Why Netflix isn't paying the FPB: We don't have to

27 October, 2017 - 08:07

Netflix on why it isnt paying the licensing fees for its content made available in South Africa to consumers as required by the South African Film and Publication Board (FPB) has a quite blunt response: We dont have to. by Thinus Ferreira

Netflix says the global video streaming giant doesnt believe that it has to pay South Africas FPB anything.

Netflix has so far refused to register with the FPB since it launched in South Africa and across Africa in January 2016. It owes the FPB more than R1.59m in unpaid licensing fees.

The FPB screens and provides an age restriction and parental guidance system to content as part of its content classification system.

MultiChoice for its DStv satellite pay-TV service including DStv BoxOffice, and Apple iTunes are paying their FPB licensing fees.

So are the subscription video-on-demand (SVOD) services like Naspers Showmax and PCCW Globals ONTAPtv.com.

The South African Film and Publication Board recently released a draft review of its licensing fee tariff scale for online distributors in South Africa, suggesting adjustments that will end up costing Netflix even more to have its content be available in South Africa.

The South African government is furthermore hell-bent on regulating global online video services like Netflix and YouTube.

The department of communications will shortly release a draft Audio-Visual and Digital Content Policy for SA in parliament for public comment.

Other African nations likewise want Netflix as a global video golden goose to pay up in terms of license fees or be gone.

The Kenya Film Classification Board (KFCB) for instance has threatened to ban Netflix over its refusal to be properly licensed in Kenya and called Netflix a threat to moral values and national security in the East African nation.

Were not a broadcaster

On Wednesday Netflix spoke to South Africa media and answered questions from the press at its first Netflix House SA media event in Cape Town and Channel24 asked Netflix why it isnt paying the FPB licensing fee as required.

Were an over-the-top (OTT) service, were not a broadcaster; were not licensed spectrum, or granted specific wavelengths to broadcast on, said Yann Lafargue, manager for technology and corporate communications at Netflix for the Europe, Middle East and Africa (EMEA) region.

Were also not linear television where we have obligations to have certain content, with regulations and content quotas. Were omnipresent, so basically its a different ball-game - and we dont have to pay those fees.

Lafargue said some of them argue that we should, and we are in contact with them. We do believe that we do not have to do that. And thats the same case in many countries in the world where they have content regulation and theres questions about ratings, or censorship.

Theres always a wish from a regulator to try to get power from things like video streaming services, and were trying to move away from that because we do think that the content matters and we try not to censor content in general.

Our film season is here. Are you ready?

Select your Membership

If we have to pay a fee and its legally binding, we always respect the laws of a country where we operate. Right now, we dont have to.

To be fair, the amount we should pay isnt necessarily big, but its the question of why pay something if you dont have to?

We will rather invest the money in a local Netflix original show or content, like a Trevor Noah stand-up show rather than just put money where we dont have to.

We dont want a cumbersome system

When Channel24 asked if Netflix doesnt believe that something like the South African Film and Publications Board should set local parental and age restrictions for films and content thats suitable for South Africas unique socio-demographic and cultural circumstances, Yann Lafargue said Netflix self-regulates.

In some cases where theres something different we will have a discussion with the ratings board, and in some countries they are stricter than others. Like in Singapore for instance, or South Korea, they are very stringent.

You can have a 12 [parental guidance] for something and then its going to be 18 for that somewhere else. Were trying to make sure that were empowering customers based on the country.

Theres no point in us forcing something down your throat if we think were not ready. So were open to discussion, said Lafargue.

What we dont want is to have - imagine, we have thousands of titles on Netflix - is to have a cumbersome system where you have to give them the content, and they need to watch it and decide whatever, and to then be consistent. Its complicated.

Its a bit messy so were trying to do things by ourselves. But what were doing in some markets is were trying to show them, and ask For those shows, what would be the ratings? And we try to self-right ourselves to close the discrepancy.

So were trying to understand, and to be a good company and good corporate citizen in general.

If someone thinks that if theres violence or nudity, automatically it needs to be [age restricted] above 16 well do it, we have no issue with that, said Lafargue.

We want the freedom to regulate ourselves. When theres layers of complexities its never good; its just slowing the technology; everything.

Imagine if you have that [process of screening] and then you need to wait 6 months because they dont have the capacity or the bandwidth to watch all the content of 650 shows - not even talking about the licensed shows we have there, then you become again a second-ranked citizen because of your own regulator. And then theres again the issue of piracy.

www.channel24.co.za

Film Distribution

Africa South Africa

LINK:	http://www.filmcontact.com/news/south-africa/why-netflix-isn%E2%80%99t...
	See more stories from filmcontact

Most recent headlines