UCC reviews takeover of Multichoice by French Firm

__________________

The Uganda Communications Commission (UCC) is reviewing a major corporate takeover that could change control of popular pay-TV services in the country, and is seeking public input on the decision.

Multichoice Uganda, the operator of DStv, and its sister company GOtv Uganda, have applied for approval to transfer the control of their operating licenses from South Africa’s Multichoice Group to the French media giant Groupe Canal+.

The move is part of a broader acquisition in which Canal+, which already owns a 45.2% stake in Multichoice Group, intends to purchase the remaining 54.8% of the company.

If the deal receives regulatory approval, it would give the French company full ownership of the Multichoice Group and, by extension, indirect control over its Ugandan subsidiaries.

UCC noted that the actual shareholding of the local companies, Multichoice Uganda Limited and GOtv Uganda Limited, will remain unchanged. But the change involves ultimate ownership and control at the top of the corporate structure.

Under the Uganda Communications Act, the commission must consider public interest before approving any transfer of license control. Other players in the market include: Azam TV, StarTimes, Zuku, YoTv, among others.

The transaction has led the UCC to issue a public notice on September 9, inviting written comments from the public about the proposed change. According to UCC, interested parties have 14 days from the date of the notice to submit their views.

Multichoice Africa Holdings B.V. currently holds an 85% share in both Multichoice Uganda and GOtv Uganda. The holding company is fully owned by Multichoice Group Limited, the entity Canal+ is in the process of acquiring.

Reports show that pay TV companies are losing ground to the internet, as streaming platforms and live services attract viewers away from traditional subscriptions.

In Uganda, as in other countries, the decline in numbers reflects a shift toward on-demand shows, the increasing use of smart TVs, and the wider choice and better picture quality that streaming services are believed to offer.

MultiChoice Uganda, long accused by some of abusing its dominance in the market, has increased the price of its DStv Premium package over time, citing rising business costs.

A report by PricewaterhouseCoopers on Africa’s entertainment and media outlook from 2022 to 2026 noted that: “OTT video streaming is set to rise rapidly over the next five years with revenue growth to 2026 expected to outpace increases in TV subscription revenues across Kenya, Nigeria and South Africa.”

The report added, however, that streaming income will still remain low compared to TV subscriptions since it is growing from a small base.