MultiChoice's Diversity At Risk And Canal+ Plans For The Company Might Hurt M-Net

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As some readers are aware, Canal+ and MultiChoice are currently finalizing terms of the acquisition as they seek approval from local legislation. With lingering concerns surrounding the fate of MultiChoice's linear offering once Canal+ gains ownership.

In the cases of mergers and acquisitions, Canal+ (the owner) implements cost cutting measures to the acquired company (MultiChoice). Job losses is one with more corporate downsizing awaiting the services of DStv and Namola.

Following Naspers separation from MultiChoice, the pay-tv company built its presence around the world of gambling (SuperSportBET), insurance (DStv Insurance) and security (Namola). Canal+ main interests are that of multimedia brands such as DStv and Showmax.

If anything, the acquisition could see that diversity get scrapped or sold particularly if more losses had been generated from that service.

As for the latter DStv and Showmax, Canal+ seems to be hinting at a restructure for these assets which would see them serve as competitors. Maybe after the acquisition, Canal+ will look into splitting Showmax as a separate entity. 

Remember they were rumours of MultiChoice wanting to be a streaming based company before Canal+ made their attempts at acquiring the company. One instance would be Canal+ killing off whatever remains of M-Net and similar to Me and 1Magic content gets folded under Showmax. 

It was stated by the potential new owners Canal+ that sports lures more traffic than anything else on cable. Although, M-Net remains the only TV channel for the latest international content this has been under siege due to increased competition from Netflix and Disney+.

Another instance is that M-Net receives a similar structuring to its movie offering with the premium lineup was further reduced to match that of other TV channels. Perhaps in place of this would be some content Canal+ had produced in France and parts of Europe. 

Point is on top of a fallen consumer base, Canal+ is basically a competitor to M-Net's linear offering. Similar to how M-Net has co-produced shows with Fremantle, Acorn TV and the BBC even Canal+'s StudioCanal had been involved in similar excursions with MGM Studios and Lionsgate. 

Canal+ wants to turn MultiChoice into an entertainment leader in Africa by producing content to appease the masses and to also distribute in France and Europe. StudioCanal was filming Glen Powell's Huntington film in Cape Town with plans to do more productions in South Africa.