MultiChoice, the leading pay-TV operator in Africa, is pursuing a strategic merger with Canal+, a French media company owned by Vivendi SE. This proposed $3 billion deal aims to bolster MultiChoice’s competitive edge against US streaming giants like Netflix in the rapidly growing African market.
MultiChoice CEO Calvo Mawela highlighted the potential benefits of the merger in a recent interview. He explained that by combining MultiChoice’s dominance in English-speaking African countries with Canal+’s strong presence in French-speaking regions, the merged entity would gain significant scale and reach across the continent.
This expanded footprint would enhance the company’s negotiating power for acquiring content, leading to better rates and improved revenue prospects. Mawela emphasized the importance of scale in the streaming industry, stating that “a combination gives us a better chance to compete against global giants.”
Currently, MultiChoice’s streaming service, Showmax, boasts approximately 2.1 million subscribers in Africa, slightly ahead of Netflix’s 1.8 million. However, projections indicate that Netflix could overtake Showmax by 2029, highlighting the need for strategic action.
To strengthen its position, MultiChoice has already partnered with Comcast’s NBCUniversal and Sky to add Premier League live streaming to Showmax. The proposed merger with Canal+ represents another significant step in MultiChoice’s strategy to compete effectively in the evolving African streaming landscape.
The deal, classified as a “large merger” under South African competition law, awaits approval from the Competition Tribunal. If approved, it could reshape the African media landscape and intensify the battle for streaming dominance in the region.
Despite the potential benefits of the merger, MultiChoice faces challenges in the African market. The company recently reported a loss of subscribers in Nigeria, attributed to economic pressures on household budgets. Navigating these economic challenges while fending off competition from global streaming platforms will be crucial for MultiChoice’s continued success in Africa.
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