“These South Africans were at risk of losing access to radio and TV due to the SABC’s struggles with paying Sentech, but after meeting with both parties, we’ve agreed to keep services running for the next two months while we explore long-term solutions.”<\/p>\n\n\n\n
He said this includes working with the National Treasury to explore reclassifying the SABC grant so that part of its funding can be used to pay Sentech.<\/p>\n\n\n\n
“Ultimately, the development and finalisation of a financial model for the SABC is urgently required,” the minister added.<\/p>\n\n\n\n
Media Monitoring Africa’s William Bird warned that the public broadcaster was at risk of a blackout in May 2024, stating that the government was actively defunding the SABC.<\/p>\n\n\n\n
He explained that Sentech is one of the most significant input costs for broadcasters, including the SABC. He said the government should cover these costs on the broadcaster’s behalf.<\/p>\n\n\n\n
“It should be something that is covered by the state frankly, and yet, the SABC is left to carry this enormous bill, and it’s one of the things that makes its model even less sustainable,” said Bird.<\/p>\n\n\n\n
“The scenario is absolutely catastrophic. You have the SABC’s finances plummeting. You have government and Parliament failing to do their job.”<\/p>\n\n\n\n
“And then when the government doesn’t provide any kind of a bailout or a loan guarantee, you’re leaving the SABC in an impossible position. It’s not a stretch to think that we will be looking at a blackout,” he added.<\/p>\n\n\n\n The Portfolio Committee on Communications and Digital Technologies also supports greater public funding for the SABC.<\/p>\n\n\n\n However, it wants the public broadcaster to provide it with alternatives to its current funding model.<\/p>\n\n\n\n The SABC generates up to 83% of its revenue through airtime sales, content exploitation, and advertising.<\/p>\n\n\n\n It receives 56% of its funding through government grants and TV licences, of which the government contributes 45%, and TV licence revenue accounts for 11%.<\/p>\n\n\n\n It has been loss-making since the 2014\/15 financial year, with it most recently reporting a R1.13-billion loss in 2023\/24.<\/p>\n\n\n\n While the broadcaster expects to reduce this loss to R590 million in 2024\/25, Parliament’s Portfolio Committee on Communications and Digital Technologies supports an urgent rework of the SABC’s funding model.<\/p>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/08\/Solly-Malatsi-closeup.jpg\")