Calvo Mawela, Chief Executive Officer of MultiChoice, is gearing up to challenge major US streaming platforms as the African media company seeks regulatory approval for its approximately US$3 billion acquisition of Vivendi SE’s Canal+.
In an interview with Bloomberg TV sighted by SKB Journal, Mawela emphasized that the merger would enhance their competitive edge against global giants like Netflix and Amazon, stating, “A combination gives us a better chance to compete against the global giants. Scale matters in this industry.”
The proposed deal aims to unite MultiChoice’s strong presence in English-speaking Africa with Canal+’s influence in French-speaking regions, creating a formidable entity with nearly 50 million subscribers.
Mawela noted that the merger would enable better negotiation for content rates and increased revenue generation, which is crucial for thriving in the competitive streaming landscape.
As MultiChoice faces challenges such as subscriber losses and currency depreciation, particularly in Nigeria, the merger with Canal+ is seen as a strategic move to bolster its market position. The combined resources would allow for greater local content and technology investment, vital for appealing to a rapidly growing African audience.
Regulatory hurdles remain a concern, particularly regarding South Africa’s local ownership rules. Mawela expressed optimism about ongoing discussions with regulators, stating that they have crafted a proposal that should meet regulatory expectations. “We believe it’s a good story for Africa,” he added.
The deal also aligns with Canal+’s broader strategy of expanding its footprint in Africa while supporting local content creation and job growth. The partnership will enhance MultiChoice’s offerings, including access to popular sports content like English Premier League matches.
As the streaming wars intensify globally, Mawela’s vision for MultiChoice positions the company as a key player in Africa’s entertainment landscape, aiming to create a local champion capable of competing internationally while nurturing the continent’s creative industries.
