How much Netflix and Showmax will have to pay the FPB in South Africa

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
Films 1,903 369 849
FPB Licences R383,314 R95,685 R202,003
Series 644 seasons 214 seasons 126 seasons
FPB Licences R637,902 R222,969 R130,692
Total FPB Licensing R1,021,217 R317,655 R332,695

Proposed penalties for non-compliance

Penalties Netflix Showmax Amazon Prime
Failure to register or renew licence
Films R766,629 R191,371 R404,006
Series R1,275,805 R443,939 R261,384
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

Now read: We will block Netflix in South Africa if they don’t pay up: FPB

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How much Netflix and Showmax will have to pay the FPB in South Africa