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The South African Broadcasting Corporation (SABC) has proposed a series of changes to South Africa’s television licensing while continuing to struggle with revenue collection.
In a presentation to the parliamentary portfolio committee on Tuesday (October 20), the national broadcaster said it needs a number of key regulatory reforms to remain viable in South Africa’s changing media environment.
The proposals come after meetings between SABC, Setench and the Independent Communications Authority of South Africa (Icasa), presented by the Department of Communications.
Some of the proposed changes include:
TV license change
The SABC said regulations around payment service providers like Multichoice (DStv) and video-on-demand providers like Netflix are needed to collect television licenses on behalf of SABC.
The SABC said this would be similar to municipalities collecting traffic tickets and motor vehicle license discs. The SABC said the expanded definition of a television license is outdated and must be adjusted to current realities.
In her presentation to parliament, Vice Minister of Communications Pinky Kekana indicated that TV licenses could be expanded to include other devices and not just televisions.
“How do we make sure, through Icasa, that they can also help us collect TV licenses, but are we not only limiting it to TV? We also have other platforms where people consume content and in all those areas is where we should see how we can get license fees from SABC from those devices, “he said.
Elimination of the mandatory transport rule
The SABC has also called for the removal of the mandatory transport rule. These regulations ensure that all subscription stations with more than 30 channels must transmit the three free-to-air television channels of the SABC.
However, contrary to the enabling legislation that provides for “commercial negotiations” between the parties, the regulations establish that the SABC “must offer its television programs, free of charge”, to the broadcasting stations by subscription.
The SABC said instead it wants to negotiate with pay TV providers to pay for these channels, as it noted that current regulations meant the deal was “unilateral” in favor of Multichoice.
Sports rights
SABC said that national sports (rights) should be available to SABC at “a very affordable price.”
The SABC says that TV license cash collections were severely affected during the coronavirus shutdown as its usual collection methods were shut down.
In a presentation for parliament In September, the national broadcaster said that Debt Collection Agencies (DCA) began collecting in the last week of May 2020 and there was a considerable improvement in June and July 2020 compared to previous months.
“The cash of TV Licenses for all sources of income began to improve slightly in June, the period in which many restrictions were relaxed and providers were able to operate,” he said.
“However, due to the economic climate that has had an effect on the cash disposition of licensees, compliance levels have not improved and are expected to steadily decline throughout the remainder of 2020.”
SABC said that the collection of television license fees is done on a monthly basis despite all the challenges faced. He added that there are plans in place to minimize the shortfall in cash collection.
These include new marketing campaigns, developments in technology requirements, campaigns to increase debit orders and settlements of delinquent license fees.
The broadcaster said its collection process runs internally prior to delivery to DCAs. These processes are repeated throughout the month depending on the customer’s payment patterns. Thereafter, unpaid accounts are turned over for debt collection after 60 days, he said.
A TV license is valid for twelve months and is renewed at the end of the license period.
“Licensees who have not made payment during the renewal phase will be referred to the debt collectors 60 days after the renewal date. This is the only recourse available to SABC to pursue payments from non-compliant licensees. “
Read: The government wants to establish new laws on TV licensing in South Africa
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