The urgency of this reform is underscored by stark compliance data. In testimony to Parliament, SABC CEO Nomsa Chabeli highlighted that less than 20% of South African households that are obligated to pay the TV licence actually do so. She noted that the cost of delivering the public broadcasting mandate is “significantly underfunded,” with only 55% of mandate costs covered by the declining licence fees. “Unlike globally, in the BBC, for example, where you have more than 80% compliance,” Chabeli stated, contrasting the SABC’s situation with international benchmarks. Currently, 83% of the SABC’s revenue derives from commercial activities, while the remaining 13% comes from TV licences, a stream that has been declining year on year.
In response to these financial pressures, the SABC submitted policy comments to the Ministry of Communications and Digital Technologies regarding the white paper on Audio and Audiovisual Content Services. The broadcaster proposed that the existing TV licence fees be “scrapped” and replaced with a public broadcasting tax on households. This proposed levy would be compulsory for every household, with specific exemptions for indigent households and discounts available for pensioners. The SABC’s submission follows the publication of the white paper by Minister Stella Ndabeni-Abrahams in October of the previous year, with comments initially due in November 2020 and later extended to February 2021.
Support for this model shift has come from MultiChoice, South Africa’s leading pay-TV operator. Collen Dlamini, a spokesperson for MultiChoice, described the current TV licence model as “outdated and not in line with international best practice.” Dlamini stated that MultiChoice supports the eradication of the current system in favor of a “more effective ring-fenced public broadcasting levy.” However, a point of distinction in the proposed reforms lies in the collection mechanism. While the SABC has floated the idea of subscription broadcasters collecting the levy, MultiChoice is opposed to this approach, arguing instead that the funds should be collected by the South African Revenue Service (SARS) to ensure broader compliance and efficiency.
Duduetsang Makuse, national coordinator of the Support Public Broadcasting Coalition (SOS), clarified that the proposal is not to create a new fee for each digital device, which is a common misconception. “What is being proposed is a public information levy, which would be applied on the household, in a very similar fashion to the current TV licence,” Makuse explained. The intent is to broaden the definition of what constitutes a broadcasting household to include new technologies and devices, ensuring the funding base remains relevant in the digital age.
The push for reform coincides with ongoing challenges regarding the cancellation of existing TV licences. Many South Africans who have sold their televisions, moved abroad, or ceased watching traditional TV find the process of cancelling their R265-a-year subscription cumbersome. According to the SABC, individuals must notify the broadcaster using an affidavit signed and certified by a Commissioner of Oaths when they dispose of their television sets. Despite these official procedures, many citizens cite the perceived irrelevance of the fee as a reason for non-payment, contributing to the low compliance rates cited by the SABC.
Historically, the SABC has faced additional scrutiny regarding its governance and political neutrality. The organization has been accused of favoritism toward the ruling party and unsubstantiated banning of opposition content. These concerns were exacerbated by procedural changes, such as the 2016 Broadcasting Amendment Bill, which shifted board appointments from a parliamentary process to a Nominations Committee making recommendations to the Communications Minister. MP Joyce Moloi-Moropa resigned in protest, warning that the changes risked turning the public broadcaster into a state broadcaster. Subsequent disciplinary actions, including the firing of former CEO Hlaudi Motsoeneng, have been cited by opposition groups like OUTA as steps toward restoring credibility, though concerns remain regarding the political influence over the SABC’s board and leadership.
As the government reviews the audio and audiovisual content services framework, the fate of the TV licence remains a pivotal issue for both the sustainability of public broadcasting and the financial burden on South African households. The transition from a device-specific licence to a household-based levy, if implemented with SARS as the collector, could potentially address the funding gap while modernizing the regulatory framework. The final determination of this policy will depend on the outcome of the consultation process and legislative action following the white paper review.
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