To address the financial struggles of the South African Broadcasting Corporation (SABC), Gary Rathbone, founder and director of Sportscape Media, has proposed implementing a levy on international streaming services like Netflix. During a conversation with Cape Talk, Rathbone emphasised that local broadcasters such as SABC, MultiChoice, and E-TV face significant regulations that do not apply to foreign platforms, leading to an uneven playing field.
“Local broadcasters have obligations to the South African public that international services do not, making a levy necessary to create fair competition,” Rathbone explained. He did not shy away from critiquing the SABC for its inability to maximise advertising potential despite having the largest audience in the country. “They’ve consistently failed to capture advertising revenue that matches their viewership,” he noted, highlighting a discrepancy with MultiChoice, which secures a larger share of advertising earnings despite having a smaller audience.
Rathbone urged SABC to shift focus toward its streaming platform, SABC Plus, rather than developing hardware to compete with established services. “SABC Plus presents a future-proof option that should be prioritised. The focus must be on boosting advertising revenue and audience engagement,” he stated.
In March 2025, Communications Minister Solly Malatsi acknowledged the potential of leveraging local and international streaming services to fund the SABC. He indicated that TV licence holders would be exempt from this proposed levy, departing from earlier suggestions that targeted specific pay-TV operators. “The SABC needs a modernised funding model,” he insisted.
While Malatsi noted that implementing this levy could increase consumer subscription costs, he also highlighted the need for regulatory alignment and legislative changes. Additionally, he is considering temporary financial support from the Treasury to sustain the SABC while a long-term funding solution is established. By exploring this levy, there is hope for a more stable economic future for the public broadcaster.
