From MultiChoice To Unsatisfied Consumers: "The Canal+ Deal Makes Them Stronger Against Declining DStv Consumers"
As readers already heard, MultiChoice offloaded various TV channels to lower bouquets including Africa Magic Showcase, HGTV and Disney Channel from 1st April. With MultiChoice looking to adjust prices in the month of May, this is their way of trying to retain the fleet of DStv consumers.
Unsatisfied consumers will look at the upcoming increase as a means to cut their losses while remaining will hope to see value with these arrivals. In the end, the top paying consumer is the one who suffers as they hope for a quality service but instead watches content get reduced.
MultiChoice is helpless in these regards as Paramount and Warner Bros. Discovery are undergoing restructures. This has left Comedy Central in a decapitated position and when this audience no longer sees value in a particular station corporate will burden it to another flock.
Shareholders are looking to cash on their transaction with Canal+ which is currently under assessment with the Competition Commission and ICASA. While some see MultiChoice's financial position as a blessing in disguise these flock don't care the slightest about people's opinion.
If the deal is approved, shareholders can take their money and run with Canal+ looking to make a debut on the JSE give these same people an open window to MultiChoice. Similar to Netflix, Canal+ makes its revenue in other parts of world mainly Europe and France which helps it tackle those losses made by MultiChoice.
Under new management, MultiChoice is expected to undergo further restructure aside from LicenceCo which tackles the DStv service. StudioCanal is looking to expand its services to Africa with Huntington filmed in Cape Town with another South African production set to be announced soon.
Although, MultiChoice and Canal+ will boast that they'll be no job cuts and this transaction will help it compete with Netflix, these are short term goals. As MultiChoice continues to bleed subscribers and Phuthuma Nathi shareholders get reduced dividend they'll most definitely makes cuts.
Last year, Canal+ was interviewed by journalist and made it clear that content allocation is their main focus for the company. NMIS Insurance Services may not be the only company to undergo restructure but Moment could as well get discontinued with Namola shipped off to another company.
Again once the deal is done, soon to be former MultiChoice shareholders won't make how this will affect DStv their business.
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