In South Africa, the Department of Communications and Digital Technologies (DCDT) has announced plans for a new SABC Bill that will introduce a funding model to replace traditional TV licenses.
According to statements, the DCDT aims to finalise the bill by the first half of 2025.
This follows Communications Minister Solly Malatsi’s withdrawal of the previous SABC Bill in early November. Originally crafted in 2018, this legislation was designed to replace the outdated Broadcasting Act of 1999, which no longer suits the digital age.
Former Communications Minister Mondli Gungubele made a draft of the bill public for comments in October 2023, but it faced criticism for its inadequate funding model for the SABC, which has struggled against declining TV license compliance rates and the rise of video streaming services.
These streaming platforms have gained an advantage by not facing the same regulations as conventional broadcasters, negatively impacting local broadcasters’ viewership and advertising revenue.
The SABC has consistently indicated that its public service obligations significantly drive operational costs and that government advertising support is insufficient.
Public dissatisfaction with the SABC’s content and years of editorial meddling during Hlaudi Motsoeneng’s tenure has led to a drastic drop in the TV license compliance rate, from over 30% in 2018 to 14% in 2024.
Malatsi’s withdrawal of the bill faced backlash from Khusela Diko, chairperson of the Portfolio Committee on Communications and Digital Technologies, who warned that this move could jeopardise the future of the SABC.
In response, Malatsi has assured the committee of his commitment to ensuring the broadcaster’s financial sustainability.
To initiate a new bill, the DCDT intends to work with advisors from the ministry, department, and portfolio committee to differentiate between non-controversial elements of the bill and those that require further refinement.
“This will help create a foundation for a revised bill that aligns with the needs of both the broadcaster and the public,” the department stated.
The next step involves finalising the audio and audiovisual content services (AAVCS) policy, which aims to address shortcomings of the previous SABC Bill and align it with established policy principles.
The department emphasised the importance of an inclusive process, engaging various key stakeholders.
One AAVCS proposal requires major streaming platforms like Netflix, Disney+, and Amazon Prime Video to obtain operating licenses and meet local content quotas. If they fail to meet these quotas, they will need to contribute to a fund supporting local content creation, which could potentially be a more affordable option than investing in local productions.
This approach mirrors strategies implemented in Europe and the UK, ensuring that predominantly US-based streaming giants contribute to the socio-economic development of their operating regions, with some funds designated for public broadcasting.
While specific details on how the AAVCS will influence the revised SABC Bill remain unclear, the department has indicated that the new legislation will consider insights from both local and international best practices.
“We will collaborate closely with the portfolio committee to develop a clear roadmap for reintroducing the bill in Parliament, aiming for its completion in the first half of 2025,” the department stated.
“The process will include consultations, expert contributions, and necessary adjustments to secure the financial sustainability and independence of the SABC.”
The department stressed that a financially stable SABC is essential for delivering impartial news, promoting South African culture, and effectively serving the nation. Establishing a sustainable funding model aims to ensure the broadcaster’s independence and capacity to meet public expectations.
