Only three specific sports tournaments drive subscriber growth for DStv, according to former Telkom CEO and MultiChoice South Africa investor Sipho Maseko, MyBroadband reported.
Three Sports Drive DStv Growth
- Sipho Maseko stated that soccer and rugby tournaments are the primary catalysts for DStv subscriber expansion.
- Canal+ acquired a major stake in MultiChoice, utilizing Black Economic Empowerment partners to comply with South African broadcasting regulations.
- Data analytics dictate content packaging, pricing, and rights negotiations based on regional viewership preferences across South Africa.
The Canal Plus Acquisition Structure
Afrifund Investments, founded and chaired by Maseko, served as one of two Black Economic Empowerment partners in Groupe Canal+’s acquisition of MultiChoice. The French media conglomerate brought in these partners to comply with South African ownership regulations surrounding broadcasting licensees.
Canal+ needed a way to limit its voting rights in MultiChoice South Africa to 20%. This limitation is a strict requirement for broadcasting licensees under the Electronic Communications Act. The transaction had to meet Broad-based Black Economic Empowerment rules requiring 30% ownership by historically disadvantaged individuals.
To satisfy these mandates, MultiChoice (Pty) Ltd was carved out of the group structure to hold South African operating licenses. Canal+ and MultiChoice referred to this specific entity as LicenceCo. The remaining video entertainment assets stayed within the broader MultiChoice Group.
LicenceCo Ownership Setup
Canal+ Africa supplies channels to LicenceCo in South Africa, which then delivers the DStv offering to subscribers. LicenceCo is majority-owned by historically disadvantaged persons through an employee ownership plan, a BEE share scheme, and black-owned investment vehicles.
These vehicles include the Workers’ Trust employee ownership plan and Phuthuma Nathi, MultiChoice’s BEE share scheme, which holds a 27% economic interest. The Afrifund Consortium and the Identity Partners Itai Consortium also hold stakes in LicenceCo as established black-owned and managed companies.
Maseko invested in MultiChoice through 13th Avenue Investments, a consortium linked to his firm, Afrifund. Other shareholders in 13th Avenue included investment vehicles associated with Neo Lesela, Khanyisile Kweyama, and Philisiwe Sibiya.
13th Avenue acquired its stake alongside the Identity Partners Itai Consortium for R287 million each. This purchase gave them a combined 9.5% economic interest and 16.23% voting rights in LicenceCo.
Regional Viewership Preferences
Speaking in an interview with Investec, Maseko noted that South Africa remains a vital market for Canal+, with certain regions rivaling entire countries in economic importance. Data and analytics help MultiChoice and Canal+ evaluate potential productions.
“They know a lot about sport,” Maseko stated. “When the Springboks are playing, everybody in the Western Cape is watching. However, in KwaZulu-Natal, they’re watching something else.”
Similarly, when Bafana is playing, all of KwaZulu-Natal is watching, while in the Western Cape people are watching something else.
“Three codes largely drive growth: soccer—specifically the FIFA World Cup and the Africa Cup of Nations—and the Rugby World Cup,” Maseko explained. He added that other sports fail to match this impact: “I like Formula 1, but it is not a big deal. Only a few people watch it. If you like tennis, I’m sorry to disappoint you, but it doesn’t drive eyeballs.”
Viewership Data Shapes Package Pricing and Rights Budgets
Canal+ and MultiChoice rely on viewership data to determine package pricing and rights acquisition budgets. Maseko pointed out that within the English Premier League, South African audiences tune into roughly 10 major fixtures, such as Arsenal versus Chelsea or Liverpool versus Manchester United.
Local football often outperforms international mid-tier matches in raw viewership. “In fact, for local football, a match like Durban City against Stellenbosch — not even Chiefs and Pirates — would have more viewers than Bournemouth versus Ipswich,” Maseko said.
This localized data directly shapes content packaging strategies. Maseko concluded that local sports development will persist and likely expand, noting that both companies maintain a strong focus on local content.
| Consortium or Vehicle | Investment / Share | Economic Interest | Voting Rights |
|---|---|---|---|
| Phuthuma Nathi | MultiChoice BEE Scheme | 27% | Not specified |
| 13th Avenue Investments & Identity Partners Itai Consortium | R287 million each | Combined 9.5% | 16.23% |
| Canal+ South Africa | Broadcasting Operations | Capped structure | 20% limit |
