The SABC is focusing on new sources of revenue and increased cost-cutting measures – including a TV licence price hike.
This is according to SABC CEO Madoda Mxakwe, who was speaking to the Sunday Times.
Mxakwe said a new revenue stream will include a 5% increase on the current TV licence fee of R265.
This will bring the new fee to R278 per year.
As part of its new strategy, Mxakwe said the SABC will invest in new broadcast technology, renegotiate sports rights, and embark on a major marketing drive.
The SABC will also look at creating more local content, he said.
“We have not been able to invest in local content for many years, and this has affected our audience ratings and indirectly affected our revenue.”
“We are in the business of driving eyeballs to our platforms, and the only way you can do that is to ensure you have compelling content.”
In its latest annual report, the SABC showed a net loss of R482.4 million for the year ending March 2019.
Not paying for a TV licence
The statement from Mxakwe follows the SABC receiving a R2.1-billion bailout earlier this month.
The government would immediately transfer R2.1 billion to the SABC as part of a short-term turnaround plan.
An additional R1.1 billion will be transferred once the broadcaster meets a number of preconditions as set by the National Treasury.
Naturally, these bailouts – along with the well-documented corruption at the SABC – have done little to inspire South Africans to pay their TV licences.
Many have also stated that they do not watch the SABC, and only use their TV as a display for streaming services such as Netflix.
For these reasons, they refuse to pay their TV licences.