The recent content deal between Netflix and HBO has raised concerns for Showmax, which has been the exclusive provider of HBO content in Africa. Netflix has started streaming popular HBO shows like "Insecure," "Ballers," and "Band of Brothers" after striking a deal with Warner Bros. Discovery, HBO's parent company. This marks the first time Netflix offers HBO TV shows, which are typically exclusive to Warner Bros. Discovery's Max service or other Netflix rivals. Showmax, owned by Multichoice, had secured exclusive rights to broadcast and stream HBO shows in South Africa and other markets since 2020. However, their offering of the HBO series "House of Dragons" two months after its airing on MNet sparked dissatisfaction among subscribers. The show underperformed on MNet, while achieving success in the US and the UK. Showmax's future success is dependent on exclusive content from partners like HBO and WarnerBros. The recent deal between HBO and Netflix may jeopardize Showmax's business model, especially if similar agreements are made with other streaming platforms. Showmax 2.0, a platform powered by Peacock and owned by Multichoice, COMCAST, and SKY, relies on exclusive content from partners. Showmax has stated that the Netflix-HBO agreement will not affect its current offerings. Multichoice is doubling down on Showmax and investing in it for the foreseeable future, as indicated in their financial results. Canal+, a French broadcasting giant, continues to purchase Multichoice's ordinary shares and now owns 31.7% of the company, approaching the mandatory offer threshold of 35%.

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