MultiChoice CEO Calvo Mawela is gearing up to challenge U.S. streaming giants as the African TV company pushes to secure regulatory approval for its nearly $3 billion deal with Vivendi SE’s Canal+.
“A combination gives us a better chance to compete against the global giants,” Mawela said in an interview with 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 been facing subscriber losses and challenges from currency depreciation across its markets, particularly in Nigeria, impacting both profits and customer spending power.
A partnership with France’s Canal+ could strengthen the company’s ability to compete in content and technology against heavyweights like Netflix and Amazon, according to CEO Calvo Mawela. Today, the French company owns about 45.2% of Multichoice after investing €1.2 billion ($1.3 billion) into the company. It aims to acquire the remaining shares to complete the acquisition.
The two companies are currently in discussions with South African regulators, where local ownership requirements could pose a significant obstacle. Meanwhile, Canal+ has been steadily increasing its stake in MultiChoice, indicating a continued commitment to the potential merger.
“We put something together that should be acceptable for the regulators, and engagements are ongoing. We believe it’s a good story for Africa,” he said.
Africa’s young and fast-growing population makes it a promising market for streaming services, despite challenges with internet access, low-income levels, and currency instability. A merger between Canal+ and MultiChoice would create a combined entity with close to 50 million subscribers, increasing their capacity to invest in local content and sports.
MultiChoice, known for its sports offerings, is already collaborating with Canal+ on productions and has begun providing access to English Premier League matches. CEO Calvo Mawela noted the company’s aim to increase revenue from its Showmax platform to $1 billion within five years.
Meanwhile, Vincent Bolloré’s Vivendi is restructuring its media empire, with Canal+ preparing for a listing in London, potentially with a secondary listing in Johannesburg.
