Multichoice has reached a deal with Netflix and Amazon to broadcast its content to its paying subscribers. The deal comes as a surprise as Multichoice's Showmax continues to struggle in the video streaming market where Netflix has been dominant in foreign and African markets.
The cable tv made the disclosure in its financial statements. Multichoice had tried to compete with Netflix through Showmax, but the market hasn't embraced it as its foreign competitors. According to the Chief Financial Officer of the company, Tim Jacobs, Multichoice will get a commission from revenue generated.
“What would typically happen is we would get a commission on whatever revenue gets generated by customers coming from our platform," Jacobs told Bloomberg in a phone interview. Adding that, "There is little overlap between content on Multichoice’s Showmax, that is now 50% local, and a service like Netflix at the moment, hence we find deals with other video-on-demand services complementary,”
Multichoice Revenue Shoots Through The Roof
Meanwhile, the Nigerian arm of Multichoice recorded 8% year-on-year subscribers growth in Nigeria, making it the highest in its Sub-Saharan Africa market, while it recorded losses in Zimbabwe (41%), Zambia 11%, Angola 2%, and Kenya remained constant.
Nigeria remained one of its strongest markets in Africa, recording a 22% growth in subscribers' revenue. Meanwhile, a 5% growth was disclosed in Multichoice total subscriber base which increased to 19.5 million. Also, revenue grew by 3% to hit R51.4 billion, while core headline earnings climbed by 38%.
Fakoyejo Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ)....
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