(Ecofin Agency) - MTN Group, the South African telecommunications giant, has announced a partnership with UK-based video software provider Synamedia to develop a new streaming platform. This move is part of MTN’s broader strategy to rapidly diversify its business and establish itself as a leading tech company across Africa.

The new platform will offer a mix of linear TV and on-demand content, with several monetization options, including subscription models, ad-supported content, and free ad-supported streaming channels. The platform will be tailored to the local markets, offering content that resonates with the cultures, languages, and viewing habits of different regions to ensure strong relevance and appeal to local audiences.

This announcement comes just five months after the launch of MTN Ads, a digital advertising platform developed in partnership with Aleph. MTN also revealed plans in July 2024 to build a Tier 4 neutral data center in Lagos, Nigeria. Moreover, the company has empowered its infrastructure arm, Bayobab (formerly MTN GlobalConnect), to create a world-class, open digital infrastructure platform accessible to both MTN and third-party operators.

With this new partnership, MTN is positioning itself to tap into the rapidly growing streaming market in Africa. According to Statista, the streaming market in Africa is projected to generate $5.4 million in revenue by 2025, with that figure expected to rise to $7.1 million by 2029. This venture will help MTN diversify its revenue streams while benefiting from the rising internet consumption driven by increased use of its services.

“We see a unique opportunity to transform video consumption in Africa with high-quality, accessible and relevant content,” said Selorm Adadevoh, Chief Commercial Officer of MTN Group. He stated that the partnership will allow the company to leverage cutting-edge technology and deep customer insights to enhance entertainment experiences and promote digital inclusion.

However, MTN will face significant competition in the streaming space, particularly from global players like Netflix, Prime Video, and Showmax, as well as local telecoms such as Airtel Africa, which has already launched its own streaming service, Airtel TV.