Davos 2023: CEO Calvo Mawela on how MultiChoice is responding to load-shedding, streaming wars

The ongoing World Economic Forum in Davos, Switzerland has seen a myriad of global industry leaders gathering to discuss the current state and future outlook of various sectors. Among them is Calvo Mawela, the CEO of MultiChoice, a leading broadcasting and streaming service provider in Africa. In a recent interview with CNBC Africa's Fifi Peters, Mawela shared insights into how MultiChoice is navigating challenges such as load-shedding and the streaming wars, while also capitalizing on emerging opportunities in the industry. Mawela expressed optimism about the overall economic landscape, noting that interest rates are stabilizing and inflation is beginning to decrease, leading to a more positive outlook for businesses and consumers alike. He highlighted the importance of globalization and trade among countries, emphasizing the need to combat protectionism for the benefit of the global economy. Despite some economic challenges, Mawela pointed out that the entertainment industry often thrives during tough times, as people seek out in-home entertainment options when faced with financial constraints. MultiChoice has capitalized on this trend by offering a wide range of family-friendly content that caters to diverse audiences across the continent. One key strategy for MultiChoice has been investing in local content production, which has not only resonated with African audiences but also gained international recognition. Shows like 'Ray' and 'My Kitchen Rules' have successfully been exported to foreign markets, demonstrating the global appeal of African storytelling. Mawela emphasized that producing local content is not just a cultural investment but also a strategic business move to mitigate foreign currency risks. However, a significant challenge for MultiChoice in its South African operations has been load-shedding, which has impacted both business operations and customer satisfaction. The company has had to resort to using generators for longer periods, leading to additional costs and customer complaints about service interruptions. In response to this challenge, MultiChoice is exploring innovative solutions, such as introducing catch-up options for customers to access missed content. Despite these operational challenges, Mawela remains optimistic about the future of streaming services in the industry. Recognizing the disruptive nature of technology, MultiChoice has been proactive in enhancing its streaming platform, Showmax, to cater to changing consumer preferences. The company has seen a notable increase in subscription numbers for Showmax and aims to position itself as a premier destination for local content and sports streaming in Africa. Mawela views competition from global streaming giants like Disney, Amazon, and Netflix as an opportunity for growth, pushing MultiChoice to be more creative and efficient in its offerings. A key development in the industry that Mawela touched upon was Canal Plus's stake in MultiChoice, highlighting the vote of confidence in the company and its management. While the specifics of this investment partnership are still evolving, Mawela sees it as a positive endorsement of MultiChoice's strategic direction and its position as a leading player in the African market. As the global industry landscape continues to evolve rapidly, MultiChoice under Mawela's leadership appears poised to navigate challenges and leverage opportunities for sustained growth and innovation.