Communications & digital technologies minister Solly Malatsi is considering a levy on local and international streaming services as a possible funding mechanism for the cash-strapped SABC.
TV licence holders would be exempt from paying the levy.
Such a funding mechanism “modernises funding, improves compliance through automatic collection, but may raise subscription costs and require regulatory alignment”, Malatsi said in a written reply to a parliamentary question by IFP MP Khethamabala Sithole.
Sithole wanted to know what alternative funding sources Malatsi’s department was exploring while a bill is being developed to reform the SABC’s existing funding model, which is based on TV licences.
Malatsi said in his reply that thet TV licence model was inadequate due to low compliance, high collection costs and the eroding effects of inflation. By July 2023, R44bn was owed to the SABC in unpaid licence fees by 9.2-million TV owners. The broadcaster made a net loss of R198m in the 2023/24 financial year.
Other options under consideration in addition to a levy on streaming services, the minister said, included a household or business levy collected by Sars and maintained as an independent SABC fund.
Such a mechanism would offer stable revenue and lower collection costs “but may face public resistance as an added tax, requiring legislative amendments and affordability safeguards”.
A third possibility was a conditional Treasury grant as a temporary measure to sustain the SABC while a long-term model is finalised.
Malatsi said this would provide immediate relief, but was unsustainable and might affect the SABC’s independence.
“Additionally, the SABC has requested that the department reapply for a government-backed loan guarantee, now supported by its recent unqualified audit outcome.” This was achieved in the 2023/24 financial year, for the first time since 2009/10.
“This would enable the broadcaster to secure an overdraft facility and fund critical infrastructure. While this provides immediate financial flexibility, the SABC must still repay the loan, making long-term revenue stability essential.”
Malatsi said he had approved the final terms of reference for a feasibility study that would develop a clear business case for the SABC’s funding model. The study would assess current revenue streams, explore new funding options and consult stakeholders to ensure a practical and sustainable solution.
The lack of provision for a funding model in the contested SABC Bill was one of the reasons why Malatsi decided to withdraw it from parliament in November last year, but National Assembly Speaker Thoko Didiza has still not acceded to this request by publishing the withdrawal in the Government Gazette.
The withdrawal is strongly opposed by chair of parliament’s communications committee Khusela Diko, and Malatsi has come under fire from his cabinet colleagues who argue that only the cabinet can withdraw a bill that it has approved.
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