Canal+, now in control of MultiChoice, is looking to create a one-stop super app that brings its various video streaming services onto one platform.
Last week, the acquisition of MultiChoice by Canal+ became unconditional, marking the largest transaction undertaken by the French media group and cementing the combined group’s position as a global media and entertainment company.
As the French broadcaster undertakes the work of assessing what the combined structure will look like, a question is how the group will consolidate its video-on-demand services to effectively compete with deep-pocketed international players such as Netflix, Disney and Amazon.
Taking on the giants
CEO Maxime Saada has stated that he sees the global streaming players, with their deep pockets, as the real competition for eyeballs.
The French broadcaster is betting on the tie-up with MultiChoice, known as Canal+ Africa, to bring it closer to its goal of reaching 100-million customers. This promise of scale, cost savings and deeper financial muscle is critical ammunition in a market architecture shaped by entertainment giants such as Netflix.
For now, Saada said the group is looking to combine its streaming efforts into one app, a super app of sorts. Canal+ already has its streaming platform. Like MultiChoice, the company has been aggregating content and access to platforms such as Apple TV+, Netflix, HBO Max, Bein Sports and Paramount+ in addition to its own productions and programming.
Taking control of MultiChoice has given it control of its various platforms. In March, the Johannesburg-based company had 14.5-million customers consuming content of its various platforms: DStv, DStv Stream, GOtv and Showmax.
Now the work begins to combine the proprietary Canal+ and MultiChoice streaming services while also pushing forward with aggregation of international services.
“The super app is what we’ve done on the Canal+ side in all our territories,” Saada said in a recent media briefing.
“We want to make it as convenient and pleasant as possible as a user experience for our subscribers to access all this great content from companies all over the world, as well as the local sports and general entertainment content.
“Eventually the vision should be close to ... including all of this content in one super app,” he said.
This feeds into a goal that MultiChoice has been working towards of creating an all-in-one video-on-demand platform that brings content from various entertainment providers and studios under one roof.
The group has been doubling down on its online streaming efforts, signing many deals in the past three years in a bid to set up Africa’s largest pay-TV operator as the biggest gatekeeper to paying audiences who stream content.
Streaming investment
MultiChoice has continued to invest in its video streaming services, recognising the shift towards people consuming film, TV and live programming online.
After more than 20 years of tying its DStv service to a satellite dish and decoder, MultiChoice created a “dishless” version in 2020, with prices now lower than the decoder version.
In August 2023, the group relaunched the online version of its biggest service from DStv Now to DStv Stream.
Most recently, a new updated version of Showmax, underpinned by technology from US giant NBCUniversal, began operating in February 2024. The R3bn project has helped the group to defend Showmax’s place as the largest streaming platform in Africa, ahead of international rivals.
The group has also been securing agreements with Netflix, Amazon Prime Video, HBO, Disney, NBC Universal, Canal+, Sky and Paramount to bring all streaming content under one roof so consumers do not have to pay multiple subscriptions.
Going forward, Canal+ Africa will have to work on making sure that it does not replicate services or offerings and that the agreements with international providers are done in such a way that they have broad coverage across Africa while minimising possible duplication.
“There will not be any duplication. What’s beautiful in this combination is that there is no territorial overlap. Canal+ has been operating in close to 50 countries, 25 of them in Africa, while MultiChoice has been operating in 16 African countries without any overlap. So the rights that we’ve acquired and the content that we produce is streamed and broadcast in our respective territories. It’s like a beautiful puzzle coming together,” said Saada.
In addition, the group will have to grapple with making back the money spent on the Showmax platform. The group has indicated that Showmax will continue to haemorrhage cash for years to come as work progresses to scale the business to a point of profitability.
In April, MultiChoice said that since September 27 2024 it and NBC had provided $145m (R2.6bn) in equity funding to Showmax in proportion to their shareholdings. In addition, MultiChoice provided another $800,000 as equity funding to cover its specific shareholder costs. This adds to the $164m spent by the DStv operator and NBC between April and September 2024.
A new Showmax group was created in 2023. It is 70% owned by MultiChoice and 30% by Comcast-owned NBCUniversal and powered by its Peacock technology. Expenses for the business and future profits are shared in the same ratio.
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