Tuesday, January 23, 2024

South Africa streamers roll-out: What the new Showmax means for Max, Paramount+ and Peacock.


by Thinus Ferreira

MultiChoice's revamped Showmax streamer will start its roll-out today, 23 January, in app stores as a new app that will carry the content from Paramount and Warner Bros. Discovery (WBD) - but that doesn't mean that the Paramount+ video streaming services won't launch in South Africa as a stand-alone, although it's now extremely unlikely that NBCUniversal's Peacock and WBD's Max will.

MultiChoice has retooled its Showmax streamer in partnership with Sky in the United Kingdom and Comcast's NBCUniversal's Peacock streaming service which will make its official debut in app stores on 23 January.

Using NBCUniversal's Peacock subscription video-on-demand (SVOD) architecture to build a new Showmax after nine years to more effectively take on primarily global streamers like Netflix, Amazon Prime Video and Disney+ on the African continent, the likelihood is now drastically dimming that NBCUniversal will launch Peacock as a stand-alone streamer in South Africa or across sub-Saharan Africa.

The same goes for Max (formerly HBO Max) from Warner Bros. Discovery.

Here is why:

1. Peacock
With Comcast's NBCUniversal and Sky content already baked into the new Showmax, it's becoming ever-unlikely that Peacock as a late-market entrant will unfurl its streaming plumage in South Africa since its content is now funnelled through Showmax.

In a sense, the new Showmax literally is Peacock, just with a different name and colours.


2. Max
 The likelihood that Max will launch as its own video streamer in South Africa is now also extremely dim. WBD hasn't made Max available in the United Kingdom - a very comparable market to South Africa - precisely because of Sky. 

And remember that MultiChoice operates a lot like Sky. Because of existing agreements with Sky's traditional pay-TV business, WBD is giving its content like Discovery channels shows and HBO content to Sky for its pay-TV channels like Sky Atlantic and for on-demand viewing and streaming.

Since WBD has similar deals with MultiChoice and M-Net in South Africa, that Discovery and HBO content from America will continue to be seen on linear TV like M-Net (DStv 101), on-demand on DStv Catch Up, and on streaming through the new Showmax.

There is a decreasing need now for WBD to launch Max - and take onboard the cost involved - in South Africa when it can reside as an "HBO" tile within the new Showmax carousel.  


Paramount+
3. But what about Paramount's Paramount+ which is also a late-market entrant?

Paramount is launching Paramount+ around the world as a so-called "hard bundle" as a streaming service it is making available in partnership with traditional pay-TV operators as it adds Paramount+ to conventional pay-TV packages. Indeed Paramount+ is available in the United Kingdom already, although Paramount also license content and pay-TV channels to Sky.

In South Africa - and indeed across sub-Saharan Africa - Paramount and Paramount Africa have been running traditional pay-TV channels on MultiChoice's DStv for years. 

Paramount has also made sought-after Paramount+ content like Halo available on Showmax, and indeed will continue to, like the second season of Halo, launching on 8 February, which will be available on the new Showmax.

At MultiChoice's media briefing for the new Showmax at its MultiChoice City headquarters in Randburg last Monday, Katherine Liu, executive vice president and COO of Paramount international markets, said "MultiChoice and Paramount have had a long and successful partnership for over 15 years and we have a long track record of working together to bring African audiences the best of our award-winning and globally beloved content".

"As a result, Paramount content is already available on Showmax but we are super excited to partner with you in this new launch and to participate in the streaming-for-Africa revolution."

"Africa is one of the most exciting and diverse places on Earth. You have some of the youngest and most engaging entertainment audiences anywhere and in Showmax we are confident that we have a partner that understands Africa and that can speak to the heart of local audiences in East, West, Southern and Central Africa."

"We can't wait to bring the best of Hollywood content and content from all around the world to Showmax customers, wherever you happen to be - whether it's at home or on the go."

Natalie Mdladla, Paramount Africa spokesperson, in a media query was asked for an update on Paramount+ launching in South Africa, and if Paramount+ would still launch as a stand-alone streamer if Showmax already carries Paramount content, but she didn't respond.


MultiChoice: Not the end of adding stand-alone streamers 
Besides its own Showmax and nowits new Showmax, MultiChoice already carries streamers like Netflix, Amazon Prime Video and Disney+ on its decoders which will also be included on products like DStv Glass (a bespoke TV set with a decoder built-in) which is likely to launch towards the end of the year.

During the new Showmax media briefing, I asked MultiChoice whether the launch of the new Showmax - with WBD and its HBO content, and Paramount with its Paramount+ content - means that MultiChoice won't be adding further streamers as apps like Max and Paramount+ separately, and will now just funnel all their content through Showmax.

"No, that's not necessarily the case," Marc Jury, MultiChoice SA CEO and interim Showmax CEO said.

"This goes to the beauty of what we've got between DStv and Showmax and having them all under one family."

"There's a big plan internally of how we hunt as a pack where DStv is more on the aggregation side and I think you'll see a lot of that play out over the course of the next 12 months - I don't want to give away too much in terms of the announcements that will come there."

"So to answer your question, no."