MultiChoice CEO Calvo Mawela has revealed plans for a potential $3bn merger with French media company Canal+, owned by Vivendi SE, to help the African TV company compete with global streaming giants like Netflix.
In an interview with Bloomberg TV on Thursday, Mawela explained that the merger, pending regulatory approval, would combine MultiChoice's strong presence in English-speaking African countries with Canal+'s footprint in French-speaking regions, creating a unified force capable of negotiating better content rates and boosting revenue.
"A combination gives us a better chance to compete against the global giants," Mawela said, highlighting the importance of scale in the streaming industry.
He added that the merger would allow the companies to leverage their respective strengths in French- and English-speaking Africa.
The merger, which qualifies as a "large merger" under South African competition law, requires approval from the Competition Tribunal. MultiChoice accepted Vivendi's offer in June.
Research firm Omdia reports that Netflix had 1.8 million subscribers across Africa as of November 2023, compared to 2.1 million for Showmax, MultiChoice's streaming service.
However, projections from Digital TV Research suggest that by 2029, Netflix could lead the African market with 6.9 million subscribers, while Showmax may reach 3.7 million.
In addition to the merger, MultiChoice partnered with Comcast's NBCUniversal and Sky last year, adding live Premier League coverage to Showmax. Despite this, the company recently reported a decline of 243,000 subscribers in Nigeria, attributing it to inflation-driven cost increases affecting household budgets.
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