SABC CEO Madoda Mxakwe said the public broadcaster’s revenue generation has improved on a monthly and quarterly basis despite the current tense economic environment.
He says the SABC News has also achieved 97% of its turnaround strategy, but still needs to work hard to increase its revenue for sustainability.
Mxakwe virtually briefed the NCOP Select Committee on SOEs and Communications of SABC’s plans to address its operational and financial challenges.
âWhen we even got the bailout, there were certain prerequisites that accompanied a variety of activities in line with all of our strategic pillars as SABC. These were properly completed and thanks to the commitment and hard work of all SABC employees who ensured that we are now at 93% of the implementation of the turnaround plan. But the very important thing for us is to make sure that we develop a huge appetite when it comes to income growth and we have seen especially in a very tight economic environment that month to month and quarter over quarter we have improved dramatically when it comes to generating revenue.
SABC The chairman of the board, Bongumusa Makhathini, said it was important for pay TV industry players to help collect TV license fees.
Makathini was speaking in his opening remarks when he appeared virtually before the NCOP select committee on state-owned enterprises and communications.
The SABC informs the committee of plans to address the operational and financial challenges of the public broadcaster.
Currently, some SABC channels and content are streamed for free on DTSV.
Makhathini says the proposed future TV license collection will require the participation of pay TV role players.
âOur offer to collect TV license revenue, we made a submission on that in terms of how we see the future of TV licensing, but our ability to collect as much as we can in this area is really getting Pay TV (role) players who are assisting us in these fundraising efforts. This is important. Of course, with the pandemic, there is a drop in advertising revenue and the SABC, of course, is also affected by what is happening in the world in terms of the ability to attract advertising revenue due to the pandemic. “
Earlier this month, Deputy Communications Minister Philly Mapulane expressed concern about the poor financial performance of the SABC, as identified by the Auditor General. He said it could impact his current status.
The report that the SABC only managed to increase revenue by 5 billion rand while spending exceeded 6 billion rand.
Mapulan said Minister Khumbudzo Ntshavheni was dealing with this issue in an attempt to help the SABC to turn the corner.
He added, however, that the ministry is satisfied with the general condition of the SABC and that it has achieved stability of governance and leadership.
âIf we don’t do much in terms of increasing revenues and reducing expenses, we could find ourselves in an untenable situation. The decline in advertising revenue is of concern, which we have also expressed with the SABC to make efforts to ensure they address the issue.