Communications minister explains his silence on MultiChoice shutting down Showmax
Communications minister Solly Malatsi said his department planned to engage with Groupe Canal+ over its shutdown of video streaming service Showmax.
Malatsi’s commitment came in response to a question in Parliament, after the development drew the attention of lawmakers.
In recent months, various Members of Parliament criticised the company over the decision, citing concerns over its impact on jobs in the local film production industry.
Canal+ discontinued the struggling platform at the end of April 2026, after it had incurred over R8.7 billion in trading losses since its relaunch in 2024.
Parliament’s Portfolio Committee on Communications and Digital Technologies launched its own investigation into the shutdown in March 2026.
The probe aimed to establish whether Canal+ violated the transaction terms it had agreed to with the Competition Commission to acquire MultiChoice.
These included several commitments regarding direct jobs and support for the broader industry’s content providers and suppliers.
EFF MP Sixolise Gcilishe argued that Showmax was crucial to South Africa’s national identity, pushing local narratives and providing a platform for South African producers, actors, writers, and technical teams.
“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,” she said.
In an appearance before the committee in March 2026, the Competition Commission said it would investigate whether Canal+ breached the takeover conditions.
More recently, Gcilishe’s fellow party member, Sinawo Tambo, asked Malatsi whether the Department of Communications and Technologies (DCDT) had engaged Canal+ over the matter.
Malatsi explained his department had not engaged with MultiChoice since all matters related to the merged entity required regulatory independence.
Malatsi said the issue was within the realm of the Competition Commission and the Independent Communications Authority of South Africa’s oversight.
“It is these regulatory authorities that will pronounce on the impacts, once they have engaged in impact assessments based on the commitment made before the merger was approved,” Malatsi said.
More jobs in jeopardy — but sales staff set to increase
Nonetheless, Malatsi said the department still aimed to engage with Canal+ as part of its oversight to ensure the company had complied with the conditions of the merger and safeguarded local productions.
Groupe Canal+ agreed to a three-year retrenchment moratorium for directly employed MultiChoice South Africa staff.
If it retrenches workers in South Africa before September 2028, the company risks significant administrative penalties from the commission, including up to 10% of its annual turnover and exports.
However, Canal+ has already begun reducing MultiChoice’s staff at its head office through voluntary severance packages as part of its cost-cutting strategy.
While it tiptoed around Showmax’s performance in the early days after acquiring MultiChoice, Canal+ became more blunt as its annual financial results neared.
In its 2026 financial results presentation, Canal+ labelled the service an “expensive” failure and argued that its closure would be better for the company in the long term.
“The decision to phase out Showmax reflects our focus on building a sustainable, competitive business for the long term in an increasingly demanding global streaming environment,” it said.
It should also be noted that the Competition Commission’s conditions excluded any commitments on jobs in MultiChoice’s markets outside South Africa.
Canal+ previously confirmed that it had begun restructuring MultiChoice cybersecurity subsidiary Irdeto, which is based in the Netherlands. Such restructuring often involves retrenching staff.
At the same time, Canal+ said it planned to hire over 1,000 more sales staff in South Africa and other countries to help turn MultiChoice around.
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