MultiChoice
MultiChoice Group Limited is Africa's leading entertainment platform and the continent's largest pay television operator, delivering video content via satellite, digital terrestrial, and streaming services to sub-Saharan African markets.[1][2] Headquartered in Randburg, South Africa, it operates under prominent brands such as DStv for premium satellite TV, GOtv for affordable digital terrestrial television, and Showmax for on-demand streaming, serving over 23.5 million households across 50 countries.[1] The company's mission centers on enriching lives by entertaining, informing, and empowering communities through localized content, technological innovation, and support for the African creative industry.[1] With origins tracing to the 1985 establishment of M-Net as South Africa's first pay-TV service by Naspers and partners, MultiChoice formally launched in 1995, evolving from a single-channel provider into a diversified media group that has become a major employer and economic contributor in Africa.[3] Key achievements include pioneering direct-to-home satellite broadcasting in the region and expanding access to premium international and local programming, though the company has encountered defining challenges such as subscriber attrition—totaling a 1.2 million drop in fiscal year 2025 amid economic headwinds, currency fluctuations, and infrastructure issues like power outages—resulting in a 9% revenue decline to USD 2.87 billion.[4] In a pivotal development, French broadcaster Canal+ completed its approximately $2 billion acquisition of MultiChoice in September 2025, securing majority ownership and integrating it into a broader pan-African media strategy.[5][6]
History
Founding and early satellite broadcasting (1983–1995)
In 1985, South African media company Naspers, in partnership with other local media businesses, established M-Net (Electronic Media Network) as Africa's first subscription-based pay television service, with Koos Bekker leading the founding team.[7][8] M-Net launched on 1 October 1986, broadcasting an encrypted analogue signal for a few hours each evening via microwave distribution to subscribers in major urban centers, requiring dedicated decoders to unscramble the feed.[9] This marked South Africa's entry into commercial pay television, offering premium movies, series, and sports content amid limited free-to-air options dominated by the state broadcaster SABC.[10] By the early 1990s, M-Net had expanded its programming and subscriber base, prompting the creation of MultiChoice in 1993 as a dedicated subscriber management arm to handle billing, decoder distribution, and service operations separately from content production. Microwave delivery remained the primary method for domestic viewers, limiting reach to line-of-sight areas and constraining channel capacity due to analogue constraints, while international expansion began via shared satellite feeds for African markets.[11] The shift to satellite broadcasting accelerated in 1995 with the launch of DStv (Digital Satellite Television) on 6 October, introducing digital compression technology that enabled MultiChoice to offer up to 16 initial channels—expanding to 24 by early 1996—and serve remote households without microwave infrastructure.[12][13] This made DStv the second digital direct-to-home satellite service globally and the first outside the United States, utilizing the PAS-4 satellite positioned over the Indian Ocean for sub-Saharan coverage.[3] Decoder sales met expectations at launch, signaling strong early adoption despite the higher upfront costs of satellite dishes and digital set-top boxes compared to analogue alternatives.Pan-African expansion and digital transition (1996–2018)
Following the launch of DStv as a digital satellite service in South Africa on 6 October 1995, MultiChoice accelerated its Pan-African expansion in 1996 by transitioning analogue broadcasts—previously introduced in over 20 countries in 1992—to digital satellite platforms across sub-Saharan Africa.[14] This shift enabled broader reach, with offices established in markets including Namibia, Botswana, Ghana, Nigeria (where operations began in 1993 via partnership), Tanzania, Uganda, Kenya, and Zimbabwe by the mid-1990s.[3][15] Subscriber numbers in South Africa alone grew from 1.0 million in 1996, reflecting initial momentum from enhanced channel offerings and improved signal reliability.[16] Throughout the 2000s, MultiChoice deepened its footprint by launching localized services and investing in infrastructure, such as uplink facilities and content hubs, to serve diverse linguistic and cultural demands in Anglophone, Francophone, and Lusophone Africa.[17] By the mid-2010s, the company operated in approximately 50 countries, with DStv packages tailored for markets like Nigeria and Kenya, where sports and international programming drove adoption.[17] Technological enhancements included the introduction of South Africa's first high-definition television (HDTV) channel on DStv in August 2008, expanding to more HD content amid rising bandwidth capacities. The digital transition advanced with the 2011 launch of GOtv, a low-cost digital terrestrial television (DTT) service targeting mass-market households without satellite dishes, debuting in Nigeria in October and rolling out across East and West Africa.[3] This complemented DStv's satellite model by leveraging DTT spectrum for affordability, adding millions of subscribers in underserved areas amid continental digital migration efforts. In 2015, MultiChoice introduced Showmax, an over-the-top (OTT) streaming platform offering on-demand video, initially focused on mobile and broadband users to adapt to internet proliferation.[3] By 2017, total active subscribers across Africa reached 13.5 million, underscoring the success of hybrid digital strategies amid channel growth from 16 in 1995 to over 140 packages.[3][12]Initial public offering and operational streamlining (2019–2023)
In February 2019, MultiChoice Group completed its initial public offering on the Johannesburg Stock Exchange, listing under the ticker symbol MCG on 27 February with shares opening at R95.50, yielding an initial market capitalization of approximately R43 billion (around $3 billion at prevailing exchange rates).[18][19] The IPO followed its unbundling from parent company Naspers in 2018, enabling independent access to capital markets for growth initiatives while retaining focus on core pay-TV and emerging streaming operations across South Africa, the rest of Africa, and related subsidiaries like Showmax and Irdeto.[20] This marked the first major JSE listing of 2019, amid a challenging environment of rising streaming competition from global players like Netflix and economic pressures in key African markets.[21] Post-listing, MultiChoice prioritized operational streamlining to counter subscriber churn, currency volatility, and macroeconomic headwinds, including the impacts of the COVID-19 pandemic starting in 2020, which accelerated shifts toward digital viewing and strained disposable incomes.[22] The company pursued cost efficiencies by optimizing content acquisition—replacing higher-cost international sports and entertainment rights with localized programming tailored to regional preferences—and rationalizing administrative and technology expenditures.[22] These measures yielded non-recurring savings in fiscal year 2021 (ended March 2021), contributing to a reported 3% overall cost reduction when adjusted for one-off items, alongside broader efforts to enhance supply chain resilience and decoder distribution.[23] By fiscal year 2023 (ended March 2023), streamlining efforts manifested in the Rest of Africa segment's return to profitability, with 1.4 million net subscriber additions, 26% organic revenue growth, and improved trading margins through disciplined pricing and operational leverage.[24] Group-wide, MultiChoice achieved resilient performance with 3% organic subscription revenue growth and 5% expansion in South African premium subscribers, despite ongoing foreign exchange losses and competitive pressures, underscoring a shift toward sustainable cash flow generation ahead of intensified digital investments like Showmax enhancements.[25] Regulatory scrutiny, such as the Independent Communications Authority of South Africa's April 2019 preliminary findings on MultiChoice's market dominance in pay-TV, prompted internal reviews of bundling practices but did not materially alter core streamlining strategies.Acquisition by Canal+ and post-merger integration (2024–present)
In early February 2024, Canal+ issued a non-binding indication of interest to acquire all MultiChoice shares it did not already own at R105 per share, an offer rejected by MultiChoice as undervaluing the company.[26] Canal+ subsequently raised its proposal and announced a firm mandatory offer on April 8, 2024, to purchase the remaining issued ordinary shares at R125 per share in cash—a 67% premium to MultiChoice's closing price of R75 before the initial indication.[27][28] The offer, detailed in a combined circular published June 4, 2024, required regulatory clearances and shareholder approvals to proceed.[26] The transaction advanced through 2025 with key approvals, including clearance from South Africa's Competition Tribunal in July 2025 and endorsement by Phuthuma Nathi BEE scheme shareholders in August 2025, following a linked restructuring plan.[29][30] On September 22, 2025, Canal+ declared effective control of MultiChoice after securing over 48% acceptance of the offer, including its pre-existing stake, enabling the start of integration and the appointment of a new board chaired by Canal+ executive Maxime Saada.[31][5] By October 13, 2025, acceptances reached 94.39% of shares, surpassing the 90% threshold for compulsory acquisition under South Africa's Companies Act.[32] Canal+ issued the compulsory acquisition notice on October 24, 2025, acquiring the residual shares at the same R125 price and rendering MultiChoice a wholly owned subsidiary; trading suspension occurred on October 27, 2025, with full delisting from the Johannesburg Stock Exchange and A2X scheduled for December 10, 2025, absent legal challenges by December 5, 2025.[33][34] The $2 billion deal marked Canal+'s largest acquisition, consolidating its African operations under a unified structure to compete globally in pay-TV and streaming.[6] Integration efforts began immediately post-September 22, 2025, focusing on operational synergies, content distribution, and technology alignment, though specific targets remain pending detailed review.[31] MultiChoice shifted its financial year-end to December 31 to synchronize with Canal+, with interim results planned for the six months ending September 30, 2025.[35] Canal+ intends to disclose comprehensive integration strategy and synergy projections in the first quarter of 2026, alongside plans for a secondary listing on the Johannesburg Stock Exchange to enhance African market access.[36][32] No immediate subscriber or pricing disruptions have been reported, preserving continuity in services like DStv amid ongoing competitive pressures.[37]Corporate Structure and Ownership
Subsidiaries and brands
MultiChoice Group operates primarily through subsidiaries focused on video entertainment delivery in South Africa and across Africa, alongside ventures in digital security and ancillary services.[38] Its core structure includes MultiChoice South Africa, which manages local operations and encompasses brands such as SuperSport, a leading sports broadcaster covering global events, M-Net, a premium channel network offering international and local content in over 50 countries, and DStv Media Sales, responsible for advertising across more than 130 channels.[38] MultiChoice Africa Holdings oversees sub-Saharan operations, delivering satellite and terrestrial pay-TV services under the DStv and GOtv brands. DStv, launched in 1995, provides satellite-based video entertainment to millions of subscribers via decoders and streaming options like DStv Stream.[38] [39] GOtv offers affordable digital terrestrial television in eight African countries, targeting mass-market audiences with decoder hardware.[38] The Showmax brand, operated through Showmax Africa, specializes in video-on-demand streaming with localized and global content, serving as MultiChoice's primary digital platform adaptation.[38] Additionally, Irdeto, a wholly owned subsidiary founded in 1969 and integrated for MultiChoice's needs since 1995, provides cybersecurity solutions for video entertainment and serves over 400 external clients worldwide, including server-side ad insertion technologies.[40] [41] Beyond core media, MultiChoice holds stakes in diversified entities such as Namola, an on-demand security app with emergency features, and BetKing, a sports betting platform in Nigeria operating under partial ownership.[38] Following the 2024 acquisition by Canal+, these subsidiaries continue to form the operational backbone, with integration enhancing scale in high-growth markets.[42]Governance and leadership evolution
MultiChoice's governance framework initially operated under the oversight of its parent company Naspers, emphasizing centralized decision-making during its formative years as a satellite broadcasting entity. Following the 2019 initial public offering on the Johannesburg Stock Exchange, the company adopted a more independent structure compliant with South Africa's King IV corporate governance principles, featuring a board comprising executive directors such as the CEO and CFO, alongside a majority of independent non-executive directors to ensure accountability and oversight. This shift prioritized transparency, risk management, and stakeholder engagement, including black economic empowerment initiatives like the Phuthuma Nathi share scheme.[43][44] Leadership transitioned markedly with Imtiaz Patel's long tenure as CEO from the company's early expansion phase until 2016, after which he assumed the role of executive chairman until April 2024, guiding strategic decisions including the pursuit of the Canal+ transaction.[45][46] In October 2018, Calvo Mawela succeeded as Group CEO, focusing on operational streamlining, digital adaptation, and navigating competitive pressures ahead of and post-listing.[47] Mawela's leadership emphasized cost efficiencies and content localization amid subscriber declines, with the board supporting initiatives like executive remuneration tied to performance metrics.[48] The completion of Canal+'s acquisition on September 22, 2025, prompted a reconstitution of the board into a nine-member entity chaired by Canal+ CEO Maxime Saada, incorporating four Canal+ representatives including new CEO David Mignot and CFO Nicolas Dandoy, while retaining independent directors such as Elias Masilela as lead independent director, Kgomotso Moroka, Louisa Stephens, Deborah Klein, and James du Preez to maintain balanced oversight.[49][50] Mawela transitioned to chairman of the broader Canal+ Africa division, signaling integration while preserving MultiChoice's operational continuity under unified pan-African leadership.[51] This evolution reflects a move toward French strategic influence, with governance adaptations aimed at leveraging synergies in content distribution and technology, though early post-merger announcements highlighted commitments to local production and subscriber retention.[52] Subsequent adjustments, such as the retirement of Canal+ executive director Jacques du Puy effective October 31, 2025, underscore ongoing refinements to align with the merged entity's structure.Ownership transitions from Naspers to Canal+
MultiChoice Group, originally established under Naspers' control in the 1980s, remained predominantly owned by Naspers and its investment arm Prosus following its unbundling and initial public offering on the Johannesburg Stock Exchange in February 2019.[53] Prosus held a substantial stake, estimated at around 30% prior to Canal+'s aggressive acquisition phase, positioning it as the largest shareholder amid the company's efforts to streamline operations post-IPO.[54] This structure reflected Naspers' long-term strategic focus on African media assets, though it began divesting portions to fund higher-growth investments elsewhere.[54] Canal+ Group, a subsidiary of Vivendi, initiated its ownership buildup in MultiChoice through strategic investments starting around 2020, acquiring an initial 12% stake that year. By July 2022, Canal+'s holding reached 20%, increasing to 30.3% by February 2023 via open-market purchases.[55] This escalation triggered regulatory scrutiny and positioned Canal+ to launch a formal takeover bid, with its stake hitting 31.7% by early 2024 and 36.6% by April 2024.[56] [57] In February 2024, Canal+ announced its intention to acquire control, formalizing a mandatory offer in April 2024 at 125 South African rand (approximately $6.70) per share to buy out remaining shareholders, valuing MultiChoice at roughly $3 billion.[57] Prosus and other major holders, including Naspers-linked entities, accepted the offer, enabling Canal+ to cross the 45% threshold by June 2024 and reach 45.2% ownership.[58] The transaction received South African Competition Tribunal approval on July 23, 2025, after addressing concerns over market dominance in pay-TV and streaming.[59] Canal+ achieved effective control on September 22, 2025, holding over 48% including tendered shares, initiating integration while committing to maintain MultiChoice's African headquarters and listings temporarily.[31] By October 10, 2025, acceptances brought Canal+'s stake to 94.4%, prompting plans for a compulsory squeeze-out of minority shareholders and delisting from the JSE and A2X by December 2025.[60] This marked the full transition from Naspers' foundational ownership to Canal+'s dominance, with Prosus redeeming its investment at a premium to refocus on global tech ventures.[54] [53]Business Operations and Services
Satellite and decoder-based pay-TV: DStv and GOtv
DStv operates as MultiChoice's primary satellite-based direct-to-home pay-TV service, delivering television signals via geostationary satellites such as Intelsat 39 and Eutelsat 70B to decoder-equipped households across sub-Saharan Africa.[61] Launched in 1995 following earlier analog satellite trials, it provides encrypted multichannel programming through set-top boxes that require a satellite dish, low-noise block downconverter, and smart card for access control. Subscription packages range from basic tiers offering local and international channels to premium bouquets including over 200 channels with high-definition sports, movies, and series from providers like HBO, Disney, and SuperSport.[62] As of the financial year ending March 31, 2025, DStv contributed significantly to MultiChoice's linear pay-TV operations amid efforts to combat signal piracy via advanced encryption and decoder upgrades.[63] GOtv functions as MultiChoice's decoder-based digital terrestrial television (DTT) service, transmitting signals over-the-air via UHF frequencies to portable decoders connected to standard televisions, eliminating the need for satellite infrastructure and targeting lower-income households in 11 sub-Saharan countries.[61] Introduced on September 5, 2011, it supports MPEG-4 compression for efficient bandwidth use, offering packages like Supa and Max with 40 to 90 channels focused on affordable local content, sports, and general entertainment.[3] Recent adjustments in 2025 reduced decoder prices by 30-40% in select markets to boost accessibility, while subscription fees vary by country, such as KES 599 monthly for enhanced value packages in Kenya starting August 1, 2025.[64][65] Together, DStv and GOtv formed MultiChoice's core linear subscriber base of 14.5 million active households as of March 31, 2025, down 8% from the prior year due to economic headwinds, currency devaluations, and streaming competition, yet generating the bulk of the group's ZAR 50.8 billion revenue through subscriptions excluding hardware and advertising.[66][4] These services emphasize prepaid and postpaid models with mobile app integration for payments and upgrades, alongside initiatives like channel additions such as SuperSport Africa on GOtv Max in October 2024 to retain viewers.[67] Operational streamlining post-2024 Canal+ acquisition includes decoder subsidies and anti-churn measures, though forex impacts and load-shedding in markets like South Africa continue to pressure retention.[68]
Streaming services: Showmax and digital adaptations
Showmax is a subscription video-on-demand streaming service owned and operated by MultiChoice, initially launched on 19 August 2015 in South Africa to provide African audiences with access to international and local series, movies, and documentaries.[69] The platform operates on an ad-free model, offering tiered plans including entertainment bundles and add-ons for live sports such as the English Premier League, with content accessible via web browsers, mobile apps, smart TVs, and connected devices across multiple African markets.[70][71] In March 2023, MultiChoice formed a strategic partnership with Comcast's NBCUniversal and Sky to overhaul Showmax, licensing Peacock's backend technology for improved scalability, recommendation algorithms, and content management while retaining MultiChoice's 70% ownership stake.[72] This collaboration addressed prior technical limitations and competitive shortfalls against global streamers like Netflix, enabling enhanced personalization and faster rollout of African original productions.[69] MultiChoice invested approximately $27 million in the relaunch, including $13 million for Peacock's platform licensing, to support a content slate emphasizing local stories alongside licensed international titles from NBCUniversal.[73] Showmax 2.0 officially launched on 12 February 2024, coinciding with a base entertainment plan price reduction to R89 per month in South Africa, alongside a redesigned app featuring offline downloads, multi-profile support, and seamless cross-device playback.[74] The transition involved migrating existing subscribers to the Peacock-powered infrastructure from 23 January to 12 February 2024, which facilitated broader device compatibility and reduced latency for live events.[75] Post-relaunch, streaming-only subscriptions surged by 139%, with 90% comprising new users, reflecting adaptations to mobile-first consumption patterns prevalent in Africa where smartphone penetration drives over 50% of video views.[76] Digital adaptations under Showmax have prioritized Africa-centric infrastructure, including localized payment integrations like mobile money and airtime bundles to lower barriers in underserved regions, alongside content localization with dubbed subtitles in indigenous languages.[77] Following MultiChoice's integration with Canal+ in 2024, Showmax refocused exclusively on African markets by discontinuing service in regions like Australia and Europe, aiming to consolidate resources for continent-wide expansion and counter global competitors through hybrid pay-TV and streaming bundles.[78] These efforts underscore a causal shift from satellite dependency to IP-based delivery, leveraging data analytics for targeted originals that achieve higher retention than imported fare in key markets.[79]Content production and local programming initiatives
MultiChoice has prioritized local content production as a core strategy to foster authentic African narratives and support regional creative industries, commissioning original programming across its platforms to appeal to diverse linguistic and cultural audiences. Through subsidiaries like M-Net, the company funds scripted series, films, and talent development initiatives that collaborate with independent production houses, writers, directors, and actors throughout sub-Saharan Africa.[80][81] This approach emphasizes hyper-local storytelling, including youth-oriented content and region-specific themes, as highlighted in discussions at industry events like MIP Africa.[82] In fiscal year 2024, MultiChoice produced over 6,500 hours of original local content, solidifying its position as the continent's largest investor in such programming.[83] This output included more than 5,340 hours of locally produced films and shows in markets like Ethiopia, contributing to expanded channel lineups and viewer retention amid competition from global streamers.[84] Africa Magic, a flagship brand under MultiChoice, focuses on entertainment channels broadcasting Nigerian series, movies, reality shows, and light programming in languages such as Yoruba and Hausa, commissioning content that reflects pan-African cultural dynamics.[85] To build sustainable local ecosystems, MultiChoice launched training initiatives in 2022, partnering with broadcasters for certified courses in production skills, targeting territories across Africa to enhance capacity in scripting, directing, and technical roles.[86] Following the 2024 acquisition by Canal+, the group committed to scaling investments in local creative sectors, including Ethiopia, with goals to create jobs and amplify African stories for both domestic and international audiences.[87] These efforts aim to counter subscriber churn by prioritizing culturally resonant content over imported programming, though production costs remain a challenge in volatile markets.[88]Market Position and Competition
Dominance in African pay-TV sector
MultiChoice maintains dominance in the African pay-TV sector through its DStv premium satellite service and GOtv mass-market decoder platform, serving sub-Saharan Africa across over 50 countries with a focus on satellite broadcasting. As of the fiscal year ending March 2025, the company's active linear subscriber base stood at 14.5 million, down 8% year-over-year due to economic pressures and competition, yet representing the largest footprint among operators.[4][89] This subscriber volume underscores its market leadership, particularly in key economies like South Africa, which accounts for about 60% of subscription revenue.[90][91] DStv commands a projected 28.26% market share by 2028, a decline from 36.27% in 2019 but still ahead of rivals like StarTimes, whose share has remained relatively stable without overtaking.[92] The company's edge stems from exclusive rights to high-demand content, including English Premier League football and other international sports, which drive premium package uptake in urban and middle-class households.[93] Competitors such as StarTimes target lower-income segments with affordable digital terrestrial options but lag in premium offerings and subscriber scale, with historical estimates placing StarTimes at around 19 million viewers in 2023 compared to MultiChoice's 21 million at that time.[94][95] MultiChoice's infrastructure, including the SuperSport satellite platform, enables broad coverage and bundling of local and international channels, reinforcing barriers to entry for smaller players like AzamTV or regional providers.[96] In Nigeria and Kenya, despite subscriber drops—such as an 80% decline in Kenya from 1.19 million in July 2024 to 188,824 by September 2025—MultiChoice retains the plurality of pay-TV households through decoder penetration and content localization.[97] This position is sustained by investments in signal security and hybrid models integrating linear TV with streaming, though ongoing churn highlights vulnerabilities to affordability issues and alternative free-to-air options.[98]Competitive pressures from global streamers
Global streaming services such as Netflix, Disney+, and Amazon Prime Video have intensified competition in African markets since the mid-2010s, eroding MultiChoice's traditional pay-TV subscriber base by offering on-demand content, original productions, and flexible pricing models accessible via mobile devices prevalent in the region.[99][100] Netflix, which entered South Africa in 2016 and expanded across sub-Saharan Africa, reported adding millions of subscribers in key markets like Nigeria and South Africa by 2023, capitalizing on broadband growth and localized content investments that directly challenge DStv's linear broadcasting model.[99] This shift has prompted cord-cutting among price-sensitive consumers, with MultiChoice attributing part of its subscriber declines to the appeal of ad-supported tiers and exclusive series from these platforms.[101][102] MultiChoice experienced a net loss of 900,000 DStv subscribers in the fiscal year ending March 2024, coinciding with accelerated penetration of global OTT services that offer lower entry costs—such as Netflix's basic plans under $10 monthly—compared to DStv's premium packages exceeding $50.[101] By the fiscal year ending March 2025, broadcast subscribers fell further by 1.2 million to 14.5 million, with executives citing heightened rivalry from streamers' aggressive marketing and content licensing in sports and entertainment, sectors where MultiChoice historically held advantages through SuperSport.[89] In Nigeria, a core market, DStv and GOtv shed 1.4 million users between March 2023 and March 2025, exacerbated by global platforms' localization strategies that siphon advertising revenue and viewer loyalty.[90] The economic viability of MultiChoice's operations has been strained, with a reported $355.9 million revenue decline in recent periods linked to this competitive landscape, as global streamers undercut bundled services by providing standalone access without hardware dependencies like decoders.[103] Disney+'s 2022 launch in South Africa, followed by partnerships that integrate its content into local offerings, has fragmented audiences further, compelling MultiChoice to renegotiate rights and face margin compression from content acquisition costs rising amid bidding wars.[104] Amazon Prime Video's expansion into production hubs like Nigeria has similarly pressured Showmax, MultiChoice's streaming arm, by prioritizing scalable digital distribution over satellite infrastructure, leading to a broader industry shift where OTT penetration in Africa reached over 20% of households by 2024.[99][105] These dynamics underscore a causal link between global streamers' market entry and MultiChoice's churn rates, though compounded by local factors like currency devaluation.[106]Strategic partnerships and joint ventures
MultiChoice established a significant joint venture with Comcast's NBCUniversal and Sky in March 2023 to relaunch its Showmax streaming platform as a competitive service across Africa.[107] The agreement created the Showmax group, with MultiChoice holding 70% ownership and NBCUniversal 30%, incorporating Peacock's technology platform for enhanced scalability and user experience.[108] This partnership provides Showmax access to extensive content libraries from NBCUniversal and Sky, including originals and international programming, aimed at challenging global streamers like Netflix in the region.[109] To support the relaunch, NBCUniversal committed $177 million in equity funding during MultiChoice's 2024 financial year, followed by an additional $164 million (approximately R2.8 billion) injected since April 2024, bolstering content acquisition and technological upgrades.[110][111] Showmax 2.0 launched in February 2024 with features tailored to African markets, such as mobile-first optimization and local content integration, achieving over 2 million subscribers by mid-2024 despite competitive pressures.[112] In May 2023, MultiChoice formed another joint venture with fintech firm Rapyd and venture capital entity General Catalyst to develop Moment, an integrated payments platform addressing fragmentation in African payment systems.[113] Moment enables seamless transactions for subscriptions and services across MultiChoice's ecosystem, including DStv and Showmax, by supporting diverse local payment methods like mobile money and bank transfers.[114] This initiative targets operational efficiencies, reducing churn from payment failures in markets with high informal economies and variable infrastructure.[115] Additional strategic partnerships include a February 2024 content alliance with Paramount Global, introducing a Paramount+ branded hub on DStv and Showmax platforms, granting subscribers access to CBS All Access titles, Paramount+ originals, and Showtime content without extra fees for premium packages.[116] These collaborations have expanded MultiChoice's content portfolio, with ongoing deals emphasizing local production tie-ins and sports rights to maintain relevance amid subscriber declines.[66]Financial Performance
Revenue growth and profitability trends
MultiChoice Group's revenue expanded significantly in the decade leading up to 2023, fueled by subscriber base growth across sub-Saharan Africa and expansion into streaming via Showmax, reaching approximately $2.96 billion USD for the fiscal year ended March 2024 (FY24). However, this growth stalled amid economic headwinds, with FY25 revenue declining 9% year-over-year to $2.77 billion USD, primarily due to a loss of 1.2 million pay-TV subscribers, adverse foreign exchange movements from a stronger South African rand, and competitive pressures from global streaming services. Organic revenue growth remained positive at 4% in core segments through disciplined pricing adjustments, but overall group revenue contraction highlighted vulnerabilities in the traditional satellite TV model.[117][4][118] Profitability metrics reflected similar volatility, with EBITDA margins compressing from historical highs above 25% to around 16-18% in recent years amid rising content costs and operational expenses. For FY24, the group posted an operating profit of R7.08 billion but swung to a pre-tax loss of R706 million due to impairments and forex losses; FY25 saw a recovery to a net profit of R1.8 billion, bolstered by cost-cutting measures that reduced expenses by over R1 billion, though operating profit fell 34% to R4.66 billion. Trading profit declined 49% to R4.0 billion in FY25, pressured by increased losses in the Showmax streaming division despite a 44% rise in its paying subscribers. These trends underscore a shift from volume-driven profitability to efficiency-focused margins, with EBITDA at R4.46 billion on a trailing twelve-month basis as of March 2025.[119][120][121][122][123]| Fiscal Year | Revenue (USD billion) | EBITDA Margin (%) | Net Profit (ZAR billion) |
|---|---|---|---|
| FY24 (ended Mar 2024) | 2.96 | ~18 | -0.706 (pre-tax) |
| FY25 (ended Mar 2025) | 2.77 | ~16 | 1.8 |