The South African government is considering a new levy on streaming services like Netflix and DStv to support the funding of the South African Broadcasting Corporation (SABC).
SABC’s Financial Troubles
Since the 2019/20 financial year, SABC’s revenue declined from $307 million to $280 million. Despite efforts to reduce annual losses, the corporation recorded a $10.6 million loss last year, a significant improvement from the $40.1 million loss in 2023. Total liabilities now exceed $226 million, and net equity stands at -$1.97 million.
Proposed Measures
Communications Minister Solly Malatsi proposed a new levy on streaming services to automate revenue collection. Additionally, a household and business levy, collected by the South African Revenue Service as a reserve fund for SABC, is under consideration. The plan also explores temporary funding options through treasury grants and a government-backed loan guarantee.
Comments and Challenges
The parent company of DStv, MultiChoice, expressed disagreement with the idea of a private company collecting revenue on behalf of a state corporation. The proposed levy may face public resistance, seen as an additional tax, and requires legislative amendments. The ministry is conducting a feasibility study to develop a long-term funding model for SABC.
Proposed measures for SABC's funding may act as a temporary solution but require substantial legislative changes and public adaptation. Long-term stability can only be achieved with a new funding model supported by the public.
