Groupe Canal+, the new owner of South Africa's broadcasting giant MultiChoice, has reportedly suspended payments to several of the broadcaster's suppliers and is demanding 20% discounts on outstanding invoices as part of an ongoing cost-cutting exercise. This strategy has left hundreds of unpaid invoices piled up, according to an insider at MultiChoice who spoke to Business Times. The move is part of MultiChoice's efforts over the past two years to reduce operational costs and boost efficiency - efforts that have continued following the completion of the Canal+ merger. "This has continued following the completion of the Canal+ merger, and MultiChoice is engaging with suppliers in this regard," the broadcaster said in a statement.
The merger background is significant: Groupe Canal+ finalized its acquisition of MultiChoice Group in a $3 billion deal, approved by South Africa's Competition Tribunal in July 2025. The deal is expected to enhance scale, expand into high-growth markets, and deliver synergies. MultiChoice has faced challenges including subscriber losses and revenue declines in key markets like Nigeria amid economic pressures and competition from streaming services. The company lost 1.4 million subscribers between March 2023 and March 2025 in Nigeria; revenue dropped 44% year-on-year.
The supplier impact is notable - the procurement head at MultiChoice is reportedly dealing with hundreds of unpaid invoices from affected suppliers due to the payment suspension and discount demands. Despite these measures, Canal+ has pledged R26 billion (~$1.4 billion) over three years for public interest initiatives in South Africa - including local content production, skills development, and ensuring Historically Disadvantaged Persons (HDPs) majority ownership of LicenceCo (the carved-out broadcasting entity).
Canal+ CEO Maxime Saada emphasized the merger creates "a true champion for Africa", combining MultiChoice’s English/Portuguese content with Canal+’s French offerings, targeting 50-100 million subscribers across Africa. Analysts note such cost-cutting could affect supplier relationships but might help MultiChoice navigate competitive pressures from global streaming platforms like Netflix. Canal+ and MultiChoice reaffirmed commitments to funding South African-produced content and sports, supporting local creators amid the restructuring.
MultiChoice and Groupe Canal+ aim to strengthen their position in Africa’s evolving media landscape through these strategic adjustments.
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