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The government plans to impose a 30% local content quota for internet streaming services in South Africa to promote local content and languages.
Responding to written parliamentary questions from DA Whip Deputy Director Michael Waters, Communications and Digital Technologies Minister Stella Ndabeni-Abrahams confirmed this local content requirement and explained the reasons behind it.
This requirement is part of the changes proposed in the Draft White Paper on the Policy Framework for Audiovisual and Audiovisual Content Services, which aims to “reposition the audiovisual media sectors for future growth and promote investment”.
“In paragraph 5.2.8, where we deal with the promotion of South African content and languages, the draft White Paper, in paragraph 5.2.8.9, indicates that with regard to on-demand content services aimed at South African audiences, we also they should have South African Content Obligations, ”said Ndabeni-Abrahams.
“These South African content obligations can be cascaded down distinguishing between individual and class licensees and whether the service is public, commercial or community / non-profit in nature and should not exceed 30% of the video catalog.”
Waters asked the minister why she wanted to force internet streaming services to provide 30% local content, and what research shows that South African viewers want a 30% local content share.
“Honorable Waters, as part of the consultation process, the department would welcome your formal comments in terms of why you believe this could be incorrect or correct, but the intent of regulatory policy is to promote South African content and languages within audio and current audiovisual ecosystem, ”Ndabeni-Abrahams replied.
The draft white paper states that the 30% content requirement should be established by the regulator gradually considering the nature of the transmission service in question.
It is unclear whether the government will require international streaming services like Netflix to adhere to this content quota, as it can be defined as a “streaming service targeting South African audiences.”
Repression of Netflix and YouTube
The white paper also proposes new licensing requirements for streaming services like Netflix, Amazon Prime Video, and Apple TV +.
It proposes two different types of licenses: individual and class licenses.
On-demand services that had an annual turnover of between 50 million and 99 million rand in the previous financial year will require a class license. Services that generated more than R100 million or more in the previous financial year must apply for an individual operating license.
While international services like Netflix will require licenses to operate in South Africa, video sharing platforms like YouTube will be exempt.
However, YouTube will not be exempt from regulation under the proposed rules, as it will have to comply with local laws on hate speech, incitement to violence, and the protection of minors.
Interested parties are invited to submit comments on the proposed policy framework by November 30, 2020.
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