“A combination gives us a better chance to compete against the global giants,” Mawela told Bloomberg TV.
African TV giant MultiChoice, led by CEO Calvo Mawela, is working to finalise a $3 billion partnership deal with France’s Vivendi SE’s Canal+ to better compete with US streaming giants.
“A combination gives us a better chance to compete against the global giants,” Mawela told Bloomberg TV.
“Scale matters in this industry, then you are able to negotiate better rates for content and you are able to generate more revenues, especially with one party operating in French-speaking Africa and one in the English-speaking part of Africa.”
MultiChoice has struggled with currency depreciation and subscriber losses across various markets, notably Nigeria, impacting profits and spending power.
Mawela sees the Canal+ partnership as a means to expand their content and technological offerings to compete with platforms like Netflix and Amazon.
In South Africa, talks are ongoing with regulators, as local ownership laws could pose obstacles. Canal+ has gradually increased its stake in MultiChoice.
“We put something together that should be acceptable for the regulators, and engagements are ongoing,” Mawela said. “We believe it’s a good story for Africa.”
With Africa’s growing, youthful population, the market holds potential for streamers despite challenges like inconsistent internet, low incomes, and currency fluctuations.
A merged MultiChoice and Canal+ entity would serve around 50 million subscribers, with increased investment in local content and sports.
MultiChoice is already collaborating with Canal+ on new productions and has provided its partner with English Premier League football access.
Mawela targets $1 billion in revenue from the Showmax service over the next five years.
Meanwhile, French billionaire Vincent Bolloré’s Vivendi is restructuring its media empire, and Canal+ is preparing for a London listing, with a potential secondary listing in Johannesburg.
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