The SABC is pushing for a major overhaul of its funding model, proposing to replace the TV licence system with a household levy and additional funding from the state to deal with the broadcaster’s financial crisis.
Established in 1999, the existing model relies on advertising and sponsorships. About 15% of the SABC’s sprawling operations are funded through mandatory TV licences. But more than 75% of households do not pay the licence fee, forcing the public broadcaster to join a host of state-owned companies seeking state cash injections.
In a presentation on the SABC Bill to the portfolio committee on communications and digital technologies, the SABC said the TV licence model was redundant and unenforceable due to noncompliance.
The model’s focus on television sets rather than modern devices does not reflect audience consumption patterns.
The SABC would require additional state funding in line with international best practice to fulfil its public broadcaster mandate, CEO Nomsa Chabeli said on Thursday. Over the next two years until 2026, the SABC required an additional R2.5bn.
The SABC, which recorded a R1bn loss in the 2023 fiscal year, is projected to narrow the loss to R590m in the 2024 fiscal year, and to R27m in 2025, before swinging back to a profit of R907m in 2026 — provided the corporate plan succeeds.
The bill, which has had delays and lapses, requires the communications & digital technologies minister to create a funding model framework within three years.
The framework aims to ensure that most of the SABC’s funding comes from state-based funding mechanisms.
However, critics argue this provision sets the SABC up for failure as the broadcaster needs a new funding model that guarantees a government contribution to its sustainability.
MultiChoice, the continent’s largest player with 22-million paying customers, and eMedia Holdings, owner of eNCA and e.tv, called for the processing of the bill to be put on hold until the finalisation of a white paper on audio and audiovisual content services.
The draft white paper proposes a review of SA’s broadcasting policy framework.
On the proposed funding model for the SABC, MultiChoice said tasking the minister with developing the funding model could undermine, or be seen to undermine, the independence of the SABC.
“The bill, if enacted, will not make the SABC work; something more is needed. There is nothing in the bill in its current form that would do this.
“The funding model essentially remains the same as it is and the issue of enforcement and alternative funding models are not dealt with,” Dan Rosengarten, representing eMedia, said.
Updated: September 19 2024
This article has been updated with new information throughout.
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