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MTN Group’s streaming gamble could come at a high cost

April 8, 2025

MTN Group’s streaming gamble could come at a high cost as they venture into the crowded, capital-intensive world of video streaming in a bid turn around its declining financial fortunes.

On April 7, Africa’s largest telecom operator partnered with Synamedia, a global video software provider, to roll out a new streaming service tailored to mobile and broadband users across Africa.

It’s a move that aims to drive digital inclusion and enhance content accessibility. But it also represents a high-stakes gamble that could deepen MTN’s financial woes instead of alleviating them.

Over the past two years, MTN has reported a combined post-tax loss of $398 million (₦537.4 billion), prompting a search for alternative revenue sources beyond its core telecom services.

Yet streaming is a notoriously expensive business, especially in Africa. It requires substantial investment in infrastructure, content licensing, content delivery networks, and aggressive customer acquisition strategies to gain traction in an already saturated market.

The industry’s track record on the continent isn’t encouraging either. In South Africa, the Film and Publications Board disclosed that at least six local streaming platforms have shut down due to high operating costs and limited market reach.

Elsewhere across the continent, major telecom players have exited the space: Airtel TV, TelkomOne, Vodacom’s Video Play, and Cell C’s Black have all shuttered within the past year.

Even international platforms are struggling. In August 2024, BritBox announced it would discontinue operations in South Africa, citing underperformance. Netflix and Amazon Prime Video have rolled back Nigerian original content investment.

Competing with global streaming giants

MTN’s new streaming service will face stiff competition from established platforms like Netflix, Amazon Prime Video, and Showmax, which have already carved out significant market shares across the continent.

These platforms are backed by massive content libraries, global distribution networks, and deep pockets—advantages MTN currently lacks.

Netflix, for example, spent over $16.2 billion on content globally in 2024 and continues to invest in local African content. It launched its first African original series in 2019 and has since added dozens of titles in languages such as Yoruba, Zulu, and Swahili.

Amazon, which spent $18.2 billion in 2024, has also made inroads into African content, with several original productions focused on Nigerian and South African stories.

Showmax, backed by MultiChoice, recently underwent a major revamp with support from Comcast and NBCUniversal, positioning itself as a hybrid platform with local relevance and international content partnerships.

Against this backdrop, MTN’s foray into streaming will require more than just a flashy launch. It will need to invest consistently in compelling content, user experience, and reliable delivery—without the benefit of economies of scale that its global rivals enjoy.

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