Globally there are growing shifts and blurred lines that are developing between audio-visual streaming services and the concept of traditional television broadcasting.
These developments have implications for the South African classification and regulatory practices. Whilst television broadcasting in South Africa was launched in 1976, the concept of streaming visual/audio content through modern technology (smart phones, television and tablets) is recent in the country.
The advent of streaming platforms
The 2015 launch of South Africa’s video streaming service, Showmax, was followed by the global streaming giant, Netflix which marked its presence in South Africa in 2016. Thereafter followed other streaming services that wanted a share of the South African market, including Canal+, Amazon Prime Video, Apple and Disney+ among others.
The launch of these video streaming services meant that regulatory reforms had to take place, and hence the 2019 amended Film and Publication Act. However, by their own nature, legislation developments and regulatory processes are slow and sometimes cannot keep up with rapid changes that happen in the technological, broadcasting and entertainment industries.
Allure of on-demand video content
The 2024-2028 Africa Entertainment and Media Outlook report argues that “the emergence of streaming services has applied pressure to traditional TV services, with many now foregoing TV and paying for services that instead provide abundant amount of on-demand video content”.
However, this shift to streaming platforms and the rapid developments within this technologically driven industry has implications for the complex media and communication regulatory system of South Africa.
Regulatory challenges ahead
The recent news-making developments on the Netflix and the Showmax platforms attest to the rapid developments within the sector and the regulatory challenges ahead. On November 13 2024, a number of South Africans woke up to watch a boxing extravaganza match between Mike Tyson (58) and Jake Paul (27). The match was a big affair and attracted a global viewing that ran into millions.
In South Africa, as in most parts of the world, the match was historical in so much as modern media technology is concerned. The match, according to news reports preceding it, was to be streamed live on Netflix, an unusual arrangement and a first of its kind in the South African video on demand (VOD) setup. In other words, the match was historical, and besides a few glitches in so much as the streaming service is concerned, the boxing match seemed to have gone smoothly.
Platforms go toe to toe
Not to be outdone, the Showmax platform, a VOD platform that is owned by MultiChoice, would undertake a similar exercise, though experimenting with a different genre of the entertaining industry. Live-streaming at Sunbet Arena in Pretoria, South Africans watched live a three-hour performance by Grammy award winning super star, Tyla. This was her “Homecoming” show in South Africa.
Though there were some complaints about the quality of both Netflix as well as the Showmax experiments with video livestreaming, the undertaking by Showmax to experiment with its own livestream system indicates that the South Africa-based company had recognised the complex future of the over-the-top (OTT) sector and they were positioning themselves as a counter to the Netflix video livestreaming model.
Pressure on local TV industry
This is not surprising, considering the fact that these experiments with livestreaming of content on the VOD platform come at the back of projections of the media industry for the African continent and, particularly the three major economies (South Africa, Kenya and Nigeria) within the continent.
The 2024 edition of the PwC Africa Entertainment and Media Outlook report indicated that in South Africa, the arrival of streaming services into the local market has put some pressure on the local television industry. The report indicates that there are many more customers who are foregoing the traditional television service and are rather opting for on-demand video content.
Revenue potential
Furthermore, it is projected that there is still a huge room within the over-the-top (OTT) market as South Africa reported the largest revenue of the market within the continent. This large revenue forms part of the entire entertainment and media revenue that according to the PwC Africa Entertainment and Media Outlook report, grew from R176.7bn in 2022 and is projected to reach R231.2bn in 2027.
The OTT market players have therefore recognised the immense revenue potential of the VOD’s and hence the continued experiment with livestream content on their platforms. Whilst local players like the recently cancelled Showmax, are catching up to global players like Netflix in adopting the video livestreaming strategies, there are however regulatory compliance questions that have to be addressed if the sector is to be fully compliant with the content regulation rules of South Africa.
Current regulation systems
The South African legislative system recognizes mainly two legislated regulatory authorities for the broadcast media, film and broadcast entertainment services. This is besides the Press Council, the Broadcasting Complaints Commission and other industry setup structures that are meant to encourage self-regulation approaches that are aligned to Section 16 of the Constitution that protects freedom of speech and freedom of the press. These two main regulatory authorities derive their mandates from the Independent Communication Authority Act of 2000 (as amended), and the Film and Publication Act 1996 (as amended in 2019) legislations. The broadcast media and entertainment space therefore is largely the reserve of the Independent Communications Authority of South Africa (ICASA) and the Film and Publication Board (FPB). With ICASA overseeing the broadcasting services and the FPB overseeing the classification and regulation of films, games and certain publications. Additionally, the 2019 Film and Publication Act was promulgated with the intention of addressing the regulatory gaps within the media industry, and hence the FPB oversees the regulation of VOD’s, including giant streaming platforms, such as Netflix, Showmax, Apple and Disney + among others.
Regulatory bodies are fragmented
Because of South Africa’s complicated history with media freedom, the Constitution as adopted in 1996 also guaranteed media freedom and the privileges of the media. Section 16 of the Bill of Rights clearly states that “everyone has the right to freedom of expression, including freedom of the press and other media”. To enforce the practice of media freedom and guard against media censorship, the regulatory processes of South Africa also recognise self and co-regulation arrangements by the industry. Some of these industry co or self-regulation arrangements include the work currently being done by the Broadcasting Complaints Commission (BCCSA), the Advertising Regulatory Board and the Press Council of South Africa.
To catch up with the industry developments such as the livestreaming developments within the VOD’s market, it is thus clear that the South African media regulatory setup will have to undergo an overhaul. The regulatory bodies are fragmented and do not cater for the rapid developments that are unfolding within the technology, broadcasting and entertainment sectors. Including issues of convergence within the sectors that are regulated by the different regulatory bodies. For example, livestreams on VOD’s is a new development that is not catered for by the rigid South African regulatory bodies. ICASA regulates the broadcasting services whilst the FPB classifies and regulates the film, games and some publications. Whilst the mandate of the FPB is extended to regulating VOD’s. The mandate however does not factor live broadcasting, a terrain associated with livestreaming. This therefore means that currently, the regulating of VOD’s has a gap that is not being addressed by the fragmented nature of broadcast media and entertainment regulation in South Africa.
Regulation overhaul needed
In South Africa, the process of creating legislations is complex and lengthy. On average, it can take up to five years or even more to get the necessary legislation through parliament processes and it being assented to by the president of the Republic. This does not auger well for rapid developments within technology, broadcast and entertainment industries. The breakneck speed of developments within these industries require rapid changes in our legislations and regulations. In the context of rapid developments such as the practice of livestream practices by VOD platforms and the need to create regulatory mechanism around these practices, reforms within the country’s legislation processes are needed to tackle such rapid developments. Additionally, South Africa needs future focused legislations that are able to anticipate developments within the tech, broadcast and entertainment media. These industries are poised to generate billion of rands in the next few years. Hence regulatory reforms need to be undertaken to anticipate the future direction of the industries.
- Tyali is a professor of communication and media studies at the University of South Africa.
- South Africa has seen rapid growth in streaming platforms since Showmax launched in 2015, followed by Netflix in 2016 and others like Amazon Prime, Disney+, and Canal+, creating a shift away from traditional TV viewing.
- Streaming services are placing pressure on South Africa's traditional TV industry, with more consumers opting for on-demand content, reflected in a growing revenue forecast for the OTT market from R176.7bn in 2022 to R231.2bn by 2027.
- Recent livestreaming of major events by Netflix (Mike Tyson vs. Jake Paul boxing match) and Showmax (Tyla's live concert) highlight the sector’s rapid evolution and competition, though these developments expose gaps in current content regulation.
- South Africa’s current regulatory framework is fragmented, involving multiple bodies like ICASA and the Film and Publication Board, which struggle to effectively regulate new VOD livestreaming services due to outdated legislation and overlapping mandates.
- There is an urgent need for comprehensive regulatory reform and faster legislative processes to adapt to technological advances in broadcast and streaming, ensuring the industry’s future growth aligns with updated compliance and content standards.
