[Image: TwoTrees / CC]
Streaming giants like Amazon, Disney+ and Netflix might soon be expected to show more local shows after the government announced it wishes to “extend local content obligations”.
A draft White Paper, published in the Government Gazette on 11 July 2025, opens a 30-day public comment period and sets out a new regulatory framework aimed at reining in global streamers and encouraging domestic content production.
Currently, local broadcasters are required to spend a minimum of 15% of their content budget on locally produced shows, but the Department of Communications and Digital Technology (DCDT) now wants foreign-owned streamers to fall in line as well.
Key proposals include increasing foreign ownership limits on local broadcasters from 20% to 49%, extending free-to-air events, and creating a new ombud for online safety and media regulation.
Streaming platforms have grown massively in South Africa, with many households moving away from traditional paid-for packages like DSTV and the drab SABC offerings. Initially, government was in control of the frequencies, but according to Director of Media Monitoring Africa, the rules were created under the assumption that a finite number of broadcasters could operate. Naturally, the internet has changed that assumption.
“Obviously, in a digital world, you’re not talking about the same kind of scarcity issues. There’s not a scarcity of websites.”
Government has not been happy with the newfound freedom to broadcast, and wants to avoid local content getting sidelined in favour of cheaper international productions.
According to News24, John Paul Ongeso, senior associate at Bowman’s technology, media & telecommunications group says that current rules require broadcasters to comply with two major requirements: spending 15% of their annual content budgets on local television content, and local licensees must ensure at least 40% of their local content programming comes from “independent television productions”.
Compliance with this is difficult to monitor, and licensees are expected to report on their adherence to Icasa, which has not been going well. The White Paper will now enforce the same requirements for streaming services like Netflix and Disney+.
According to the draft, “South African content obligations may also apply to on-demand content services (OCS), and the manner in which they will apply will be determined in stage two, within 12 to 18 months.”
It further suggests that if streamers cannot meet the local content quota, they could pay fees, or a percentage of their gross revenue, into a fund which will support the production of local content. In short, either produce more local content, or help us fund more.
Netflix and Disney+ have emphasised their current local investments (Blood & Water, Queen Sono, Savage Beauty) to show they are already supporting local industries voluntarily. Netflix in particular has responded by saying that if local content contribution is required from OCS providers, then it should apply to content budgets, and not gross revenue.
Local Multichoice said it was still reviewing the draft, but Primedia Broadcasting said it welcomed the proposed amendments, and would encourage increased investment in the media sector to allow companies to compete with global digital giants.
More investment in locally produced content would be great for the industry, but it should be balanced with our freedom to choose what we want to watch. And any time government talks of “a fund”, we get nervous.
[Source: News24]
