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South Africa's Bold Move: New Levy Targets Netflix & DStv to Revive National Broadcaster

Published 17 hours ago2 minute read
South Africa's Bold Move: New Levy Targets Netflix & DStv to Revive National Broadcaster

The South African Broadcasting Corporation (SABC) is facing a severe financial crisis, prompting the government to consider implementing a new levy on streaming services, including global platforms like Netflix and local providers such as DStv. This initiative, revealed by Communications Minister Solly Malatsi, aims to secure crucial funding for the ailing public broadcaster. The proposed levy would apply to both local and international streaming platforms but would notably exclude existing TV license holders, addressing a long-standing issue of non-payment.

The discussion around this levy emerged after the SABC Bill was withdrawn from Parliament. Minister Malatsi explained that the bill was deemed inadequate because it failed to offer immediate solutions to the SABC's pressing funding issues and would have diminished the ministry's oversight of the corporation's board of directors. A significant flaw in the withdrawn bill was its lack of amendments to the SABC's funding model, instead deferring the development of a new model for three years post-enactment, despite the urgent nature of the broadcaster's predicament.

The withdrawal of the bill also caused internal friction within President Cyril Ramaphosa’s Government of National Unity (GNU), leading to a new presidential rule that prevents ministers from withdrawing bills without explicit permission from the President and Deputy President. This political turbulence further complicates and delays much-needed intervention for the SABC, which is visibly struggling, with its once-proud Auckland Park headquarters showing signs of severe disrepair, including non-functional lifts.

SABC's financial decline has been substantial, with revenue falling from $307 million in the 2019/20 financial year to $280 million. Despite efforts to reduce annual losses, the SABC still recorded a $10.6 million loss last year, though this was an improvement from the $40.1 million loss in 2023. The broadcaster has also accumulated significant debt, with total liabilities now exceeding $226 million, up from $172 million since 2019/20. This worsening situation led to the SABC slipping into technical insolvency last year, with its net equity now at -$1.97 million. Cash flow has also plummeted, with cash and cash equivalents at year-end decreasing from $111 million in 2019/20 to $21.5 million in 2024. A rare positive note for the SABC was achieving an unqualified audit last year, its first since the 2009/10 financial year.

A major contributing factor to the SABC's financial woes is a widespread

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