Peacock, the streaming platform set to host the revamped Showmax 2.0, has announced its first price increase since launching in 2020. The changes, effective from August 2023, will impact new and existing users.The ad-supported Premium plan will increase by $1 to $6 per month, while the ad-free Premium Plus tier rises by $2 to $12. Annual subscriptions will also cost more, with Premium moving to $60 and Premium Plus to $120 per year. Earlier this year, Peacock eliminated its free-tier subscription, further signaling shifts in its pricing model.The decision comes as Peacock faces mounting losses despite steady subscriber growth. While it reached 22 million subscribers as of April 2023, rising programming costs resulted in losses exceeding $700 million.
Implications for Showmax 2.0
In a major partnership announced earlier this year, MultiChoice joined forces with global media companies to launch Showmax 2.0, built on Peacock’s advanced streaming technology. The revamped service, expected to debut by March 2024, combines MultiChoice’s local content with international programming to rival major streaming platforms in Africa.However, Peacock’s new pricing structure raises concerns for the platform’s competitiveness. With monthly fees approaching those of established players like Hulu ($7.99 with ads, $14.99 without), Max ($9.99–$19.99), and Netflix ($6.99–$19.99), will Showmax 2.0 be able to attract price-sensitive African audiences?This is particularly relevant as content availability often outweighs technology in determining user preferences. Showmax’s exclusivity over sports rights like the English Premier League and the Indian Premier League is currently a competitive advantage. But if rivals like Netflix secure similar deals, maintaining subscriber loyalty might become more challenging.
Financial Goals Under Pressure
MultiChoice has ambitious targets for Showmax, projecting $1 billion in revenue within five years, profitability by 2027, and significant growth in production output by 2033. However, the rising costs of hosting on Peacock and ongoing investments into content could limit the ability to offer competitive pricing.With the streaming industry becoming increasingly competitive and price-sensitive, it remains to be seen how Showmax 2.0 will navigate these challenges while balancing cost efficiency and consumer expectations.
