Reflections on the State of Public Service Broadcasting in South

Africa

Nomazulu Mda07 December 2009

PBI Conference: Kyoto, Japan 2009

OVERVIEW

– CONTEXT OF SOUTH AFRICAN BROADCASTING SYSTEM • EVOLUTION OF SA BROADCASTING: POST 1994• POLICY AND REGULATION• SECTORAL ARRANGEMENTS

– SABC STRUCTURE AND FUNDING MODEL– IMPACT OF THE GLOBAL ECONOMIC CRISIS– GOING FORWARD:

• THE PRESENT AND THE FUTURE OF SA PSB (THE NEW BILL)• PUBLIC OPINION• SABC POSITION ON THE BILL

– CONCLUDING REMARKS

INTRODUCTION

• HISTORICAL ANALYSIS OF SOUTH AFRICAN BROADCASTING SYSTEM POST 1994:

– Reform of Broadcasting System – Broadcasting Act of 1999– IBA Act of 1999 (later the ICASA Act)

• POLICY AND REGULATION– Policy function discharged by Ministry (and Department of Communications); also

responsible for Telecoms and ICT sector;– Regulation lies with the converged ICT regulator ICASA– Broadcasting Regulation delegated to industry body the BCCSA

• SECTORAL ARRANGEMENTS– Three tier Broadcasting System with the following arrangements– Public Service Broadcasting (currently done by the SABC)– Commercial Broadcasting (Free-to-air and Pay TV)– Community Broadcasting (mainly radio with 3 TV stations)

CONTEXT OF SOUTH AFRICAN PUBLIC SERVICE BROADCASTING

SABC STRUCTURE & FUNDING MODEL

• STRUCTURE– Public Broadcasting Service

• 15 PBS Radio in all 11 official languages; and• 2 TV national stations

– Public Commercial Service• 3 PCS Radio in English; and• 1 TV national station also in English

• FUNDING MODEL– 77% drawn from advertising revenue– 11% from TV licence fees– Balance from state grants & sponsorships

• ON THE SOUTH AFRICAN ECONOMY

- “Secondary” impact of the Crisis on the SA Economy due to:

- High committed government spending;- Fiscal and Capital outflow controls.

- Cushion for the SA economy: Economists consensus

• ON THE SABC

– Top 20 Clients cut marketing and ad spend by approx. 30% from the previous year.

– Rising Capex on:• International expansion• Merchandise• Infrastructure upgrades

– Revenue outflow mainly in foreign currency

– Net result: Loss of <ZAR900 million (<USD120 million)

IMPACT OF GLOBAL ECONOMIC CRISIS

Going Forward (I)

The Present and the Future (the PSB Bill)

ESSENCE OF BILL• To replace the Broadcasting Act of 1999;• To abolish the TV licence fee;• To establish a Public Service Fund funded from a special broadcasting tax.

IMPACT ON THE SABC• Proposes that public broadcasting service be no longer exclusive to the SABC;• Changes the funding model the SABC has become accustomed to.

PUBLIC OPINION• Depressed tax system and shrinking tax base?• Sufficiency of maximum collections vis-à-vis just SABC PBS budget?• Independence of the SABC???• Incompatibility of the Bill with the Constitution re the independence of the SABC.• Underlying motives for the Bill?

Going Forward (II)

SABC POSITION ON THE BILL

In principle the SABC welcomes the Bill because: • It confronts the funding of public service broadcasting in a developing country;• The current legislative framework is 10 years old.

On specific issues:• Editorial independence;• Concern over the sufficiency of the PSB Fund;• Administration of the Fund;• Governance issues e.g. proposals on board, and executive management

compositions;• Proposals that may lead to perceptions of government interference in the SABC.

CONCLUSION:• SABC must emerge a strong PSB;• Independence must be guaranteed;• Insulation from external factors.

Our Citizens