Canal+ and MultiChoice Merger: A New Era for Tanzanian Media Producers

The merger between Canal+ and MultiChoice promises to enhance investment in Tanzania and broaden the distribution of local content to Francophone nations. The ongoing legal review process may reposition Tanzania within the African media landscape, despite existing competition and concerns over job security.

Canal+, a French media giant, is in the process of acquiring a majority stake in MultiChoice, promising to enhance investment within Tanzania and broaden the distribution of local content to Francophone nations. Currently, the acquisition is under legal and regulatory review to ensure compliance with the Johannesburg Stock Exchange before a final agreement can be reached.

Canal+ has established itself as a global entertainment powerhouse over the last 40 years, attracting 26.9 million subscribers worldwide and employing approximately 9,000 people. “I can confirm that Canal+ has expressed interest in acquiring MultiChoice shares, not just in Tanzania but across Africa. This process started last year and discussions are ongoing as both parties work towards a final agreement,” noted Ami Mpungwe, chairman of MultiChoice Tanzania.

Local content creators view the merger as an opportunity for growth, potentially allowing Tanzanian productions to penetrate the lucrative Francophone market. Actress Leah Mwendamseke, known as Lamata, remarked, “Though I have no official information about the process, I believe that if it happens, it will be a big step for Tanzanian talents. Our products will be seen in more parts of the world and our language will be known more.”

Despite MultiChoice’s historical significance since its inception in 1997, it has faced slower subscriber growth, decreasing by 12 percent recently, indicating a stark contrast to Azam Media’s subscriber increase. The Canal+ merger could revitalize MultiChoice’s market position. Mpungwe stated, “For Tanzania, this is a positive step as it demonstrates investor confidence in the country. Local content will now have a broader reach, particularly in Francophone nations.”

Nonetheless, the competitive landscape poses challenges for Tanzanian media. Star Media Limited’s service has suffered a subscriber drop of 77 percent, highlighting the market’s competitiveness. The prospective merger could lead to expanded local production investments and improved distribution for Tanzanian content, solidifying its presence in the African media market.

Concerns regarding potential job cuts during restructuring have been addressed by Mpungwe, who reassured that employees are not the primary concern during such corporate changes. The Fair Competition Commission (FCC) has confirmed the receipt of merger applications from both parties, emphasizing their regulatory compliance review.

As the merger progresses, stakeholders are keenly observing potential impacts on Tanzania’s media sector. Challenges remain, but the promise of greater visibility and investment in local content could significantly enhance the future of Tanzanian producers on a global stage.

The proposed merger between Canal+ and MultiChoice heralds significant opportunities for Tanzanian producers, including enhanced investment and access to broader markets. As stakeholders monitor the legal proceedings, the potential benefits, such as increased visibility for local content, signal a promising shift in Tanzania’s media landscape. However, the move also raises concerns about job security and market competition, necessitating careful navigation by all involved parties.

Original Source: www.thecitizen.co.tz