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MultiChoice Signs Streaming Deals with Netflix, Amazon

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MultiChoice

By Adedapo Adesanya

South African Pay-TV company, MultiChoice Group Ltd, has signed deals with Netflix Inc and Amazon.com Inc to offer their streaming services through its new decoder.

The deal has been touted as a move by MultiChoice to retain subscribers. The platform has been battling greater competition from its US rivals after cheaper and faster internet speeds enabled them to grab a foothold on the continent.

With the partnership, Netflix and Amazon Prime Video will in some way be accessible through the next Explora decoder model from the company.

The Johannesburg-based company introduced its own streaming product called Showmax in 2015 and has offered cheaper deals on premium packages to shore up its customer base, but it has not been able to keep up with other foreign services.

According to reports, details on how the move could affect MultiChoice’s monthly fee will be announced in the coming weeks, a spokesman said on Wednesday.

Speaking on this, MultiChoice chief financial officer, Mr Tim Jacobs said, “What would typically happen is we would get commission on whatever revenue gets generated by customers coming from our platform,” without being specific about Netflix and Amazon.

The deals were, however, included in MultiChoice’s results presentation, published on its website, under the heading – ‘Improve Retention’.

This led the company’s shares to jump on the news, gaining 8.5 percent to 102.62 rand at the close in Johannesburg, the highest in almost four months.

MultiChoice subscriber numbers rose by 5 percent in the year through March to 19.5 million households, with demand picking up at the end of that period as South Africa, its biggest market, entered a coronavirus lockdown.

The company offers a wide variety of international sport to its highest paying viewers, but has also been focusing more on local content and with Netflix also making an effort to produce more African content, the company considers it complementary.

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

Deals between pay-TV providers and streaming services have been struck elsewhere. Sky UK and France’s Canal+ both have agreements with Netflix.

MultiChoice reported full-year earnings per share of 1.17 rand, compared with a loss the previous year. The company announced a maiden final dividend of R5.65  pershare.

MultiChoice said the full impact of the COVID-19 pandemic on the business is as yet unknown, but said that it expects weaker economic growth and higher unemployment in many of its markets.

The TV service provider plans to continue  local film productions, taking specific precautions such as splitting production teams, Mr Jacobs added.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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FoodCourt Pauses Operations as Unpaid Salaries, Debt Mount

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FoodCourt

By Adedapo Adesanya

FoodCourt, a Nigerian cloud kitchen startup backed by Y Combinator, has suspended operations after months of unpaid salaries and mounting debts to vendors triggered a staff strike and forced the company to halt customer orders, according to a report by TechCabal.

The publication reported that customers first noticed on March 4 that they could no longer place orders through the FoodCourt app after the company disabled ordering as kitchen workers, delivery personnel and branch staff embarked on strike over unpaid wages. The company also owed outstanding payments to vendors.

By April 19, FoodCourt had temporarily shut its last operating branch after suspending activities across its Lagos and Abuja locations while seeking fresh funding and restructuring the business, according to the report.

The company’s chief executive, Mr Henry Nneji, said the decision to pause operations was not caused by a single issue but by a combination of operational, organisational and working-capital challenges.

“It’s important to clarify that the decision to pause operations wasn’t driven by one single issue. We reached a point where it became clear that continuing to patch those issues while operating wasn’t the right long-term decision,” he said.

“The objective is to build a stronger business than the one that existed before the suspension. We fully intend to bring FoodCourt back,” he added in an emailed response.

The company acknowledged outstanding obligations to employees, vendors, riders and service providers, but declined to disclose the number of affected workers or the total amount owed. It said efforts were underway to resolve the liabilities as part of its restructuring process.

It was also reported that the startup’s financial difficulties worsened after expansion into additional locations increased operating costs, while its cloud kitchen model came under pressure from rising labour, logistics, food and marketing expenses.

Despite the shutdown, Mr Nneji said FoodCourt intends to relaunch after completing its restructuring, adding that the company believes demand for its products remains strong.

Founded in 2021 by Henry Nneji and Paul Adokiye Iruene, FoodCourt operates cloud kitchens under multiple virtual restaurant brands through its consumer app. According to TechCabal, the startup had previously disclosed raising $1.7 million, delivering more than one million meals and reaching $4.3 million in annual recurring revenue by the end of 2024.

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Chicken Republic Introduces Improved Smokey Jollof Recipe

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Chicken Republic smokey jollof

By Aduragbemi Omiyale

To further reinforce its commitment to continuous enhancement of customer experience through menu innovation and quality improvements, Chicken Republic, Nigeria’s leading quick-service restaurant brand and a flagship brand of Food Concepts Plc, has improved its Smokey Jollof recipe across restaurants nationwide.

As a customer-centric brand, Chicken Republic regularly evaluates consumer feedback, dining trends, and product performance to ensure its menu continues to deliver the quality and value to which customers have become accustomed.

The updated Smokey Jollof is part of this ongoing commitment to continuous improvement.

The refreshed recipe represents the latest evolution of one of the brand’s most popular offerings.

Developed with a focus on richer flavour, greater consistency and an even more satisfying eating experience, the improved Smokey Jollof reflects Chicken Republic’s dedication to meeting the evolving tastes and expectations of its customers.

“At Chicken Republic, our customers are at the heart of every decision we make. We are constantly listening, learning and looking for ways to improve the experience we deliver.

“The improved Smokey Jollof is a reflection of that commitment. We’ve refined the recipe to deliver an even richer, more enjoyable taste experience while maintaining the flavour profile our customers know and love,” the Managing Director of Food Concept, Mr Olumide Aniyikaiye, stated.

“Great brands evolve with their consumers. This update is not about changing what people love, but about making it even better.

“We are confident that customers will enjoy the improved recipe and appreciate the attention we continue to invest in delivering quality meals every day,” Mr Aniyokaiye added.

The improved Smokey Jollof is now available at Chicken Republic outlets nationwide, allowing customers to experience a more flavourful and consistent version of a fan-favourite menu item.

This latest enhancement underscores Chicken Republic’s broader commitment to innovation, quality and creating memorable meal experiences for customers across Nigeria.

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NAFDAC Busts N42m Expired Baby Wipes Warehouse

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By Adedapo Adesanya

The National Agency for Food and Drug Administration and Control (NAFDAC) said it has uncovered a warehouse stocked with expired baby wipes intended for illegal revalidation and sale to unsuspecting consumers.

In a statement shared on X (formerly known as Twitter) on Monday, the agency said the value of the products is estimated at N42 million.

The agency said during the operation, its officers discovered over 240 cartons of expired baby wipes that had already been revalidated and repackaged, alongside approximately 20,000 additional expired wipes, equivalent to 625 cartons, awaiting revalidation.

NAFDAC said one suspect was apprehended at the scene, while the warehouse was sealed and the products evacuated for further investigation.

“The distribution and use of expired baby wipes pose significant health risks, particularly to infants and young children, including skin irritation, skin infections, allergic reactions, worsening of eczema or dermatitis, and an increased risk of diaper rash due to the reduced effectiveness of preservatives that inhibit microbial growth.

“The seized products are valued at approximately N42 million.

“We reaffirm our commitment to protecting public health by preventing substandard and expired regulated products from re-entering the market.

“Members of the public are urged to remain vigilant and report suspicious activities involving regulated products to the nearest NAFDAC office or call 0800 1 623322,” it stated.

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