Africa's largest telecom operator, MTN Group, is making a bold move into the video streaming market, partnering with Synamedia to launch a new service tailored to mobile and broadband users across the continent. The move aims to drive digital inclusion and enhance content accessibility, but it's 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, prompting a search for alternative revenue sources beyond its core telecom services. However, the video streaming market is notoriously expensive, especially in Africa, where infrastructure, content licensing, and customer acquisition costs are high. The industry's track record on the continent isn't encouraging either, with several local streaming platforms shutting down due to high operating costs and limited market reach.

MTN's new streaming service will face stiff competition from established players 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. 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.

Building a successful streaming business takes more than just reach – it requires sustained investment, content excellence, and strategic focus. MTN 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. The cost of content and connectivity will also be a significant challenge, as MTN will need to license local and international content, market the platform, and subsidize data costs in regions where internet affordability remains a barrier.

The platform will rely on multiple revenue models, including subscriptions, ad-supported content, and free channels with targeted ads. While these options provide flexibility, they also carry risks. Subscription fatigue is already a global issue, and in Africa – where disposable income is limited – consumers are particularly cautious about monthly recurring charges. Ad-supported streaming, on the other hand, requires significant viewership to attract advertisers. Digital advertising in Africa, although growing, is still underdeveloped compared to Western markets.

MTN's pivot to streaming can be seen as part of a broader strategy to diversify its offerings and leverage its massive subscriber base across Africa. However, the question remains whether this move distracts from MTN's core operations, especially when it faces pressure from inflation, currency devaluation, and regulatory hurdles in several markets. With over 280 million users across 16 markets, MTN certainly has a built-in audience to tap into, but building a successful streaming business takes more than reach – it requires sustained investment, content excellence, and strategic focus.

In conclusion, MTN's entry into the video streaming market is a bold move, but it's a high-risk, high-reward strategy. The company will need to navigate significant challenges, including stiff competition, high operating costs, and limited market reach. If successful, MTN's streaming service could drive digital inclusion and enhance content accessibility across Africa. However, if it fails, it could deepen the company's financial woes and distract from its core operations.