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

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.

Summary To Canal+'s MultiChoice New Structure For DStv Should Acquisition Get Approval From Regulators

For those who are unable to keep up, what we've done was summarise this article in bold points to better help you understand the situation regarding Canal+ and MultiChoice.

In an effort to get the acquisition by France’s Groupe Canal+ of MultiChoice Group over the line, the South African broadcaster and parent of DStv and Showmax has announced a plan to carve out its South African licensee into a new entity.

The move is designed to allow Canal+ to proceed with the acquisition of MultiChoice without falling foul of the Electronic Communications Act, which prohibits foreign entities from owning more than 20% of a South African broadcasting licensee. If it gets the go-ahead from regulators, new investors in the South African licensee will include former Telkom CEO Sipho Maseko’s Afrifund Investments and businesswoman Sonja de Bruyn’s Identity Partners.

In a joint statement by MultiChoice and Canal+ on Tuesday, the two broadcasters expressed confidence that their proposal will be approved by South African regulators.

Canal+ is offering R125/share in cash for the JSE-listed broadcaster that owns DStv, Showmax and SuperSport.

“MultiChoice Group will be restructured so that the current holder of the broadcasting licence in South Africa and the entity that contracts with South African subscribers, MultiChoice (Pty) Ltd, will be carved out of MultiChoice Group and will become an independent entity… The remainder of the group’s video entertainment assets will remain part of MultiChoice Group,” Canal+ and MultiChoice said in their joint statement.

The South African broadcast licence holder, called LicenceCo, will “continue to hold the subscription broadcasting licence in South Africa” and will continue to “contract with MultiChoice’s South African subscribers”. It will be majority owned by “historically disadvantaged persons”.

MultiChoice at least for those residing in South Africa will no longer own DStv due to the pending takeover by Canal+ and with limitations towards foreign ownership. Instead a new entity known as LicenceCo (temporary name) will hold the broadcasting license for DStv in South Africa.

When you look at it, DStv is becoming a standalone company in South Africa away from Canal+'s MultiChoice grasp. The rumours were true when it was stated that MultiChoice was looking to prioritise Showmax and going as far as selling DStv.

New shareholders

MultiChoice’s empowerment scheme, Phuthuma Nathi, will ultimately hold a 27% economic interest in the South African entity, while two black-owned and -managed companies, the Identity Partners Itai Consortium and the Afrifund Consortium, will invest in the business. A workers’ trust will also be established. Afrifund Investments was founded and is led by former Telkom CEO Maseko, while Identity Partners is headed by De Bruyn. 

MultiChoice Group, which Canal+ intends acquiring, will have a 49% economic interest in the South African licence holder and a 20% share of the voting rights. This will allow Canal+ to deal with the legislation that prevents foreign entities from controlling more than 20% of a local broadcaster.

To expand further on the previous translation, LicenceCo will manage (direct interest) DStv licence in South Africa which amounts to 80% while MultiChoice (under the Canal+ umbrella) will reduce their voting rights to 20%. Of course, MultiChoice will continue to receive financial incentive (economic interest) from DStv amounting to 49%.

If we're looking at things from a logical standpoint, MultiChoice doesn't own SABC News, eNCA and Newzroom Afrika or at least for South African consumers as that is all part of LicenceCo.

“MultiChoice Group will also retain its existing 75% direct interest in MultiChoice South Africa, which will exclude LicenceCo,” MultiChoice said. “Phuthuma Nathi will similarly retain its existing 25% interest in MultiChoice South Africa,” it added.

This is pertaining to what is left of MultiChoice being Showmax, Moment, Irdeto, Namola and SuperSportBET with Canal+ seeking full ownership. The company is being split into three entities two of which are based in SA one for DStv while the other for MultiChoice SA's remaining assets and last MultiChoice Africa.

Canal+ had promised to keep MultiChoice listed in the JSE so it's unlikely that they'll be acquiring full ownership of MultiChoice SA unlike MultiChoice Africa where there's less restrictions.

The broadcaster said:

LicenceCo will enter into various commercial agreements with MultiChoice Group subsidiaries in relation to the services currently provided to LicenceCo by other MultiChoice Group entities. “These relate to, among other things, the provision of content, technology, subscriber management, support and other functions.”

The transaction will not lead to any disruption for LicenceCo’s South African viewers, who will continue to access its services as normal. In time, those subscribers will benefit from the additional content and technology investments envisaged by the MultiChoice Group, in its capacity as supplier to LicenceCo.”

“Canal+ and MultiChoice are confident that the envisaged structure meets the requirements of all applicable laws, including the restrictions on foreign ownership and control of broadcasting licences contained in the Electronic Communications Act.” 

This is pertaining to the DStv spin-off, LicenceCo will be sharing content aside from decoders with Canal+'s MultiChoice and will be managing the DStv subscribers in South Africa.

Reminder: Superhero Kindergarten Rolls Out On Play Room From Tuesday 11 February At 10AM

Arnold Schwarzenegger will star as Captain Courage in Stan Lee’s Superhero Kindergarten, a new animated series aimed at preschoolers and produced by Kartoon Studios International, POW! Entertainment and Schwarzenegger’s Oak Productions.

Schwarzenegger is an executive producer of the series, which he and others are describing as the final project worked on by Lee, the Marvel Comics icon who died in November 2018 at age 95. Lee’s concept for the show was partly inspired by Schwarzenegger’s success in Universal’s Kindergarten Cop, the 1990 comedy directed by Ivan Reitman.

The official synopsis of Kindergarten Superhero

“Many years ago, Arnold Armstrong (Schwarzenegger) was just an average gym teacher who acquired incredible superpowers when the earth passed through the ionic dust left in the wake of a mysterious comet. As a result, Arnold transformed into Captain Courage, one of the earth’s greatest protectors…now, Arnold must serve humanity once again by working ‘undercover’ as a brand-new kindergarten teacher whose main task is to train this unique new generation of super-powered 5-year-olds secretly.”

Executive producing along with The Terminator star are Kartoon Studios chairman and CEO Andy Heyward and POW! Entertainment president Gil Champion. Paul Wachter, CEO of Main Street Advisors, helped broker the deal and will also executive produce. Fabian Nicieza, co-creator of the Marvel Comics character Deadpool, is scripting the animated series. 

Superhero Kindergarten will air daily at 10AM on Play Room from Tuesday, 11 February and this would mark the second preschool series from Kartoon Studios to rollout on the station following the rollout of Rainbow Rangers last month.

VIU's Future In South Africa Likely Revealed Amidst Canal+'s Potential Takeover Of MultiChoice

Since last year, there has been questions surrounding the fate of Showmax as VIU's parent company Canal+ is looking to complete it's acquisition of MultiChoice. Both companies have recently concluded talks with local regulators and are currently awaiting further results.

From what we can understand, Canal+ who is holding 45% is trying to acquire the remaining 55% but local regulations won't allow that even if it were possible they're voting rights would be capped at 20%. They proposed spinning off MultiChoice SA and it's broadcasting license into a separate entity known as LicenceCo.

If you look at it, MultiChoice SA will be retaining most of their assets if Canal+ is able to make this deal get the greenlight from regulators. With Canal+ not having control over the SA board it's safe to say on top of retaining Showmax there won't be any merger of some sorts of VIU.

What might transpire in these regards is content sharing VIU has been commissioning content locally some of which might surface on DStv. Another scenario with it being independent from MultiChoice SA forms pacts with other broadcasters like the SABC they already have Uzalo and a bunch of other SABC shows on their platforms.

All I got through that PDF file between both parties was that they'd be more co-operations or partnerships when it comes to the use of M-Net and SuperSport. These are brands that have a cap on foreigners but MultiChoice has localised feeds for them so that won't matter same goes for SABC News whose offering caters for the whole of Africa.

In the end, this cap is not the end as Canal+ is looking to get a Johannesburg Stock Exchange (JSE) listing following its debut on the London Stock Exchange (LSE). Besides VIU, they had been filming a thriller titled Huntington in Cape Town with Glen Powell added to the cast.

So I'd like to think with this acquisition, VIU is getting more content out of this deal they already offer content from SABC and could as well expand this lineup to bundle Mzansi Magic and KykNet. I don't see why not cause Comcast was able to juggle Peacock and Hulu before selling one of the two to Disney.

Even after Canal+ acquired ROK Studios from the Nigeria's iROKO they do have some deal/partnership put in place to ensure the stability of iROKO TV streaming service imagine this is what we'll be seeing with VIU, Showmax and DStv.

VIU is more of a cheap/freemium tiered streaming service so they could opt for M-Net's older collection of shows like Isibaya and The Throne without interfering with its output on Showmax. To me, VIU doesn't seem like an entity that's worried about what it lacks from Netflix but rather following a route of others that seek stability.

Reminder: Brand New Series, The Count: Love & Honor, To Premiere On Telemundo From 17 February

Telemundo has today announced the territory premiere of the highly-anticipated series, The Count: Love & Honor. The new show will air from Monday 17 February at 10 PM (CAT), exclusively on Telemundo.

 

Set and produced in Mexico, this thrilling drama presents a timeless story of love, betrayal, and revenge. The narrative follows Alejandro (Colunga), an attractive and bright foreman who rises from rags to riches to avenge those who wronged him. After finding love with Mariana (Contreras), a beautiful woman from high society, Alejandro becomes the victim of a conspiracy designed to separate them. Wrongfully imprisoned for a crime he did not commit, Alejandro escapes almost twenty years later, returning as the powerful Count of Montenegro looking for revenge. What unfolds is a dramatic tale filled with passion, treachery, and vengeance.

 

Starring Mexican actor Fernando Colunga (Maria la del Barrio) and Ana Brenda Contreras (Teresa, Dynasty), both making their debut on Telemundo, the stellar cast also includes Chantal Andere (Rafaela), Sergio Sendel (Destilado Amor), and Marjorie de Sousa (The Other Side of the Wall).

 

The cast is completed by Alejandro Ávila, Annie Cabello, Jessica Coch, Érika de la Rosa, Uriel del Toro, Antonio Frotier, Víctor González, Job Huerta, Enoc Leaño, Mario Loria, Andrea Martí, Patricia Martínez, Saraí Meza, Leticia Perdigón, Xabiani Ponce de Leon, Sergio Reynoso, Roberto Romano, Jason Romo and Lu Rosette, with a special appearance by Javier Diaz Dueñas, Omar Fierro, Manuel Navarro and late actress Helena Rojo.

 

In addition to its gripping storyline and stellar cast, The Count: Love & Honor promises high production values with authentic settings and breathtaking costume designs that will captivate audiences and bring the grandiosity of historical Mexico to life, transporting viewers to a world of romance and intrigue.

 

The brand-new series, The Count: Love & Honor, premieres exclusively on Telemundo on 17 February  at 10 PM CAT, with new episodes airing every Monday until the season finale on 23 May.