South African jobs on the line after Showmax shutdown
While MultiChoice has been blocked from retrenching any permanent South African employees up to mid-2028, Showmax’s discontinuation will likely cost jobs in the local film industry in the near future.
The outcome was part of discussions between members of Parliament and two regulatory entities that approved French firm Canal+’s acquisition of MultiChoice in 2025.
The Competition Commission and Independent Communications Authority of South Africa (Icasa) briefed the communications portfolio committee on their decisions this past week.
The call to present reasons for their approvals came after Canal+’s decisions regarding local content production, prime content acquisition, and Showmax’s shutdown at the end of April 2026.
Canal+ decided to terminate the service after several months of due diligence of its financial and operational performance.
During a recent briefing on its 2025 annual results, the company labelled the service an “expensive failure.”
MultiChoice attributed roughly R8.7 billion in trading losses over its last three financial years to the relaunch of Showmax, content acquisition, and platform licensing fees.
As part of the shutdown, MultiChoice is migrating existing Showmax content to a dedicated location within the DStv Stream app.
MultiChoice has spent billions of rand developing original movies and series for Showmax, including titles Blood Psalms, Devilsdorp, Die Kantoor, Shaka Ilembe, and Spinners.
In commentary to Eyewitness News, broadcasting journalist Thinus Ferreira said he believes Canal+’s cost-cutting will include slashing budgets on these high-profile shows.
“Get ready for more lower-quality content, cheaper production, cheaper cost per minute, reality-type, housewife shows, and things like that,” he said.
MPs have similar concerns. DA MP Tsholofelo Bodlani believes the approval of Canal+’s takeover failed to consider the entire value chain for South African content.
EFF MP Sixolisa Gcilishe questioned how a French company would serve South African interests and asked whether Canal+ had not exploited a loophole in regulatory approvals.
The Competition Commission approved the transaction on several conditions, including a three-year retrenchment moratorium and maintaining MultiChoice Group’s headquarters in South Africa.
Canal+ “rationalising” South African property
While there have been no cuts to permanent MultiChoice staff in South Africa, Canal+ has plans to “rationalise” its South African property.
The term is often used as a euphemism for selling off assets. Ferreira suspects that this could mean MultiChoice could offload its Randburg headquarters and lease it from the new owner.
In addition to cutting costs, it would potentially make a future HQ move or shutdown after the three-year retrenchment moratorium easier.
Canal+ has already begun chipping away at the MultiChoice HQ’s influence over DStv content, with the stripping of SuperSport’s acquisition powers.
It is also possible that Canal+ plans to dispose of equipment and infrastructure used in local productions, although most of this is operated and owned by contracted third-party studios.
However, Canal+ has made commitments regarding supplier development, including expenditure on local audiovisual content and the promotion of South African content in new markets.
The Competition Commission has told Parliament that it will investigate whether Canal+ is in breach of the takeover conditions.
International companies boosting local film jobs
Showmax’s international competitors have also spent millions of rands on productions in South Africa, helping to support local jobs.
One major example is Netflix’s live-action adaptation of One Piece, which has been a major hit for the service.
However, titles like One Piece have a global audience appeal. Video streaming giants won’t spend large amounts on local productions unless they have international monetisation potential.
While many of Showmax’s productions could also be suitable for international audiences, a large part of its offering resonates primarily with locals.
Gcilishe believes that Showmax has been crucial in contributing to the national identity and pushing the South African narrative.
“Its discontinuation poses a serious risk of diminishing a critical distribution avenue for local content, particularly resulting in a cultural landscape overly influenced by international programmes,” Gcilishe said.
A source close to MultiChoice also expressed concern in feedback to Rapport that Canal+ would pull funding for local film festivals and South African channels like M-Net.
MultiChoice general entertainment content director Nomsa Philiso told the publication that the company’s commitment to African storytelling would not diminish with Showmax’s shutdown.
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