LicenceCo: The New Owners Of M-Net, SuperSport And DStv In South Africa

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In a move that is set to shakeup the television landscape, DStv in South Africa will be spun off away from Canal+'s MultiChoice grasp to comply with local regulators' 20% cap toward foreign ownership. As alleged from previous years, MultiChoice will be surrending it's pay-tv company to the French.

With Canal+ that will exist as a minority will entrust the future of DStv in South Africa to LicenceCo as MultiChoice retains Showmax alongside various other assets like SuperSportBET, Irdeto and Namola.

LicenceCo (working title) is a new company that comprises of MultiChoice's Phuthuma Nathi scheme alongside black based companies Identity Partners Itai Consortium from Sonja De Bruyn, Afrifund Investments from Sipho Maseko and Worker's Trust. They'll be responsible for the livelihoods of SABC News, eNCA and Newzroom Afrika.

Although Canal+ won't manage LicenceCo, they are getting financial incentive from these endeavours which amounts to 49% compared to StarTimes 65% from StarSat SA. Regardless of the structure, MultiChoice is still the legal holder of DStv outside of South Africa where restrictions are very minimal.

DStv hasn't been doing so well in recent years with its consumer base standing at 7.6 million (previously 8 million) by September 2024. In the end, DStv continued to be a profitable business for MultiChoice and under LicenceCo that won't change as yet.

But with new management and Canal+ taking the helm, MultiChoice promises an enhancement to technology and other services. We've heard this story a hundred times already and as consumers as had seen in the past year enhancements aren't easy to come across unless something is thrown as collateral.

If there's one thing new management can do is review the finances of DStv and manage the contracts with channel providers. Diving onto sports, Canal+ had flexed that companies who overspend on sports die so one has to wonder if LicenceCo plans to reduce what's accessible on SuperSport.

Speaking of LicenceCo, kind of curious what the DStv standalone company will be referred to in retrospect my guess M-Net Group seeing as this was the initial name for MultiChoice before diversity hit. Another option would be Canal+ Group/SA with the French maintaining the 20% cap associated with foreigners.