MTN announces Netflix challenger for Africa

MTN Group has entered a strategic partnership with video software provider Synamedia to develop a streaming platform tailored for mobile and fixed broadband subscribers across Africa.

While MTN did not announce a launch date, it said the service will leverage Synamedia’s cloud-based technologies to deliver live-streamed linear television and video-on-demand content.

The mobile operator said the platform will offer diverse monetisation models, including subscriptions, ad-supported content, and free streaming channels with targeted advertising.

Each market will benefit from a curated content strategy, thoughtfully adapted to local cultures, languages, and viewing habits, MTN said.

This would ensure deep relevance and strong audience resonance across the continent.

MTN’s announcement puts it on a collision course with Showmax and its partnership with American media giant Comcast.

MultiChoice entered into a deal with Comcast subsidiary NBCUniversal Media and Sky in April 2023 to turn Showmax into Africa’s leading video-on-demand service.

NBCUniversal acquired a 30% stake in Showmax and supported it by licensing content from its Peacock, NBCUniversal, Universal Pictures, and Sky platforms.

Showmax’s ambition is to generate $1 billion in net revenue by 2028 and reach trading profit breakeven during 2027.

As part of its strategy, Showmax launched a mobile-only plan allowing subscribers to livestream all English Premier League football games.

Besides hoping to challenge Showmax, this is not the first time MTN has attempted a video streaming service.

The mobile network operator launched MTN FrontRow on 30 December 2014. It offered a subscription video-on-demand service for R179 per month as well as separate movie rentals.

MTN FrontRow later rebranded as VU and dropped its subscription fee to R99 to compete with Showmax and Netflix.

MTN shut down VU on 3 May 2017. It notified subscribers about the shutdown the day before.

Just over a year before pulling the plug, MTN had reported in its full-year financial results for 2015 that VU was performing below expectations.

However, MTN believes that this time around will be different.

“We see a unique opportunity to transform video consumption in Africa with high-quality, accessible, and relevant content,” said MTN Group chief commercial officer Selorm Adadevoh.

“This partnership enables us to leverage cutting-edge technology and deep customer insights to enhance entertainment experiences and drive digital inclusion.”

Synamedia CEO Paul Segre said smartphone owners across Africa will be able to enjoy innovative linear TV and on-demand video thanks to MTN’s leadership and innovation.

“By taking advantage of the breadth of our integrated, cloud-based portfolio to quickly deploy new services at scale, MTN will be able to create a groundbreaking set of offerings for customers and viewers that will drive new revenues,” Segre promised.