How MultiChoice Plans French Collaboration to Compete with Netflix in Africa

MultiChoice is taking bold steps to strengthen its position in the growing African streaming market. The company is checking out for a major collaboration with the French media giant Canal+, a move aimed at better competing with global streaming platforms like Netflix.

According to MultiChoice’s CEO, Calvo Mawela, the potential $3 billion deal with Canal+, which is owned by Vivendi SE, is a strategic merger that could reshape the landscape of TV and streaming in Africa. 

The merger, still pending regulatory approval, would combine MultiChoice’s stronghold in English-speaking African countries with Canal+’s reach in French-speaking regions. This means a more expansive footprint across the continent, giving the company more leverage to compete with Netflix, which has become a dominant player in the African market.

The power of scale

Mawela believes the merger would help MultiChoice build the scale needed to negotiate better deals for content and unlock more revenue. The African streaming market has been growing rapidly, with both Netflix and local services like MultiChoice’s Showmax competing for subscribers. 

By combining forces with Canal+, MultiChoice would have more negotiating power to acquire content at better rates, which is crucial in the highly competitive streaming industry.

“A combination gives us a better chance to compete against the global giants,” Mawela explained in an interview with Bloomberg TV. “Scale is very important in the streaming business. With Canal+’s presence in French-speaking Africa and our reach in English-speaking Africa, we can create a stronger offering.”

How Netflix and Showmax would compete in Africa

As of late 2023, Netflix had around 1.8 million subscribers in Africa, according to research firm Omdia. Meanwhile, Showmax, which is owned by MultiChoice, had slightly more at 2.1 million subscribers. 

Despite this, Netflix’s growth projections are strong. Digital TV Research estimates that by 2029, Netflix could reach 6.9 million subscribers in Africa, while Showmax may grow to 3.7 million.

In response to the increasing competition, MultiChoice has already made moves to boost Showmax’s appeal. Last year, the company partnered with Comcast’s NBCUniversal and Sky to bring live Premier League football coverage to Showmax, a popular move among sports fans.

Challenges in Nigeria and what to expect

However, it’s not all smooth sailing for MultiChoice. The company recently reported a decline of 243,000 subscribers across its DSTV and GOTV services in Nigeria, a key market for the company. 

The loss was mainly due to rising inflation, which has led to higher costs of living in the country. Essentials like food, electricity, and fuel have become more expensive, leaving many households with less disposable income for entertainment.

Despite this, the proposed merger with Canal+ represents a clear effort by MultiChoice to stay competitive and bolster its service offerings across the continent. The company is betting that by combining its reach with Canal+’s expertise in French-speaking Africa, it can deliver a more attractive, all-encompassing TV and streaming service to African consumers, which would help it fend off the competition from Netflix and others.

For now, the future of the merger depends on regulatory approvals, particularly from South Africa’s Competition Tribunal. If everything goes according to plan, MultiChoice will gain not just a larger footprint in Africa, but also an enhanced ability to negotiate with content providers and improve its financial standing.

The streaming wars in Africa are heating up, and MultiChoice’s partnership with Canal+ could give it the edge it needs to compete with Netflix’s growing influence on the continent.