The Overlaps Between MultiChoice And Canal+

MultiChoice and Canal+ are currently engaging with (ICASA) regarding MultiChoice Pty. Limited (LicenceCo). During the year, ICASA had asked for written submissions from various parties and following recommendations from the Competition Authority are likely in the final stages of transaction.

When MultiChoice and Canal+ manage to complete all the regulatory requirements by October 8 including that of LicenceCo. I think one question that remains in mind would be the overlap between the broadcasters.

While Canal+ doesn't have existing foothold in South Africa they do clash with MultiChoice Africa primarily Ghana, Rwanda and Niger.

MultiChoice and Canal+ may say that the two compliment each other as one caters for Anglophone with the other Francophone. But the reality is that both companies cater for each other's target group to a lesser degree.

As reported, Canal+ already owns ROK Studios and with the acquisition of MultiChoice brings Africa Magic under one umbrella. The fate of these broadcasters is still up in the air even if plans were to retain respective brands there's no guarantee that the rates used on Africa Magic remains the same.

ROK comprises of just two channels while Africa Magic has over 5 channels (most of which have diversified in recent years). This is followed by the entity's respective pay-tv services MultiChoice with DStv and GOtv followed by Canal+ with its Afrique offering.

On the basis of sports, MultiChoice comes with SuperSport, ESPN and Racing240 and while we understand that Canal+ comes as a french broadcaster it offers W-Sport and NBA TV. With this merger, the acquiring company using implements cost cutting mechanisms.

Canal+ being another MultiChoice in France and Europe one has to wonder how dependent the merged entity would be on international providers for content. Especially with the absence of Zacu Entertainment, Marodi TV, Plan A and SPI International on DStv.

DStv consumers have been complaining about too much old content coming to channels and from what has been implied through other sources. They could look to scale back on content particularly from channels 101-130 as content there is being optimised for streaming.

With DStv looking to undergo some major overhaul which MultiChoice is expected to address by the fall of 2025 to early 2026. They could as well use that time to reduce channels and minimise rates if it meant getting more consumers hooked onto Showmax.