Tag: SABC

Only 30% of people pay TV licence fees

By Sihle Mlambo for IOL

The SABC would be commercially viable and would receive an immediate cash injection of up to R2bn per year if everyone paid their TV licence fee.

This is according to the public broadcaster’s chief operations officer Ian Plaatjes, who was speaking to IOL in a wide ranging interview on Friday.

Plaatjes said only 30% of TV licence holders were compliant and that had substantially affected the public broadcaster’s funding model.

“Our TV Licence is R265 per year and we have 30% of people paying, so we have a default rate of 70%.

“As you know the organisation’s funding model is through TV licence fees as well as advertising revenue, so we are not government funded, we are very dependent on that.

“If everybody was paying their TV licence, we certainly would be a financially stable and viable organisation, but that isn’t the case,” said Plaatjes.

The public broadcaster also lost a lot of money in advertising revenue during the peak Covid-19 and has only started to show promising signs recently.

He said advertising revenue plunged between 70% to 80% during hard lockdown months.

Plaatjes said the organisation was entering into a Section 189 retrenchment process which would see 400 jobs on the line as part of the SABC’s bid to save about R700m per year for the next three years.

Management at the SABC have also said they will freeze salary increments for the next three years, abandon the company’s leave encashment policy and have also reviewed annual leave and sick leave policies.

Plaatjes also said the public broadcaster would be making a push to utilise DSTV as a TV licence revenue collection stream, while also clarifying that they will not be doing the same with international streaming services such as Netflix.

“We have said that we expect DSTV to collect television licence fees on our behalf, they have about 10 million subscribers and if those subscribers do not pay their fee, they can cut them off immediately.

“Some of those subscribers (on DSTV) do not have a TV licence, so we are saying they can collect those TV licence fees on our behalf,” said Plaatjes.

“(Unpaid TV licence fees account for) about R2bn per year, we would be financially stable and viable immediately, so, if you compare ourselves with the BBC (in the UK), which is completely funded through their TV licence, their fee is over R3000 per year and they have nearly 100% collection rate, so it makes a huge difference.

“All that money can be redirected to content and we can have fresher, newer content and also additional content as well,” said Plaatjes.

Meanwhile, he said the public broadcaster had developed a new target operating model which was geared at cashing in on digitisation of the sector.

On Monday, the Telkom streaming service went live with SABC content.

“With our new target operating model, we have identified additional revenue drivers, one of it being carriage licences, like the deal we have just concluded with Telkom which went live on Monday.

“What that does to our revenue is it gives us two additional revenue streams that we never had before, we get a licence (fee) for our channels and we will be able to share in the revenue on the Telkom platform.

“This is not an exclusive deal with Telkom, so we intend to do this deal with other telecommunication companies as well, and so, those will be other additional revenue.

“That is over and above what we have projected in turning the organisation around, so it is huge,” he said.

With the SABC still stuck on analogue, Plaatjes said it was critical to the SABC’s viability that the public broadcaster moved to digital in the next five years.

He said if the public broadcaster was able to offer direct-to-home (DTH) services with a set-top box, that would enable the SABC to have its own dedicated sports, health, education and channels aimed at the marginalised language groups.

Thriving SABC

Asked what a thriving SABC looked like in the next five years, Plaatjes said: “In a best case scenario, we will be in a multi-platform and multi-channel environment.

“Right now we are on analogue, we need to migrate to a digital platform. There’s currently two platforms available, DTT (digital terrestrial television) and DTH.

“The current legislation forces us to a DTT platform, but in five years time that cannot be the case because it is unsustainable in terms of the cost of it being too high.

“In five years time we will have more people on DTH, which is completely interoperable because you can be anywhere in the country and you will be able to be connected via DTH if you have a set-top box.

“But if I have a DTT box, and I move into an area which does not have DTT coverage, it is not interoperable, I have to buy a new box.

“We cannot grow our channels right now because we are on analogue, but on digital, we can have multiple channels and grow the industry through that, and by then we will have our own OTT (over-the-top) platforms, we will have our own OTT platform in the next couple of years,” said Plaatjes.

Grim

As much as Plaatjes said the SABC was ready to go with digitisation, the matter was beyond them.

“The future of our destiny is not in our own hands. With digitisation, we are ready right now, but that requires a set-top box.

“But the roll-out of the set-top box is not determined by us, the manufacturing of it, the setting up of it, the installation and the managing of it afterwards, is outside of our control (it is with the preserve of the Department of Communications).

“So if that is not rolled out, then in five years time, worst case scenario, we will still not be off analogue,” he said.

He added: “There is no stumbling block from our side, all we need is a set-top box, because the infrastructure is there.

“There are 4.5 million households right now that do not have digital TV, so they are still on analogue.

“If you go provide them with a DTH set-top box right now, they will be able to connect.”

 

By Jamie McKane for MyBroadband

The South African Broadcasting Corporation (SABC) has proposed that regulation be implemented to expand the definition of a TV licence to include services such as Netflix.

In a presentation to Parliament’s Portfolio Committee on Communications presented by Deputy Communications Minister Pinky Kekana, the public broadcaster has argued the expanded definition of a TV licence is outdated and needs to be adjusted to current realities.

The SABC said that regulation is needed which would require pay-TV service providers like MultiChoice (DStv) and video on demand providers like Netflix to collect TV licences on behalf of the SABC.

It added that this would be similar to municipalities collecting traffic fines and motor vehicle licence discs.

Kekana said during the presentation that the government’s proposal to help the SABC improve its financial position would include allowing the public broadcaster to collect licence fees from non-TV users.

“Including engaging with those who have been carrying the SABC programmes on their pay-TV, how do we through ICASA make sure that they too are able to assist us to collect TV licences?” Kekana said.

“But we are not only limiting it to TV. We also have other platforms where people consume content and in all of those areas, that is where we should look at how we are able to get SABC licence fees from those gadgets.”

This means that the SABC wants users who watch content on devices such as laptops and smartphones to also pay licence fees.

Sports rights
The SABC has also called for improved access to national sports rights – specifically, it wants access to these broadcast rights at an improved rate.

The SABC argued that national sports must be made available to it at “a very affordable price”.

Another point in the presentation to Parliament was the proposed removal of the must-carry rule for the SABC, which requires that all subscription broadcasters with more than 30 channels must carry the SABC’s three free-to-air television channels.

However, current regulations state the SABC “must offer its television programmes, at no cost,” to subscription broadcasters instead of allowing commercial negotiations between the parties.

The SABC said that it instead wants to negotiate with pay-TV providers to pay for these channels as it noted that the current regulations meant the deal was “one-sided” in favour of Multichoice.

Jobs bloodbath at SABC

According to Sunday World, The SABC has revived plans to retrench workers – despite the uproar that flared up when the public broadcaster initially wanted to cut hundreds of jobs as part of a turnaround process.

  • It will reduce the cash-strapped organisation’s salary bill by R700-million
  • It plans to invoke section 189 of the Labour Relations Act to cut 33% of staff
  • This means retrenchment of 981 permanent staff members and more than 1 200 freelancers
  • The current SABC operating model is not defined and had major challenges, such as the absence of an overarching group strategy and planning function cascading to divisional plans

Public forces SABC, Dstv to reach rugby deal

Source: IOL

A sponsorship deal with Heineken will allow the SABC to broadcast the Rugby World Cup final match between SA and England live across 11 SABC radio stations as well as on television.

Earlier this week, the broadcaster announced that, following an agreement with pay-channel Supersport, who owns the broadcasting rights to the 4-yearly rugby showcase, Saturday’s highly-anticipated clash would be broadcast on SABC 2.

This follows a public outcry that many South Africans would not be able to watch their team in the final, due to not having access to Dstv and other streaming platforms.

Additionally, the SABC will also broadcast the third-place play-off match between semi-final losers New Zealand’s All Blacks and Wales that will be played on Friday November 1.

The SABC announced Heineken as the official sponsor of the broadcast, and a partner in bringing the historic final match to the broader South African public.

The radio stations which will broadcast the match are: RSG; Radio 2000; Ukhozi FM; Umhlobo Wenene FM; Thobela FM; Motsweding FM; Lesedi FM; Ikwekwezi FM; Ligwalagwala FM; Phalaphala FM and Munghana Lonene FM, with live updates on SAFM.

Fans can watch a live build-up to the third place playoff and Rugby World Cup final on SABC 2 from 10am on Friday and Saturday respectively with the matches kicking off at 11:00.

Day Zero looms for the SABC

SABC, the embattled state-owned broadcaster, is facing a serious financial crisis. At the end of May it was forced to choose between paying salaries and paying municipal bills – and it now owes the City of Johannesburg more than R13.5-million.

According to MyBroadband, apart from its municipal bills, the SABC owes Sentech R317-million and MultiChoice division SuperSport R208-million.

The SABC is now looking for a R3.2-billion government guarantee to help it to raise money from lenders to stay afloat.

Massive debts
During an interview on SABC, the company’s chief financial officer, Yolandi van Biljon, warned that Day Zero (leading to total blackout) could happen “tomorrow”.

The SOE has debt of approximately R1.8-billion. If debtors stop supporting them, the broadcaster could go under.

The ten institutions owed money by the SABC could call in their payments at any time.

“I think Day Zero can happen tomorrow. It depends if one of these big partners are unable to support us financially,” says Van Biljon.

She warned that the SABC can also be forced to switch off its signal and distribution network or its critical infrastructure can fail, which would lead to a total blackout.

By Mia Lindeque for EWN

The South African Broadcasting Corporation (SABC) says that it is urgently dealing with its bank to sort out a technical glitch which resulted in staff not being paid their salaries on time.

Frustrated employees contacted Eyewitness News in a panic on Tuesday, complaining that they were not warned in advance.

This frenzy was partly triggered by concerns raised in Parliament by the SABC management painting a bleak picture of not being able to pay salaries in the future if the financial crisis at the public broadcaster doesn’t change.

The broadcaster’s Neo Momodu says that there was a technical problem on the bank’s side and has assured staff that they will be paid before the end of the day.

She’s also clarified that the SABC made all the necessary payments on time.

“We are handling the matter with the bank and we are sure that it will reflect in their accounts on 29 January. We’ve paid the salaries like we always do to the necessary banks so that they reflect with our staff. We are not in control of the cash. As far we are concerned as management, the salaries should have reflected in the staff’s bank accounts.”

By Luke Daniel for The South African 

Embattled state owned enterprises (SOEs) are South Africa’s biggest and most dangerous economic stumbling blocks.

This is according to the international rating agency, Moody’s, which points to Eskom’s major failings as a cause for national concern.

State owned enterprises all performing dismally
While speaking at the Investor Service’s conference on Thursday, the agency’s senior credit officer for infrastructure finance, Helen Francis, outlined the dire position most SOEs find themselves in.

The massive financial drain perpetuated by failing SOEs has been well documented. Eskom, in particular, has reported over R19bn in irregular expenditure and continues to rely on government bailouts to stay afloat.

Worrying, Eskom is undoubtedly the largest and most vital SOE – supplying 90% of South Africa with electricity.

Yet, the embattled national power supplier just can’t seem to get back on its feet, following Gupta interference involving former company boss, Brian Molefe. Recently, the company issued an ominous statement, bemoaning the fact that its coal reserves were dwindling as a result of dodgy tenders.

Looking across the entire SOE spectrum paints a dismal picture. It’s not just Eskom that is dying, and in that way draining the already unsteady economy of vital funds. Transnet, South African Airways (SAA), the South African Broadcasting Corporation, and many more national companies are failing to make ends meet.

Corruption still plaguing SOEs
Speaking to Fin24, Futuregrowth Asset Management’s, Olga Constantatos, said that turning the situation around would not be easy and that much more needs to be done.

Constantatos commented on the disease of corruption and gross mismanagement which afflicts both Eskom and Transnet, saying:

“Much more needs to happen. The latest results at Transnet and Eskom point to the circumventing of controls – with Eskom’s R20 billion in irregular expenditure and Transnet’s R8bn. We need to see prosecutions. We need to see arrests of people who were stealing money essentially from you and me.”

Constantatos added that there needs to be stiffer repercussion for SOEs which flout due process, and as such, essentially, steal from the taxpayer and investors, saying:

“As bond investors, we are custodians of the nation’s pension funds. We should not be allocating capital to institutions where there is malfeasance, or lend blindly to companies that are not responsible.”

SABC posts massive R977-million loss

The South African Broadcasting Corporation posted a R977m loss after tax for the 2016/17 financial year, its annual report tabled in Parliament on Tuesday revealed.

The public broadcaster’s net loss for the year ending March 2017 more than doubled from R412m in 2016, following a year of upheaval that included the dissolution of the permanent board in late 2016.

Revenue declined from R8.1bn in 2016 to R7.6bn, representing a 6% year-on-year decrease.

Advertising also dropped 5% to R5.6bn, in a year that saw former chief operating officer Hlaudi Motosoeneng implement the 90:10 local content policy in May.

Sponsorship revenue declined by 18% to R384m, while TV license revenue decreased 7% to R915m.

Operational expenses remained the same at R8.6bn.

The report also said that the SABC had a cash balance of R82m, representing a net outflow of R800m since the previous year.

“The fact that operational cash was used to fund capital expenditure projects, the cost of delivering on broadcaster’s public service mandate and the rising cost of Sports Rights contribute to the pressure being placed on the organisation’s cash reserves,” the report reads.

Turnaround

An interim board was appointed by President Jacob Zuma on March 26, 2017, following a lengthy inquiry process into the broadcaster and Parliament’s approval of 5 names to serve in the interim.

The new board, led by interim chairperson Khanyisile Kweyama, made inroads into turning the beleaguered broadcaster around, and has been praised by both the portfolio committee on communications and standing committee on public accounts.

The interim board’s mandate expires this week. The National Assembly approved a list of 12 names for non-executive board positions on September 5, which only await President Zuma’s approval.

They include all five interim board members.

The 12 are: Michael Markovitz, Khanyisile Kweyama, Mathatha Tsedu, Nomvuyiso Batyi, Rachel Kalidass, Victor Rambau, John Matisonn, Jack Phalane, Krish Naidoo, Febe Potgieter-Gqubule, Dinkanyane Mohuba and Bonbumusa Makhathini.

Source: MyBroadband

The Labour Court has found that the dismissal of four of the eight journalists fired by the SABC to be unlawful.

The court ordered that the journalists be allowed to return to work.

The SABC was also interdicted from continuing with the disciplinary action against them.

Trade union Solidarity, acting on behalf of four of the eight journalists — Foeta Krige, Suna Venter, Jacques Steenkamp and Krivani Pillay — lodged an application in the Labour Court in a bid to have dismissals overturned.

Eight journalists were suspended for questioning an editorial decision taken to ban the footage of violent protests where public property was being burnt. Following this seven of the eight were fired.

By Genevieve Quintal for BDLive

The South African Broadcasting Corporation (SABC) could‚ in an “extreme” case‚ have its licence revoked.

That is according to the Independent Communication Authority of SA’s (Icasa’s) Rubben Mohlaloga when questioned by 702’s John Robbie about SABC chief operating officer Hlaudi Motsoeneng’s reaction to its ruling against the broadcaster.

Motsoeneng had on Monday said “no one will tell us what to do” after Icasa made a decision that compels the SABC to reverse its ban on airing the destruction of property during protests.

Mohlaloga told 702 on Tuesday that various sanctions — from a caution to a fin‚ and‚ in extreme cases‚ a licence being “suspended or revoked” — were available to Icasa if the broadcaster did not comply with its rulings.

He says the SABC had seven days to comply or indicate that it would take the ruling on legal review.

The SABC’s Kaizer Kganyago later on Tuesday told the radio station that the SABC would take the decision to the courts‚ echoing Motsoeneng’s vow on Monday to approach the High Court or the Constitutional Court for relief.

“We are challenging that ruling … we are equal to the task‚” says Motsoeneng.

He had also said all newsrooms censored news in taking daily publishing decisions.

The fact that no good news was published showed that there was censorship in all news organisations‚ he says.

In May‚ Media Monitoring Africa‚ the SOS Support Public Broadcasting Coalition and the Freedom of Expression Institute lodged a complaint with Icasa’s complaints and compliance committee‚ challenging the validity of the SABC’s ban on protests.

In the aftermath of the ban‚ a number of senior journalists at the broadcaster face disciplinary action for questioning the decision.

The media briefing was disturbed by a protester who shouted “away with Hlaudi” and “history will judge you”. He was subsequently removed by security.

Source: www.bdlive.co.za

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