Why MultiChoice needs Canal+, and Kenya craves a piece of the U.S.’s $1 trillion creative economy
We unpack why MultiChoice’s latest numbers make the Canal+ deal crucial to its survival, and how Kenya is courting U.S. investments to grow its creative economy.
Hello there,
Sometimes, growth isn’t about going it alone. As today’s stories show, knowing when and how to form the right partnerships is essential to moving forward.
In today’s Digest, we discuss:
Why MultiChoice’s latest earnings report shows just how necessary the Canal+ deal is.
How Kenya is deepening its ties with the U.S. to boost its creative economy.
Center Spread 🗞️
MultiChoice’s latest earnings report shows why the Canal+ deal was necessary
MultiChoice’s latest financial results make one thing clear: the company’s sale to French media company Canal+ is more of a lifeline than a merger of equals.
Multichoice’s revenue fell by almost 9% to $2.84 billion, well below the $3.357 billion analysts expected for the fiscal year that just ended. It pinned this drop on foreign currency devaluations across the continent and the continued decline of its subscriber base.
According to the report, MultiChoice lost over 1.2 million subscribers, half of them in South Africa, its largest market. It marks the second consecutive year of a 9% fall, erasing gains from three years of prior growth. Its total active subscriber base is now about 1 million less than its pre-pandemic levels.
There were bright spots. The company saved $207 million in costs, held $286 million in cash reserves, and saw a 44% surge in subscribers for Showmax, its streaming platform, which it relaunched in 2024 to counter the growing presence of Netflix and other foreign streamers in Africa.
But those gains came at a cost. Showmax reported a trading loss of $129 million, only slightly better than the $145 million loss it incurred the previous year. The streaming losses and currency impacts nearly halved the company's overall trading profit to $224 million.
These numbers underscore the significance of Canal+’s all-cash acquisition deal. Apart from helping to stabilize its stock price, it will prove vital to MultiChoice’s future. Long defined by legacy pay-TV brands DStv and GOtv, the company is now at the center of an industry in flux. The industry is grappling with shifting viewer habits coupled with economic volatility across Africa. Many viewers are cutting back or switching to cheaper online services.
MultiChoice is betting heavily on Showmax. The Canal+ acquisition offers the breathing room it needs to execute that bet.
Kenya deepens ties with the U.S. to boost the growth of its creative economy
Kenya is looking to tap into the United States’ $1 trillion creative industry to boost its growth. That was the key message at the first-of-its-kind U.S.–Kenya Creative Economy Forum held in Nairobi on Wednesday, June 5.
The forum, co-hosted by the U.S. Embassy and the American Chamber of Commerce Kenya (AmCham Kenya), brought together key public and private sector stakeholders from both countries. It marked the formalization of the growing partnership between Kenya and the U.S., which has been quietly developing over the past two years.
Major U.S. investments, such as NBA Africa’s Basketball Africa League (BAL), have contributed to the rapid growth of Kenya’s creative industries. The forum solidified these ties with new initiatives. AmCham Kenya announced the establishment of a dedicated task force to capitalize on the momentum from the summit and foster long-term partnerships. Executives from Tyler Perry Studios and NBA Africa pledged $93 million to support 48 local film projects and create over 8,000 jobs. Additionally, keynote speaker Nicholas Weinstock, founder of Invention Studios, shared that the five films developed under his company’s 2024 program in Kenya are nearing completion, with casting to begin soon.
The Kenyan government has set an ambitious goal to double the creative sector’s GDP contribution from 5% to 10% by the end of the year. A forthcoming Creative Economy Bill is expected to institutionalize support for local creatives and formalize incentives that the government has promised investors.
However, the government’s efforts are uncoordinated and incoherent. For example, some observers have questioned whether a single bill can adequately address the complex business environment of the creative economy. There are also lingering concerns about the increasing threats to digital freedom—an essential component of creative sector growth—due to recent restrictive legislation and heavy-handed directives.
Crunch Time 📈
Catch Up 📬
How Nigeria’s public service broadcaster plans to reinvent itself
Once the pride of Nigerian broadcasting, the Nigerian Television Authority (NTA) has struggled for years to stay relevant in a rapidly changing media landscape. Now, under the leadership of a new executive team, the broadcaster is attempting a bold reset.
In the latest Communiqué essay, we unpack the team’s back-to-basics strategy to restore public trust, modernize operations, and reconnect NTA with the audiences it was built to serve.
Read the full story here.
Curiosity Cabinet 🗄️
Multichoice is considering unbundling Supersport from DStv by 2026, in response to pressure from subscriber losses.
A 24-hour dance party is helping to fund the completion of Uganda’s first contemporary art center.
Why Warner Music is expanding into Francophone Africa.
Here are the events in the creative economy happening next week:
Lagos Games Week, a major annual trade and business conference for video game players and developers, will take place in Lagos from June 19 to 21, 2025. Register and get more details here.
That same day, Africa’s leading documentary film event, the Encounters South African International Documentary Film Festival, opens in Cape Town and Johannesburg. Register and get more details here.
See what else is happening across the continent via Communiqué’s African Creative Economy Database.)
Editor’s note: The article has been updated to reflect Multichoice’s revenue figures accurately.