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Multichoice to offer Netflix, Amazon contents to subscribers

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When the shares of Multichoice Group jumped by 8.5% to 102.62 rands on Wednesday at the Johannesburg Stock Exchange, South Africa, a lot of observers were shocked by the news, as it had not recorded such feat in months.

The development, some observers said it could be attributed to the 2020 full-year result of the group, which was released on Wednesday. The pay-TV announced a 5% growth in its subscribers base when it rose to 19.5 million. While it recorded revenue growth of 3% to close at R51.4 billion, its core headline earnings were up by 38%. No wonder, it could afford to pay a dividend of R2.5 billion (N57.9 billion) to its shareholders.

Other observers argue that the development could also be attributed to the news the group broke in the financial report. The group stated that it had signed a deal with Netflix Inc. and Amazon.com, its US rivals to offer its streaming services through its new decoder. This move, no doubt, would help Africa’s largest pay-TV firm retain teeming subscribers and attract potential viewers.

READ MORE: MTN, Airtel, others disregard Pantami’s directives over voicemail, data cost

The deal was disclosed in MultiChoice’s results presentation, tagged ‘Improve Retention’ shared on its site and seen by Nairametrics.

Multichoice Netflix

Multichoice partners Netflix

 

This could indicate ‘If you can’t beat them, join them’ move, as the duo rivals have been giving Multichoice run for its money, creating greater competition, offering cheaper and faster internet speeds, which enabled them to stamp their feet on the continent.

How would Multichoice benefit from the deal?

While observers await Multichoice’s announcement on how the move could affect it’s monthly fee probably in a few weeks, a top executive of the group explained that it is a win-win situation for the company.

“What would typically happen is we would get a commission on whatever revenue gets generated by customers coming from our platform,” Chief Financial Officer Tim Jacobs said in a phone interview, according to Bloomberg.

READ ALSO: Microsoft Teams’ rival, Slack shares drop on withdrawal of full-year billings guidance

Nigeria’s contributions to the figures

The financials stated that the group recorded 8% year-on-year subscribers growth in Nigeria, highest in Africa, as it recorded losses in Zimbabwe (41%), Zambia 11%, Angola 2%, while Kenya was constant. It also recorded a 22% growth in subscribers revenue in Nigeria.

No doubt, it stated in the report that the group expects it’s new bouquets and 1H FY2020 migration would earn more for the company by the end of the 2021 financial year-end.

Meanwhile, Netflix has also made an effort to produce more African content. Dramas “Queen Sono” and “Blood and Water”, both South African, debuted on the service this year, supported by extensive marketing campaigns.

“There is little overlap between content on Multichoice’s Showmax, that is now 50% local, and a service like Netflix at the moment, hence we find deals with other video-on-demand services complementary,” said Jacobs.

Impact of COVID-19

The full impact of the COVID-19 pandemic on the business is yet unknown, MultiChoice explained that it expects weaker economic growth and higher unemployment in many of its markets. “The TV provider continues to film local productions, taking specific precautions such as splitting production teams,” Jacobs added.

Business

Hoodlums loot Shoprite store in Ilorin, stole iPhone 11 mobile sets, others

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Some suspected hoodlums l allegedly looted the Palms Mall on Fate road, Ilorin, Kwara State capital. The mall hosts stores of Shoprite, and Lifemate Furniture among other stores including Mobile phones retailers.

This was revealed by an eye witness.

He said, “They allegedly stole iPhone 11 mobile sets, other mobile sets brands, Refrigerators, and households items among others.”

According to him, the suspected hoodlums forced their way into the Mall after they have stormed and allegedly looted Kwara Agro Hall, an agro resettlement centre, where they carted away Aluminium roofing sheets, mattresses, bags of cement and bags of flour among others.

Back story: Similarly, similar incidents had occured in Lagos when suspected hoodlums looted at Shoprite Malls across Surulere, Sangotedo.

According to reports, suspected thugs from Orile have invaded the mall and the neighbourhoods.

The alleged looters were seen with a cartload of goods on the streets along Ajah Road.

An eyewitness account also submitted that the hoodlums were looting shops around Bode Thomas and Adeniran Ogunsanya.

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Business

India seeks closer ties with Nigeria as trade volume reaches $14 billion

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India has expressed its readiness to deepen economic ties with Nigeria towards promoting investment and trade between both countries.

Amb. Abhay Thakur, High Commissioner of India to Nigeria, said this during a courtesy visit to Gov. Abdullahi Ganduje on Friday in Kano.

Thakur noted that India and Nigeria had long-standing relations based on mutual respect that predates the independence of the two countries.

”We are Nigeria’s largest trading partner and the country is our largest trading partner in Africa.

“Our bilateral trade volume reaches $14 billion in 2020 and we export various goods ranging from machinery and agriculture products to the tune of $3.5 billion to Nigeria,” he said.

Thakur called for greater bilateral trade co-operation between Nigeria and India as a way of fostering the existing friendly trade and economic relations between the two countries which dated back to 1960.

In his response, Ganduje said that relations between the countries have been warm and cordial; and have witnessed growth and transformation.

The governor called for effective collaboration between India and Kano on energy, health care and film industry.

He said that Indian farm implements have helped to boost rice production in Nigeria.

Ganduje said that Indian companies are doing very well in the state including an hydro power project and the Indian rice mill in Kano which he said is the biggest in West Africa.

He said that the state government has sponsored hundreds of students to study in India.

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Business

#EndSARS: LCC says it didnt remove CCTV before Lekki Toll Plaza shooting

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The management of Lekki Concession Company (LCC) has disclosed that the perimeter CCTV cameras were not removed and there was no instruction from anyone to remove the perimeter CCTV cameras.

This was disclosed by the management of the company in a press release, which was released by the company.

Backstory

Several allegations had been channeled at the company by Nigerians over the removal of the CCTV cameras at the Lekki toll gate on Monday a few hours to the shooting of #EndSARS protesters at the toll gate by security operatives.

However, members of the public have aired their respective opinions on social media about the alleged removal of the perimeter CCTV Cameras as some believed it was an attempt to compound the ongoing civil unrest and the breakdown of law and order.

 

What they are saying

The management of Lekki Concession Company strongly condemns the shooting of peaceful protesters at the Admiralty Circle Toll Plaza on 20th October 2020.

LCC management stated that there was no instruction from ANYONE to remove the perimeter CCTV cameras, and the company would never support or condone such an unscrupulous act meted out on unarmed protesters.

However, in the press release LCC reiterates that as the perimeter closed-circuit television system (CCTV) are Mobotix Digital cameras, it is impossible for the cameras to be removed, as removing them will require the use of machinery to reach the heights that they have been installed.

Other issues discussed

The company provided insight as to why there was a total power outage at the toll plaza on Monday Night, the company said;

“LCC receives power from the IPP grid, the power albeit stable is taken off from time to time. At such times, LCC relies on the backup generators for power supply. However, following the declaration Of the curfew by the state governor, LCC withdrew ALL her staff from the office locations. This is the reason why the lights could not be restored when the mains from IPP went Off temporarily. This is verifiable.

Additional statement in the press release reads; “CC sincerely regrets the unfortunate incident at the Lekki toll plaza and condemns the shooting of unarmed protesters.

“Since the commencement of the protests, the company cooperated with the protesters from, identifying with the cause and need to end the police brutality. This prompted the company to provide lights, toilets among other items to the youths as a show of solidarity.”

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