The South African Broadcasting Corporation (SABC) has reported a net loss of R253.3 million for the 2024/25 financial year, despite a modest increase in revenue from TV licence collections.
This marks a widening of the public broadcaster’s financial deficit compared to the R197.8 million loss recorded the previous year.
According to the SABC’s annual report, TV licence revenues rose by 10% year-on-year, largely due to intensified collection efforts.
However, compliance remains alarmingly low, with only 15% of licence holders paying their fees.
The broadcaster billed nearly R4.94 billion, but was only able to recognise R758 million in revenue – meaning it effectively lost over R4.2 billion due to widespread non-payment.
“TV Licences amounting to R4.936 billion were billed, of which only R758 million met the criteria to be recognised as revenue,” the SABC noted in its report.
Public Mandate, Private Struggle
The SABC highlighted that its unfunded public interest mandate – including providing educational, cultural, and rural content – amounts to R2.1 billion annually. It said securing sustainable funding remains a critical priority.
To that end, the Department of Communications and Digital Technologies has appointed BMIT TechKnowledge to develop a new long-term funding model.
Alternatives under consideration include a household levy – similar to Germany’s public broadcasting tax – or a streaming services levy targeting platforms like Netflix and Showmax.
Audit Praise, Financial Woes
Despite its financial losses, the SABC received an unqualified audit opinion from the Auditor-General of South Africa (AGSA) for the second consecutive year, signaling sound financial reporting and internal controls.
“Receiving an unqualified audit opinion for two years running is a clear indication that the SABC is on the right path,” said CEO Nomsa Chabeli.
“We are committed to restoring financial stability and serving South Africans with integrity.”
The End of TV Licences?
TV licence compliance continues to be a major concern.
The SABC’s current licence model has seen avoidance rates of up to 85%, prompting industry stakeholders to call for reform.
The broadcaster has supported proposals for a modernised collection system – possibly involving the South African Revenue Service (SARS) – or requiring DStv to collect fees on the SABC’s behalf.
However, MultiChoice has publicly rejected this idea, calling it “unfair and unworkable.”
While no final decision has been made, Communications Minister Solly Malatsi has described the development of a new funding model as “a major milestone” in safeguarding the SABC’s future.
“This is not just about fixing balance sheets – it’s about securing a strong, independent public broadcaster for future generations,” Malatsi said.
Looking Ahead
The SABC projects a return to profitability by 2026/27, driven by a shift toward digital platforms, commercial growth, and renewed audience engagement through SABC+, its streaming platform.
But with R4.2 billion in unpaid licence fees and rising operational costs, the clock is ticking on finding a new funding solution – and public trust will be critical in whatever comes next.
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