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SABC’s dependence on advertising unsustainable: Ntshaveni – SABC News

NEC member Khumbudzo Ntshaveni of the African National Congress (ANC) says the political conference’s Communications Commission, which she chairs, agrees that there must be other ways to fund public broadcaster SABC.

She says delegates at the party’s policy conference in Nasrec, south of Johannesburg, agree SABC’s heavy reliance on advertising is untenable and the government should ensure that the public broadcaster has access to adequate resources.

Ntshaveni says newly proposed broadcasting guidelines will focus on the public broadcaster.

“SABC has both the commercial and the public mandate. As far as public service is concerned, we want the SABC to be financed from the national treasury, but we also propose a broadcasting levy because the television license does not work. And SABC’s commercial wing needs to be allowed to compete, regulated the same way as the commercial wing, and so they need to compete in that space.”

revenue

In March, Parliament’s Standing Committee on Public Finances (Scopa) heard that SABC had no intention of approaching the Treasury with a cap in hand, despite declining revenues.

The public broadcaster had informed Scopa of irregular, unsuccessful and wasteful spending for the 2020/21 financial year. Some of the financial problems were blamed on previous management.

The Ministry of Communications, which represents the government as a shareholder in SABC, has expressed concern over the public broadcaster’s falling revenues.

“The declining revenue we are seeing if left unaddressed could pose a significant threat to SABC going forward. Management is adamant that no further bailout will be needed, but it remains a concern on our part,” Deputy Secretary for Communications and Digital Technologies Philly Mapulane said at the time

But SABC blamed costly signal distribution.

“Due to our unique role and very high cost structure, signal distribution costs are still one of the main costs SABC faces and we are currently in talks with Sentech through the Competition Commission to have the tariffs reviewed and this will save us R250 Millions and make SABC profitable,” said SABC CEO Bongumusa Makhathini.

SABC’s dependence on advertising unsustainable: Ntshaveni – SABC News

Source link SABC’s dependence on advertising unsustainable: Ntshaveni – SABC News

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