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The South African Broadcasting Corporation (SABC) is on the brink of financial disaster, and controversial solutions have been proposed to transform its funding model and save it from collapse.
Communications Minister Mmoba Solomon “Solly” Malatsi has announced that he wants to change the funding model of the SABC so that it can fund itself.
This follows Malatsi’s questioning in the National Assembly after he decided to withdraw the SABC Bill from Parliament at the end of 2024, considering it ineffective.
“To sustain the SABC while a new Bill is being developed, I am focusing on creating a revised funding model that aligns with modern broadcasting realities,” Malatsi said.
Malatsi aims to create a modern funding model by reviewing current mechanisms like TV licence fees, which have faced widespread non-compliance and exploring innovative revenue streams driven by digital transformation.
Suggestions include replacing the TV licence tax with a household levy and potentially involving entities like SARS in the collection, although MultiChoice opposes being tasked with collecting revenue for a state competitor.
The Minister also plans to collaborate with stakeholders and conduct technical reviews to ensure the broadcaster’s financial independence and competitiveness.
Critics, including Deputy Communications Minister Mondli Gungubele, have argued that the Bill should have been amended rather than withdrawn.
However, Malatsi has stressed that meaningful solutions require a credible funding mechanism and protection of media freedom from excessive ministerial control.
While the Minister reviews the SABC’s funding model, the new SABC Bill is pending parliamentary approval.
Despite the dire state of SABC’s finances, many still advocate that the country needs the broadcaster.
“We need a public broadcaster of some shape, size, or variety,” William Bird, director of Media Monitoring Africa, said on The Money Show with Stephen Grootes.
He explained that journalism, like reporting on roads, healthcare, transport and sanitation, fulfils a public good.
Unfortunately, despite the public good that it serves, SABC will not exist for much longer if its funding model isn’t reviewed.
According to Bird, the SABC is in a financial crisis largely because previous ministers switched off analogue broadcasting before the SABC had a digital alternative in place.
This decision cut off a significant part of the audience during the shift to digital.
Increased competition, which includes streaming services like Netflix and Amazon, has also made it more difficult for the broadcaster to attract viewers.
In addition, many people who do have TV licenses simply do not pay for them, making it even more difficult for the business to remain profitable.
“This is an issue that should have been addressed about a decade and a half, if not two, decades ago,” Bird said.
“But be that as it may, at least it’s now being addressed finally, and the options are decreasing.”
Bird pointed out that funding would likely come from the public, and a number of different ideas have been put forward about how the broadcaster could be financed.
Specifically, one solution being considered is a “public interest content levy”, which would place a levy on devices.
This proposed solution has been particularly controversial since it could mean that all cell phones with broadcasting capabilities will be levied and become more expensive as a result.
“They’ve considered the option of asking other entities to help collect that money for them because, of course, one of the big issues with the TV license has been collection.”
While it may be possible to appoint funds in the budget which would be ring-fenced specifically for the SABC, Bird explained that there isn’t enough time left for this solution to save the network.
He pointed out that getting this through the National Treasury would take about five to seven years, and “the SABC doesn’t have that kind of longevity left.”
According to Bird, the problem is really tied to political will rather than finding the money.
Other public entities like the SAA and Denel “have lost a huge amount of money”, and the government has given them billions in bailouts. [ 2025-01-29T04:30:07Z ] :flashminiupdate:2025-01-29 :::: Check it out >> [ 🔗 Click here 🌐 ‼️ ]
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