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The Department of Communications and Digital Technologies is ready to present its proposal to extend the payment of TV license fees to include streaming services like Netflix today.
The Broadcasting Act requires South Africans to pay a television license fee to view “broadcasting services”.
South Africans are also not allowed to buy a television without a television license, a requirement that retailers apply.
Not being in possession of a valid television license when owning a television and watching broadcast services is a civil offense.
In its current form, the definition of “broadcasting services” applies to content that is viewed on television.
The department now wants to expand the definition of a “broadcasting service” to include online broadcasting services.
If this proposal passes, it means that people will need a TV license to watch streaming services like Netflix, Apple +, Showmax, and Amazon Prime.
This is part of an attempt to increase revenue and television licensing compliance, which has come under pressure in recent years.
SABC’s annual report for the 2019/2020 financial year revealed that less than a quarter of television licenses were paid During the past year.
The broadcaster said television licensing revenue fell 18% year-on-year to R791 million, adding to the company’s financial woes.
Industry reaction
The proposal to expand TV license fees to streaming services has been programmed by industry players who highlighted that it is very difficult to enforce.
MultiChoice CFO Tim Jacobs said it would be difficult to implement the collection process under current law.
“Right now, regulations don’t allow streaming services to charge license fees. It’s not even a debate right now, ”he said.
Jacobs added that DStv customers often subscribe and drop packages throughout the year, making it difficult to calculate and manage license fees.
“The question is how do you get paid and how do you get that money back? It’s really complicated when you get into the real details behind it, ”he said.
Stuff magazine editor Toby Shapshak said There are many problems with the proposal, such as who is going to charge the television license fee.
“I subscribe to Netflix, DStv, Showmax and Amazon Prime. Which of these four companies is going to charge the television license fee? ” I ask.
“How are they going to cooperate with each other and what if they all charge me the fee?”
Not even Telkom, which recently partnered with SABC to launch TelkomONE, is interested in charging television license fees.
Telkom CEO Sipho Maseko said adding TV license fees to TelkomONE subscription is not on the cards.
Minister of Communications in the shadow of DA Phumzile Van Damme said most of the broadcasts are international companies, making the proposal “pie in the sky and impractical.”
“This could put the government on a collision course with broadcast services and a sterile harvest litigation that it will not win, leading to further unnecessary spending,” he said.
Have your say on TV license fees
The TV license fee proposal is contained in the Draft White Paper on the Audiovisual and Audiovisual Content Services Policy Framework: A New Vision for South Africa 2020.
This draft white paper is open for public comment until the end of the month (4:00 p.m. on November 30, 2020).
Comments can be sent to the Acting Director General of the Department of Communications and Digital Technologies by email: [email protected]
The full draft of the White Paper on the Audiovisual Content and Audio Services Policy Framework is included below.
Now Read: SABC TV License Mess – Only 24% of South Africans Pay
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