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Friday, July 19, 2024

Could MultiChoice And Possible M-Net's Local Offering Be Under Siege?

As some readers are aware, Canal+ intends to merge their operations alongside MultiChoice which would create an African powerhouse. This would need approval from local legislation including the Competition Commission and ICASA.

Since then, there's been a lot of concern of the implications awaiting this deal should it move forward. Canal+ serving as the new owners of MultiChoice would likely decrease the workforce on top of minimizing production and licensing agreements. 

One of the endeavors that are said to be a subject on this matter is in regards to local IPs from M-Net this includes Mzansi Magic, SuperSport and Africa Magic. Even third party offering curated exclusively by the pay-tv company like Moja Love and ROK.

From what we've outlined through previous stories wherever there is a clash one of the two are likely to go. In Lago's case, the ROK Studios and TV channels could merge into M-Net's Africa Magic while Maisha Magic and ZACU TV could as well remain unaffected by this situation

But in SA's case, this is said to be somewhat worrisome as Canal+ broadcasting license is limited to 20%. What this means is that financially the French broadcaster's expenses for brands like Moja Love can't exceed that percentage which is where BEE comes in.

Whoever is going to join Canal+ on this bid will have to burden themselves to the responsibilities of these brands which is where the fear lies. Usually in cases of mergers and acquisitions of big corporations a lot of cost cutting measures are implemented. 

In this case, it can't be guaranteed that this anonymous partner will keep the local aspects of DStv intact for the years to come. This includes brands like eNCA, Moja Love and Newzroom Afrika that could get scrapped or budget reduced.

Taking a page of the StarSat handbook, there's been questions as to whether M-Net and SuperSport could fold under the entities of Canal+ Premiere and Canal+ Sport. Or if similar to Maisha Magic and ZACU TV these entities will mostly likely just co-exist. 

It's not really known what Canal+ and this local partner would manage but if we had guess. Canal+ would manage whatever is left of MultiChoice Africa like Zambezi Magic and Africa Magic while the other manages 80% of Mzansi Magic and SABC News - MultiChoice SA.  

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