Parliament Urged to Regulate Streaming Giants Like Netflix Over Infrastructure Contributions

Streaming services like Netflix are once again in the spotlight as South Africa’s Parliament faces growing calls to regulate over-the-top (OTT) media platforms. The latest push comes from the Association of Comms and Technology (ACT), which has raised concerns about how international streaming platforms operate within the country without contributing to its digital infrastructure.

During a recent meeting of the communications and digital technologies portfolio committee, ACT called for urgent policy reforms to ensure platforms such as Netflix, YouTube, and TikTok are held accountable and compelled to support the very networks they rely on to reach South African audiences.

Netflix and Other OTT Platforms Branded “Free Riders”

Nomvuyiso Batyi, the CEO of the Association of Comms and Technology, did not mince her words during the committee briefing. She described OTT platforms—especially Netflix—as “free riders” that consume enormous bandwidth without contributing financially to the maintenance and expansion of the country’s mobile and broadband infrastructure.

“So, when I say over-the-top services, I mean those using a lot of bandwidth, like your Netflix, YouTube, and TikTok,” said Batyi. “They are free riders. That’s what I would call them. They are here to free ride in our country, and no one is holding them accountable.”

Batyi emphasized that while South African mobile network operators such as MTN and Vodacom continue to invest heavily in infrastructure—particularly in rural areas—global content providers operate without sharing the financial burden. She argued that these companies should be required to enter into commercial agreements with local operators to ensure fair contribution to the digital ecosystem.

Growing Demand for a Fair Regulatory Framework

The Association of Comms and Technology is not just any industry body. It includes high-level stakeholders such as the CEOs of MTN and Vodacom, and advocates for a balanced and enabling regulatory environment for the digital communications sector.

The organization’s argument rests on a straightforward principle: companies that profit from South Africa’s digital economy should also help build and sustain it.

Currently, Netflix and similar platforms do not pay any local infrastructure levy, nor are they required to invest in broadband expansion. Most operate on a subscription or ad-based model, earning significant revenues without contributing to national digital development goals.

This has created frustration among telecom operators who argue that they bear the full brunt of costs associated with increased data traffic caused by streaming content.

The Push for Accountability and Infrastructure Development

As digital media consumption continues to surge in South Africa, so too does the pressure on existing telecommunications networks. Streaming high-definition content from platforms like Netflix requires vast amounts of data, which ultimately strains mobile networks and forces providers to continually upgrade their infrastructure.

While these upgrades benefit streaming platforms by enabling faster and more reliable service delivery to subscribers, the financial cost is borne entirely by South African network operators—without any compensation from the content providers themselves.

According to Batyi, this imbalance must be corrected. She called for a formal structure requiring platforms such as Netflix to collaborate with mobile network operators and contribute to infrastructure projects, particularly those aimed at bridging the digital divide in underserved rural communities.

“When operators are expected to improve and expand coverage, especially in rural areas, OTT services should be part of that responsibility,” Batyi told Parliament. “They must pay their fair share.”

Global Precedents and South Africa’s Opportunity

South Africa is not alone in grappling with how to regulate streaming giants like Netflix. Countries such as Australia, France, and South Korea have already implemented or are considering laws requiring OTT platforms to fund local content creation or contribute to network infrastructure.

In the European Union, for example, regulators have introduced policies that compel Netflix and other platforms to carry a certain percentage of locally produced content and pay local taxes.

With these international examples in mind, many believe South Africa has a golden opportunity to set a regulatory precedent that both supports the growth of its digital economy and ensures sustainability.

By implementing fair contribution models, Parliament could create a system that rewards investment while holding foreign platforms accountable for the digital resources they consume.

The renewed focus on Netflix and similar services suggests a significant policy shift may be on the horizon. While South African consumers continue to benefit from accessible global content, lawmakers are increasingly concerned about the long-term viability of the country’s telecom infrastructure.

Industry players and policy advocates agree that sustainable development in the digital sector must include contributions from all major stakeholders—including streaming platforms.

As Parliament considers the proposals, the debate signals a broader conversation about digital fairness, economic inclusion, and corporate responsibility in an interconnected world.

If South Africa moves ahead with regulatory reform, Netflix and other streaming giants could soon be required to pay more than just attention to their South African audiences—they may also have to invest in the very networks that make their services possible.

Source – EWN