The South African Broadcasting Corporation (SABC) has admitted to being in a “financial crisis” and its CEO, James Aguma, said that changes to the Broadcasting Act could help the cash-strapped company out.
The solution? An amendment to the law that requires people to pay a TV licence fee for any of their devices that can receive a TV signal. These include computers, smartphones, and tablets. The SABC’s income is generated by licence fees (11%), advertising revenue (76%), sponsorships (5%) and less than 3% from Government.
The SABC’s financial woes intensified over the last year after its former board implemented a quota that demanded television and radio stations play 90% local content. The decision, while admirable in its attempt to empower the local industry, did not sit well with South African audiences, and resulted in millions of Rands being lost (reportedly around R212 million) and viewers turning to alternatives for entertainment.
Thus, in an attempt to gain for income, Aguma and the SABC interim board appeared in Parliament earlier this week to propose its new plan, which was met with widespread mockery by the South African public.
It’s back to the drawing board for the SABC.
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