The SA TV licence as we know it is dead! This isn’t just the sentiment of millions of South Africans who mostly consume streamed entertainment. No, this is the assertion of the Minister of Communication and Digital Technologies himself, Solly Malatsi.
Last year, the minister admitted the SA TV licence funding model as we know has collapsed. As such an independent research and advisory firm, BMIT, was tasked with coming up with alternative models to keep the SABC alive. However, it is yet to deliver its report to government …
SA TV LICENCE FUNDING MODEL
Last year, The South African reported how the public broadcaster owes Sentech approximately R1.2 billion in unpaid signal distribution costs. Of course, the root cause is a lack of revenue generated by the SA TV licence.
According to Broadcast Media, licence-fee avoidance has surged from 69% in 2019 to 85% in 2025. As such, the SABC says it cannot afford to pay suppliers or create any meaningful television shows. However, civil advocacy groups are appalled at how SABC top executives are still paid millions each year.
INDEPENDENT RESEARCHERS DRAG THEIR HEELS
Minister Malatsi, speaking to the SABC, said that his department is still awaiting a report on various funding options. The overdue report was initially expected to be delivered before yearend in December 2025. However, BMIT missed that deadline and has been given an extension to Friday 6 February 2026.
The reason for the delay, it says, was BMIT’s lengthy consultations with stakeholders and disruption of the end-of-year holiday. However, the matter remains critically urgent, because without reform the SABC risks complete collapse, leaving millions of poor South Africans without access to any public broadcasting.
WHAT ARE ALTERNATIVES TO SA TV LICENCE?
Several alternatives to traditional TV licences are being explored:
1. Broadcasting Tax
- The leading alternative is a universal, public Broadcasting Tax collected by the South African Revenue Service (SARS). This unpopular idea recognises that South Africans now consume content on phones, laptops and streaming devices. This approach is similar to Germany’s ‘solidarity’ model.
2. Direct Treasury Funding
- Direct funding from the National Treasury could provide the stability the SABC needs. But it raises concerns about editorial independence and the risk of fraud, corruption and state capture.
3. Levy on Streaming Services
- A levy on all international and local streaming services to generate funds for the public broadcaster.
4. Hybrid Model
- Independent researchers have put forward a hybrid model. This includes a commercial model, endowment funding and public-private partnership (PPP) to combine multiple revenue streams.
BROADCASTING TAX VS SA TV LICENCE
However, while it looks to be the easiest, Minister Malatsi stressed the Broadcasting Tax remains merely a singular proposal and has not yet been adopted. The Minister of Finance Enoch Godongwana is being consulted on alternatives to the SA TV licence. He insists it must be fair and feasible, especially for poor households with limited income.
The 2026 Budget Speech is set for Wednesday 18 February and that would be an ideal date to announce government’s new plans. However, given the general outlook of the economy and disposable income among poor households, “the idea of yet another tax will certainly spark debate,” concluded Malatsi.
But what do you think? Will a Broadcasting Tax spark debate or cause outage? Is there any way to replace the traditional SA TV licence? Or should the SABC just be left to dissolve? Let us know in the comments section below …
