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DStv owner MultiChoice has inked a deal with US media giant Comcast, that will see the owner of NBCUniversal and Sky take a 30% stake in its streaming platform Showmax.
A new version of Showmax with US technology and a plethora of new content will be launched.
MultiChoice will own 70% of Showmax, with an extensive pipeline of international content from NBCUniversal and Sky to be complemented by third-party content from HBO, Warner Brothers International and Sony, along with live English Premier League football.
The "new" Showmax will continue to offer local content from MultiChoice's Mzansi Magic, Africa Magic and Maisha Magic.
MultiChoice said that Comcast's technology, particularly NBCUniversal's Peacock platform - which has over 20 million subscribers in the US - will be used, which would mean the new Showmax group would be "exceptionally well placed to scale rapidly and become the leading platform in Africa".
"Due to competitive sensitivities, specifics about the unique service offering, how existing subscribers can seamlessly migrate to the new service and detailed pricing will be announced closer to the launch date," it said. The transaction, still subject to certain conditions, is expected to be concluded in April.
Comcast, through its subsidiary NBCUniversal, will inject cash for a 30% equity stake in a new UK registered-company, EarthCo, which will trade as Showmax, MultiChoice said, without giving financial details.
"The global video media landscape has changed rapidly in recent years, led by broadband adoption and the growth of direct-to-consumer streaming platforms," it said.
"Although Africa has lagged somewhat, it is now approaching an inflection point in terms of broadband connectivity and affordability," MultiChoice said, meaning this was an appropriate time to step up its ambitions for subscription video-on-demand and internet-based media services.
MultiChoice launched Showmax in 2015. It doesn't provide detailed breakdowns of subscriber numbers for the service in its reports.
MultiChoice had 21 million subscribers at the end of September, 12.19 million of which were in Africa. Showmax is a paid service available as a standalone product or as a value-added service to DStv Premium subscribers and at a 50% discount to customers on certain lower-tier DStv packages.
Shares in MultiChoice, which is valued at over R62 billion on the JSE, were little changed on Thursday morning, having risen by just over 10% over the past year.
Click here for details on MultiChoice's shares as well as other info.
