Tag Archives: Calvo Mawela

MultiChoice reaches 22.1m households

MultiChoice Group achieved solid subscriber growth and steady earnings for the half-year ended September 30, according to the African entertainment company.

Calvo Mawela

The group’s linear pay TV subscriber base (measured on a 90-day active basis) increased by one million (5%) to 22.1 million households, comprising 9.1 million (41%) in South Africa and 13 million (59%) in the rest of Africa (RoA).

The year-on-year (YoY) growth rate for paying subscribers on the company’s streamer Showmax was 50%, while the overall online user base increased by 13%. Actual subs numbers for Showmax were not disclosed.

RoA maintained its growth trajectory on the back of successful local content productions, MultiChoice said. In South Africa, growth rates recovered during the second half of the reporting period despite evidence of rising consumer pressure.

In terms of the local content strategy, the company launched two more local channels in sub-Saharan Africa and produced another 3,084 hours of local content, an increase of 15% YoY. Accounting for 48% of total general entertainment spend, this ongoing investment in local content brought the total content library to around 73,000 hours.

In Nigeria, a new season of Big Brother Naija delivered record viewership, as well as strong growth in advertising revenues. In South Africa, the group produced two coproductions – Blood Psalms and Girl, Taken – with another seven coproductions in the pipeline.

Reyka, an original coproduction from South Africa, was nominated for the Drama Series prize at the International Emmy Awards 2022.

The group is currently producing the epic original drama series Shaka Ilembe, which will be broadcast during 2023 and is already receiving significant international interest. It also continues to roll out adaptations of popular telenovelas in different regions, such as 1Magic’s The River, which has been successfully adapted as Kina in Kenya and O Rio in Angola.

Showmax further localised its business with more local content such as Real Housewives of Lagos, Troukoors S2, Uthando Lodumo S2, Diiche and Steinheist.

In terms of financials, MultiChoice Group revenue was up ZAR1.8bn (US$104m) to ZAR28.6bn, and trading profit amounted to ZAR6.1bn – up 6% despite a ZAR700m investment in new decoders ahead of the upcoming FIFA World Cup.

“After a slower-than-usual start to the year, with global fuel and food price shocks negatively impacting consumer sentiment, our business regained momentum due to our engaging local content slate and strong local capabilities,” said Calvo Mawela, CEO of MultiChoice Group.

“Despite the challenging macro-economic environment, we are well positioned given our exciting content slate. In the second half of the financial year, a core focus will be the broadcasting of the 2022 FIFA World Cup and producing more local content that resonates with our customers. Going forward, we will look for more opportunities to grow beyond pay television.”

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MultiChoice brings Disney+ to South Africa

Pay TV company MultiChoice has partnered with The Walt Disney Company Africa to bring streaming service Disney+ to the company’s DStv digital satellite platform in South Africa.

Christine Service

Disney+ is set to launch in South Africa on May 18 and will be available to DStv subscribers via the Explora Ultra decoder. They will have access to a collection of exclusive originals, including feature-length films, documentaries, live-action, animated series and shortform content.

Christine Service, senior VP and general manager of The Walt Disney Company Africa, said: “This is yet another proud milestone in our partnership with the MultiChoice Group. We are delighted to be collaborating to bring South African DStv subscribers access to Disney+’s incredible catalogue of films, series and exclusive content.”

Calvo Mawela, group CEO of MultiChoice, added: “In line with our business objective of adding value and enhancing our ecosystem, we are focused on making sure that all our customers can enjoy their favourite shows and movies anywhere, anytime, on our world-class platforms.

Calvo Mawela

“The digital world has brought with it fundamental shifts and our customers are looking for convenient access to a portfolio of entertainment options. MultiChoice’s partnership with Disney+ leads with an expanded choice of content, ease and convenience of subscription and payment, with the DStv Explora Ultra as an enabler.”

Disney+ launched in the US in November 2019 and has since expanded around the world and amassed more than 130 million subscribers. It will be available in more than 50 countries by the end of 2022 and in over 160 by the end of 2023.

As well as the South African launch next month, Disney+ will also debut in the Middle East and North Africa on June 8 and in Israel on June 16.

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MultiChoice to boost local content

African pay TV platform MultiChoice has revealed plans to increase local content on its channels from 38% to 44% over the next two years.

Calvo Mawela

MultiChoice Group CEO Calvo Mawela made this announcement in an interview on CNN Connecting Africa, noting that over US$136.49bn has so far been spent by the company on African productions.

Mawela said: “We have invested a lot in local content across the continent; we call it going hyper-local. Each year we spend over R2bn [US$133m] investing in local content productions across the whole continent.

“Our plan is to increase our local content composition from 38% to 44% in the next two years. We have been on this nice trajectory over a number of years and we think we should be able to achieve that.”

Speaking about the fact that international players could also have some level of local content, he told Punch Nigeria: “We go deeper into the communities and tell stories in the street language they use on a day-to-day basis and the storytelling is based on their everyday lives.

“If you look at our numbers, we are sitting at over 20 million subscribers and we think we can grow very quickly to 50 million subscribers. They are used to how we tell our stories, and I think that’s going to keep us competitive and we should be able to challenge the likes of Netflix.”

Mawela also said that MultiChoice had launched local content channels in Nigeria, Kenya and Zambia and will soon debut similar services in Uganda and Ghana.

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Showmax signs deal with SAFA

African SVoD service Showmax has signed a five-year agreement with the South African Football Association (SAFA) to support more than 40,000 referees officiating in both the male and female divisions of the sport.

Calvo Mawela

Effective this week until 2025, the new relationship will assist SAFA with its referee programme, which is focused on improving the quality of football officiating and feeding the talent pipeline in a fully inclusive manner.

Match officials will be trained and educated to ensure referees are kept abreast of the latest innovations and techniques available to best enforce the rules of the game.

The agreement includes a redesigned and rebranded referee’s kit and other branding elements through which the Showmax brand will be showcased at all SAFA levels including DStv Premiership, national team matches, National First Division, ABC Motsepe League, SASOL Women’s League, regional leagues and all football tournaments and matches played under the auspices of SAFA.

Calvo Mawela, CEO of Showmax parent MultiChoice Group, said: “We are pleased to be involved in what we believe is a monumental win for South African football that will truly elevate match officiating across all levels, from grassroots to the DStv Premiership and beyond, ultimately enabling the best local talent to participate on a global stage.”

SAFA president Danny Jordaan added: “The partnership between MultiChoice and SAFA is critical as it allows us to fulfil our development mandate, as well as improving the quality of football officiating at both domestic and international level. This partnership will continue to make a contribution to deliver world-class officials on an inclusive basis. It will further accelerate the delivery of both male and female match officials for CAF and Fifa competitions.”

Showmax is the exclusive global SAFA referee sponsor and the referees will now be known as the Showmax SAFA Referees.

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MultiChoice SA changes leadership

South African pay TV operator MultiChoice has announced changes to its top management team.

Nyiko Shiburi

The company has appointed Nyiko Shiburi as CEO of its South African operations. Shiburi started his MultiChoice career at DStv Mobile as a project manager in 2007 having been involved in decoder and broadcast technology product development.

“He ably dealt with macro issues such as economic meltdown, drought that impacted electricity supply, tax issues, currency devaluations, regulatory issues, acquiring new licences, political and people challenges, and has shown resilience and nimbleness,” said MultiChoice group CEO Calvo Mawela.

“Shiburi has been the company’s regional director for southern Africa for the past two-and-a-half years and has had to navigate the complexity of multiple territories and multiple businesses each uniquely different and uniquely complex.”

Fhulu Badugela, a former group executive head of human resources at MultiChoice Africa and operations director at M-Net, has been appointed regional director for southern Africa markets.

Calvo Mawela

“[Badugela’s] leadership and broader MultiChoice Group exposure has seen Fhulu achieve a great track record of leading operational excellence and enabling a high performance culture, and will help us drive forward the MultiChoice Africa Holdings business turnaround,” said Mawela.

Marc Jury takes up the role of CEO of the SuperSport division, responsible for managing negotiations and acquiring all sports-related programming across the SuperSport channels as well as overseeing the marketing of that content.

He was previously head of commercial and marketing for Cricket SA, commercial executive at sports marketing firm SAIL, MD for IFM Sport Marketing Surveys SA and an account director at United Media Entertainment Group in London.

“Marc has always had a great affinity to sport and this, together with his passion for motivating people and getting the best out of those around him, makes him the best candidate for the role,” Mawela added.

Lastly, Clement O’Reilly takes over as group executive head of human resources, while Gideon Khobane, current CEO of SuperSport, is now group executive for general entertainment, which is responsible for programming across all the pay operator’s platforms.

Shiburi and Jury will assume their new roles on December 1.

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MultiChoice invests in Ethiopia

Pay TV company MultiChoice Group is set to expand its investment and support the production of local content in Ethiopia.

Calvo Mawela
The investment is part of MultiChoice’s hyper-local content strategy to continue its investment in local content production and aggregation. Ethiopia is recognised as having huge growth potential with its large population (second only to Nigeria in Africa), impressive GDP growth and its largely untapped potential within the ICT sector.

Calvo Mawela, CEO of MultiChoice Group, said: “Our commitment to Ethiopia can be seen throughout our tenure. Unlike many other businesses, we remained in the country since we launched our local operation nearly 30 years ago. We have built a truly Ethiopian business which has delivered solid results for us over the years. The strong foundation we have established through our local business, knowledge and expertise, positions us with a distinct advantage as we seek to unlock opportunities presenting themselves.

“Ethiopia is open for business and has demonstrated its commitment to supporting businesses around the world. We will continue to demonstrate our commitment to Ethiopia through the development of local skills and industries, and through exciting plans for content that speaks to Ethiopians in their own voice.”

The company recently launched an Ethiopian channel, Zee Alem, on its DStv platform, invested in dubbing international content in Amharic as well as conducted training for SuperSport commentators in vernacular for local sports broadcasts.

“By continuing to invest in our local markets we intend to create lasting value for the local creative industry, with benefits including improved quality in the industry arising from training in our stringent technical standards; opportunities for local content creators; distribution of content in local languages; promotion of local talent who are able to build their individual brands; on-the-job learning for those involved in productions; and new content which we can license to other channels.

“In the aftermath of Covid-19, our commitment to the long term, and to creating local value chains and local content, is more important than ever. Multichoice is a business born and bred in Africa, and we are proud to reinvest in the continent for lasting socio-economic impact.”

MultiChoice has access to 19.5 million households across the continent with a library of more than 56,000 hours of local content in 17 languages for distribution via 33 proprietary entertainment channels in 50 countries.

In 2013, local content spending as a percentage of total general entertainment content spend was 30%. In 2020, it was 40% and is set to reach 45% by 2022.

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MultiChoice to add Netflix, Amazon

Pay TV company MultiChoice is set to add international streaming services Netflix and Amazon Prime Video to its DStv platform.

Calvo Mawela

With its recently released 2019/20 financial results, the pay TV company has shown growth in South Africa and the rest of sub-Saharan Africa, adding roughly 900 000 DStv and GOtv subscribers.

Calvo Mawela, MultiChoice’s CEO, said: “We are pleased with our performance and the resilience we have demonstrated this year. Our healthy balance sheet positions us well to weather uncertainties in our markets going forward.

“We have long been a content aggregator and this is proof of our aggregator model at work, providing simplicity, choice and convenience for our customers. As our industry evolves, we believe that we are well positioned to benefit from both worlds – a large, growing pay TV market in Africa, as well as an emerging over-the-top opportunity, where our own OTT services and aggregation capabilities can drive success.

“MultiChoice has shown a 5% increase in subscriber growth in its 2019/20 financial year, taking its total pay TV subscriber base to 19.5 million households. South Africa still represents MultiChoice’s biggest and most powerful market, with 8.4 million pay TV households, while the rest of Africa combined represents 11.1 million households.”

Besides adding two global streaming services, MultiChoice is also getting ready to roll out its as-yet-unnamed ‘DStv dishless,’ stand-alone DStv streaming service that will mimic its existing direct-to-home  service but without the need for any installation.

With these additions, existing subscribers will have access to further streaming services through DStv, paying their monthly bill in local currency for the add-ons, lessening payment friction and providing one place for subscribers to find and watch content.

The company is also planning two new coproductions, Blood Psalms and Rogue; to launch four new local-content TV channels, including a new action-movie channel; and to further ramp up local content production in 2021.

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MultiChoice vows to back industry

Pay TV outfit MultiChoice Group has promised to support the local entertainment industry through this tumultuous time of the coronavirus pandemic.

Calvo Mawela

Calvo Mawela, CEO of MultiChoice, noted that as a result of the challenges faced by partners in the industry as well as challenges brought about by the pandemic with various sectors across the continent trying to adjust and find ways to deal with them, MultiChoice has decided to implement several measures, aimed at safeguarding the incomes of cast, crew, and creatives as well as the sustainability of production houses so as to steer the industry through this pandemic period.

He added that the company had set aside R80m to ensure that current productions are able to pay full salaries of cast, crew and creatives for the months of March and April, so as to keep the industry vibrant.

“We believe this to be critical for the industry and in our view this is simply the right thing to do. Our main concern is to ensure as much as possible that we secure the incomes of creatives, cast and crew over this period. We want to ensure that they and their families are not negatively impacted as work has come to a standstill,” said Mawela.

Furthermore, the group has committed to guarantee the incomes of freelancers in SuperSport productions, who are currently unable to work due to the suspension of sports and the national lockdown.

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MultiChoice unveils innovation fund

Pay TV company MultiChoice has launched an innovation fund aimed at helping small businesses in the video entertainment industry and technology sectors.

Calvo Mawela

An extension of MultiChoice’s existing enterprise development trust, established in 2012, the fund will enable innovators to bring their ideas and dreams to life.

Focusing on businesses led by young people and women, the new fund will address the gender gap and youth unemployment in South Africa while ensuring increased and sustained diversity and inclusion in industries such as tech, film and media. Part of the goal of the innovation fund is to expand on the 11 women-owned and four-youth-owned businesses it has already supported.

Calvo Mawela, MultiChoice group CEO, said: “The video entertainment industry and indeed the world as we know it is on a fascinating digital trajectory and we need to ensure we are ahead of the pack if the continent’s entertainment industry is going to continue to grow sustainably and be globally competitive.

“We anticipate that our innovation fund will spur original thinking and exciting new ideas that will lead to breakthrough moments for these growing entrepreneurs.”

According to MultiChoice, successful beneficiaries will be afforded relevant financial support tailored to the specific circumstances of each case.

“We want to partner with South Africa’s most exciting entrepreneurs, giving them the tools, skills and financial support to bring their original ideas to life,” Mawela added.

“We hope to help create cutting-edge solutions and competitive businesses that will shape the future of South Africa’s technology sector and the video entertainment industry. By investing in and developing entrepreneurs with innovative business ideas, MultiChoice is helping to shape the industries of the future.”

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Patel takes MultiChoice non-exec role

Imtiaz Patel, executive chair of African pay TV group MultiChoice, will be switching to a non-executive role in October 2020.

Imtiaz Patel

The announcement was made shortly after MultiChoice revealed it had added 1.2 million active subscribers in the first half of 2019 and had also upped its operating profit to R4.9bn (US$328m) from R4.1bn in the previous period.

MultiChoice said Calvo Mawela, the group’s current CEO, will assume “full executive responsibility” after Patel’s move.

Patel joined MultiChoice subsidiary SuperSport in 1999 and in March 2005 was appointed CEO.

He was named group CEO of MultiChoice South Africa in 2010. In October 2015, he became CEO of video entertainment for parent company Naspers and then MultiChoice executive chairman early this year.

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SuperSport, SABC sign PSL deal

MultiChoice’s SuperSport and the South African Broadcasting Corporation (SABC) have signed a five-year deal giving the latter free-to-air rights to South Africa’s Premier Soccer League (PSL).

Calvo Mawela

Discussing the deal, sports, arts and culture minister Nathi Mthethwa said: “Our duty is to deliver on our promises and resolve issues raised by our people.

“Thus, I am happy to announce that all parties have concluded an agreement on commercial terms with the SABC allowing them to broadcast Premier Soccer League matches on television for our people.

“I would like to thank all the participants – MultiChoice‚ the PSL and the SABC – for their positive approach which ensures that ordinary South Africans are able to access football in our country. We recognise the importance of sport, and in this instance football, in promoting national cohesion and commend all stakeholders involved.”

PSL chairman Irvin Khoza expressed his satisfaction over the willingness of the sports ministers and SABC to facilitate a commercial agreement that ensures the sustainability of the PSL as one of the top 10 football leagues in the world.

MultiChoice Group CEO Calvo Mawela added: “We remain committed to the long-term investment in sports in South Africa and the rest of Africa. In the previous financial year, MCG invested over R2.3bn in sports on the continent.

“An important element of the investment is in sports broadcasting and sponsorship rights, which provide critical revenue streams for sports bodies that filter down to every tier and have an undeniable impact on the development of sport.”

SABC Group CEO Madoda Mxakwe said: “In line with our public mandate, we are pleased to have reached an agreement in the interest of the South African public. Most importantly, this commercially viable deal is aligned to the goal of having a financially sustainable public broadcaster.

“The SABC will continue to discharge its public mandate in a manner which is not only sustainable for the organisation, but ensures that the South African public have access to sports of national interest such as the PSL.”

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MultiChoice exec team reshuffled

Naspers, one of the largest technology investors in the world, has announced the new executive leadership team for its MultiChoice Group.

Imtiaz Patel

The new execs include Calvo Mawela as group CEO, Imtiaz Patel as executive chairman, Tim Jacobs as chief financial officer and Brand de Villiers as chief operating officer. The appointments will take effect on November 1.

Naspers CEO Bob van Dijk said: “This announcement marks a significant step for the MultiChoice Group as they journey towards a stand-alone business. I am confident that through the leadership of Imtiaz and Calvo, MultiChoice Group will continue on its growth trajectory and unlock even more value for its shareholders.”

Calvo said: “I am incredibly excited to lead our team of highly capable executives through this new and exciting chapter for our company. Our leadership team is diverse, experienced and well-positioned to grow our position as the leading entertainment company on the African continent.

Calvo Mawela

“There are significant growth opportunities for MultiChoice Group in Africa. The combination of MultiChoice’s reach, Showmax and DStv Now’s cutting-edge internet television service, alongside Irdeto’s 360 security suite will provide a unique offering.”

On September 17, Naspers had made its intention to separately list its video entertainment business on the Johannesburg Stock Exchange and will include MultiChoice South Africa, MultiChoice Africa, Showmax Africa and Irdeto.

MultiChoice Group is one of the fastest growing pay TV operators in the world and its multi-platform business reaches 13.5 million households across Africa.

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Date set for MultiChoice JSE listing

Naspers, one of the largest technology investors in the world, will list it’s pay TV unit MultiChoice on the Johannesburg Stock Exchange (JSE) on February 27.

Bob van Dijk

The company includes MultiChoice South Africa, MultiChoice Africa and Showmax. Naspers originally announced its intention to list last September.

The move means Naspers shareholders will now hold a direct interest in MultiChoice rather than through Africa’s most valuable company.

Naspers CEO Bob van Dijk said: “Listing MultiChoice Group via an unbundling aims to unlock value for Naspers shareholders and at the same time create an empowered, top-40-JSE-listed African entertainment company.

“With strong financials, the flexibility of an ungeared balance sheet and deep local knowledge, we hope to deliver excellent returns to shareholders over time,” added group CEO Calvo Mawela.

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MultiChoice calls for Netflix rules

Africa’s largest pay TV operator MultiChoice has called for regulations to be imposed on Netflix as it blames the US-based streaming service for the subscriber losses it has suffered since 2017.

As a result of Netflix’s popularity among African viewers, pay TV companies MultiChoice and StarTimes are experiencing serious challenges to their business models and revenue streams.

In a recent report by Quartz Africa, Calvo Mawela, CEO of MultiChoice, said his company had lost over 140,000 subscribers to Netflix, including 100,000 in the past financial year. The streaming service, he said, is also free from any affirmative action regulations, which gives the US firm a major advantage.

Even though pay TV companies are already competing with local streaming platforms like Iroko, Netflix’s plan to focus more on Nollywood and African content is set to create another area of competition for these companies in 2019.

Calvo Mawela

Netflix’s VP of international originals Erik Barmack told C21Media’s Content London conference in November that the streamer’s European team is “in the process of looking at opportunities in Africa. It’s definitely the case that we’ll commission some series there in 2019.”

In an article by Business Insider magazine, Netflix said: “The company is following Nollywood closely and focusing more on content. There are no plans to have a physical office in Nigeria. We are following the local industry closely and focusing more on content rather than physical presence.”

While pay TV companies work on having better streaming services and pricey data plans, Netflix has deployed a dedicated server in Nigeria in partnership with Spectranet in order to have a secure connection for its Nigerian audiences and also provide customers in Nigeria with a better video-streaming performance.

Despite the fact Nigerian movies such as Genevieve Nnaji’s Lionheart, Kunle Afolayan’s October 1st and Biyi Bandele’s Fifty are available on Netflix, thus creating competition in the Nigerian market, all hope is not lost for MultiChoice. The South African company still has three of its indigenous African Magic stations on DSTV, namely Africa Magic Yoruba, Africa Magic Hausa and Africa Magic Igbo.

Although the competition would impact viewers across Nigeria, perhaps leading to possible lower subscription fees for streaming and TV content packages, it will now be a fight between four major contenders: MultiChoice, StarTimes, Iroko and Netflix.

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