French pay-television operator Canal Plus has increased its holding in pan-African media group Multichoice, the parent company of pay-television broadcaster SuperSport and pay-television operator DStv.
The Canal Plus group now owns 6.5 per cent of Multichoice, crossing the five per cent threshold which requires Multichoice to announce the holding via the Johannesburg Stock Exchange.
Canal Plus, which initially acquired a small stake in April this year, said that this “long-term financial investment demonstrates the confidence of the Canal Plus Group and its shareholder Vivendi, in the prospects of Multichoice and in the African continent, to which they are very connected”.
The move is likely to enhance cooperation between two of sub-Saharan Africa’s biggest pay-television operators, Multichoice-owned DStv and Canal Plus Afrique, and puts greater pressure on pay-television operator StarTimes, their shared rival in the region.
Despite operating in the same region, Multichoice and Canal Plus have rarely come into conflict since French-language operator Canal Plus Afrique launched in 2012. Multichoice is primarily focused on English-language content and has never bid for French-language media rights. Likewise, Canal Plus exclusively acquires French-language rights to sports properties and does not acquire English-language rights.
Multichoice holds English-language rights to the English Premier League, Uefa Champions League and pay-television rights to the African Nations Cup. Canal Plus holds French-language rights to the same properties.
Rare moments of acrimony between the two giants have mostly been due to territorial disputes, where Canal Plus has occasionally been granted French-language rights to premium sport in English-speaking territories, diluting SuperSport’s exclusivity.
Aside from a dispute over Diamond League rights in 2016 – after Canal Plus was granted French-language rights across English-speaking sub-Saharan Africa in error – the two media giants have been happy to leave each other alone.
The value of Multichoice shares rose by about 8 per cent after the news broke of the increased investment from Canal Plus. Multichoice was listed on the Johannesburg Stock Exchange in February 2019 after it separated from its parent company, media group Naspers.