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TELEVISION
Has struggling MultiChoice been thrown a financial lifeline?
By our African Marketing Confederation News Team | 2024
French TV company Canal+ aims to buy African broadcaster, saying greater scale and more local stories will see off global streaming giants.
MultiChoice, the South African-based TV company that operates throughout Africa, could be thrown a financial lifeline by the purchase offer from French television group, Canal+.
Photo credit: MultiChoice
As competition from internet-streaming services such as Netflix and Amazon increases – and some cash-strapped African consumers elect to forego pay TV altogether – MultiChoice is seeing its revenue dwindling.
The US$1.7-billion offer by Canal+ to purchase the balance of MultiChoice’s shares (it already owns almost a third) may give MultiChoice the muscle it needs to enhance its programming offering to African consumers and fight off the competition.
Certainly, this is the angle being touted by Canal+ Chairperson and CEO, Maxime Saada, in his public statements.
“For MultiChoice to continue to thrive in Africa it will require a strategy that enhances its scale as well as strengthened local and global expertise,” Saada says.
“Combined with Canal+, MultiChoice would have the resources to invest in scale, local African talent and stories, and best-in-class technology, to allow it to grow in Africa and compete with the global streaming-media giants.”
African media businesses must become bigger
In an opinion piece published today (Friday, 2 February 2024) in South Africa’s Business Day newspaper, Saada calls for African media businesses to become bigger in every way, to ensure survival.
“For more than a century, American and European stories dominated first film and then television. Many of their stories have already been told – over and over again on repeat,” he states.
“Yet there are thousands, millions maybe, of unique African stories that have never been told. The world does not know them. But if we put real money behind high-quality production, these unique African stories could have universal appeal and commercial success.”
Saada claims the Canal+ investment in African TV productions differs from that of other global broadcasters, who buy 100% ownership of the content, leaving the local production house with no enduring ownership interest in their creation.
“However, at Canal+ we often invest directly in the production companies, leaving them with an ownership share of the future success of the drama, film or production they created,” he says.
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