Canal+ is pursuing a majority stake in MultiChoice to increase investment in Tanzania and local content distribution to Francophone countries. The acquisition is currently under regulatory review, with local creators expressing optimism about expanded market reach and opportunities. The merger could reinvigorate MultiChoice, which has faced subscriber decline, while addressing concerns about job security within the company.
Canal+, the renowned French media conglomerate, is in the process of seeking a majority stake in MultiChoice, aiming to enhance investment within Tanzania and broaden the local content distribution to Francophone regions. This acquisition is currently undergoing legal and regulatory examinations, including compliance with the Johannesburg Stock Exchange, prior to finalization.
Founded four decades ago, Canal+ has developed into a formidable entertainment entity with 26.9 million global subscribers and over 400 million monthly active users on its streaming platforms. Mr. Ami Mpungwe, Chairman of MultiChoice Tanzania, confirmed the ongoing discussions regarding the acquisition, highlighting its significance across Africa.
Local content creators are optimistic about the merger’s potential, which could increase Tanzanian productions’ reach into Francophone nations, expanding their audience beyond traditional Anglophone markets. Notably, Tanzanian actress Leah Mwendamseke, popularly referred to as Lamata, expressed enthusiasm for the merger, positing that it would enhance the global visibility of Tanzanian talent and their works.
The anticipation arises amid challenges faced by MultiChoice, which has witnessed a 12 percent subscriber decline over the past two years, contrasting sharply with competitor Azam Media’s impressive growth. The potential merger with Canal+ could revitalize MultiChoice’s market presence and investor confidence in Tanzania.
Despite the challenges within the Tanzanian media landscape, including significant subscriber losses for competitors, the merger is projected to stimulate investment and strengthen distribution networks, positioning Tanzania as a pivotal player in the African media sector.
Concerns regarding potential job cuts have emerged, yet Mr. Mpungwe reassured employees that staff concerns would be prioritized during this transition. He clarified that Canal+ currently holds a minority stake in MultiChoice, and the merger would elevate their ownership to a majority stake.
The Fair Competition Commission has acknowledged receipt of merger applications from both media entities, ensuring compliance with necessary regulations. As the approval process unfolds, stakeholders anticipate a blend of challenges and opportunities for local content creators, who hope that increased market access will foster growth in Tanzania’s media industry.
The proposed merger between Canal+ and MultiChoice holds considerable promise for the Tanzanian media landscape. It aims to boost investment and expand the reach of local content, providing opportunities for creators while addressing market challenges. As scrutiny from regulatory bodies continues, the eventual outcome could redefine the distribution of Tanzanian productions across Africa and potentially enhance their visibility on a global scale.
Original Source: www.thecitizen.co.tz
