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

MTN Group, Africa’s largest telecom operator, is making a bold bet: that it can turn around its declining financial fortunes by entering the crowded, capital-intensive world of video streaming. On April 7, the telco 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. Get the best African tech newsletters in your inbox Country Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Antarctic Territory British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Canton and Enderbury Islands Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos [Keeling] Islands Colombia Comoros Congo – Brazzaville Congo – Kinshasa Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Côte d’Ivoire Denmark Djibouti Dominica Dominican Republic Dronning Maud Land East Germany Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories French Southern and Antarctic Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Honduras Hong Kong SAR China Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Johnston Island Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau SAR China Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Metropolitan France Mexico Micronesia Midway Islands Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar [Burma] Namibia Nauru Nepal Netherlands Netherlands Antilles Neutral Zone New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island North Korea North Vietnam Northern Mariana Islands Norway Oman Pacific Islands Trust Territory Pakistan Palau Palestinian Territories Panama Panama Canal Zone Papua New Guinea Paraguay People’s Democratic Republic of Yemen Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Réunion Saint Barthélemy Saint Helena Saint Kitts and Nevis Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Korea Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria São Tomé and Príncipe Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands U.S. Miscellaneous Pacific Islands U.S. Virgin Islands Uganda Ukraine Union of Soviet Socialist Republics United Arab Emirates United Kingdom United States Unknown or Invalid Region Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Wake Island Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Åland Islands ?> Gender Male Female Others TC Daily Events <!– Next Wave –> <!– Entering Tech –> Subscribe The cost of content and connectivity Building a streaming platform from scratch is expensive. Even with Synamedia’s cloud-based technology, which offers scalability and personalized content delivery, MTN will still face steep costs. These include licensing local and international content, marketing the platform, and subsidizing data costs in regions where internet affordability remains a barrier. In markets like Nigeria, South Africa, and Ghana, where mobile data is still relatively expensive for the average user, streaming services often struggle to achieve mass adoption unless heavily subsidized. MTN may have to bundle its streaming offerings with data incentives, further eating into its margins. Moreover, content that resonates with local audiences is essential for success. MTN has promised to localize content per market, tailoring programming to