Why Canal+, MultiChoice merger offers Tanzanian producers fresh hope

Canal+, founded 40 years ago, has grown into a global entertainment powerhouse. The company boasts 26.9 million subscribers worldwide, over 400 million monthly active users on its video streaming platforms and employs approximately 9,000 people. It is also ranked among the Top 50 Most Valuable French Brands.

“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,” MultiChoice Tanzania chairman and local shareholder Ami Mpungwe told The Citizen.

Local content creators have expressed optimism about the merger. The move is seen as an opportunity to expand Tanzanian productions’ reach beyond Anglophone markets, tapping into the lucrative Francophone countries.

Tanzanian actress and producer Leah Mwendamseke, popularly known as Lamata, told The Citizen that the merger has potential benefits for local content creators.

“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,” she said.

Lamata is known for her popular show Jua Kali, which has garnered significant attention on DStv’s Channel 160.

The anticipated acquisition comes as MultiChoice Tanzania has been experiencing slower growth in recent years.

According to data from the Tanzania Communications Regulatory Authority (TCRA), the company’s subscribers have dropped by 12 percent over the past two years, from 256,329 in 2022 to 225,263 by December 2024.

This decline is a stark contrast to the growth of Azam Media, the country’s leading pay-TV provider, which saw an increase in subscribers by 49 percent over the same period. Azam Media’s subscriber base rose from 900,867 in December 2022 to 1,340,135 by December 2024.

However, MultiChoice’s potential merger with Canal+ could reinvigorate the company’s position in the market.

“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, whereas MultiChoice has traditionally focused on Anglophone markets,” Mr Mpungwe said.

The Tanzanian media scene is not without its challenges. Star Media Limited, known for its StarTimes service, has been hit hard by competition in the pay-TV market. The company has seen a dramatic decline in subscribers, with its subscriber base plummeting by 77 percent in the past two years, from 2,091,263 in December 2022 to just 477,527 by December 2024.

MultiChoice Tanzania, established in 1997, has played a significant role in shaping the local video and film industry. With more than 130 channels and six subscription packages, the company has given Tanzanian audiences access to a wide range of content.

The merger with Canal+ could enable further investment in local productions and improved distribution networks, positioning Tanzania as a key player in the African media landscape.

However, there are concerns about potential job cuts as part of the corporate restructuring.

Responding to these fears, Mr Mpungwe reassured employees, saying, “Staff are not the primary concern. This is a large-scale corporate development and such changes are common in the market. Employees have nothing to worry about.”

He also clarified that Canal+ already holds a minority stake in MultiChoice and the merger would see them become the majority shareholder.

The proposed merger has raised several questions about the future of Tanzania’s media landscape.

Fair Competition Commission (FCC) director general William Erio confirmed that the commission has received applications from both Canal+ and MultiChoice regarding the merger.

“It is true that we have received applications from both companies expressing interest in the merger. We are currently reviewing their submissions to ensure compliance with necessary regulations,” he said.

As the merger progresses through the regulatory review process, stakeholders within Tanzania’s media and entertainment sectors are watching closely.

For local content creators, this potential shift in ownership could present both challenges and opportunities. While the merger may result in a larger corporate structure, the promise of greater market access and investment in Tanzanian content could serve as a catalyst for the industry’s growth in the years to come.

As the deal unfolds, Tanzanian content producers are hopeful that the merger will bring increased visibility and new opportunities for collaboration across Africa and beyond, ultimately allowing their work to resonate in a more diverse global market.