MultiChoice CEO Calvo Mawela has highlighted that a proposed $3 billion merger with the French media company Canal+, owned by Vivendi SE, could boost MultiChoice’s ability to compete with US streaming platforms like Netflix.
Speaking to Bloomberg TV, Mawela explained that, subject to regulatory approval, the merger would extend MultiChoice’s reach by combining its stronghold in English-speaking African nations with Canal+’s influence in French-speaking regions.
According to Mawela, this increased scale would enhance the company’s negotiating power for content acquisition and improve revenue prospects. He emphasized that “a combination gives us a better chance to compete against global giants,” noting that in streaming, scale is a key factor.
“This merger allows us to secure better content rates and drive more revenue, especially given our combined presence in both French- and English-speaking Africa,” he added.
Classified as a “large merger” under South African competition law, the deal will require Competition Tribunal approval. MultiChoice accepted Vivendi’s offer in June.
Currently, Netflix has approximately 1.8 million subscribers across Africa, while MultiChoice’s streaming platform, Showmax, has around 2.1 million, according to Omdia research.
Digital TV Research predicts that by 2029, Netflix may lead the African streaming market with 6.9 million subscribers, with Showmax following at 3.7 million.
To strengthen Showmax, MultiChoice partnered last year with Comcast’s NBCUniversal and Sky, adding Premier League live streaming to its content.
This week, MultiChoice also reported a loss of 243,000 subscribers in Nigeria over the six months ending September 30, 2024, across its DSTV and GOTV services.
The company attributed this to inflation, which has driven up the costs of essentials like food, electricity, and fuel, putting pressure on household budgets.
