Capitec and Showmax partner to offer South Africans a game-changing offering. The two companies established a cooperation to lower MultiChoice-owned platform subscription fees for the bank’s 12 million active app customers.
Starting this week, Capitec users can buy Showmax streaming vouchers through the banking app for half the price. The entry-level Showmax Entertainment Mobile bundle will cost R22 per month, while the R49 per month Showmax Entertainment package will be available across all devices.
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Capitec and Showmax: A New Era in South Africa
The strategic agreement brings two of South Africa’s top brands together. Capitec, noted for its digital-first strategy and pricing, has continually grown beyond banking services. Showmax has pioneered local streaming with a diversified content inventory for a broad audience.
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This partnership is likely to greatly affect South Africa’s streaming business. Capitec and Showmax are directly competing with global streaming giants like Netflix, which has been steadily raising its subscription fees by making premium material easier for a wide variety of customers to access.
The move is also a strategic response to the growing South African streaming market competition. With rivals like Disney+, Amazon Prime Video, and Apple TV+ gaining traction, Showmax has been pressured to maintain its subscriber base and attract new customers. The partnership with Capitec offers a compelling value proposition that could significantly boost Showmax’s market share.
By providing benefits beyond standard banking services, the alliance gives Capitec a chance to improve the value it offers to customers. The bank is trying to become a one-stop shop for its customers’ banking and lifestyle needs by offering cheap entertainment.
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Capitec and Showmax: Setting New Standards in Streaming
Capitec and Showmax’s cooperation will probably establish a new standard for joint ventures between streaming media and financial institutions. Increasingly, such alliances should show up in the next months and years as the struggle for consumer attention gets increasingly fierce.
Showmax has been increasing its content inventory and investing in originals to compete with global streaming titans. The Capitec relationship complements the platform’s attractiveness to South African audiences.
Although the partnership is currently only focussing on South Africa, there is talk that it could grow to include other African countries where both Capitec and Showmax are present. If this succeeds, streaming could significantly affect how streaming works in Africa.
Observing the partnership’s influence on the South African streaming market’s competitive dynamics, consumer behaviour, and subscription numbers will be intriguing as it progresses.