SABC on Netflix? ICASA inquiry could reshape South Africa’s streaming landscape - IOL
Netflix and other streaming platforms could face new regulatory requirements in South Africa as ICASA investigates the impact of OTT services on the country’s telecommunications and broadcasting sectors.
Law firm Webber Wentzel says Netflix and other streaming platforms could face major changes in South Africa as the communications regulator examines how OTT services fit into the country’s regulatory framework.
IOL previously reported that South Africans could eventually see changes to the way they access or pay for popular services such as Netflix and WhatsApp as the communications regulator investigates the growing influence of internet-based platforms on the country's telecoms and broadcasting industries.
The Independent Communications Authority of South Africa (ICASA) has launched market inquiries into over-the-top (OTT) services, including streaming and messaging platforms, as well as the affordability of telecommunications services.
The law firm said the OTT inquiry could result in these services being brought into South Africa’s communications licensing framework, which could mean new compliance requirements for platforms operating in the country.
"For OTT service providers, the Inquiry raises the possibility of being brought within South Africa’s communications licensing framework, an outcome that draft policy proposals have contemplated for several years," the firm said.
"Platforms offering voice, messaging, video streaming or other services or functionality over the internet often operate without local licences and, depending on the outcome of the Inquiry, may face new compliance requirements."
It said the inquiry could also have implications for content obligations, spectrum and numbering allocation, and regulatory contributions.
ICASA is investigating the impact of OTT services on South Africa’s telecommunications and broadcasting sectors.
For broadcasting licensees, Webber Wentzel said the inquiry could have a significant impact on the competitive landscape.
The law firm said streaming platforms compete with traditional broadcasters for audiences and advertising revenue, and ICASA may consider whether they should face requirements similar to those imposed on licensed broadcasters.
This could include local-content quotas and must-carry obligations for foreign streaming platforms such as Netflix, Disney+ and Prime Video.
"For broadcasting licensees, the potential implications are equally significant.
"Streaming platforms compete for audiences and advertising revenue, and the Inquiry may consider the extent to which they should be subject to requirements comparable to those applicable to licensed broadcasters, such as local content quotas, or must-carry obligations. Any move towards greater regulatory parity could materially affect the competitive landscape."
In South Africa, must-carry obligations require certain pay-TV broadcasters to carry specified public-service channels.
The inquiry could also give telecommunications companies an opportunity to raise concerns about the regulatory treatment of OTT services compared with licensed providers.
Webber Wentzel said the relationship between OTT providers and the networks over which their services are carried, often referred to as the "fair share" debate, is likely to feature in submissions.
The debate centres on whether major OTT platforms should contribute towards the cost of the telecommunications infrastructure used to deliver their services.
