SABC to stream for free
NEW PLATFORM: GUNNING FOR THE LIKES OF SHOWMAX AND NETFLIX
Features full library of TV shows, radio podcasts, other exclusive content.
The SA Broadcasting Corporation (SABC) plans to launch the country’s first free public streaming service – to rival the likes of Showmax and Netflix – in the “second half of this year”.
This is according to the broadcaster’s newly appointed group executive for commercial enterprise, Reginald Nxumalo.
Viewers can look forward to a full library of their favourite SABC television shows, podcasts of radio shows and other exclusive content.
While the service will be free, users will have the option of buying a monthly subscription to skip the ads. The SABC plans to outsource the talent needed to create the entity and Nxumalo said the public broadcaster was in the process of inviting proposals from service providers to put the platform together.
“In the next month, we will be putting out requests for proposals,” said Nxumalo.
The new platform would, he added, comprise a library of SABC content for on-demand viewers.
While ideas for content were still being thrown around, Nxumalo said viewers could expect to see shows such as Generations, Skeem Saam and Isibaya, while sports fans could look forward to a library of iconic past soccer and rugby matches.
While he could not provide an estimate of how much revenue could potentially be made through this service, Nxumalo said the SABC hoped to eventually generate around half of its consumer revenue.
Recent sales data released by the SABC indicate a possible new dawn in its ability to make money. Despite revenue dipping by 50% in the first quarter of last year due to constrains of the lockdown by November, the SABC achieved advertising sell-out status on SABC1 and SABC2 during prime time, for the first time in over five years.
In December, radio revenue achieved 105% of its set budget in the same period, exceeding its target for the first time last year.
After recording a bleak bank balance, according to its last annual report, Nxumalo said these developments were a sign that things were taking a positive turn.
Despite being a state-owned enterprise and public broadcaster, the SABC only received a 3% grant from the state, said Nxumalo.
Financial pressures on the organisation were further worsened by SA’s technical recession and a shrinking global economy hit by Covid-19, which led to corporate advertisers reducing their marketing spend.
Notwithstanding the economic challenges, the SABC’s revenue generation strategy has begun to pay off, reporting a month-tomonth upward sales trajectory in its third fiscal quarter of 2020.
“Maintaining the momentum of growth, December’s revenue also surpassed the previous year by +7%.
“These accomplishments speak to the SABC’s commitment to turning the organisation around and becoming a financially sustainable entity,” said Nxumalo.
“It also validates that the SABC’s approach to re-engineering the way business has always been done, providing innovative media placement solutions for brands to advertise across multichannel platforms and looking for ways to add value to the organisation’s bottom line, is working.”
From a content perspective, the SABC’s free-to-air TV channels continued to perform well against local content targets, as set by the Independent Communications Authority of SA regulations.
SABC1 and SABC2’s full-day coverage exceeded their 65% target to reach an impressive 72.92% and 75.61% respectively. SABC3, as the public commercial services channel, achieved 60.39% against its 45% target.