MultiChoice

MultiChoice
Company type	Public
Industry	Pay television, streaming media
Founded	1996
Headquarters	South Africa, South Africa
Area served	Sub-Saharan Africa
Products	DStv, GOtv, Showmax, SuperSport, Irdeto, BetKing
Parent	MultiChoice Group

MultiChoice is a South African enterprise that manages DStv, a prominent satellite television provider serving Sub-Saharan Africa. Additionally, it operates GOtv, a terrestrial television service available in nine nations, along with Showmax, a subscription-based streaming platform.

Originating from the subscriber management segment of the M-Net terrestrial pay television operator, MultiChoice transmits all M-Net channels through DStv. The organization is part of the MultiChoice Group and includes subsidiaries such as DStv Stream (previously known as DStv Now), which offers TV programming to mobile devices including laptops and smartphones.

In the past, MultiChoice had operations in regions like Scandinavia, Benelux, Italy, Eastern Europe, Greece, Cyprus (under the Filmnet brand), Egypt (CNE (Cable Network of Egypt)), the Middle East (Gulf TV, Arab Radio and Television Network), and Thailand (UBC (United Broadcasting Corporation)).

By 2020, MultiChoice had amassed 20.1 million subscribers throughout Africa. Naspers recognized it as one of the fastest expanding pay-TV operators worldwide.

Early years (1983–1991)

The idea behind M-Net was conceived in 1983 by Koos Bekker during his time at Columbia University, which he then proposed to Naspers, resulting in the company acquiring a 26% share. Ton Vosloo, an executive at Naspers, was appointed chairperson of the board. Initially, M-Net operated at a financial loss.

Expansion (1992–2017)

In 1993, M-Net divided into two branches: one focused on entertainment channel broadcasting and another handling mobile operations, signal distribution, and subscriber services—the latter evolved into MultiChoice. After securing a broadcasting license in Namibia in 1991, MultiChoice Africa was formally established in 1996.

Starting from 1992, analogue services were launched across 20 African countries but were replaced by digital offerings in 1996. On October 6, 1995, DStv (Digital Satellite Television) was introduced in South Africa as the first direct-to-home digital pay-TV service outside the United States.

In 2002, DStv rolled out the "Dual-view" decoder allowing users to watch two channels simultaneously from one satellite feed. Trials for mobile streaming began in 2006 and officially launched as DStv Mobile (now called DStv Stream) in 2011.

MultiChoice Nigeria launched GOtv in October 2011, an affordable terrestrial platform designed to complement DStv. GOtv provides access to channels from the DStv Access and Compact packages across eleven countries in Sub-Saharan Africa.

Currently, MultiChoice broadcasts across 50 countries in Sub-Saharan Africa, including Cape Verde and Madagascar, offering programming in local languages such as French, Portuguese, and South Africa’s eleven official languages.

IPO and consolidation (2018–2023)

In September 2018, MultiChoice’s parent company Naspers announced the spin-off of its video entertainment division to create MultiChoice Group, incorporating MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto. The group was listed on the Johannesburg Stock Exchange (JSE) on February 27, 2019 under the ticker MCG, immediately entering the JSE Top40 by market capitalization.

French media firm Groupe Canal+ acquired a 12% shareholding in MultiChoice in October 2020. Later that year, MultiChoice invested in Nigerian sports betting company BetKing by purchasing a 20% stake with intentions to expand into South Africa; this holding increased to 49% by June 2021.

By February 2023, Groupe Canal+ had increased its ownership to over 31%, establishing itself as a significant shareholder.

Acquisition by Canal+ S.A. (2024-)

On 1 February 2024, Canal+ proposed purchasing the remaining MultiChoice shares at R105 each, which was 40% above the previous day's market price; however, MultiChoice dismissed this offer as it undervalued the company. After receiving input from regulators, Canal+ raised its bid to R125 per share, reflecting a 67% premium compared to the earlier share value.

By June 2024, Canal+ had acquired a 45.2% stake in MultiChoice and secured provisional approval from the board for the updated proposal. Both firms submitted filings to regulatory authorities in September 2024 without altering the terms of the offer.

To adhere to South Africa’s Electronic Communications Act restricting foreign ownership to a maximum of 20%, Canal+ will separate MultiChoice SA’s broadcasting license, which includes DStv, into an independent entity. This new company, named LicenceCo, will be majority-owned (51% economic interest) by new investors Afrifund Investment—led by former Telkom CEO Sipho Maseko—and Identity Partners, headed by Sonja De Bruyn; Canal+ will maintain a 49% stake.

Although initially scheduled for completion in April 2025, the closing of this transaction was postponed until October 2025.

In May 2025, the South African Competition Commission recommended conditional approval of Canal+’s acquisition, emphasizing safeguards related to job security, enhancing representation of historically disadvantaged persons (HDPs), increasing employee shareholding in Orbicom and LicenceCo, supplier development efforts, sustaining local operations, as well as fostering news diversity and export growth. A commitment was made to a three-year freeze on layoffs following the merger.

Both parties also pledged to continue corporate social responsibility programs focusing on audiovisual skills training and sports development.

Composition

M-Net

Founded in 1986, M-Net is a subscription-based satellite television service featuring nine channels—three dedicated to series and five focused on movies—including its primary flagship channel.

Showmax

Showmax operates as an online subscription video-on-demand platform launched in 2015 and relaunched in 2023 through collaboration with Comcast, which holds a 30% ownership stake.

SuperSport

SuperSport is a network of sports channels available via satellite platforms such as DStv and CANAL+, as well as terrestrial services like GOtv. Originating as an M-Net sports segment in 1988 and becoming an independent channel by 1995, it is affiliated with ESPN Africa, Sky Sports, and Fox Sports Australia. Since 2003, SuperSport has expanded to over twenty specialized sports channels and owns the football club SuperSport United F.C..

DStv

DStv is a direct-to-home satellite television service launched on 6 October 1995 that currently operates across 54 countries within Sub-Saharan Africa.

GOtv

GOtv provides digital terrestrial television services across eleven African nations including Nigeria, Ghana, Kenya, Uganda, Zambia, Namibia, Malawi, and Mozambique. In Kenya specifically, subscribers can make payments through M-PESA using paybill number 423655.

Irdeto

Irdeto is MultiChoice’s digital platform security division specializing in preventing pay-TV piracy. It also owns Denuvo, which offers advanced protection solutions for digital content.

BetKing

BetKing is a company engaged in sports betting, gaming technology, and entertainment under SV Gaming Limited.

Ongoing initiatives and collaborations

In 2015, MultiChoice introduced the streaming platform Showmax, which was subsequently optimized for OTT devices. On 19 September 2018, the company revealed intentions to roll out a streaming variant of DStv in 2019.

On 29 May 2018, MultiChoice South Africa formed a partnership with the University of Pretoria to fund a Research Chair focused on Machine Learning, with the objective of advancing AI and Machine Learning expertise within South Africa. This sponsorship also provides scholarships for students pursuing studies from their final undergraduate year through to PhD programs in Engineering, Data Science, or Computer Science.

On 15 January 2024, MultiChoice Group announced a collaboration with Comcast to introduce a standalone Premier League streaming subscription on Showmax, aiming to broaden its African footprint amid intensifying competition from international streaming platforms.

Ownership following JSE listing

In February 2019, the Independent Communications Authority of South Africa (ICASA), which regulates telecommunications and broadcasting, addressed a grievance lodged by the non-profit Khulisa Social Solutions (KSS). KSS claimed that MultiChoice Group’s listing on the JSE violated its broadcasting licence by effectively transferring the licence from Naspers to MultiChoice management without ICASA’s consent as required under the Electronic Communications Act.

MultiChoice countered by affirming that it has always held the licence directly and that the listing did not alter this status. The matter remained unresolved at the time of the JSE listing.

Pay-TV market dominance

ICASA’s preliminary report from April 2019 emphasized MultiChoice’s commanding position in the pay-TV sector and recommended dividing exclusive long-term content rights to facilitate market entry by competitors. MultiChoice opposed these recommendations, arguing that such measures would jeopardize its revenue framework.

Regulation concerning Netflix

Following a loss of 100,000 premium subscribers during 2017/18, MultiChoice called on ICASA to introduce regulations for Netflix and other OTT providers. The company argued that Netflix enjoyed an unfair competitive edge by not contributing taxes in South Africa, not employing local staff, nor adhering to Black Economic Empowerment requirements. Netflix pledged compliance with local regulations and cooperation with regulatory bodies. ICASA recognized the necessity to regulate both Netflix and dominant pay-TV operators.

Price hike in Nigeria

Between April and September 2024, Multichoice Nigeria experienced a decline of 243,000 subscribers amid significant economic difficulties, including inflation exceeding 30%. This followed an earlier reported subscriber drop of 18% in March 2024. The combination of economic challenges and increased streaming competition has pressured its traditional pay-TV business model. In response, Multichoice invested ZAR1.6 billion into its streaming platform Showmax, which saw a year-over-year growth of 50%.

The Nigerian House of Representatives directed Multichoice to halt a planned subscription fee increase for DStv and GOtv set for March 1, 2025. The proposed rise—up to 20%—raised concerns about added financial burdens on consumers during economic hardship. Lawmakers highlighted Multichoice’s dominant market position and mandated an inquiry into subscription price adjustments to ensure consumer-friendly pricing practices.

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