Canal+ takeover of MultiChoice puts local shows under pressure

French media giant Canal+ has officially taken control of MultiChoice, the company which owns Showmax and DStv, and it isn't wasting any time cutting costs.

In two years, Multichoice has lost 2.8 million subscribers, with many customers opting for cheaper streaming services like Netflix and Amazon Prime.

The French firm is now trying to save even more at DSTV, a massive €400 million a year by 2030.

TV critic Thinus Ferreira says the ripple effects of these austerity measures could be severe.

"Chaos and growing chaos behind the scenes.

"Canal+ can't fire people for at least three years, but they have to get the cost down. One of the things they are doing is taking away all acquisition power from SuperSport; our new European masters are deciding which sports they will buy."

The impact is already starting to show, says Ferreira, noting that for the first time in years, DStv subscribers don’t have viewing rights to the Winter Olympics.

"It's because Canal+ has decided not to buy it, like the World Darts Championships and other things."

Moreover, locally produced shows will also feel the hit.

It's reported that suppliers were asked for 20% invoice cuts, impacting production houses, freelancers and even the actors who star in South Africa's best-loved shows.

"Contracts for a lot of local shows are simply just piling up at Canal+ in Paris. They have to sign off on those contracts, and they either want them cheaper or they don't want the contract."

Ferreira says he has approached Canal+, who have declined to comment.

To listen to Ferreira in conversation with 702 Gugs Mhlungu, use the audio player below: