Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      South Africa's stablecoin silence is becoming a policy failure

      South Africa’s stablecoin silence is becoming a policy failure

      6 February 2026
      Every electric car you can buy in South Africa in early 2026, ranked by price

      Every electric car you can buy in South Africa in early 2026, ranked by price

      6 February 2026
      From stocks to crypto, markets reel as AI doubts grow

      From stocks to crypto, markets reel as AI doubts grow

      6 February 2026
      South Africa deepens China ties as US trade tensions escalate

      South Africa deepens China ties as US trade tensions escalate

      6 February 2026
      Big changes at Lesaka as Bank Zero deal nears completion - Lincoln Mali

      Big changes at Lesaka as Bank Zero deal nears completion

      6 February 2026
    • World
      AI won't replace software, says Nvidia CEO amid market rout - Jensen Huang

      AI won’t replace software, says Nvidia CEO amid market rout

      4 February 2026
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Broadcasting and Media » SABC admits its funding model is broken

    SABC admits its funding model is broken

    With TV licence fee evasion still prevalent, the SABC has warned its funding model is no longer sustainable.
    By Amy Musgrave6 October 2025
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    SABC admits its funding model is brokenThe SABC’s business model is no longer fit for purpose, according to its CEO, Nomsa Chabeli.

    She said in public broadcaster’s annual report, published on Friday, that it was assumed that captive radio and television audiences would generate substantial commercial revenue that would then fund the SABC’s public service mandate.

    “The reality is that the world has shifted fundamentally. The market has opened to both global and local competitors, none of which has the same public interest obligations (and associated costs) as the SABC,” Chabeli said.

    The SABC must run hard to attract ever-decreasing advertising and sponsorship revenue in a hypercompetitive market

    “Most also have access to capital for their future because of shareholder commitments and investments. This means that the SABC must run hard to attract ever-decreasing advertising and sponsorship revenue in a hypercompetitive market, often without the means to acquire the compelling content for the right audiences that advertisers seek out.”

    The SABC’s revenue base has been eroded for years, with advertising spend moving from broadcast to digital and social media, while fewer and fewer people paid their TV licences. Although there was a 10.4% increase in collections last year, South Africans only collectively coughed up R758-million of R4.9-billion billed of which only R758-million, up from R686.5-million in the 2024 financial year. That bucked the trend from 2022 to 2024, when there was a decrease in TV licence collections.

    “We have continued to focus time and management attention on optimising licence fee collections, with some positive outcomes,” Chabeli said. “These efforts have now reached a point of diminishing returns. The challenge is that the SABC cannot fully control or innovate its business model independently. Investing in high-impact content requires capital to stay ahead of audience demand.”

    New model needed

    She said that for the broadcaster to shift to other sources of revenue requires a new, innovated funding model and changes to legislation and regulations.

    Last month, the department of communications & digital technologies appointed BMI-TechKnowledge Group (BMIT) to develop a new funding model for the SABC.

    BMIT must apply its expertise in economic modelling and market analysis to establish how the broadcaster carries out its public mandate in an era of collapsing TV licence compliance and shrinking advertising revenues. Proposals for a household levy or levies on streaming service providers like Netflix have been met with fierce resistance.

    Read: BMIT hired to develop new funding model for the SABC

    The BMIT proposals will form part of an updated SABC Bill, which will be reintroduced to parliament after communications minister Solly Malatsi last year withdrew the previous version of the bill – provoking a backlash from the ANC. Malatsi, a member of the DA, had objected to various aspects of the earlier bill, including the time it would have taken to develop a new funding model for the SABC and the powers it would have bestowed on him as minister.

    SABC CEO Nomsa Chabeli
    SABC CEO Nomsa Chabeli

    The TV licence fee revenue increase in the 2025 financial year was supported by improved performance from debt collection agencies, the onboarding of additional agencies and improved renewals.

    The SABC said that because the economy remains sluggish, with little or no real economic growth, this has put households and businesses under considerable pressure. This strain on household spending impacts both the marketplace and the budgets of advertisers, as well as the likelihood of households paying licence fees.

    Read: SABC wants VAT exemption on TV licences

    Also, more affluent viewers continue to migrate to online streaming and there is a general perception that licence fees do not need to be paid as viewers are “not watching SABC”. This has contributed to high levels of licence fee evasion and to a widespread consensus that the current licence fee regime lacks validity and legitimacy in the eyes of the public, said the SABC.  – © 2025 NewsCentral Media

    Get breaking news from TechCentral on WhatsApp. Sign up here.



    BMIT Nomsa Chabeli SABC Solly Malatsi
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAI takes the throne
    Next Article SABC warns its future is at risk as delays to key bill drag on

    Related Posts

    South African cloud market set to top R100-billion by 2029 - BMIT

    South African cloud market set to top R100-billion by 2029

    27 January 2026
    South African digital radio trial is about to go live - Aldred Dreyer

    South African digital radio trial is about to go live

    21 January 2026
    Icasa to target Sentech with tougher broadcast pricing rules

    Icasa to target Sentech with tougher broadcast pricing rules

    19 January 2026
    Company News
    The skills gap is a thinking gap: why South African employers can't find problem solvers

    The skills gap is a thinking gap: why SA employers can’t find problem solvers

    6 February 2026
    Vox Kiwi Wireless: fibre-like broadband for South African homes

    Vox Kiwi Wireless: fibre-like broadband for South African homes

    5 February 2026
    NEC XON achieves an African first with full Fortinet accreditation - Ian Kruger

    NEC XON achieves an African first with full Fortinet accreditation

    5 February 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    South Africa's stablecoin silence is becoming a policy failure

    South Africa’s stablecoin silence is becoming a policy failure

    6 February 2026
    Every electric car you can buy in South Africa in early 2026, ranked by price

    Every electric car you can buy in South Africa in early 2026, ranked by price

    6 February 2026
    From stocks to crypto, markets reel as AI doubts grow

    From stocks to crypto, markets reel as AI doubts grow

    6 February 2026
    South Africa deepens China ties as US trade tensions escalate

    South Africa deepens China ties as US trade tensions escalate

    6 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}