MultiChoice Group is facing regulatory and economic battles in South Africa, but the rest of Africa can pick up the slack

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Summary

In addition to the threat of new online video entrants into the African market, MultiChoice Group has been contending with regulatory, tax, and economic headwinds, particularly in its home market of South Africa but also in the wider subregion. To adapt to this new operating environment, the media giant has had to pivot its focus to alternative strategies and markets outside South Africa, aiming to bolster top-line revenue and subscriptions growth across the wider sub-Saharan African region.

MultiChoice in big fight with SABC over carriage fees

Under current regulations, subscription broadcasting services in South Africa are mandated to carry specific free-to-air channels provided by the public broadcaster South African Broadcasting Corporation (SABC). The Independent Regulatory Authority of South Africa (ICASA) introduced changes to these regulations in April 2022, specifying that SABC can now negotiate carriage fees for the channels.