The South African Broadcasting Corporation (SABC) may see the end of traditional TV licences by 2025 as the Department of Communications and Digital Technologies (DCDT) works on introducing a new funding model.
Story Summary:
- South Africa’s Department of Communications aims to phase out the current TV licence system by 2025.
- A proposed funding model may involve licensing streaming services and imposing local content quotas.
- The SABC faces declining revenue due to outdated systems and competition from digital platforms.
TV licences could be replaced by a new funding model
Speaking to MyBroadband, the DCDT admitted that the current TV licence system is outdated and inadequate to sustain the SABC.
Compliance rates have plummeted, dropping from 30% in 2018 to just 14% in 2024.
According to the department, the new framework seeks to address these challenges while aligning with global trends in digital content consumption.
Philly Moilwa, the SABC’s head of policy and regulatory affairs, has advocated for a household levy as a more effective solution.
Moilwa noted that the broadcaster’s content reaches audiences through multiple devices, beyond traditional TVs.
This, he argued, necessitates a more universal funding approach to cover operational costs.
Why the SABC needs a new funding model
Competition from digital platforms like Netflix, Disney+, and Amazon Prime Video has further strained the SABC’s financial stability.
These platforms operate outside the current regulatory framework and do not contribute to the funding of public broadcasters.
In contrast, the SABC must comply with its public service mandate, producing diverse and multilingual programming that incurs significant expenses.
Solly Malatsi, Minister of Communications and Digital Technologies, has acknowledged the urgency of addressing the SABC’s funding crisis.
In a recent government statement, Malatsi criticised the previous SABC Bill for failing to propose immediate solutions, instead suggesting a delayed three-year funding model.
“This approach does not meet the urgency required to stabilise the broadcaster,” he said, justifying his decision to withdraw the bill in its earlier form.
The Draft White Paper on Audio and Audiovisual Media Services (AAVCS), published in 2023, outlines several key measures.
These include licensing streaming platforms and introducing local content quotas.
The DCDT explained that large streaming services would need to pay operating licence fees or contribute to a fund for local content production, which could also support the SABC.
The DCDT also cited international examples, including European countries, where streaming giants are required to invest in local industries.
“We remain committed to reforming the broadcaster to safeguard its future, independence, and vital role as a cornerstone of South African democracy,” the department stated.
Not all stakeholders are on board with the proposed changes. MultiChoice, a major player in South Africa’s broadcasting sector, has rejected the idea of collecting fees on behalf of the SABC.
The company expressed concerns about privacy, fairness, and the financial burden such measures would impose.
Critics have also questioned the feasibility of introducing device-based fees or household levies, arguing that enforcement and collection could pose logistical challenges.
The government plans to finalise the AAVCS policy framework and draft a revised SABC Bill by 2025.
Malatsi has assured that this process will involve consultation with stakeholders, experts, and civil society to develop a funding model that ensures the SABC’s sustainability.
For now, South Africans are required to maintain TV licences under the existing system.
Whether these proposed changes succeed in modernising the funding structure will determine the SABC’s ability to remain relevant in the evolving media landscape.
