Dip in MultiChoice's Subscription Base: 1.2 Million Customers Call it Quits
MultiChoice, South Africa's leading pay-TV giant, is currently undergoing a significant transformation following financial challenges and subscriber losses. By mid-2025, the company had lost over a million subscribers and reported a substantial loss of around R800 million (~$45 million).
The challenging environment has led to a strategic move, with France's Canal+ expressing interest in acquiring full ownership of MultiChoice. The South African Competition Tribunal conditionally approved Canal+’s approximately $3 billion takeover bid in July 2025.
The merger, expected to be finalised after approval from ICASA by October 8, 2025, will see Canal+ consolidate its position across Africa, combining its presence in 25 African countries with MultiChoice’s 14.5 million subscribers across over 50 sub-Saharan markets.
Key conditions imposed on the merger include a three-year moratorium on layoffs at MultiChoice, the establishment of LicenceCo, a new locally majority Black-owned company to hold MultiChoice’s South African broadcasting licenses, and a commitment by Canal+ to invest around R26 billion (~$1.4 billion) over three years in South Africa.
With Canal+’s backing, MultiChoice aims to stabilise its subscriber base and financial position by investing heavily in local content, infrastructure, and empowerment initiatives. The company hopes to leverage Canal+’s resources and pan-African reach while complying with South Africa’s regulatory and empowerment frameworks.
Despite the heavy losses, MultiChoice's streaming arm, Showmax, has seen active paying users increase by 44%. The company is focusing on local content (82 original releases) and exclusive NBCUniversal shows to drive growth.
However, MultiChoice will continue facing challenges from macroeconomic factors like currency volatility, affordability issues, piracy, and stiff competition from streaming services. The merger's success hinges on effective integration, regulatory compliance, and leveraging Canal+’s broader African network and resources to innovate and retain customers in an evolving media landscape.
In conclusion, MultiChoice is at a critical juncture, undergoing a transformative journey under new ownership designed to bolster its competitiveness and sustainability amid significant subscriber losses and a changing market environment.
The strategic move by MultiChoice, following financial challenges and subscriber losses, involves a potential acquisition by France's Canal+. This acquisition, expected to be finalized after regulatory approvals, will involve substantial investment from Canal+ into MultiChoice's technology, local content, and infrastructure.
The merger aims to strengthen MultiChoice's position in the business sector across Africa, leveraging Canal+’s resources and pan-African network to innovate, comply with regulatory frameworks, and retain customers in the evolving media landscape.
