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

6 October 2017

Regulation & Policy

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. Read the full article on MyBroadband here.