Job loss fears over MultiChoice, Canal+ merger

LOCAL content producers and actors are concerned that the French Television Giant Canal+'s acquisition of Multichoice may lead to fewer local productions and could lead to an increase in unemployment for those working in the entertainment industry, especially those dependent on commissions from Multichoice.

- WENDY JASSON DA COSTA and TAWANDA KAROMBO

The Competition Commission Tribunal hearing this week, focused on public interest clauses of the merger, especially around commitments to support local content creators and historically disadvantaged persons (HDPs). Regulators and commissioners sought to understand how local content creators and HPDs will be supported under the merged entity.

Canal+ and MultiChoice had committed to obligations to continue procuring goods and services from a diverse group of beneficiaries, including HDP firms, small and medium enterprises (SMMEs), and South African content creators.

Concerns were raised during Thursday's hearing on whether the wording under Clause 7 of the merger conditions was explicit enough to assure beneficiaries particularly local content producers - that they are covered under the commitments.

The Competition Tribunal panel also queried Canal+ and Multichoice on the basis for monetary commitments related to local content procurement and HDP participation.

However, specific amounts set for this by the merging parties remain confidential, although they explained that these figures were derived from historical and projected expenditure data covering a three-year period.

They said they had made financial commitments to reflect average spend based on past and future spending to ensure that support for local content and HDP firms is maintained not diminished after the merger.