Proposed Netflix levy to save the SABC

Sportscape Media founder and director Gary Rathbone supports implementing a levy on international streaming services to help fund the South African Broadcasting Corporation (SABC).

Speaking to Cape Talk, Rathbone explained that players like MultiChoice, the SABC, and E-tv are restricted in their ability to operate in South Africa.

“Whether it’s MultiChoice, the SABC, or E-tv, they have restrictions that we place on them because they’re South African broadcasters, and they have dues to pay to the South African public to be able to operate,” he said.

“Netflix and the like don’t have those restrictions. So they need to have some kind of thing to level the playing field, and I think the levy is definitely the only way to go.”

Rathbone didn’t let the SABC off the hook for its dismal financial situation, saying the broadcaster had not used its audience numbers to maximise its advertising revenue.

“They are a major broadcaster with the biggest audience in the country, yet they still sort of consistently failed to actually drive the advertising revenues that line up with those numbers,” he said.

He added that MultiChoice managed to have the lion’s share of advertising with far smaller audience numbers.

Regardless, Rathbone believes the SABC should set its focus on its streaming platform, SABC Plus.

“There was talk about them saying they need to get their own set-top boxes and create a competitor to OpenView or something like that,” he said.

“No, you’ve got the most future-proof option in your hand right now, which is SABC Plus.”

Rathbone said the SABC should turn every resource at hand to focus on driving advertising and audience reach and retention into its streaming platform.

“That’s where the focus should be because that’s where the audiences are moving,” he said.

The SABC has said it would work to monetise the SABC Plus platform as it tries to rectify its financial situation.

Netflix and DStv levy explored

In March 2025, communications minister Solly Malatsi said he would consider imposing a levy on local and international streaming services as an alternative funding model for the SABC.

Malatsi explained that TV licence holders would be exempt from said levy. His spokesperson, Kwena Moloto, also told MyBroadband that the levy is one of several alternative funding models being explored.

“The Department is exploring several funding models, none of which have been adopted as a proposal at this stage,” said Moloto.

However, Malatsi’s suggestion to collect a levy from commercial video entertainment companies isn’t new.

The SABC had proposed a similar levy during various public comment sessions in the past, suggesting that the dominant pay-TV platform, MultiChoice’s DStv, help collect its TV licence revenue.

Malatsi’s suggestion differs from the SABC’s in that it doesn’t single out one pay-TV operator but suggests that all local and international streaming services collect a government levy.

He said this would modernise the SABC’s funding while improving compliance. He acknowledged that the scheme would raise subscription costs and require regulatory alignment.

Malatsi said his department was also considering a household and business levy that would be collected by the South African Revenue service and maintained as a ring-fenced SABC fund.

While he acknowledged the public backlash that could result from such a scheme, he said it would provide stable revenue and allow for lower collection costs.

The minister also said it would require legislative amendments and affordability safeguards.

Malatsi also previously said he would consider collecting TV licence fees through processes like vehicle licence disc renewals, as these are an annual requirement.

However, in the meantime, Malatsi said he was looking into a conditional Treasury grant to sustain the public broadcaster while a long-term funding model is finalised.