannot demand unlimited capital.
One likely outcome is deeper bundling with pay television products. Another is heavier reliance on Canal Plus libraries to avoid duplication. Either path reduces risk and caps spending.
The platform continues, but under supervision.
What this says about the market
This episode reflects a wider recalibration in media and technology. Growth narratives have given way to cash discipline. Products are expected to earn their place quickly.
For African media businesses, the message is direct. Audience size alone does not carry a platform. Revenue structure does.
Canal Plus will provide more detail with its annual results on 11 March. The direction is already visible. MultiChoice under new ownership is being reshaped around control, scale efficiency, and predictable returns.
Showmax remains part of the picture. It is no longer the picture itself.
[Secure Your Seat at Africa Tech Summit Nairobi 2026 | February 11–12 here] Use code TTRENDS10 at checkout to save 10% on your pass and join the leaders building Africa’s $1 trillion cross-border payment future.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
