Government Considers Charging Showmax And Netflix To Fund Broke Sabc

The government is considering various options to boost funding for the cash-strapped South African Broadcasting Corporation SABC , including a levy on local and international streaming services such as Showmax and Netflix.

Communications and Digital Technologies Minister Solly Malatsi revealed the options in a written reply to a question by Inkatha Freedom Party member of Parliament Khethambala Sithole .

Malatsi said the SABCs TV licence funding model has deficiencies that have compelled the government to look at other models.

"The current TV licence model is inadequate due to low compliance, high collection costs and inflation eroding its value," Malatsi said in his reply.

One of the alternatives is a charge on local and international streaming services, exempting TV licence holders, to modernise funding and improve compliance through automatic collection."

The minister however admitted that this option would force the streaming services to increase subscription costs.

Other considerations include:

• A household/business levy collected by the South African Revenue Service.
• A conditional grant from the National Treasury as a temporary measure.
• A government-backed loan guarantee that would enable SABC to secure an overdraft facility.

The SABC has incurred heavy losses over the years. However, it narrowed its net loss before interest and tax from R827 million in the 2023 financial year to R192 million in the 2024 financial year.

A big contributor to its losses is the high level of non-compliance with regard to annual TV licence fee payments.

The evasion rate was 85.8 in 2024, up from 84.06 in 2023, according to the public broadcasters 2023/2024 annual report .