Canal Plus, a subsidiary of the entertainment giant Vivendi, has recently increased its investment in Viu, an over-the-top (OTT) streaming service prominent in Asia, the Middle East, and South Africa. This strategic move underscores Canal Plus’s ambitious plans to expand its influence in these rapidly growing markets, leveraging Viu’s substantial user base and diverse content offerings.
The Details of the Investment
In a series of investments that began in 2023, Canal Plus has progressively increased its stake in Viu, culminating in a significant increase to 36.8% as of June 2024. This increase is part of a broader $300 million investment strategy designed to deepen Canal Plus’s footprint in key international markets. With this latest increment, Canal Plus has the option to further increase its stake to 51%, contingent on the fulfillment of certain conditions within the strategic partnership established with PCCW, Viu’s parent company.
Strategic Implications
For Canal Plus, the decision to invest in Viu aligns with its broader objective to diversify its global presence and capitalize on emerging market opportunities. Viu provides Canal Plus access to a robust streaming platform with over 62 million monthly active users and a strong slate of original content offerings across multiple regions. This move is indicative of Canal Plus’s intent to enhance its content distribution network and subscriber base outside the traditional Western markets.
Viu’s Market Position and Offerings
Viu stands out in the crowded OTT market by offering dual-tiered subscription models, including both ad-supported free access and premium subscription services. The platform has produced significant original content under the “Viu Original” brand, covering diverse genres and languages, catering to a wide demographic spread across 16 markets. In 2023 alone, Viu reported a revenue growth of 22%, illustrating its strong market position and the efficacy of its content strategy.
Canal Plus’s increased investment in Viu is a testament to the strategic shifts occurring within the global media landscape, where traditional media powerhouses are seeking to broaden their horizons by integrating with regional leaders in emerging markets. This move not only enhances Canal Plus’s portfolio but also positions it as a key player in the OTT space, ready to harness the growth potential of the Asian and Middle Eastern markets. The future stages of this investment will be crucial in determining the full impact of Canal Plus’s strategy on its international market share and influence.
