Following its landmark acquisition of MultiChoice Group last year, French media giant Canal+ SA is exploring a strategic overhaul of the African pay-TV landscape. A primary component of this plan involves deploying the integrated Canal+ streaming application to MultiChoice’s massive subscriber base, a move that could redefine how African viewers consume premium international content.
The Canal+ application distinguishes itself through a “one-stop-shop” architecture. Unlike traditional aggregators that redirect users to external platforms, the Canal+ app embeds high-tier partners directly within its interface.
According to CFO Amandine Ferre, this ecosystem includes established heavyweights like AppleTV+ and Warner Bros. Discovery’s HBO Max. “As a user, you do not have to go on another app,” Ferre noted, highlighting a frictionless user experience intended to reduce “app fatigue” and churn.
Market Consolidation and Footprint
The acquisition, which valued MultiChoice at approximately $3 billion, creates a Pan-African broadcasting powerhouse with complementary geographic strengths:
- Canal+: Dominates the Francophone markets of Western Africa.
- MultiChoice: Maintains a stronghold in Southern and Eastern Africa, as well as the key markets of Nigeria and Ghana.
Despite this synergy, the future of Showmax, MultiChoice’s existing streaming service co-owned with Comcast Corp., remains a point of strategic deliberation. Canal+ has yet to finalize whether Showmax will continue as a standalone entity or if the Canal+ app will eventually absorb or replace it across MultiChoice’s territories.
The merger has sent a wave of optimism through the financial markets. On Thursday, Canal+ shares hit a record high in London, surging as much as 15%. The company’s long-term projections for the combined entity are aggressive:
- EBITA: Expected to exceed €400 million by 2030.
- Cost Efficiency: Forecasted free cash flow savings of roughly €300 million through operational synergies.
Reviving the Subscriber Base
A core priority for the new leadership is reversing a troubling trend: MultiChoice lost nearly 3 million customers over the last two financial years. To spark a recovery, Canal+ is focusing on affordability and content variety:
- Lowering the Entry Barrier: The company has already renegotiated manufacturing contracts for set-top boxes, allowing them to offer cheaper hardware since November.
- Pricing Strategy: Ferre emphasized a focus on “the entry ticket,” ensuring packages are priced competitively to attract price-sensitive consumers. (MultiChoice’s current premium service sits at roughly $60/month).
- Premium Content Wins: The partnership has already yielded results for sports fans, returning NBA coverage to the SuperSport roster after an eight-year hiatus and introducing French Ligue 1 football matches.
Historical Context
MultiChoice’s journey to this point marks the end of an era for South African corporate history. Originally incubated by Cape Town-based Naspers Ltd., MultiChoice was spun off in 2019 before facing the 2024 takeover bid from Canal+. The French firm’s aggressive expansion now positions it as the definitive gatekeeper of entertainment across the African continent.
