Looking to scale your video-on-demand startup in South Africa? You must be prepared to comply with a proposed new rule which requires all streaming services in South Africa to stream 30% South African content on their platforms. In a proposal contained in the Department of Communications and Digital Technologies’s white paper on Audio and Audio-visual Content Services policy framework, DCDT wants streaming services in South Africa to ensure that 30% of their broadcast content is South African.
“Where video-on-demand subscription services come and operate in South Africa, everything that they show to South Africans in terms of their catalogue — 30% of that catalogue must be South African content,” said the department’s chief director of broadcasting policy Collin Mashile during a presentation of the white paper framework to parliament on Wednesday (25 November).
“What this means is that we are trying to create opportunities for the production and creative industry sector.”
Broadcasting Services Will Now Include Streaming Services
Under the proposed new rules, “broadcasting services” would now include streaming services, regardless of the device on which they are viewed. The direct implication of this is that the services would now require the payment of a license fee to be viewed in South Africa.
“We were asked where we got the idea that South Africans are interested in this 30%,” Mashile said. “The most popular shows in every country remain the local shows.”
South Africa Video 30%
The White Paper proposes, among other things, to change the limitations on foreign control of commercial broadcasting ownership in South Africa. The current legislative framework prohibits a foreign firm from exercising control over a commercial broadcasting licensee by limiting financial interest, interest in voting share or paid-up capital to a maximum of 20%. Similarly, not more than 20% of the directors of a commercial broadcasting licence may be foreigners. The White Paper recognises that the regulatory environment for foreign direct investment is one of the key factors that is likely to influence the location decisions of foreign investors.
As a result and in an attempt to stimulate growth and development of the ICT sector, the White Paper proposes retaining the limitations in respect of foreign ownership of linear individual audiovisual content services (broadcasting services) but subject to them increasing to a maximum of 49% to stimulate investment. In the case of foreign firms from African Union (“AU”) member countries, the maximum of 49% should be capable of being waived so long as there is a reciprocal agreement between South Africa and the relevant AU country.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer