The SABC\u2019s latest annual report shows a drastic decline in revenue from TV licences.<\/p>\n
According to the 2017 report, revenue of R847.4 million was collected through television licence fees.<\/p>\n
This figure is R449.4 million \u2013 34.7% \u2013 below budget, representing a decrease of R178.5 million \u2013 17.4% \u2013 compared to the previous year.<\/p>\n
\u201cThe revenue was negatively affected due to the decline in revenue collections from renewals and debt collection revenue streams,\u201d said the SABC.<\/p>\n
TV licence fees are collected from households and businesses which own a TV.<\/p>\n
The SABC has been plagued with problems in recent years, which are linked to its former COO Hlaudi Motsoeneng.<\/p>\n
Under Motsoeneng, many dubious decisions were made \u2013 which included\u00a0granting himself a large salary increase<\/strong><\/a>\u00a0and enforcing a 90% local content rule<\/strong><\/a> on radio stations.<\/p>\n It was not long before the broadcaster faced serious challenges, including\u00a0large losses and slowing revenue<\/strong><\/a>.<\/p>\n At the end of the past financial year, the SABC was facing a financial crisis \u2013 which saw it unable to meet its contractual commitments.<\/p>\n Monthly revenue was lower than embedded expenditure, and certain content providers could not be paid timeously.<\/p>\n This has the potential to collapse the scheduling programme of the SABC.<\/p>\n The SABC\u2019s state of finances led to banks cancelling loan facilities, which further exacerbated the broadcaster\u2019s poor financial situation.<\/p>\n While the SABC started to collapse, loyalists of President Jacob Zuma \u2013 which included the communications minister \u2013 defended Motsoeneng and the SABC\u2019s operations.<\/p>\n The public grew tired of the corruption and maladministration<\/strong><\/a> at the SABC, and widespread condemnation and public protests followed.<\/p>\n It is therefore not surprising that the public has lost faith in the SABC and stopped paying their TV licences.<\/p>\n The broadcaster is aware of this problem, and said the lack of confidence in the offerings of the SABC by audiences and advertisers will need to be addressed.<\/p>\n This looks unlikely to happen, however, with new reports emerging that Zuma and his allies want to control the SABC<\/a><\/strong>, its board, and key executive positions.<\/p>\n
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