The SA Broadcasting Corporation (SABC) has proposed that South African users of online video streaming and pay TV services should pay TV licence fees.
This means that Netflix, Showmax and Amazon Prime as well as DStv (MultiChoice) and StarSat (StarTimes), among others, could collect TV licence fees from subscribers on SABC’s behalf.
Communications and Digital Technologies Deputy Minister Pinky Kekana announced the proposal during a parliamentary briefing on Tuesday.
‘Outdated’ TV licence definition
She said the expanded definition of “TV licence” is “outdated” and regulations should therefore be amended to fit current realities.
Under the proposal, South Africans could pay the licence fee even when they are not using a traditional TV set. For instance, they would have to pay when they are viewing Netflix on mobile devices such as tablets or smartphones.
“We are not only limiting it to TV. We also have other platforms where people consume content, and that is where we should look at how we are able to get SABC licence fees from those gadgets,” Kekana explained.
According to her presentation, the streaming and pay TV services would be collecting TV licence fees “on behalf of SABC similar to municipalities collecting traffic fines and motor vehicle debt from motorists.”
SABC’s financial woes
The state broadcaster is struggling financially and relies on bailouts from the government to say afloat. Poor collection of TV licence fees contributes to its financial woes.
SABC made a R482 million loss in its 2018/19 financial year, according to its annual report. The report also revealed that only 31 percent of South Africans paid their TV licence fees, an evasion rate of 69 percent.
SABC has made efforts to implement a turnaround plan, including a retrenchment consultation process under section 189 of the Labour Relations Act.
However, unions and some political parties, including the ANC, have expressed opposition to the retrenchment plans.
On Monday, the Broadcasting, Electronic, Media and Allied Workers Union (BEMAWU) threatened to take SABC to the labour court should it proceed with the retrenchments without further consultations.