TV Licence fee changes coming for South Africa

The South African Broadcasting Corporation (SABC) says that there is no new market for TV Licences in the country, as the younger generation doesn’t see it as a legitimate thing.

Presenting to the Standing Committee on Public Accounts (SCOPA), the SABC said that TV Licence compliance is incredibly low, with most licence revenue coming from ‘legacy’ holders.

This refers to the same pool of people who have always had a licence and diligently pay the annual fees.

Outside of this, the broadcaster is not getting new licence holders, saying that many people typically use one of the ‘legacy’ licences to buy a TV.

Young people, in particular, will use their parents’ TV Licence, and when they move out, they will never get their own.

“There’s no new person like a young person that is buying a TV license,” it said.

“It’s the same people the people that were paying from day one (who) are the same people that are paying today.”

“The people that have not paid from day one are the people that are not paying today. It’s the same pool of people that are paying the TV license at the SABC.”

Fewer than 20% of TV Licence holders actually pay, it said.

The broadcaster pointed to other issues around the TV Licence regime and why people no longer see it as a ‘legitimate’ thing.

This is tied to thge rapid advancement of technology in the broadcast and media space, where people now access news and other content through various screens, like smartphones, tables, laptops, etc.

Past proposals to counter this trend were to introduce a household levy to raise funds for the SABC, but this and other funding models are up in the air with the SABC Bill put on ice.

“We are actually looking at this particular matter of the revised fund and model, whether or not it will replace the TV licence,” the group said.

The committee described the licence fees as the group’s basic income, amounting to approximately R800 million a year. This could be at risk should the current licence regime end without a smooth transition.

As part of its “path to sustainability”, the group presented a 7-point plan, including interim measures as it looks ahead to the establishment of a new funding model.

Included as a first step, it is looking to update TV Licence fees, which would entail applying to the shareholder—government—for an increase to the fee, and exploring alternative collection methods.

The current TV Licence fee is set at R265 per annum.

The SABC last hiked the fee in 2013, when it was raised from R250 to R265. The fee had been hiked previously in 2009, where it was increased from R225 to R250.

SABC revenue is at risk

The SABC appealed to SCOPA to assist it in creating a sense of urgency in government to support its plans.

It said it needs an enabling legislative and regulatory environment to succeed and reach financial sustainability.

With the SABC Bill in limbo, uncertainty persists on its path forward, and resolving the impasse on the bill is crucial to the group’s future.

Communications Minister Solly Malatsi officially withdrew the bill in November 2024 saying that it does not serve the long-term interests of the SABC or the South African public.

“Most importantly, the current version does not adequately address the most important element regarding the SABC’s sustainability: a credible funding model that will steer the public broadcaster to success,” he said.

One of the biggest criticisms of the bill was that it did not actually address the SABC’s funding model, effectively kicking the can further down the road.

Despite the broadcaster’s ongoing financial challenges and operational losses, the SABC Bill suggested a delayed funding model, giving the minister three years to develop a sustainable framework.

“This approach does not meet the urgency required to stabilise the broadcaster and risks perpetuating an outdated licensing structure that will not provide the SABC with the necessary resources to fulfil its mandate,” Malatsi said.

However, the portfolio committee on communications called the move unconstitutional, saying that it never accepted the withdrawal of the bill by the minister, claiming that ministers do not have the authority to do so unilaterally.

This has created an impasse, reflective of the greater shift in government where various ideologies are in play, and conflicts are arising between political parties inside the Government of National Unity on how to manage portfolios.

As it currently stands, the bill is listed as in progress.