Tayo Busayo, Abuja
DAILY COURIER - MultiChoice Group, Africa’s leading entertainment company, in a bold move to rival global streaming giants, is exploring a $3 billion merger with French media company Canal+, a subsidiary of Vivendi SE.
MultiChoice CEO Calvo Mawela discussed the merger’s potential impact on Thursday in an interview with Bloomberg TV, highlighting its strategic aim to bolster the company's competitive edge against U.S.-based streaming services, particularly Netflix, in the African market.
Pending regulatory approval, the merger would combine MultiChoice’s stronghold in English-speaking African nations with Canal+’s established presence in French-speaking territories, extending the company’s market reach across the continent. Mawela emphasized that the increased scale would significantly enhance the group’s bargaining power with content creators and broaden revenue streams, allowing it to better compete with international platforms.
“A combination gives us a better chance to compete against the global giants,” he noted, adding, “This enables us to negotiate better rates for content and generate more revenue, especially with one party operating in French-speaking Africa and the other in English-speaking parts of Africa.”
The merger is classified as a "large merger" under South African competition law, requiring approval from the Competition Tribunal before it can proceed. MultiChoice had accepted Vivendi’s offer in June, signaling its intent to expand beyond its current territories and diversify its offerings.
This strategic move comes amid significant competition in Africa’s streaming landscape. According to research firm Omdia, Netflix currently holds around 1.8 million subscribers on the continent, while MultiChoice’s streaming platform, Showmax, leads with approximately 2.1 million. However, projections from Digital TV Research suggest Netflix may overtake Showmax in the coming years, with forecasts estimating Netflix will amass 6.9 million African subscribers by 2029, compared to Showmax’s projected 3.7 million.
To counter Netflix’s growing influence, MultiChoice has made strategic partnerships to enhance Showmax’s appeal. Last year, MultiChoice partnered with Comcast’s NBCUniversal and Sky, allowing Showmax to offer live Premier League coverage, an attractive addition for sports fans and a move aimed at boosting subscriber numbers.
However, despite these growth strategies, MultiChoice has recently faced challenges in its largest market, Nigeria. In its interim financial report for the six months ending September 30, 2024, MultiChoice revealed it had lost approximately 243,000 subscribers across its DSTV and GOTV platforms in Nigeria. The company attributed this downturn to Nigeria’s high inflation rates, which have spiked the prices of essential goods like food, electricity, and fuel, putting pressure on household budgets and reducing discretionary spending on entertainment.
As the African streaming industry continues to expand, MultiChoice’s merger with Canal+ could be pivotal in reshaping the market and positioning African streaming services as strong contenders against international players. The collaboration with Canal+ could unlock new growth avenues in French-speaking regions, tapping into an audience that has remained largely untapped by American streaming giants.
