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MultiChoice CEO confirms Canal+ deal set to help challenge streaming Platforms

MultiChoice Group CEO, Calvo Mawela said that the group would partner with France's Canal+ in a deal expected to push the African broadcasting giant. MultiChoice to directly compete with major streaming platforms such as Netflix and Amazon. The $3 billion deal with Canal+ is expected to increase MultiChoice's ability to negotiate better content rates and boost revenues.

Mawela emphasized the "scale" that will come with the combination of resources between Canal+ and MultiChoice, as Canal+ remains a force in French-speaking markets and MultiChoice already dominates English-speaking markets in Africa, bringing one superpower to the continent and reaching a customer base nearing 50 million subscribers. "A combination gives us a better chance to compete against global giants," Mawela shared in a recent interview, adding that this move also supports the goal of delivering more local content to African audiences.

More Local Content and Sports

This will empower MultiChoice and Canal+ to increase investments in local shows, sports, and productions, keeping ahead of the global streaming giants. More African stories and sporting events will now find their way before even larger audiences as MultiChoice, with premium sports, will become said to be a market giant.

Nevertheless, it remains subject to approval from the South Africa authorities, which could be put off by local ownership rules. To that end, Mawela said that the companies are working on solving those concerns: "We put something together which should be acceptable for the regulators, and engagements are ongoing."

Challenges and Growth Potential

Despite the challenges posed by currency volatility and internet access disparities in Africa, the tie-up with Canal+ brings a much-needed edge to the company. Africa is a promising market, more so with a relatively young and fast-growing population, for streaming giants. MultiChoice works closely with Canal+ in conjunction with joint projects including offering the English Premier League access and growing the service revenue of Showmax to $1 billion within five years.

As MultiChoice and Canal+ look to maximize their share of the market, the partnership promises much in terms of increased reach of content into the hearts and homes of Africans, making it a worthwhile and at the same time lucrative business for both sides. Mawela feels, "It is a good story for Africa. It's an exciting phase for both businesses in the streaming industry.".