The FPB recently released a draft review of its tariffs, proposing a new licensing model for online distributors in South Africa.
Under its model, online services like Netflix and Showmax will have to pay a “licence fee” per film and per series season it offers.
The FPB currently charges a flat fee of R795,000 per year for service providers, which Netflix and Microsoft have refused to pay.
The change means fees will be cheaper for platforms with less content, like Amazon Prime. For Netflix, the fee will be significantly higher.
On the issue of removing the cap on its licence fees for online distributors, the FPB said it is open to suggestions.
“Those are some of the inputs we are expecting to receive from the industry in assisting us to produce viable and realistic tariffs,” said the FPB.
The tables below summarise the FPB’s proposed tariffs and penalties for online distributors. Film and season counts are from JustWatch.
Proposed annual licence fee
|Licence Fees||Netflix||Showmax||Amazon Prime|
|Series||644 seasons||214 seasons||126 seasons|
|Total FPB Licensing||R1,021,217||R317,655||R332,695|
Proposed penalties for non-compliance
|Failure to register or renew licence|
|Total (per year)||R2,042,434||R635,310||R665,391|
|Display incorrect classification, or failure to submit content or display classification|
|Films||R63,889 per month||R15,948 per month||R33,670 per month|
|Series||R106,316 per month||R36,994 per month||R21,781 per month|
|Total monthly fine||R170,205 per month||R52,942 per month||R55,451 per month|
|Total (per year)||R2,042,457||R635,308||R665,417|