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Malatsi considering streaming levy to fund SABC


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Communications Minister, Solly Malatsi is reportedly thinking of implementing a streaming levy to address the South African Broadcasting Commission’s (SABC) financial crisis.

The proposed levy will be paid by all South Africans, who use both domestic and foreign streaming services.

This was revealed in a parliamentary written reply to a question by Inkatha Freedom Party (IFP) MP on alternative funding sources for the SABC.

According to Malatsi, government is forced to consider alternative ways of funding the public broadcaster due to shortcomings in its TV license model.

Streaming Expert, Leslie Adams has welcomed the suggestion of a levy.

Adams says, “This is specifically a question in response to how the current shortfall of adherence to paying TV licenses is actually affecting the SABC’s ability to remain properly funded and consideration to actually look at different funding models, and a possible levy against streaming services like the likes of Netflix and others who are not locally based,  who don’t pay local taxes.”

He says, “Globally this is actually a norm. So it’s not a South African unique experience, it’s actually globally been adopted by different countries. It’s already in the EU, the UK is now adopting it as well and South Africa, I think is smart to follow in that space. SABC also needs to look at different licensing models around their content.”

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