Question NW3867 to the Minister of Communications

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15 December 2015 - NW3867

Profile picture: Van Dyk, Ms V

Van Dyk, Ms V to ask the Minister of Communications

Does the SA Broadcasting Corporation (SABC) negotiate with actors to determine the payment of royalties due to them when selling licensed content to other TV stations; if not, (a) why not and (b) are the specified actors paid a percentage of the profit emanating from the specified transaction; if so, (i) how is the percentage profit determined, (ii) how much (aa) does and/or (bb) can the SABC deduct from the selling price before allocating an amount of the profit towards royalties and (iii) how is this determined?

Reply:

(a) The SABC does not sell content, but licences it to other networks and operators. The current standard commissioning agreement makes provision for the amount to be negotiated or for a payment based on two per cent of the net licencing agreement profit made. At this stage the SABC makes provision for payment based on the latter number.

(b) (i) Net profit is calculated at gross licencing revenue less 35% of capped overheads.

(ii) As per the above

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE:

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