MTN Group, Africa’s largest telecom operator, is making a daring wager: that it may possibly flip round its declining monetary fortunes by getting into the crowded, capital-intensive world of video streaming. On April 7, the telco partnered with Synamedia, a world video software program supplier, to roll out a brand new streaming service tailor-made to cellular and broadband customers throughout Africa. It’s a transfer that goals to drive digital inclusion and improve content material accessibility. Nevertheless it additionally represents a high-stakes gamble that would deepen MTN’s monetary woes as an alternative of assuaging them.

Over the previous two years, MTN has reported a mixed post-tax lack of $398 million (₦537.4 billion), prompting a seek for different income sources past its core telecom providers. But streaming is a notoriously costly enterprise, particularly in Africa. It requires substantial funding in infrastructure, content material licensing, content material supply networks, and aggressive buyer acquisition methods to achieve traction in an already saturated market.

The trade’s observe document on the continent isn’t encouraging both. In South Africa, the Movie and Publications Board disclosed that at the least six native streaming platforms have shut down as a result of excessive working prices and restricted market attain. Elsewhere throughout the continent, main telecom gamers have exited the area: Airtel TV, TelkomOne, Vodacom’s Video Play, and Cell C’s Black have all shuttered throughout the previous yr. Even worldwide platforms are struggling—in August 2024, BritBox introduced it could discontinue operations in South Africa, citing underperformance. Netflix and Amazon Prime Video have rolled again Nigerian authentic content material funding.

Competing with world streaming giants

MTN’s new streaming service will face stiff competitors from established platforms like Netflix, Amazon Prime Video, and Showmax, which have already carved out vital market shares throughout the continent. These platforms are backed by large content material libraries, world distribution networks, and deep pockets—benefits MTN presently lacks.

Netflix, for instance, spent over $16.2 billion on content material globally in 2024 and continues to put money into native African content material. It launched its first African authentic sequence in 2019 and has since added dozens of titles in languages akin to Yoruba, Zulu, and Swahili. Amazon, which spent $18.2 billion in 2024, has additionally made inroads into African content material, with a number of authentic productions centered on Nigerian and South African tales. Showmax, backed by MultiChoice, lately underwent a serious revamp with assist from Comcast and NBCUniversal, positioning itself as a hybrid platform with native relevance and worldwide content material partnerships.

In opposition to this backdrop, MTN’s foray into streaming would require greater than only a flashy launch. It might want to make investments persistently in compelling content material, consumer expertise, and dependable supply—with out the good thing about economies of scale that its world rivals take pleasure in.

The price of content material and connectivity

Constructing a streaming platform from scratch is pricey. Even with Synamedia’s cloud-based expertise, which gives scalability and personalised content material supply, MTN will nonetheless face steep prices. These embody licensing native and worldwide content material, advertising and marketing the platform, and subsidizing knowledge prices in areas the place web affordability stays a barrier.

In markets like Nigeria, South Africa, and Ghana, the place cellular knowledge remains to be comparatively costly for the typical consumer, streaming providers typically battle to realize mass adoption except closely backed. MTN could need to bundle its streaming choices with knowledge incentives, additional consuming into its margins.

Furthermore, content material that resonates with native audiences is crucial for fulfillment. MTN has promised to localize content material per market, tailoring programming to particular cultures, languages, and viewing habits. Whereas this can be a sound technique, it additionally means negotiating a number of licensing offers and doubtlessly funding authentic productions—a expensive enterprise for an organization already posting losses.

Monetization dangers in streaming

The platform will depend on a number of income fashions: subscriptions, ad-supported content material, and free channels with focused advertisements. Whereas these choices present flexibility, additionally they carry dangers. Subscription fatigue is already a world challenge, and in Africa—the place disposable revenue is proscribed—shoppers are significantly cautious about month-to-month recurring expenses.

Advert-supported streaming, alternatively, requires vital viewership to draw advertisers. Digital promoting in Africa, though rising, remains to be underdeveloped in comparison with Western markets. For MTN to safe significant advert income, it should construct a platform with hundreds of thousands of lively customers—a course of that would take years and will by no means totally offset the prices of working the service.

A strategic play or a dangerous diversion?

MTN’s pivot to streaming will be seen as a part of a broader technique to diversify its choices and leverage its large subscriber base throughout Africa. 

“We see a novel alternative to rework video consumption in Africa with high-quality, accessible, and related content material,” mentioned Selorm Adadevoh, Group Chief Industrial Officer at MTN Group in a press release. “This partnership allows us to leverage cutting-edge expertise and deep buyer insights to boost leisure experiences and drive digital inclusion.”

With over 280 million customers throughout 16 markets, MTN actually has a built-in viewers to faucet into. However constructing a profitable streaming enterprise takes greater than attain—it requires sustained funding, content material excellence, and strategic focus.

“By profiting from the breadth of our built-in, cloud-based portfolio to shortly deploy new providers at scale, MTN will have the ability to create a groundbreaking set of choices for patrons and viewers that can drive new revenues,” Paul Segre, Synamedia CEO, mentioned.

There’s additionally the query of whether or not this transfer distracts from MTN’s core operations, particularly when it faces strain from inflation, forex devaluation, and regulatory hurdles in a number of markets. 

Remaining ideas

By localizing content material and making streaming extra accessible, MTN would be a part of a number of native and worldwide providers democratizing leisure. Nonetheless, the trail ahead is fraught with challenges. In an trade the place even probably the most well-capitalized gamers battle to show a revenue, MTN’s streaming gamble may come at a excessive price—one that will show tough to recoup if the platform doesn’t acquire traction shortly.

For a corporation nonetheless reeling from multi-million-dollar losses, the margin for error is razor-thin.