The South African Broadcasting Corporation (SABC) is pushing for a radical overhaul of its funding model, proposing to scrap the controversial TV licence system and introduce a device-independent levy, potentially collected by the South African Revenue Service (SARS) and MultiChoice.
This move could have a significant impact on South Africans, potentially requiring them to pay a levy to access streaming services like Netflix.
The SABC's plea comes amidst a backdrop of financial instability, with the public broadcaster recording a R1.1 billion loss in the 2022/23 financial year and relying heavily on government bailouts to stay afloat.
The SABC's current funding model, heavily reliant on advertising revenue, is unsustainable, according to the broadcaster.
"Funding for the SABC is a burning issue and therefore an interim mechanism is required to ensure SABC’s interim viability and sustainability," said SABC CEO Nomsa Chabeli while speaking to the portfolio committee on communications & digital technologies.
The proposed device-independent levy would be a household levy, based on the ability to access SABC services rather than actual use. This would effectively replace the TV licence system, which has become increasingly difficult to enforce due to technological advancements and public reluctance to pay.
"The SABC Bill should redefine what a TV licence is, and we are saying a public service media levy would be a good example, as found in Germany and other countries," said Philly Moilwa who is the SABC head of policy and regulatory affairs.
The SABC has also suggested enlisting the help of SARS and MultiChoice in collecting the levy. This would mean platforms like DStv and even streaming services like Netflix could be compelled to collect fees on behalf of the public broadcaster. Under this proposal, subscriptions could even be contingent on the customer producing a TV licence.
"The SABC is further challenged by a long list of requirements in its public service charter, which includes catering to South Africa’s diverse population with original content in all official languages and keeping abreast of the evolution in technology by building new platforms like SABC Plus," said Moilwa.
The SABC's proposal has sparked debate, with MultiChoice expressing concerns about the lack of clear policy guidance. However, the SABC remains hopeful, arguing that a device-independent levy is a more sustainable and equitable way to fund public broadcasting in the digital age.
The broadcaster also seeks to access the Universal Service Fund (USAF), which sees broadcasters and telcos pay a fee based on their annual turnover for universal services of electronic communications network services. The SABC believes this could help finance its underserviced public service mandate.
The SABC's financial woes are not unique. Many public broadcasters around the world are struggling to adapt to the changing media landscape. The SABC's proposed funding model, while ambitious, could offer a solution to its financial challenges and ensure the continued delivery of public service broadcasting in South Africa.
