JOHANNESBURG — Governments on four continents are introducing streaming levies or local content obligations for Netflix, Amazon, Disney+ and other global platforms.
Some have passed laws. Others have faced legal challenges from streamers. South Africa is still considering its options.
The global streaming pioneer Netflix has been explicit. Pushing back against a UK recommendation for a 5% levy on foreign streaming companies, the streaming company argued: “In an increasingly competitive global market, it’s key to create a business environment that incentivises rather than penalises investment, risk taking and success.”
Levies, it added, “diminish competitiveness and penalise audiences who ultimately bear the increased costs.”
That argument did not stop Belgium.
Netflix loses in Belgium — then keeps fighting
In March 2026, a Belgian constitutional court rejected most of Netflix’s challenge against a scheme requiring streaming platforms to invest a portion of their revenue in local content.
In an official statement following the ruling, a Netflix spokesperson said: “We acknowledge the Belgian Constitutional Court’s decision regarding our challenge and the referral to the European Court of Justice. We agree that the ECJ is best suited to look into this matter further.”
The case now goes to the European Court of Justice on technical details, but the principle that EU member states can require Netflix to contribute to local production remains intact.
Which countries charge Netflix and other streamers?
France requires streamers to contribute a percentage of revenue to local content, linked to cinema release windows.
Denmark introduced a 2% levy on turnover in January 2025, increasing to 5% if platforms do not invest 5% in local content. The scheme generates about 100 million DKK annually, with 80% allocated to Danish films.
Norway requires streamers to invest 4% of annual revenue in Norwegian-language productions.
Spain applies a 5% levy on streaming revenue.
Germany is pursuing an 8% investment obligation through draft legislation approved by cabinet in May 2026, with parliamentary sign-off expected before the law takes effect in early 2027.
The push comes as pay-TV and streaming revenue in Germany reached around €5.5 billion in 2024, with the government arguing that a portion should be reinvested into domestic film production. Social Democratic Party of Germany (SPD) co-leader and Finance Minister Lars Klingbeil said: “Anyone who does good business in the German and European film markets must also contribute here.”
Australia introduced mandatory streaming quotas in 2025, requiring Netflix and other platforms to invest in original local content. Screen Producers Australia CEO Matthew Deaner called it “a landmark day for Australian screen storytelling.”
Across Europe, 17 EU countries have implemented financial obligations for streaming platforms, according to a detailed report by Film Take.
Why streaming platforms say levies raise costs
Netflix argues that levies increase costs that are ultimately passed on to subscribers. “Levies diminish competitiveness and penalise audiences who ultimately bear the increased costs.”
Netflix raised subscription prices in March 2026. Its Europe, Middle East and Africa revenues reached nearly $4 billion for 2026 Q1 alone.
As NOWinSA previously reported, the company has also faced subscriber dissatisfaction over pricing and content decisions in recent years, with some viewers questioning the value of their subscriptions.
Leslie Adams, sales director at Reach Africa, said: “If this levy goes ahead, chances are high that South Africans will cover the cost through higher subscription fees. And with the economy under pressure, that’s not great news.”
He noted that “Amazon has already reduced its spending in Africa.”
South Africa’s proposed streaming levy and SABC funding plans
South Africa’s TV licence model is under growing pressure. Licence-fee avoidance increased from 69% in 2019 to 85% in 2025. The SABC also owes Sentech about R1.2 billion.
Communications Minister Solly Malatsi confirmed to the SABC that a media subscription levy remains under consideration.
He described it as “a charge on local and international streaming services, exempting TV licence holders. This modernises funding and improves compliance through automatic collection.”
Malatsi acknowledged that such a model could increase subscription costs. The discussion comes as households continue to weigh the affordability of pay-TV and streaming services following the 2025 DStv price increases.
The department appointed BMI TechKnowledge to develop a funding framework, and a closed parliamentary session followed in February 2026.
The revised SABC Bill is expected to reach Parliament during the 2026/27 financial year.
Malatsi said: “This is a major milestone in our efforts to secure the public broadcaster’s future.”
The mobile question in South Africa’s streaming levy debate
According to the 2025 ICASA report, 72.6% of South Africans access the internet through mobile devices.
Furthermore, in South Africa mobile data packages are cheaper and more accessible than fixed-line connections.
Any streaming levy will need to account for those usage patterns. A flat fee applied equally to Netflix, Showmax and SABC Plus could place a greater burden on lower-income users.
The issue is particularly relevant as South Africans continue to debate the future of local streaming platforms in the back of Showmax Showmax sudden shutdown in April.
As Adams argues, “different streaming models must also be considered — a flat tax will not work for platforms that operate differently.”
What a workable streaming levy could look like
Industry stakeholders argue that any levy should strengthen, rather than weaken, investment in South African productions.
That debate is especially relevant given Netflix’s growing role in African content, as seen with its first African stand-up comedy original featuring Loyiso Gola.
Adams sets clear conditions: “Funds should be reinvested in local films and TV shows, not absorbed into government budgets. The levy must also be reasonable. If too high, streaming platforms will pass the cost onto consumers or cut local investments.”
He adds: “Private broadcasters like MultiChoice and eMedia could contribute … rather than placing the entire burden on global streaming platforms.”
On transparency, Adams said: “Before imposing a new tax, the government must fix inefficiencies and ensure transparency so this revenue benefits South African content producers.”
European Producers Club president Gudny Hummelvoll says “regulation would allow countries to protect their assets in the hands of those who develop and produce those works.”
Alexandra Lebret adds: “The need to regulate the ownership of IP in the audiovisual production sector is not just a European issue. It is a worldwide imperative.”
South Africa’s debate reflects a broader international trend as governments look for ways to ensure global streaming platforms contribute to local broadcasting and content production.
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