Goodbye TV licences
The Department of Communications and Digital Technologies (DCDT) has revealed its plan for a new SABC Bill containing a funding model to replace TV licences in South Africa.
The department told MyBroadband that it aimed to have the bill ready as early as the first half of 2025.
The previous SABC Bill was withdrawn by communications minister Solly Malatsi in early November.
The bill, which has been in the works since 2018, was intended to replace the Broadcasting Act of 1999, which is considered outdated in the digital era.
Its first draft was published for public comment in October 2023 by previous communications minister Mondli Gungubele.
It was widely panned for lacking a credible funding model for the SABC, which has been fighting a losing battle against the rising adoption of video streaming services and increasing TV Licence evasion rates.
Streaming platforms have benefitted from not having the same obligations as traditional broadcasters and have eaten into local broadcasters’ viewership figures.
This, in turn, has negatively affected the advertising revenues of the SABC and other broadcasters.
The public broadcaster has also repeatedly complained that its public service mandate was contributing disproportionately to its operating costs and that the government was not spending enough in advertising to compensate for this expenditure.
With growing disillusionment over the relevance of its content and years of editorial interference under the controversial Hlaudi Motsoeneng, the South African public has also increasingly refused to pay TV licences.
The TV licence compliance rate has fallen from more than 30% in 2018 to 14% in 2024.
Malatsi’s decision to withdraw the bill was sharply criticised by Khusela Diko, chairperson of the Portfolio Committee on Communications and Digital Technologies.
Diko argued that the “ill-advised” withdrawal could spell the end for the SABC.
Malatsi has assured the committee he is committed to helping ensure the financial stability of the broadcaster.
Malatsi’s department told MyBroadband that the first step in devising a new bill will be the ministry, department, and portfolio committee advisors separating the bill’s non-contentious elements from those requiring refinement.
“This will form the foundation for a revised bill that meets both broadcaster and public expectations,” the department said.
Secondly, the audio and audiovisual content services (AAVCS) policy will be finalised to create a foundation for the bill.
The department said this would help address the previous SABC Bill’s deficiencies and ensure alignment with the policy’s principles.
“This should be an inclusive process that involves as many key stakeholders as possible,” the department said.
“Collaboration with industry professionals, civil society, and experts will shape a forward-thinking Bill fit for a dynamic media landscape.”
Requiring streaming giants to pay operating licence fees and invest in local content
The AAVCS aims to modernise broadcasting regulations in South Africa so that digital content providers like streaming services must meet similar requirements as traditional broadcasters.
Among its proposals, the policy requires that large streaming services like Netflix, Disney+, and Amazon Prime Video also obtain operating licences.
In addition to a class licence of R50 million for large streaming services, the policy proposes local content quotas.
If a streaming service is unable to meet the quota, they must contribute to a fund for local content creation. This can be a cheaper alternative than setting up or investing in local productions themselves.
This is similar to what European countries and the United Kingdom have implemented to ensure that predominantly US-based streaming giants are contributing to the socio-economic upliftment in the countries where they operate.
In some cases, a portion of these so-called “contestable” funds are set aside for public broadcasting.
While it did not dive into specifics about how the AAVCS will inform the revamped SABC Bill, the department said that lessons from local and international best practices would be integrated into the legislation.
“We will work together with the portfolio committee guidance and a clear, expedited roadmap for reintroducing the bill in Parliament will be developed, targeting the first half of 2025,” the department said.
“The process will include consultation, expert input, and necessary amendments to secure the SABC’s financial sustainability and independence.”
The department added that the SABC needed to be financially stable to provide impartial news, support South African culture, and serve the nation effectively.
“By establishing a sustainable funding model, we ensure its independence and ability to meet the public’s needs,” the department said.
“We remain committed to reforming the broadcaster to safeguard its future, independence, and vital role as a cornerstone of South African democracy.”
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