The SABC could only collect a little more than 18% of TV licence fees in the last financial year. The Department of Communications and Digital Technologies (DCDT) has now tabled a draft white paper proposing a comprehensive overhaul of the public broadcaster’s funding model.
The white paper provides for the SABC to have a legislative mandate to operate international satellite television, radio, and internet or online services. Under the proposed framework, streaming services such Netflix, Amazon Prime Video, and Disney+ will only be able to operate in South Africa if they have applied for a licence to do so.
“The Independent Communications Authority of South Africa (ICASA) will continue to issue individual and class licences,” says Chloe Castle, DearSA CEO. “However, a broader category of audio and audiovisual content services (AAVCS) licences will replace the current broadcasting services licence category.”
ICASA currently considers various factors when granting an individual licence, including the applicant’s annual turnover. The white paper allows ICASA to introduce other socio-economic criteria or audience size measurements. Even if a licensee falls below the turnover threshold, it might still need to apply for an individual licence.
“The turnover threshold (R100m pa) also applies to foreign AAVCS that target South African audiences and generate revenue through subscription fees, such as Netflix and Disney+,” adds Castle. “The cost of the licence could lead to streaming services deciding that it’s too expensive to operate in our country.”
The draft paper proposes a funding model for the SABC based on international best practices. This model will phase out TV licences and introduce a ring-fenced public broadcasting service (PBS) levy. This levy will be collected by the revenue service (SARS).
“South Africans already carry a very heavy tax burden – from income tax, VAT and fuels levies to pay-as-you-earn (PAYE) and customs duties. We pay for subscription services (plus VAT), and the data or internet service (plus VAT), as well as buy the devices on which to view the content (purchase price plus VAT).
“In addition, private content providers are also taxed on income received. If hefty licence fees are added to their expenses, the local market becomes less enticing to them,” says Castle.
The public has until 8 September 2023 to comment on the draft paper. DearSA, as a conduit to the Government during public participation, invites you to have your say.
Speak you mind Make your voice heard.
