In South Africa, Khusela Sangoni Diko, a senior government party member, has advocated for the urgent release of a white paper addressing audio and audiovisual media services. She believes this is necessary to address the challenges posed by streaming services on local broadcasters, particularly the South African Broadcasting Corporation (SABC).
Diko, who leads the parliamentary portfolio committee on communications and digital technologies, made her comments following the release of a Competition Commission report. This provisional report scrutinized the interplay between local news media and global digital platforms like Google and Meta after a comprehensive 16-month investigation.
According to the report, Google generated between US$59 million and US$81 million in 2023 from showcasing content produced by local news outlets. However, Google has disputed these figures.
Diko emphasized the prolonged exploitation of regulatory loopholes by over-the-top (OTT) platforms, negatively affecting the SABC, a broadcaster bound by strict regulations. She argued that the revenue-sharing arrangement between local media and Google is disproportionately favourable to the tech giant. As a solution, the commission has suggested that Google financially compensate local media between US$16 million and US$27 million annually over three to five years, along with other measures to rectify this imbalance.
In her statement, Diko drew parallels between the commission’s adverse consequences regarding multinational platforms and the impact of streaming services like Netflix on the SABC. She asserted that the commission’s recommendations for Google should act as a warning to other multinational firms, underscoring that a lack of regulation does not permit unethical business behaviour.
Diko stressed the urgent need to advance the long-awaited white paper on audiovisual services, recently retitled the white paper on audio and audiovisual media services and online content safety. This policy document aims to modernize South Africa’s broadcasting laws to reflect the current digital landscape, particularly the rise of streaming platforms.
A draft of the white paper issued in August 2023 proposed using revenue thresholds to determine the required licensing for international companies targeting South African audiences and generating profit from their content. Each licensing tier would impose specific obligations on the licensees.
An interdepartmental task force is set to be established to report to the minister on compliance mechanisms for international firms that meet the licensing criteria but do not maintain a physical presence in South Africa, potentially avoiding the licensing process.
Central to these discussions is the ongoing crisis facing the SABC, with its funding model sparking intense debate between the ANC and its coalition partner, the Democratic Alliance (DA). Communications Minister and DA representative Solly Malatsi withdrew a bill from parliament last November, claiming the current draft did not adequately address the public broadcaster’s funding challenges.
Malatsi’s decision drew sharp criticism from numerous ANC MPs, including Deputy Minister Mondli Gungubele, Minister in the Presidency Khumbudzo Ntshavheni, and Diko herself. Diko condemned Malatsi’s action as “catastrophic,” asserting that it signified a dire threat to the future of the SABC.
Diko’s proposal that streaming platforms should compensate the SABC for the value they gain from the local broadcasting sector is part of various strategies to rescue the beleaguered broadcaster. In a prior presentation to the parliamentary committee, SABC CEO Nomsa Chabeli suggested a “device-independent levy” involving collaboration with the South African Revenue Service and MultiChoice Group for revenue collection. Additionally, it was proposed that consumers without a valid TV license be barred from subscribing to streaming services such as Netflix and DStv.
