Cheaper decoders, bigger profits: CANAL+ says MultiChoice is turning the corner

Maxime Saada, the CEO of CANAL+ Group, is undoubtedly thrilled with the latest results from Multichoice, the company's African pay-TV subsidiary. For the first time in a decade, South Africa has seen its strongest month for new subscriber acquisitions in June 2026, with a 40% year-on-year increase across Multichoice markets. But while this may seem like a victory, it's crucial to examine the underlying factors driving this growth. Is it a genuine shift in consumer preference, or merely a tactical move to cling to a dying business model?

One of the most significant factors contributing to Multichoice's resurgence is the reduction in decoder prices for new subscribers. CANAL+ has lowered these costs by up to 40%, a move that's been touted as a key strategy in making DStv more affordable. However, this approach raises an essential question: is a cheaper decoder the solution to Multichoice's problems, or merely a Band-Aid on a deeper wound? In many African markets, consumers must still purchase a decoder and installation equipment before committing to a monthly subscription. This barrier to entry has long been a major deterrent for potential customers.

CANAL+ has also expanded its distribution network, increasing the number of points of sale by more than 15% since March. This move reflects the company's belief in the importance of physical retail in customer acquisition across many African markets. However, this approach seems more like a desperate attempt to cling to a bygone era rather than a forward-thinking strategy. Streaming services require only an internet connection and a compatible device, the need for physical retail is dwindling.

CANAL+ inherited Multichoice at a time when the business was under pressure. Years of subscriber losses, weak consumer spending, and stiff competition from streaming platforms had raised doubts about the future of DStv. However, the company's turnaround strategy appears to be centred on making the platform more affordable, rather than addressing the fundamental issues driving consumer migration to streaming services. This approach may yield short-term gains, but it's unlikely to stem the tide of consumers seeking more flexible and affordable options.

As CANAL+ continues to report impressive profits, it's clear that the company is prioritizing short-term gains over long-term growth. With an adjusted operating profit that surged 160% to €143 million ($162.6 million), it's tempting to celebrate this success. However, beneath the surface, the company is still grappling with the same fundamental issues that led to its decline in the first place. The question remains: will CANAL+ continue to chase profits, or will it take a bold step towards innovation and growth?

The future of Multichoice hangs in the balance, and CANAL+ must navigate this treacherous landscape with caution. While cheaper decoders may provide a temporary boost, they won't save DStv from the inevitable forces of disruption driving the television industry. As the landscape continues to evolve, one thing is certain: CANAL+ will keep chasing profits, no matter the cost to its long-term growth.