The South African Broadcasting Corporation (SABC) faces a severe financial crisis, prompting discussions about a radical overhaul of its funding model to avert a complete collapse.
Communications Minister Mmoba Solomon “Solly” Malatsi has proposed restructuring the SABC’s funding to make it self-sufficient. This comes after he faced scrutiny in the National Assembly and ultimately decided to withdraw the SABC Bill from Parliament by the end of 2024 due to its ineffectiveness.
“To support the SABC while we draft a new Bill, I’m focusing on developing a revised funding model that reflects the current broadcasting landscape,” Malatsi stated.
Malatsi is keen to modernize the funding strategy by reassessing existing mechanisms such as TV license fees, which have seen high non-compliance rates, and exploring new revenue avenues fueled by digital advancements.
One suggestion is to substitute the TV license tax with a household levy, possibly enlisting the South African Revenue Service (SARS) to manage the collection process. However, MultiChoice has opposed the idea of collecting funds for a competitor.
The Minister intends to work closely with stakeholders and conduct technical reviews to ensure the SABC’s financial viability and competitiveness.
Critics, including Deputy Communications Minister Mondli Gungubele, contend that the SABC Bill should have been amended rather than retracted. Nevertheless, Malatsi insists that effective solutions necessitate a robust funding model and safeguarding media independence from excessive government oversight.
As the Minister reviews the SABC’s funding framework, the new SABC Bill awaits parliamentary deliberation.
Despite the broadcaster’s financial troubles, many assert that a public broadcaster is essential for the nation. William Bird, director of Media Monitoring Africa, emphasized on The Money Show with Stephen Grootes that journalism serves the public interest by covering critical topics such as infrastructure, healthcare, transport, and sanitation.
Bird warns that SABC’s existence is at risk without a revised funding strategy. He noted that the broadcaster’s financial woes stem in part from previous decisions to cease analogue broadcasting before establishing a digital alternative, resulting in a significant loss of audience during the transition.
Heightened competition from streaming platforms like Netflix and Amazon has complicated efforts to retain viewers. Additionally, many individuals with TV licenses fail to pay them, exacerbating the broadcaster’s struggle for profitability.
“This issue should have been tackled over a decade ago,” Bird pointed out. “However, it’s finally being acknowledged, though options are dwindling.”
Funding will likely come from the public, and various proposals have emerged regarding sustaining the broadcaster. A particularly contentious idea is the introduction of a “public interest content levy,” which would impose charges on devices, potentially raising the cost of cell phones equipped with broadcasting capabilities.
“They’ve discussed the possibility of involving other organizations to help with the collection process, as the collection of TV license fees has been a significant challenge,” Bird shared.
Creating a designated budget to support the SABC could be achievable, but Bird expressed scepticism about its effectiveness given the urgent timeline. He estimated that navigating the National Treasury could take five to seven years, a luxury that the SABC cannot afford.
Ultimately, the matter appears to hinge more on political will than on identifying fiscal solutions. While other public entities like SAA and Denel have received substantial government bailouts, the SABC has only been offered guaranteed loans that require repayment.
Bird remarked that had the SABC been adequately funded and maintained over the past two decades, it would be in a better position today. Despite the government’s argument for the necessity of a public broadcaster, he warned, “We are teetering on the edge.”
“If we take no action, the SABC will fail. The fallout from such a collapse would mean losing a vital component of our democratic framework.”
With the largest audience reach in the country, SABC continues to be a critical source of information for many South Africans.
