Groupe Canal+, the new majority owner of MultiChoice, has unveiled plans for sweeping changes to DStv operations across Africa as it seeks to halt declining subscriptions, falling revenues and weakening profitability at the continent’s largest pay-TV operator.

Canal+, which assumed control of MultiChoice in September 2025, disclosed the extent of DStv’s challenges in a recent investor presentation, showing consistent declines in subscriber numbers, revenue and trading profit.

According to the presentation, the broadcaster’s deteriorating financial performance has necessitated a comprehensive turnaround strategy aimed at restoring sustainable growth.

Turnaround strategy

Canal+ told shareholders that it intends to pursue a multifaceted recovery plan centred on aggressive subscriber acquisition, cost restructuring and enhanced content offerings.

The company said it would reinvest in attracting new subscribers to tap into growth opportunities in Africa’s largely underpenetrated pay-TV market.

It noted that higher subscriber acquisition costs would be offset through operational synergies and a more granular focus on optimal distribution strategies.

Canal+ further said it would implement ambitious growth targets across the continent, adopting a “no small market” philosophy, under which no African market would be considered too insignificant for investment.

Revenue growth and customer value

Beyond increasing subscriber numbers, Canal+ said it would develop and roll out initiatives to generate incremental revenues and unlock revenue synergies across the MultiChoice business.

The French broadcaster also pledged to enhance DStv’s customer value proposition by strengthening the content line-up, sharing content across platforms and applying global marketing best practices.

Cost-cutting measures

On the cost side, Canal+ said it plans to reset MultiChoice’s cost base to support a sustainable and profitable pay-TV business, marking a departure from previous cost-saving measures focused largely on short-term profitability.

The company said it would prioritise meaningful cost synergies, with particular attention on content and technology expenses, which account for some of the largest cost items at a global scale.

Within weeks of taking control, Canal+ initiated aggressive cost-cutting measures, including suspending payments to suppliers and seeking discounts of up to 20 per cent on invoices.

These actions reportedly led to operational disruptions at MultiChoice, including a temporary shortage of basic supplies such as toilet paper at its Randburg headquarters.

The Chief Executive Officer of Canal+ Africa, Mr David Mignot, who relocated to Johannesburg, was also affected by the disruptions.

Responding to queries on the approach, a MultiChoice spokesperson said the measures formed part of ongoing efforts over the past two years to reduce costs and improve efficiency.

> “This has continued following the completion of the Canal+ merger, and MultiChoice is engaging with suppliers in this regard,” the spokesperson said.

The company added that managing expenditure was critical to ensuring MultiChoice’s long-term role in South Africa’s and Africa’s broadcasting ecosystem.

Supplier concerns and regulatory commitments

MultiChoice said the adjustments would also help it meet its public interest commitments to South Africa’s Competition Tribunal following the Canal+ merger.

Among these conditions are commitments to procure local content from historically disadvantaged individuals and small and medium-sized enterprises (SMMEs).

Industry sources said the company later softened its stance and released payments to SMME suppliers who were severely affected by the initial invoice freeze.

Financial pressures at MultiChoice

Canal+’s cost-cutting drive follows a period of financial distress at MultiChoice.

The company reported losses in two of its last three financial years, recording cumulative losses of about R7 billion in the 2023 and 2024 financial periods.

In 2024, MultiChoice’s liabilities exceeded its assets, rendering it technically insolvent. While the company returned to profitability in the 2025 financial year with a reported profit of R2.02 billion, analysts note that much of this was due to a once-off transaction — the sale of a 60 per cent stake in its insurance business to Sanlam.

Operating profit declined from R7.08 billion in 2024 to R4.66 billion in 2025, driven by a nine per cent drop in revenue, including an 11 per cent fall in subscription income resulting from the loss of 1.2 million customers.

Trading profit also declined by 49 per cent, largely due to increased losses at Showmax and foreign exchange losses amounting to R5.2 billion.

Over the past two years, MultiChoice has spent approximately R4 billion on development and content acquisition for Showmax.

Content challenges and channel losses

MultiChoice’s challenges have been compounded by cost-cutting at major content suppliers.

Paramount Skydance, a key channel provider, has shut down Paramount Africa as part of its own restructuring, resulting in the removal of four channels — BET, MTV Base, CBS Reality and CBS Justice — from DStv from Jan. 1, 2026.

CBS Reality and CBS Justice were previously offered through a joint venture between AMC Networks and CBS, owned by Paramount Skydance.

Promise of more content

Despite the channel losses, Canal+ has assured subscribers of improved content offerings.

Mr Mignot said Canal+’s extensive European content library, combined with strong partnerships with U.S. studios, would soon be leveraged to enrich the DStv platform.

He said Canal+ currently produces about 4,000 hours of African content annually in up to 15 languages, which will be combined with MultiChoice’s 6,000 hours of locally produced content each year.

> “Combined, we will provide roughly 10,000 hours per year in 20 to 35 languages,” Mignot said.

He added that over a 10- to 15-year period, the group would build a catalogue of between 100,000 and 150,000 hours of content, enabling wider distribution through dubbing and localisation.

Exporting African content

According to Mignot, Canal+ plans to monetise the expanded content library by exporting African films and series globally through StudioCanal, its production, financing and distribution arm.

He said South African-produced content would play a key role in the strategy to sell African stories to international audiences.

As Canal+ rolls out its turnaround plans, subscribers and industry stakeholders are watching closely to see how the changes will reshape DStv and the broader African pay-TV landscape.