Canal+ is seeking to acquire a majority stake in MultiChoice, which could increase investment in Tanzania and broaden local content distribution to Francophone countries. While the merger is under regulatory review, local producers are hopeful about enhanced visibility and opportunities in the market. The merger could address MultiChoice’s recent subscriber decline and strengthen Tanzania’s position in the media landscape.
Canal+, the French media conglomerate, is pursuing the acquisition of a majority stake in MultiChoice, aiming to boost investment in Tanzania and broaden the distribution of local content to Francophone countries. The acquisition is undergoing legal and regulatory scrutiny, including adherence to Johannesburg Stock Exchange requirements, before finalization.
Founded 40 years ago, Canal+ has evolved into a significant global entertainment entity. With 26.9 million subscribers globally and over 400 million active users on its streaming services, the company employs around 9,000 people and ranks as one of the Top 50 Most Valuable French Brands. The discussions about this acquisition have been ongoing since last year, affecting not only Tanzania but the entire African landscape, according to MultiChoice Tanzania’s chairman, Ami Mpungwe.
Local content producers are optimistic about the merger’s potential to increase the visibility of Tanzanian productions in Francophone regions, thus enhancing market opportunities. Prominent Tanzanian actress and producer Leah Mwendamseke (Lamata) highlighted the positive implications for local talent and expressed hope that the merger would enhance global recognition of Tanzanian content.
Despite the optimism, MultiChoice has experienced a subscriber decline of 12% from 2022 to 2024, dropping from 256,329 to 225,263. In contrast, Azam Media has seen a remarkable subscriber increase of 49%. The potential merger with Canal+ may rejuvenate MultiChoice’s market presence and enhance investor confidence in Tanzania, as stated by Mr. Mpungwe.
The Tanzanian media industry faces significant competition, particularly from Star Media Limited, which has suffered a 77% subscriber loss over two years. Established in 1997, MultiChoice has significantly influenced the local video and film sector, offering over 130 channels and multiple subscription packages. The merger could enable increased investment in local productions and enhance distribution channels across Africa.
Concerns have arisen about possible job cuts due to corporate restructuring; however, Mr. Mpungwe reassured employees that staffing issues are not a primary concern amidst these corporate changes, emphasizing that Canal+ currently holds a minority stake that this merger would elevate to a majority.
The proposed merger has prompted inquiries into the future of Tanzania’s media landscape. The Fair Competition Commission has acknowledged applications from both companies, confirming a thorough review process to ensure regulatory compliance. As the deal advances, local stakeholders are closely monitoring the situation as this merger could transform the industry landscape, potentially fostering growth through increased visibility and collaboration opportunities for Tanzanian content creators across Africa and globally.
In conclusion, the planned merger between Canal+ and MultiChoice presents a promising opportunity for Tanzanian content creators, potentially enhancing their reach into Francophone markets and encouraging investment in local productions. Despite existing market challenges and a decline in MultiChoice’s subscribers, the merger may restore investor confidence and strengthen the position of Tanzanian media on the continent. Stakeholders are cautiously optimistic about the potential for growth and increased visibility in the global entertainment landscape, while remaining aware of restructuring concerns.
Original Source: www.thecitizen.co.tz
