MultiChoice Group, Africa’s leading pay-TV service provider, has reported a significant setback with the loss of 1.8 million subscribers across its continental markets, highlighting the growing challenges faced by traditional television services in emerging markets. The announcement comes amid rising inflationary pressures and increasing competition from free-to-air alternatives.
The impact has been particularly severe in key African markets, with Kenya experiencing a sharp 19% decline in subscription growth. Nigeria, Africa’s largest economy, saw an 18% drop, while Angola and Zambia reported declines of 8% and 60% respectively. These losses have contributed to a substantial 10% revenue decline for the group, primarily attributed to recent subscription fee increases across both DSTV and Go-TV packages.
Financial results for the half-year 2024/2025 paint a challenging picture, with the group posting a loss of 1.8 billion rand (KSh 12 billion). The financial strain has been exacerbated by foreign exchange depreciation in Nigeria and mounting interest expenses. MultiChoice Group CEO Calvo Mawela acknowledged these challenges, stating, “While we have made huge inroads to reduce our cost base, there is still more work to be done. However, our focus extends beyond cost efficiency – we are equally committed to grow the business.”
Also Read: MultiChoice Group Forecasts Significant Losses in Half-Year Results
The pay-TV industry’s struggles reflect a broader global trend, as traditional television services face intense competition from streaming platforms and social media content. MultiChoice’s reputation has particularly suffered in key markets like Nigeria and Kenya following multiple price increases implemented in April, July, and November. The company has defended these increases, citing the challenging business environment, particularly in Nigeria, where inflation has consistently remained above 30% throughout the year. In Zambia, severe power outages have further complicated the company’s operations, contributing to the dramatic decline in both revenue and subscriptions.
Despite this, the company’s streaming platform, Showmax, has shown promise with a 30% growth in paying subscribers, though it continues to face technical challenges. Revenue for the platform decreased by 40% year-on-year, primarily due to complications during its rebranding and migration to the Peacock technology stack. Sports content, particularly through SuperSport, remains a crucial revenue stream, with viewership peaking during the EURO 2024 tournament. However, the company continues to battle against pirate websites, despite introducing affordable mobile plans for sports enthusiasts.
Looking ahead, MultiChoice is set for a significant transformation through a proposed US$3 billion acquisition by French media giant Canal+. The deal, accepted in June, awaits final approval and promises to expand MultiChoice’s reach into Francophone Africa, where Canal+ maintains a strong presence. Mawela highlighted the strategic importance of this merger, noting, “This merger allows us to secure better content rates and drive more revenue, especially given our combined presence in both French and English-speaking Africa.”
The company’s immediate future hinges on its ability to navigate these challenging market conditions while successfully executing its merger with Canal+. As streaming services continue to reshape the entertainment landscape across Africa, MultiChoice’s adaptation to these changes will be crucial for its long-term survival and growth in the continental market.
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