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The South African Broadcasting Corporation (SABC) is poised for a significant transformation with the potential phasing out of the longstanding TV licence system, which has proven largely ineffective due to a dramatic drop in compliance rates. The current non-payment rate has escalated by nearly 20% over the past six years, significantly straining the broadcaster's finances.
Introduced by former communications minister Mondli Gungubele in October 2023, the SABC Bill was intended to replace the archaic Broadcasting Act of 1999. However, the bill was withdrawn by the new Communications Minister Solly Malatsi, who criticized it for not addressing the urgent financial needs of the SABC promptly. Malatsi, now tasked with spearheading the development of a new funding model for the SABC, faces the challenge of devising a viable solution that does not solely rely on TV licence fees.
Several alternative funding mechanisms are currently under discussion. One of the primary suggestions is the implementation of a household levy, though there remains considerable debate over its execution. Proposed methods for collecting this levy include utilizing the South African Revenue Services or engaging services like DStv's owner, MultiChoice. The latter, however, has expressed resistance, deeming it inappropriate for a private competitor to collect government revenues.
Another innovative approach involves enforcing local content requirements more stringently on streaming operators within South Africa. Under this proposal, operators failing to meet these thresholds would need to contribute to a fund dedicated to promoting local content, which could, in turn, support the SABC’s mandate for public broadcasting.
This funding revamp comes in the context of a dire financial report from the SABC, which revealed a decrease in TV licence revenue from R968 million in 2018 to R741 million in 2023, alongside plummeting advertising revenue. The financial distress is compounded by outstanding TV licence fees owed by various governmental bodies amounting to nearly R35 million earlier this year.
Despite the potential revenue from public service content, as noted by Media Monitoring Africa director William Bird, the SABC continues to wrestle with the high costs incurred by its mandate to provide equitable programming across its multiple channels in all official languages. This mandate, while crucial for maintaining a diverse and inclusive media landscape, complicates efforts to generate sufficient advertising revenue, particularly for niche segments.
These developments underscore a critical period of reassessment and potential legislative overhaul for the SABC to ensure its sustainability and capacity to continue serving the South African public effectively. As discussions proceed, the outcome will likely redefine the landscape of public broadcasting funding in South Africa.