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  MTN, Africa’s biggest telecommunications company, says it’s lining up a streaming platform for the continent’s market for entertainment. Its disclosure indicates that it will be partnering with Syamedia, a UK-based video technology provider, to actualise the plan.
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When it goes live, the streaming service will cater to mobile and fibre broadband users. The telecoms giant, which currently has a presence in over 20 countries, is hoping to leverage its reach and resources to challenge existing players like Netflix, Showmax, and Amazon Prime. The new platform is currently expected to serve up a mix of live TV and on-demand content. MTN intends to monetise it via subscriptions and advertisements. There are indications that the company is banking on a pricing advantage to disrupt the status quo of the African market for streaming services.

Other Clues about MTN’s Strategy

MTN wants to offer content that’s tailored to each country, rather than launch with a generalised outlook. It will focus primarily on channels, shows, and films that reflect the culture of local audiences. The aim is to deliver entertainment in ways that are true to the concerns and aspirations of viewers in each country. Because MTN already has a strong footing in Africa, it is taking advantage of its broad and deep networks to rapidly build up market share. It has done something similar with its Mobile Money (MoMo) payment service bank, which it launched in 2021. By 2023, that service had garnered 5.3 million users. It also seems to be eyeing a possibly large number of Africans who can afford streaming services but haven’t signed up yet. The company is optimistic that its reach can help it capture that base ahead of current market leaders. However, MTN Group CEO, Ralph Mupita, claims that they aren’t looking to compete with Netflix, Showmax, or others in the space. According to him, its service will be “complementary and focused on local content”, in contrast to Netflix, which has a more global offering.

Why is MTN Launching a Streaming Platform?

MTN sees an opportunity in this space. It likely has good reasons to venture into it, as its understanding of the local market almost certainly derives from its own users’ data. In Nigeria, which contributes its largest subscriber base, revenue from streaming video on demand (SVOD) services is projected to grow at a compounded annual rate of 9.46% up until 2027. By that time, total revenues from Nigeria for those services may reach ₦1.21 billion. There’s an ongoing shift away from traditional pay TV and towards online entertainment. This trend is fueled in part by SVOD being less expensive (on average) than the former. With high inflation persisting in countries like Nigeria, consumers increasingly prefer to watch movies, documentaries, and other shows on comparatively lower-cost streaming platforms. If MTN gets its pricing and content strategy right, it could drive these numbers up and dominate the market by expanding it.
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Can MTN Succeed?

The GSM Association estimates that there are over 500 million mobile subscribers in Africa. Statista believes that there will be 786 million subscribers on the continent by the end of the decade. This data would seem to indicate that there’s a huge potential market for streaming here, one that would reward MTN’s foray into the space. Added to this, the population of Africa is quite young, with a median age of just 19.2 years. Younger people tend to be more tech-savvy, so there’s apparently potential for growth in the streaming market too. However, the terrain isn’t as rosy as those numbers may indicate. At the moment, Africa makes up around 1% of the global market for SVOD services. Penetration rates are very low and are only expected to cross 7% by 2029. Even though service prices are lower in the region compared to elsewhere in the world, there’s still a perception that a majority of people here can’t afford it. Also, while MTN claims that it’s not competing with others in the industry, it will have to battle them for market share. This is especially true for platforms that have a strong local focus, like Showmax and Viu. Showmax currently ranks second in terms of subscriber numbers, just behind Netflix. They are projected to have 3.7 million and 6.9 million subscribers, respectively, by 2029. Breaking into this market may be challenging, even with the reach and brand recognition that MTN undoubtedly has. Despite the earlier growth of its payment service bank, it has now scaled back its expansion efforts, partly due to intense competition from Opay, Moniepoint, and others. It could face similar impediments on the streaming front.
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How Things Could Play Out

Despite the abundance of data and predictive tools, things could turn out differently from what is being predicted. If rampant inflation continues and exchange rates remain unstable, costs will climb for both pay TV and streaming. In that scenario, MTN may win by pulling its pricing lever and leaning into its extensive network. But the company may also find that playing in this market doesn’t yield enough to be worth staying in. Whether MTN’s journey into SVOD proves to be a success or not is something only the unfolding of time will reveal.
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This article was first published on 4th May 2025
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ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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