According to industry reports, South Africans are expected to persist in boycotting TV licence fees as the SABC works on developing a new funding model to address its financial challenges. According to Free Market Foundation senior associate Gary Moore, the era of relying on TV licence fees for revenue is drawing to a close.
The SABC’s TV licence compliance rate dropped from 31% to 13% between 2018 and 2023, and by the end of 2023, the South African public had accrued US$2.4 billion in unpaid TV licence fees.
This figure only accounts for households that previously held a TV licence and have now chosen not to pay, not including those who use TVs covered by someone else’s licence. Moore highlighted that out of the US$267 million invoiced for TV licence fees in the SABC’s 2023 financial year, only a small fraction was collected.
While advertising made up 57% of the SABC’s revenue, TV licence fees contributed only 16%, with sponsorships and other sources making up the rest. The Broadcasting Act of 1999 requires South Africans to pay for a TV licence and imposes stringent broadcasting mandates on the SABC.
This includes programming its TV channels and radio stations to cater to all population segments equally and in all official languages, which may not always align with advertiser preferences, leading to financial challenges.
Moreover, failure to pay the TV licence fee incurs a 10% monthly penalty and potential legal repercussions. Despite government efforts to address the situation, the boycott of TV licence payments has persisted.
Former communications minister Mondli Gungubele introduced the South African Broadcasting Corporation SOC Ltd Bill 32 of 2023 in the National Assembly to replace the Broadcasting Act of 1999. The bill retains the TV licence requirement while mandating a feasibility study to develop a new funding model, possibly reliant on state-based funding mechanisms.
However, passing the bill is expected to take time, and the new funding model will likely take several years to materialise. Consequently, the ongoing mass refusal to pay TV licence fees is anticipated to keep the SABC in a state of financial instability.
