"Most South Africans No Longer Pay Their TV Licences" -SABC
The South African Broadcasting Corporation (SABC) delivered its 2018/19 annual report in parliament on Monday (30 September), announcing that the national broadcaster is technically insolvent.
The SABC reported a massive loss of $31.4 mil for the year that ended in March 2019, with the main contributors to the losses being sporting events and interest that was incurred as a result of the national broadcaster’s liquidity constraints.
Another contributor to the loss was the decline in total revenue by 3% over the 2017/18 financial year, with advertising taking a 5% dive compared to the previous year.
The SABC also didn’t collect much in TV licence fees sighting that 69% of the known TV licence holders were no longer paying their licence fees.
Presenting in parliament last month, the SABC board’s Chairperson Bongumusa Makhathini said that it was not sustainable to continue to run the broadcaster on these collection rates and he added that the current licence fee is far too low.
The current annual TV licence fee is $17.26 a year. South Africans are required by the law to pay for a TV licence should they wish to use a television.
Makhathini said that this $17.26 fee was too low and that South Africans can afford to pay more.
An increase to TV licence fees cannot be concluded by the SABC and would require an amendment of the country’s national broadcasting act as well as permission from the Minister of Communications.
Credit: This article originated from www.businesstech.co.za