MultiChoice Chief Executive Officer Calvo Mawela is preparing to take on US streaming giants as the African TV company works to get its approximately $3 billion (roughly R55 billion) deal with Vivendi SE\u2019s Canal+ over the line with regulators. <\/p>\n\n\n\n
\u201cA combination gives us a better chance to compete against the global giants,\u201d Mawela said. <\/p>\n\n\n\n
\u201cScale 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.\u201d <\/p>\n\n\n\n
The company has been losing subscribers and struggling with currency depreciation across many of its markets, especially Nigeria, which has hit profits and customers\u2019 spending power. <\/p>\n\n\n\n
A deal with France\u2019s Canal+ would help scale a combined entity to better compete for content and technology needed when going up against dominant platforms like Netflix Inc. and Amazon.com Inc., Mawela said. <\/p>\n\n\n\n
While the companies have been in talks with regulators in South Africa, where local ownership rules may prove to be a serious regulatory hurdle to the deal, the French broadcaster has continued to slowly up its stake in MultiChoice. <\/p>\n\n\n\n
\u201cWe put something together that should be acceptable for the regulators, and engagements are ongoing,\u201d he said. <\/p>\n\n\n\n
\u201cWe believe it\u2019s a good story for Africa.\u201d<\/p>\n\n\n\n
Africa has a young and fast-growing population that\u2019s an attractive market for streamers, although the continent also struggles with uneven internet access, low incomes and currency volatility. <\/p>\n\n\n\n
A combination of Canal+ and MultiChoice would create a group with nearly 50 million subscribers and the resources to invest more in local content and sports. <\/p>\n\n\n\n
Multichoice is already working with Canal+ on new productions and the South African company, known for its sports content, is providing its partner with access to English Premier League football matches, said Mawela. <\/p>\n\n\n\n
He said the company hopes to boost its sales to $1 billion from its Showmax service in the next five years.<\/p>\n\n\n\n
French billionaire Vincent Bollor\u00e9\u2019s Vivendi is in the process of breaking up his sprawling media and entertainment empire, and Canal+ is actively preparing its own listing in London. The newly spun-off company may also have a secondary listing in Johannesburg. <\/p>\n\n\n\n