Canal+ and MultiChoice Navigate Financial Challenges
“The devolution of Showmax is only the beginning. We will eventually roll out the Canal+ app across all MultiChoice countries,” stated Amandine Ferré, emphasizing the strategic shift in Canal+’s approach to its partnership with MultiChoice.
Canal+ has announced plans to increase its cost savings target to €250 million by 2026, a significant rise from the previously projected €150 million. This decision comes in the wake of MultiChoice’s trading profit, which fell by nearly half to about $240 million in its last financial year, highlighting the urgent need for financial restructuring.
In a challenging environment, MultiChoice has seen its subscriber base decline from 14.9 million to 14.4 million, a loss of nearly half a million subscribers within a short span. This decline has been compounded by a staggering R10.2 billion negative impact on revenue due to local currency depreciation against the dollar.
Showmax, the streaming service that has been a part of MultiChoice’s offerings, recorded significant trading losses of approximately $522 million over three years, with losses of about $72 million in 2023, $156 million in 2024, and $294 million in 2025. In response, Canal+ plans to replace Showmax with its own Canal+ streaming app, aiming to rejuvenate subscriber growth.
Maxime Saada, a key figure at Canal+, noted, “There is an issue of structural high costs at MultiChoice, so the idea is not to add a fixed cost.” This statement underscores the intent to streamline operations while addressing the financial burdens that have plagued MultiChoice.
To support this transition, Canal+ will invest nearly R2 billion (€100 million) in 2026, signaling a commitment to revitalize MultiChoice’s subscriber growth and overall financial health. This investment is part of a broader strategy to leverage the combined experience of both Canal+ and MultiChoice to reverse recent negative trends.
Additionally, Canal+ aims to complete a secondary listing on the Johannesburg Stock Exchange by the end of June 2026, further integrating its operations within the South African market. MultiChoice’s contribution of R13 billion to Canal+ income following the conclusion of their deal highlights the financial interdependence of the two entities as they navigate these challenging times.
As Canal+ and MultiChoice move forward with these pricing changes and strategic shifts, the industry will be watching closely for the impact on subscriber retention and financial recovery. Details remain unconfirmed regarding the exact implementation timeline of these changes.
