MTN Group, Africa’s largest telecom operator, is venturing into the competitive world of video streaming in a strategic move aimed at reversing two years of financial downturns. On April 7, MTN announced a partnership with Synamedia, a global video software firm, to launch a streaming platform targeting mobile and broadband users across Africa.
The initiative seeks to drive digital inclusion and increase access to diverse content. However, this bold shift represents a high-risk endeavor that may further strain MTN’s financial position rather than provide relief.
Over the last two years, MTN has recorded post-tax losses totaling $398 million (₦537.4 billion), prompting the telco to diversify beyond its traditional services. Yet, video streaming is a capital-intensive business, particularly in Africa, where infrastructure, content licensing, delivery, and user acquisition demand heavy investment.
The African streaming industry has proven volatile. In South Africa, at least six local platforms have shut down due to unsustainable operating costs and limited reach. Regionally, telcos like Airtel (Airtel TV), Telkom (TelkomOne), Vodacom (Video Play), and Cell C (Black) have all exited the space. Even global platforms face setbacks—BritBox announced its exit from South Africa in 2024, and both Netflix and Amazon Prime Video have scaled back original content investment in Nigeria.
MTN’s new service enters a market already dominated by major platforms with extensive content libraries and global infrastructure. Netflix spent over $16.2 billion on content in 2024, and Amazon committed $18.2 billion. Both continue to expand their African footprint with locally produced content in regional languages. Showmax, backed by MultiChoice, recently relaunched with support from Comcast and NBCUniversal, combining local storytelling with international partnerships.
To compete, MTN must not only deliver quality content but also guarantee seamless user experience—without the scale or capital enjoyed by global rivals.
Despite Synamedia’s cloud-based tech promising scalability and personalization, MTN will still face high costs. Local content licensing, marketing, and affordable data offerings will be key to gaining traction in price-sensitive markets such as Nigeria, Ghana, and South Africa.
The company has pledged to localize content per market—a smart approach, but one that requires deep cultural understanding, regional licensing deals, and possibly funding original productions, all of which are financially demanding.
MTN plans to employ a mixed revenue model—subscriptions, ad-supported content, and free channels with targeted advertising. However, these strategies carry risks. Subscription fatigue is rising globally, and African consumers are particularly sensitive to recurring costs. Ad-based revenue models also depend on high user numbers and a mature digital ad market, which Africa still lacks.
MTN’s leadership views this move as a natural extension of its digital transformation strategy. “We see a unique opportunity to transform video consumption in Africa with high-quality, accessible, and relevant content,” said Selorm Adadevoh, Group Chief Commercial Officer, MTN Group.
With over 280 million subscribers in 16 markets, MTN has a solid user base to build on. Yet, success will depend on its ability to maintain focus, invest consistently in content and technology, and navigate regulatory and economic headwinds. “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,” added Paul Segre, CEO of Synamedia.
MTN’s move into streaming could help democratize content and enhance digital engagement across Africa. However, the initiative arrives at a time when even the most well-resourced companies struggle to break even in streaming. For MTN who is already weighed down by heavy losses, the margin for error is slim. Whether this pivot becomes a digital success story or a costly misstep remains to be seen.
