Canal+ Implements Austerity Measures at MultiChoice Post-Acquisition
Canal+, the new owner of MultiChoice, the parent company of DStv, is swiftly enacting cost-cutting measures to address the financial challenges facing the pay-TV giant. These aggressive measures, impacting various suppliers, signal a significant shift in operational strategy following the acquisition.
Supplier Payment Suspensions and Discount Demands
According to reports, Canal+ has temporarily halted payments to a wide range of MultiChoice suppliers, encompassing production companies and even vendors providing basic necessities. As a condition for releasing payments, Canal+ is reportedly demanding a substantial 20% discount on all outstanding invoices. This decision is sending shockwaves through South Africa’s media landscape.
The move, while drastic, is not entirely unexpected. MultiChoice has been grappling with subscriber losses and financial difficulties for several years. Canal+’s intervention was anticipated, and the current actions suggest a concerted effort to stabilize the company’s financial position, with suppliers being the first to bear the brunt of these changes. The depth of MultiChoice’s financial woes is underscored by consistent losses reported over the past few years.
Keywords
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