SABC proposes household levy to replace licences
The SABC is pushing for a major overhaul of its funding model, proposing to replace the TV licence system with a household levy and additional funding from the state to deal with the broadcaster’s financial crisis.
A Business Day report notes the existing model relies on advertising and sponsorships.
About 15% of the SABC’s sprawling operations are funded through mandatory TV licences. But more than 75% of households do not pay the licence fee, forcing the public broadcaster to join a host of state-owned companies seeking state cash injections.
In a presentation on the SABC Bill to the Portfolio Committee on Communications & Digital Technologies, the SABC said the TV licence model was redundant and unenforceable due to non-compliance.
The model’s focus on television sets rather than modern devices does not reflect audience consumption patterns.
The Bill, which has had delays and lapses, requires the Communications & Digital Technologies Minister to create a funding model framework within three years.
The framework aims to ensure that most of the SABC’s funding comes from state-based funding mechanisms.
However, critics argue this provision sets the SABC up for failure as the broadcaster needs a new funding model that guarantees a government contribution to its sustainability.
The draft White Paper proposes a review of SA’s broadcasting policy framework.
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