As the pay-TV industry evolves, South Africa’s MultiChoice Group is facing a troubling decline in subscribers domestically and across various African markets, where it offers DStv, GOtv, and Showmax. Conversely, Groupe Canal+, the leading pay-TV operator in French-speaking Africa, is experiencing steady growth. Canal+ is currently pursuing a takeover of MultiChoice at USD$6.6 per share in cash.
Canal+ prides itself on being dominant in French-speaking sub-Saharan Africa, serving nearly half of the region’s electrified households. Their acquisition of MultiChoice would reinforce their status as the largest European-based market player worldwide and solidify their leadership on the African continent. The company is aiming for 50 million pay-TV subscribers globally by 2030.
In its latest results for the six months ending September 2024, MultiChoice reported an 11% decline in subscribers, from 16.7 million to 14.9 million. This downturn was attributed to an “extremely hostile operating environment,” leading to a 10% drop in revenue. In contrast, Canal+ recorded a 4% increase in subscribers, growing from 9.4 million to 9.7 million in its Africa and Asia segment, with revenue rising by 3.2% to just over 1.1 billion.
The contrasting performance of these two companies might be rooted in their strategic choices. MultiChoice has diversified into non-broadcasting activities, including ventures in insurance and fintech, which have produced mixed results. Notably, its sports betting platform, Kingmakers, faced significant foreign exchange losses due to the depreciation of Nigeria’s naira.
Maxime Saada, CEO of Canal+, has criticised MultiChoice’s fragmented market strategy, arguing that the company’s various offerings compete against each other rather than work in synergy. While MultiChoice struggles with its core pay-TV business, Canal+ maintains a unified approach across its platforms, positioning itself for continued success. As the media landscape shifts, the future of MultiChoice and Canal+ will hinge on how effectively they can navigate these contrasting strategies.
