(Based on information from Meseret Media) – The French satellite television channel Canal Plus is reportedly preparing to exit the Ethiopian market, according to information obtained by Meseret Media.
Although the channel, which entered Ethiopia three years ago, has been providing services to a significant number of users, it has been unable to sufficiently penetrate the market to achieve profitability and has therefore reached a decision to withdraw. The sports channel, in particular, has been discontinued several times.
“As the sports channel has been discontinued, other channels will be terminated in the coming weeks. This means that the company will cease its operations with its former agent, Biruh Plc,” a source familiar with the matter has revealed.
Additionally, it was stated, “The primary and clear reason is their failure to properly break into the market.”
Canal Plus began its operations in Ethiopia under an agreement with Eutelsat, broadcasting its content on Eutelsat 7C channels.
The Canal Plus & DStv Market Relationship
Canal Plus has been navigating a complex relationship with MultiChoice’s DStv, the leading pay-TV service in Africa, and one of its major competitors in the Ethiopian market. Recently, Canal Plus, owned by French media giant Vivendi, has been increasing its stake in MultiChoice. As of early 2024, Canal Plus raised its shareholding to 35.01%, triggering a mandatory offer requirement under South Africa’s takeover regulations.
On March 4, Vivendi announced that Canal Plus would publish a firm intention to buy the remaining shares of MultiChoice by no later than April 8. This came after South Africa’s Takeover Regulations Panel ruled that Canal Plus must make an immediate firm intention announcement due to its increased stake. Canal Plus respected this decision and applied for, and received, an exemption from the Panel, extending the timing requirements by 25 business days.
Last month, Canal Plus, as the biggest shareholder in MultiChoice, offered to purchase the remaining shares at 105 rand per share. However, MultiChoice rejected the offer, stating that it significantly undervalued the company. MultiChoice has since noted Canal Plus’ intentions and emphasized that its board would continue to act in the best interests of the company and its shareholders.
This strategic maneuvering by Canal Plus to increase its influence in MultiChoice highlights the intensifying competition in the African pay-TV market, where DStv has long dominated. Despite these efforts, Canal Plus has struggled to establish a strong foothold in Ethiopia, leading to its impending exit from the market. The withdrawal signifies the challenges new entrants face in competing with well-established players like DStv in the region.
