M-Net and Showmax at risk of losing HBO and all other Warner Bros studios series and film output in TV channels carriage fight between Canal+'s MultiChoice and WBD

by Thinus Ferreira

M-Net and Showmax are both at risk of losing all of Warner Bros. Discovery's HBO content, as well as all of the TV series and films licensed from WBD's TV and film studios, in separate negotiations that form part of the bigger channels carriage agreement negotiations and standoff between Canal+'s MultiChoice Group and WBD.

The existing channels carriage contract between MultiChoice and WBD expires at the end of December 2025.

The months-long talks to hammer out a new channels carriage extension contract have become contentious, with the risk that DStv subscribers could lose the 12 TV channels supplied by WBD at the end of the month.

It is however not just the 12 TV channels that might get axed from DStv but also all of the HBO content seen on MultiChoice's video streaming service Showmax, as well as on the M-Net (DStv 101) channel, and the M-Net Movies channels, which are bought "separately" from the full linear TV channels as part of output deals.   

A source told TVwithThinus that the potential loss of WBD's content for MultiChoice's DStv, M-Net and Showmax is its "biggest existential threat in its history".

Talks between Canal+, MultiChoice and Warner Bros. Discovery again took place on Thursday evening.

The WBD channels at risk of going dark on DStv on 31 December include CNN International, Discovery Channel and Cartoon Network - all three of which have been on DStv since it launched 30 years ago in 1995 - as well as Cartoonito, Food Network, TNT, TLC, ID: Investigation Discovery, Real Time, HGTV, Discovery Family and the Travel channel.

Another source made it very clear to me that the current negotiations with MultiChoice involve separate agreements for both Warner Bros. Discovery’s channel brands, as well as for all of its premium content like HBO series and Warner Bros. titles.

It means that HBO shows and Warner Bros. films appearing on M‑Net, M‑Net Movies and Showmax are also part of the ongoing discussions - not just the 12 TV channels, creating a much bigger possible content loss catastrophe than what DStv subscribers realise.

If MultiChoice and WBD fail to sign a new channels carriage agreement, M-Net and Showmax will also lose the individual shows and films acquired from WBD's TV and film studios like Warner Bros. Television, Warner Bros. Pictures and New Line Cinema, as well as HBO.

HBO series titles range from The Gilded Age, The White Lotus and Dune: Prophecy to House of the Dragon, the new upcoming spinoff Knight of the Seven Kingdoms that will debut in 2026, the new Green Lantern series Lanterns that will start in 2026 as well, and also the highly anticipated new Harry Potter drama series, currently filming its first season and is expected to run for a decade like Friends.

M-Net didn't respond with any answers or clarification to multiple media queries made last week about this output deal that it is at risk of losing.

A concerned and angry DStv subscriber has now started an online petition, entitled "Save our DStv channels from cancellation" to implore MultiChoice not to allow these 12 TV channels to get axed from DStv.

A third insider told me "things are not looking good".

"WBD, which is now taken over by Netflix, is the largest American content supplier of third-party entertainment to DStv and M-Net. You can't replace that massive loss with anything else, even if MultiChoice says it will work on finding replacement content."

"How will they explain to DStv subscribers paying exorbitant monthly subscription fees already why they no longer have CNN, Discovery or Cartoon Network, but that you want them to keep paying?" another source said.

MultiChoice says "While discussions between the parties continue, no agreement has been reached at this stage".

MultiChoice also hinted that WBD's asking price for whatever content the negotiations are over, might be too high.

MultiChoice says it's trying to acquire content "at the best possible pricing. Every time you subscribe, you trust us with your money, and we take that responsibility seriously".

Warner Bros Discovery told TVwithThinus that it has "not yet reached a mutual agreement with MultiChoice to continue broadcasting our much-loved brands. We want to assure our viewers that Warner Bros. Discovery remains unequivocally committed to finding a resolution".

"Our primary goal is to keep these channels accessible to our loyal audience. We are hopeful that a constructive path forward can be found that benefits all parties, especially the viewers."

Before Canal+'s takeover of the MultiChoice Group, Maxime Maada, Canal+ CEO, told South African regulators that DStv would have more content and more services after Canal+'s buyout and not fewer.

The Competition Commission of South Africa told TVwithThinus in response to a media query about the potential loss of WBD's TV channels and content from DStv, M-Net and Showmax, that "The Competition Commission is not able to comment on this at this stage until it has established all the relevant facts".

"However, it is important to note that any changes to the business of the merged entity will have to be done in a manner that ensures that the merger conditions are not undermined or violated."

ALSO READ: Stalemate in channel carriage extension negotiations between Canal+'s MultiChoice and Warner Bros. Discovery could see 12 TV channels axed from DStv at the end of December 2025: 'You trust us with your money'

ALSO READ: SHOCKER. Canal+'s MultiChoice now says 12 TV channels from Warner Bros. Discovery will definitely be removed 31 December 2025 in channel carriage fight.

ALSO READ: Netflix to buy Warner Bros. Discovery's studios and HBO Max streamer for $72 billion: 'The Albanian army has taken over the world'

ALSO READ: Subscriber starts 'Save our DStv channels from cancellation' petition as Canal+'s MultiChoice tries to strike new deal with WBD: 'Loyal DStv subscribers are deeply frustrated over betrayed trust'

ALSO READ: Canal+'s MultiChoice and Warner Bros. Discovery unable to agree on price for 12 TV channels and HBO content, won't lower subscription fees for DStv subscribers if channels are axed

Canal+ appoints Elvire Charbonnel as new MultiChoice corporate communications boss

by Thinus Ferreira

France's Canal+ has appointed Elvire Charbonnel as the new corporate communications boss of the MultiChoice Group.

As the MultiChoice Group's latest head of corporate communications, Elvire Charbonnel will report Emilie Pietrini, Canal+'s brand and communications director.

After Canal+'s buyout of MultiChoice, Maxime Saada, Canal+ CEO, in October said that Canal+ doesn't plan on filling positions with a majority of French executives, although that is what has been happening since October the management of new Canal+ Africa CEO David Mignot.

Elvire Charbonnel will remain responsible for corporate communications at StudioCanal. It's still unclear whether Elvire Charbonnel will be relocating to Johannesburg in South Africa or remain in Paris, France.

Elvire Charbonnel has a master's degree in communication and media from Sciences Po Paris and was a consultant for Havas, Tilder and Clai (then Taddeo).

Elvire Charbonnel joined Canal+ in September 2022 as project manager and was then upped to head of corporate communications at StudioCanal.

MultiChoice warns profit down by more than 40% for 6 months until October 2021 due to forex losses and ongoing local content costs.

by Thinus Ferreira

MultiChoice warned that its profit was down by more than 40% for the half year until the end of September 2021, with the South African pay-TV operator that will report its interim financial results on 11 November.

In a trading statement that MultiChoice issued on Monday for its 6 months until the end of September, the pay-TV operator that runs services like DStv, GOtv and its streaming service Showmax across Africa, said that its expects its headline earnings per share for the current period to be down between 35% (R2) and 40% (R2.29) compared to the prior period's reported headline earnings per share of R5.72.

MultiChoice said that the dent in profit in primarily due to foreign exchange losses because of the strengthening of the South African rand as a currency, as well as "deferred content costs" from the previous year, the cost of three major sporting events and the ongoing increase in spending on localised content in South Africa and across the African continent.

"The financial performance for the current period benefited from continued subscriber growth, a strong advertising revenue recovery and further savings generated from the group's established cost optimisation programme," MultiChoice says in the statement.

MultiChoice's share price falls nearly 8% on Wednesday to 11-month low as Nigeria's shakedown for money from the pay-TV operator continues and country demands MultiChoice pays 50% 'deposit' of R65 billion in dodgy 'tax backlog' claim.

by Thinus Ferreira

The share price of the MultiChoice Group fell nearly 8% on late Wednesday as Nigeria's tax body demanded that the pan-African pay-TV operator pay a 50% deposit or R33 billion of a whopping 1.8 trillion naira (R65 billion) - as part of yet another dodgy so-called "tax backlog" claim.

Nigerian authorities that appear to run a lucrative ongoing racket of targeting companies like MTN and others in shakedowns to solicit billions of rand to fund empty state coffers as the West African country's struggling economy continues to tank, has now moved its target, with MultiChoice that is in the crosshairs.

After banning the social media network Twitter and constantly attacking South African and multi-national business trying to operate in the struggling country, Nigeria continues to inflict massive damage on the country's reputation as an investment destination.

As a result, Nigeria has steadily become increasingly toxic for any international and pan-African companies and any companies that considered making any form of foreign investment in Nigeria.

On Wednesday Bloomberg reported that an appeals tribunal in Lagos has ordered MultiChoice to pay a "50% deposit" of 1.8 trillion naira that is claimed as a so-called "tax backlog".

MultiChoice as a company in totality, beyond just MultiChoice Nigeria, doesn't have that much money, with the R65 billion that is bigger than the MultiChoice Group's entire market capitalisation.

Nigeria's  Federal Inland Revenue Service (FIRS) in a statement on Wednesday says the billions of rand it demands from MultiChoice as a so-called "deposit" must be paid as a pre-condition for MultiChoice's "tax backlog" case to be heard as "a full appeal" on the matter.

The case has been adjourned to 23 September 2021, subject to the company complying with its order, and with the appeals tribunal that will only hear the case if MultiChoice complies and pays a staggering R33 billion as a "deposit".

MultiChoice's share price fell to an 11-month low on Wednesday. The MultiChoice Group had no immediate statement.

Last month Nigeria's tax authority also asked lenders to freeze MultiChoice Nigeria's bank accounts in Nigeria to try and "recover" the alleged "tax backlog"money after MultiChoice Africa and its Nigerian subsidiary had refused access to their computer servers for auditing.

ALSO READ: Nigeria's revenue service orders banks to immediately freeze MultiChoice Africa's Nigerian bank accounts citing refusal to give access to servers, demands R63 Billion.

The MultiChoice Group warns of a full-year headline loss; pay-TV operation hurt by foreign exchange losses and stake disposal charge to Phuthuma Nathi.

The MultiChoice Group, Africa's biggest pay-TV company, is warning that it expects to flip to a full-year headline loss this year, hurt by foreign exchange losses as well as a charge on a stake disposal at its South African business.

The MultiChoice Group listed on the Johannesburg Stock Exchange (JSE) in February this year.

It's expected that The MultiChoice Group will release its financial results on 18 June - it's first since it the spin-off from Naspers.

According to a trade statement MultiChoice issued late on Monday, the pay-TV operator said that it expects its said core headline earnings and trading profit to rise 8% to 12%, driven by subscriber growth as well as reduced losses in its MultiChoice Africa division in the rest of Sub-Saharan Africa outside of South Africa.

"Trading profit is expected to be between 9% (R0.6 billion) and 13% (R0.8 billion) higher than the prior year´s reported R6.3 billion".

The MultiChoice Group expects losses per share of between 673c and 739c, compared to earnings of 332c per share reported in the previous year.

"Headline loss per share for the current period is expected to be between 724 cents and 800 cents lower than the prior year´s reported headline earnings per share of 410 cents," says the MultiChoice Group.

MultiChoice had to allocate a 5%-stake in MultiChoice SA Holdings to Phuthuma Nathi Investments as part of its unbundling process when it got spun off from Naspers in February.

As the South African taxi-drama Isibaya on DStv's Mzansi Magic speeds along, so does MultiChoice in expanding the local production industry in the country as well as across Africa.

Set against the backdrop of South Africa's local taxi industry, it's not just the story inside its prime time soap Isibaya on Mzansi Magic (DStv 161) that is speedings along at a rapid pace - it's MultiChoice itself as well, with the pay-TV operator that is ramping up and expanding the scope of its local production capacity and local TV storytelling.

Listed since the end of February, the MultiChoice Group that is facing ever-increasing competition from global video streaming services and other broadcasters for its DStv, GOtv and Showmax pay-TV brands in South Africa and across sub-Saharan Africa, is charging full-steam ahead with established local, homegrown shows like Isibaya in South Africa, as well as looking to commission even more locally produced series in Kenya in East Africa and Nigeria in West Africa.

While for viewers watching Isibaya it'sall about  drama and entertainment, for MultiChoice it's about business - remaining relevant in a rapidly changing video entertainment market while growing and expanding the local entertainment and TV industry while investing in more new voices.

While DStv subscribers watch international drama series like HBO's Game of Thrones on M-Net (DStv 101) - an American series that was predominantly filmed in Ireland that meant thousands of new job opportunities and a massive capital injection in Ireland's film and TV industry - MultiChoice is hard at work at trying to do the same for South Africa and the African continent.

A show like Isibaya is brought to life every day by literally hundreds of people besides just the actors and who are working behind-the-scenes; people who work behind the lens but who are part of building South Africa's vibrant and expanding TV biz.

"I am a storyteller and I want the audience to feel what I am feeling whilst they are watching our show," says Menzi Ngubane, who appears in Isibaya in the role of Judas. "I want them to feel the raw emotion and be engulphed in the entertainment that we are bringing into their homes".

Sayitsheni Mdakhi plays Saddam in Isibaya produced by The Bomb Shelter. He landed his first starring role in 2016 and today is working as a writer and a producer in the South African entertainment industry.

"The entertainment industry is evolving and customers are changing what they watch, when they watch it and how they watch it. It is up to us, as actors, to notice changes in viewing behaviour and bring the best TV to viewers' lounge," he says.

The Isiyaba cast and crew say their aim is to convey the realities and passions of modern-day South African viewers - balancing escapism and realism in the story that they produce and bring into the lives of ordinary South Africans, whilst providing riveting entertainment.

"We are committed to creating these platforms for storytelling and to making opportunities available for more actors and a wider audience as increased local content is a key driver of increased viewership," says Yolisa Phahle, the head of general entertainment for the MultiChoice Group.

"We have invested substantially into locally-produced content and understand that economic times are tough in South Africa, and that our customers are under pressure to make every cent they spend count".

"That's why we're making every effort to ensure DStv remains as affordable and accessible and our viewers get the best entertainment experience – the best local stories through series and movies," she says.

MultiChoice through its set of M-Net and SuperSport channels produces over 4 500 hours of local content per year, working with local production companies in South Africa and across the African continent, using production companies, production facilities and 10 studios across Africa stretching from Cape Town in South Africa to Lagos in Nigeria where the upcoming new season of Big Brother Naija will be filmed.

"As actors and being a part of an award-winning show, re-energizes everyone to want to do more and perform better and excel further than we thought possible," says Abdul Khoza, another of the Isibaya actors.

"This is one of the biggest sets that we have in South Africa and one of the best productions in Africa".

MultiChoice now has over 40 000 hours of local content in its library and spends over R2.5 billion on local productions per year. 

Confusion and uncertainty growing after reports that Nigeria has cancelled MultiChoice's recently-issued licence to continue with its GOtv digital terrestrial TV service; MultiChoice says its GOtv licence has not been revoked.

Confusion and uncertainty is growing after the Nigerian government has reportedly cancelled the recently-extended pay-TV licence of MultiChoice's GOtv service in the West African country, while MultiChoice says the licence for its service stands and has not been revoked.

Nigerian media are reporting that the GOtv licence that was re-issued in March 2019 granting MultiChoice Nigeria another 3-years to run GOtv, has been withdrawn.

According to Lai Mohammed, Nigeria's minister of information and culture, the GOtv licence has been withdrawn due to irregularities.

MultiChoice in a statement, in response to a media enquiry, told TVwithThinus late on Wednesday however that "The MultiChoice Group can confirm that its GOtvlicense in Nigeria was successfully renewed in March 2019 by the relevant authority. It has not been cancelled, revoked or nullified".

Besides running its DStv Nigeria service targeting higher-income customers, MultiChoice Nigeria also runs GOtv Nigeria, MultiChoice's digital terrestrial television (DTT) aimed at lower-income households - and it's this licence that was apparently revoked.

According to Nigeria's Daily Independent newspaper, MultiChoice's GOtv licence was revoked by Nigeria's federal government because of a growing N2.5 billion scandal (R96 million) that has engulfed Nigeria's National Broadcasting Commission (NBC), headed by Modibbo Ishaq Kawu, and the regulator responsible for issuing the recent 3-year licence to MultiChoice Nigeria.

If the licence has been nullified, it means that MultiChoice Nigeria and GOtv Nigeria have become collateral damage as part of broader Nigerian government infighting and a recent investigation that was done by Nigeria's Independent Corrupt Practices and other related Offences Commission (ICPC) into the NBC.

Lai Mohammed is reportedly locked in an expanding court battle against Modibbo Ishaq Kawu as director-general of the National Broadcasting Commission in Nigeria.

In a letter on 29 March 2019, Lai Mohammed reportedly wrote that "The decision to renew the GOtv licence for 3 years negate the position of the white paper on the DSO (Digital Switch Over), making it not only illegal but a willful disrespect for our laws and national institutions".

"Recall that the ministerial task force on the DSO, which I chair, had specifically ruled that all pay digital terrestrial television (DTT) companies would no longer be allowed to self-carry and would have to go to one of the two licenced signal distributors for that function."

"That decision was made based on the government white paper which puts signal distributors in charge of transmission and separates them from content providers."

"No part of the licence fees paid by MultiChoice Nigeria Ltd. should be touched by the NBC until a negotiated agreement has been signed, subject to my approval," wrote Lai Mohammed.

Nigeria's two signal distributors are Integrated Television Services (ITS) and Pinnacle Communications Limited, meaning MultiChoice Nigeria will have to switch to using one of these two for its GOtv pay-TV content. 

MultiChoice Group lists on the JSE as South African broadcasting regulator Icasa says it's 'concerned' that the listing went ahead while a MultiChoice complaint is being heard by the Compliance Committee.

The MultiChoice on Wednesday morning listed on the JSE with a market capitalisation of around R44 billion, while South Africa's broadcasting regulator, Icasa, hours later issued a statement saying it's concerned about Naspers and MultiChoice doing the listing when there's a pending complaint before its compliance committee.

"Today is a proud day for Naspers. Listing MultiChoice Group through an unbundling unlocks value for Naspers shareholders by creating the opportunity for them to own a direct stake in MultiChoice Group, a top-40 JSE-listed African entertainment group," says Bob van Dijk, Naspers CEO, in a statement.

The MultiChoice Group comprises MultiChoice South Africa Holdings, MultiChoice Africa Holdings, MultiChoice Botswana, MultiChoice Namibia, NMS Insurance Services SA, the African division of Showmax, Irdeto Holdings and Irdeto South Africa.

"We are also very pleased to be able to create further value for Phuthuma Nathi shareholders, who, through MultiChoice South Africa, have already participated in one of South Africa’s most successful empowerment schemes."

Calvo Mawela, MultiChoice Group CEO, in the statement says "Today’s listing is an important milestone in our exciting journey of growth".

"As one of the fastest growing pay-TV broadcast providers globally, our strong financial position at listing is backed by attractive long-term growth opportunities in both subscriber numbers and revenue. The MultiChoice Group has a highly cash generative core with no financial debt, and we are poised to deliver value to our shareholders over time."

"We are overwhelmingly positive about MultiChoice Group's future. With the largest pay-TV footprint across Africa, we understand our customers and tailor our offering and services to suit market-specific video entertainment needs."

"This, coupled with a leading content offering, world-class technology and infrastructure, pan-African scale and strong in-country capabilities, positions us well to generate shareholder returns and future growth," said Calvo Mawela.

Meanwhile the Independent Communications Authority of South Africa (Icasa), in a statement issued just after 11:0 after MultiChoice Group already listed, Icasa said it "is noting with concern that the listing of the MultiChoice Group seems to be going ahead when there is a complaint against it before the Complaints and Compliance Committee".

"On 23 January 2019, Khulisa Social Group NPC (Khulisa) lodged a complaint with the CCC against MultiChoice in respect of the listing," says Icasa.

"In its complaint, Khulisa stated that the upcoming listing of the Multichoice Group on the JSE will result in a contravention of Section 13(1) of the Electronic Communications Act 0f 2005 (ECA), as amended."

"Section 13(1) of the ECA states that 'an individual licence may not be let, sub-let, assigned, ceded or in any way transferred, and the control of the individual licence may not be assigned, ceded or in any way transferred to any other person without the prior written permission of the Authority."

"MultiChoice appeared before the CCC on Monday, 18 February 2019 where the licensee argued that the matter was not urgent and that the listing had not taken place. MultiChoice further argued before the Committee that, in any case, there was no past contravention by the licensee and that the CCC had no jurisdiction over future events."

"Icasa is indeed concerned that the listing seems to be going ahead whilst the CCC is still considering representations that were made and yet to make its final recommendations on the matter to Council of the Authority,” said Icasa.

MultiChoice won't increase DStv Premium fees in 2019 in South Africa as it tries to win back premium subscribers; price hike coming for other packages from April.

As it tries to stem the tide of subscribers abandoning its most expensive package, MultiChoice will keep the monthly subscription fee for DStv Premium unchanged for 2019, while planning on increasing prices for its other packages from 1 April 2019.

With the percentage of DStv Premium subscribers - the most valuable segment of MultiChoice's subscriber base - shrinking the past two years as more and more South African and consumers across other sub-Saharan countries abandoned its top-tier and most expensive package, MultiChoice is trying to stem the churn and won't be increase the price for this segment this year.

While DStv Premium subscribers won't pay more from April 2019, MultiChoice is taking away their DStv print magazine helping them with content discovery and knowing what programming is shown where as well as providing channel listings.

DStv Premium currently costs R809 per month, in addition to a R90 Access Fee that subscribers must pay if they want to use a personal video recorder (PVR) decoder like the DStv Explora.

In 2018 MultiChoice CEO Calvo Mawela blamed Netflix South Africa for the significant drop in DStv Premium subscribers, saying the global video streaming giant has been the cause of the loss of over 100 000 DStv Premium subscribers in the previous financial year, including another 40 000 in 2018.

MultiChoice, than plans to list on 27 February on the JSE as The MultiChoice Group is spun off from Naspers, didn't yet want to say which DStv packages will see a price hike from 1 April.

"From 1 April DStv will freeze the price of DStv Premium subscription packages, which means customers will pay the same for their packages in the next year," MultiChoice said in a statement on Monday afternoon.

"Customers on other packages will get a minimal increase, below inflation," said MultiChoice that didn't want to name the individual packages and their price hikes that will kick in from April.

At the moment DStv Compact Plus costs R509 per month, DStv Compact costs R385 per month, DStv Family is R249 per month, DStv Access costs R99 per month, and DStv EasyView costs R29 per month.

"We have a fantastic content line-up for the year ahead and would like as many customers as possible to be able to enjoy DStv."

MultiChoice says "we understand that times are tough in South Africa and that our customers are under pressure to make every cent they spent count. As such we're keeping DStv as affordable and accessible as possible to as many households as we can, to ensure they can enjoy great entertainment for their families."

UPDATE Tuesday 12 February 2019 - 12:00:
MultiChoice is telling DStv subscribers that DStv Compact Plus will increase from R509 to R519, DStv Compact will increase from R385 to R399, DStv Family will increase from R249 to R265, DStv Access will increase from R99 to R105.  DStv EasyView will remain unchanged at R29.

The massive million rand salaries of MultiChoice bosses revealed as The MultiChoice Group prepares to list and start trading on the JSE from 27 February 2019.

The massive million rand salaries have been revealed of the top executives at The MultiChoice Group as the pay-TV arm of Naspers plans to spin-off and list and trade on the Johannesburg Stock Exchange (JSE) from 27 February 2019.

Meanwhile, according to Reuters, MultiChoice that will run DStv, GOtv and Showmax in sub-Saharan Africa plans to pay a whopping R2.5 billion ($181 million) inaugural dividend in 2020 after it has been unbundled from Naspers.

As the highest-paid top executive, The MultiChoice Group will pay Imtiaz Patel, executive chairperson, R22.2 million for the financial year ending 31 March 2019 according to the regulatory filing - up from R19.7 million for the financial year ending March 2018.

Imtiaz Patel will receive a basic salary of R7.6 million for the 2019 financial year, slightly down from the R8 million he was paid in 2018, but will get a bonus of another R7.6 million in 2019 - up from R6.4 million in the previous year.

Calvo Mawela, MultiChoice CEO will pocket R7.7 million in 2019 that includes a R3.2 million bonus and basic salary of R3.8-million. He received R9.8 million in 2018.

The MultiChoice executive Nolo Letele will get R8.5 million, consisting of a R4.6 million basic salary and a bonus of R3.4 million - down from R9.3 million in the 2018 financial year.

Tim Jacobs, MultiChoice chief financial officer (CFO), will be paid a total package of R7.9 million with R5.4 million of that consisting out of a bonus and other benefits.

BREAKING. MultiChoice Group sets 27 February 2019 as its listing date on the JSE, company focused on 'pay-TV growth opportunities across Africa'.

The MultiChoice Group plans to list and start trading shares on the JSE on Wednesday 27 February 2019 with Calvo Mawela, MultiChoice Group CEO, saying the company is focused on growth pay-TV opportunities across Africa.

The MultiChoice Group made the announcement on Monday evening after local markets had closed for the day.

Naspers and its pay-TV arm MultiChoice announced in 2018 that it plans to spin-off The MultiChoice Group as a separate company and to list it on the Johannesburg Stock Exchange.

 In September 2018 it was announced that The MultiChoice Group will include MultiChoice South Africa, MultiChoice Africa, its video streaming service Showmax, as well as the global digital platform security provider Irdeto.

Now The MultiChoice Group plans to list on 27 February 2019 in the "broadcasting and entertainment" sector of the JSE.

"We believe the listing of MultiChoice provides an excellent opportunity to invest in the leading provider of video entertainment on the African continent," says Calvo Mawela in a statement on Monday announcing the 27 February JSE date.

"The MuliChoice Group brings an incomparable local and international content offering to around 14 million households and is one of the fastest growing pay-TV broadcast providers globally."

"With strong financials, the flexibility of an ungeared balance sheet and deep local knowledge, we hope to deliver excellent returns to shareholders over time," says Calvo Mawela.

"The MultiChoice Group management team is focused on the growth opportunity across Africa, a market of significant TV consumption by global standards. Pay-TV and connected video remain under-penetrated on the continent compared to many other markets in the world and MCG intends to pursue both these avenues of growth."

Bob van Dijk, Naspers CEO, said "The strength of the company’s leadership team, alongside its compelling content, world-class technological capabilities and attractive financial profile means that it is very well positioned for future growth in an evolving sector on the African continent."

The MultiChoice Group says it creates and showcases unparalleled local content and has access to international content from 8 of the top 10 studios in the United States, including movie and children's content.

The MultiChoice Group is also the continent's largest funder of sport, providing sports offerings and holding major international as well as local sports rights. 

The MultiChoice Group employs more than 11 000 people across Africa and indirectly helps with the economic empowerment of more than 20 000 people who are employed by partners and suppliers.

BREAKING. Naspers' Showmax shutting down in Poland after just 2 years, ending the service's lofty international expansion plans outside Africa as MultiChoice Group decides to refocus its video streaming efforts closer to home.

After barely 2 years of operation Naspers' Showmax is abruptly cutting its losses and shutting down in Poland where it has been operating as well outside of South Africa and the rest of sub-Saharan Africa, ending the subscription video-on-demand (SVOD) service's lofty international expansion plans as the MultiChoice Group refocuses its video streaming efforts closer to home.

Showmax will shutter in Poland at the end of January 2019, just over two years after it started in Poland in February 2017, promising original productions and a strong investment in local Polish shows and films.

Naspers plans to spin off the MultiChoice Group during the first half of 2019 that includes Showmax and that will continue with its South African and sub-Saharan Africa service.

Magdalena Marzec, Showmax Poland PR manager said the shut down of Showmax in Poland is part of the MultiChoice Group refocusing efforts on Africa.

"We are very grateful to all partners, clients and the Showmax team who have supported the company since its inception nearly two years ago and we are sorry that this story is coming to an end," a statement says.

Showmax Poland users don't have to cancel subscriptions or delete accounts - from 17 December Showmax in Poland will no longer charge a monthly fee for subsequent billing periods and by the end of January 2019, all subscriptions will expire.

In June this year, rival Netflix that launched in Poland in January 2016 a year before Showmax, was outpacing Showmax in terms of user growth according to data from Gemius/PBI.

Showmax has seen a constant top executive turn-over the past two years with first CEO John Kotsaftis who exited, followed by Chris Savides who was Showmax's head of Africa and left.

In August Naspers appointed Niclas Ekdahl as CEO of the newly-formed Connected Video unit in charge of Showmax and MultiChoice's DStv Now over-the-top service (OTT) for the MultiChoice Group.

'Netflix threat' remains overblown as MultiChoice adds another 400 000 pay-TV subscribers - although DStv Premium subs continue to shrink.

The much-hyped "Netflix threat" remains overblown with MultiChoice that added 400 000 further DStv and GOtv subscribers as well as Showmax users to its pay-TV business in South Africa and Africa compared to a year before, although the share of DStv Premium subscribers continue to shrink as consumers don't see MultiChoice's top tier as offering enough value for money anymore.

Naspers released its interim results for the 6 months to 30 September 2018 on Friday afternoon and added another impressive 400 000 pay-TV households across Africa.

That brings the total to 13.9 million pay-TV subscribers, of which 7.2 million are in South Africa that remains MultiChoice's biggest market, and a combined 6.69 million in the rest of Africa.

Naspers said that its "value strategy", one aimed at "growing the subscriber base and reducing costs" lead to $15 million in cost savings.

MultiChoice's pay-TV growth was strong in the middle-income and mass-market segments where it added 285 000 pay-TV subscribers in South Africa during the first half of the 2019 financial year.

While the DStv Premium base continues to grow, it's not growing as fast as the mid-market tiers, and as a result continues to represent a smaller and smaller portion of overall subscribers.

While MultiChoice Group CEO Calvo Mawela earlier this year blamed DStv Premium drop-off on Netflix South Africa's aggressive expansion, Naspers on Friday said that the pressure leading to DStv Premium subscriber churn is due to consumers coming "under some disposable income pressure" and not because of competition from video streaming competitors like Netflix.

What the drop in the overall percentage of DStv Premium subscriber numbers means is that MultiChoice is making less average revenue per subscriber - or a decrease in the ARPU (average revenue per user) - from $27 (R347) a year ago to $25 (R335) currently) as consumers opt for DStv Compact Plus and DStv Compact instead of DStv Premium.

(The ARPU as DStv subscription fee revenue includes the PVR Access fee and DStv BoxOffice incomre, but excludes Showmax subscription fees.)

That is a drop of 3%.

At MultiChoice South Africa "the focus of the South African business remains retaining premium subscribers while driving subscriber growth in the mid- and mass-market tiers" Naspers said.

"Subscriber retention is underpinned by rising PVR penetration uptake of connected video services, and roll-out of additional services, for instance Joox Music launched in October 2018)."

PVR use by DStv subscribers ticked up slightly, from 20.1% during the same period a year ago, to 20.3%.

Naspers says "The Fifa World Cup provided a significant opportunity to drive growth on the back
of significant investment in content and subscriber acquisition, mainly through set-top box subsidies".

"Customers added by this promotion will contribute to second-half revenues and profitability, driving year-on-year improvements."


Sub-Saharan Africa outside of South Africa
Naspers says that in sub-Saharan Africa, outside South Africa, subscriber growth accelerated and the business generated 9% (16%) growth in revenues to $524 million.

Naspers says "this improvement would have been stronger but for the Fifa World Cup promotional drive" and that results were also affected by "the 42% devaluation of the Angolan kwanza since January 2018".

"The limited availability of foreign currency in the Angolan and Zimbabwean economies continues to affect liquidity."

BREAKING. Naspers to spin off and list its video entertainment business MultiChoice on the JSE as the MultiChoice Group including MultiChoice SA, MultiChoice Africa and Showmax in Africa during first half of 2019.

Naspers, as expected, announced late on Monday that it plans to spin off and list its video entertainment business, MultiChoice on the Johannesburg Stock Exchange (JSE) during the first half of 2019, comprising of MultiChoice South Africa, MultiChoice Africa, Irdeto and its Showmax streaming service in Africa.

Naspers made noise earlier this year signaling its plans to get rid of MultiChoice and its pay-TV division in the form of a separate stock market listing since it no longer offer as much value and more importantly as much growth potential as Naspers' main investment focus that is its internet business component.

By spinning out and essentially "unbundling" its video entertainment division, MultiChoice - that is profitable - helps to reduce the overall size of Naspers.

"This marks a significant step for the Naspers Group as we continue our evolution into a global consumer internet company," says Bob van Dijk, Naspers CEO, in a statement.

Imtiaz Patel, Naspers video entertainment CEO, says "Listing and unbundling MultiChoice Group is intended to create a leading entertainment business listed on the JSE that is profitable and cash generative. We offer an unmatched selection of local and original content, as well as a world-class sports offering."

"Our leadership team is diverse, experienced and well-positioned to take the company forward. I am particularly pleased that this transaction will further enhance the value for Phuthuma Nathi shareholders."

"There are significant growth opportunities for MultiChoice Group in Africa. The combination of MultiChoice’s reach, Showmax and DStv Now's cutting-edge internet television service, alongside Irdeto’s 360 security suite will provide a unique offering."

Naspers says its video entertainment business is one of the fastest growing pay-TV operators globally and thatits multi-platform business reaches 13.5 million households across Africa.

"In the last financial year, the business added 1.5 million subscribers, and generated revenue of R47.1 billion and trading profit of R6.1 billion. It employs more than 9 000 people in Africa and indirectly creates economic prosperity for over 20 000 more who are employed by its various partners and suppliers across the continent."

Naspers says the MultiChoice Group is expected to be unbundled "with limited leverage", "providing it with the necessary financial flexibility to pursue growth opportunities in African video entertainment".

"The business is also positioning itself for the future by offering online streaming services, including Showmax and DStv Now".

Naspers will retain its primary listing on the JSE as well as its interests in Media24. MultiChoice Group is anticipated to list on the JSE and simultaneously unbundle in the first half of 2019, subject to the approval of the requisite regulatory authorities.