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
      The trap that stops MTN and Vodacom eating Cell C's lunch

      The trap that stops MTN and Vodacom eating Cell C’s lunch

      23 August 2026
      Cell C in talks with Starlink and Amazon Leo

      Cell C in talks with Starlink and Amazon Leo

      23 August 2026
      Cell C launches 5G

      Cell C launches 5G

      21 August 2026
      MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

      MVNOs are doing the heavy lifting at Cell C

      21 August 2026
      Hot rand is cold comfort for tech buyers

      Hot rand is cold comfort for tech buyers

      21 August 2026
    • World
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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.

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    BMIT Nomsa Chabeli SABC Solly Malatsi
    WhatsApp YouTube
    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

    Cell C in talks with Starlink and Amazon Leo

    Cell C in talks with Starlink and Amazon Leo

    23 August 2026
    South Africa's AI neutrality has not yet been tested - Solly Malatsi

    South Africa’s AI neutrality has not yet been tested

    20 August 2026
    SpaceX breaks cover at Icasa satellite spectrum hearings

    SpaceX breaks cover at Icasa satellite spectrum hearings

    20 August 2026
    Company News
    Paratus Uganda first to market with Starlink service

    Paratus Uganda first to market with Starlink service

    21 August 2026
    Smarter operations take centre stage at Electra Mining Africa 2026

    Smarter operations take centre stage at Electra Mining Africa 2026

    20 August 2026
    Fidelity turns to Sigfox to spot fires before they start

    Fidelity turns to Sigfox to spot fires before they start

    19 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    The trap that stops MTN and Vodacom eating Cell C's lunch

    The trap that stops MTN and Vodacom eating Cell C’s lunch

    23 August 2026
    Cell C in talks with Starlink and Amazon Leo

    Cell C in talks with Starlink and Amazon Leo

    23 August 2026
    Cell C launches 5G

    Cell C launches 5G

    21 August 2026
    MVNOs are doing the heavy lifting at Cell C - Jorges Mendes

    MVNOs are doing the heavy lifting at Cell C

    21 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}