The Herald (South Africa)

Deputy communicat­ions minister may have a point

- CAIPHUS KGOSANA ● Kgosana is executive editor: opinions and analysis, Sunday Times

The SABC is a broadcaste­r that is very hard to like.

It is an antiquated behemoth broadcasti­ng via an analogue signal, beaming programmes so dreary they make watching paint dry exciting.

Because it is a state entity, the SABC also suffers from the same illness as the rest of the inefficien­t bureaucrac­y — it is overstaffe­d and burdened with a monstrous wage bill that drains its coffers.

The state intervened with a R3.2bn bailout last year to keep it from sinking.

No surprises then that a proposal by the SABC to allow regulation that expands the definition of TV licences to include streaming services such as Netflix has been met with such derision.

Presenting to parliament’s communicat­ions portfolio committee last week, deputy communicat­ions minister Pinkie Kekana said the public broadcaste­r wanted pay-TV services such as MultiChoic­e (DStv) and video-on-demand providers such as Netflix to collect TV licences on its behalf.

She said this would improve the financial position of the SABC by permitting it to collect licence fees from non-TV users.

I’m inclined to join the chorus of condemnati­on, but looking at the proposal closely, part of it makes sense.

Let me elaborate. Under SA law, no person can own a television set without a valid TV licence.

These fees, about R265 per set a year, are supposed to be a major source of revenue for the SABC.

But only a third of households pay their TV licences and the SABC spends millions of rand trying to chase nonpayers, using debt-collection agencies.

That South Africans are refusing to pay their licences is partly the SABC’s fault, but also because of the aggressive competitiv­e streak of MultiChoic­e, aided by misguided government regulation­s.

Africa ’ s biggest pay-TV operator has invested handsomely in compelling local and internatio­nal content, and has monopolise­d all sports rights.

Its acquisitio­n of the local Premier Soccer League was a stroke of genius.

Drive around any informal settlement and I bet you there’s a MultiChoic­e satellite dish sticking out of the roof of every shack.

It doesn’t help that government blundered by creating must-carry ” regulation­s, which allow pay-TV operators to carry the SABC’s public-service channels at no cost.

The SABC has branded these regulation­s unfair, saying they allowed pay-TV operators to benefit from its channels without paying for the content.

The public broadcaste­r is correct; MultiChoic­e and other pay-TV services must compensate it not just for the content on its public-service channels, but for every subscriber of theirs who owns a television set.

Many South Africans flatly refuse to pay the R265 annual TV licence fee, but are happy to subscribe to pay-TV at a cost of between R99 and R1,000 a month, depending on the bouquet they choose.

This is where government should be aiming, not at foreign streaming services.

It should set regulation­s that force MultiChoic­e to collect about R20 a month from each of its subscriber­s as a TVownershi­p levy.

That money should then be transferre­d to the SABC on a monthly basis, as replacemen­t for lost TV licence revenue.

Yes, MultiChoic­e may complain that this will increase the cost of subscripti­ons, but the operator can simply pass this cost on to the consumer, as a government requiremen­t.

Very few will cancel their subscripti­ons in protest.

That way it can continue carrying SABC channels without having to compensate the public broadcaste­r.

At last check, eight-million households subscribed to DStv.

That is a cool R160m a month or R1.9bn a year.

That would eliminate the SABC ’ s need for constant bailouts, while allowing payTV operators to continue with current arrangemen­ts that work so well for them.

A win-win for everyone.

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 ?? Picture: TYRONE ARTHUR ?? FUNDING PROBLEM: Deputy communicat­ions minister Pinky Kekana wants video-on-demand users to add to the SABC s coffers
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Picture: TYRONE ARTHUR FUNDING PROBLEM: Deputy communicat­ions minister Pinky Kekana wants video-on-demand users to add to the SABC s coffers ’
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