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OVERVIEW CONTEXT OF SOUTH AFRICAN BROADCASTING SYSTEM EVOLUTION OF SA BROADCASTING: POST 1994

Reflections on the State of Public Service Broadcasting in South Africa Nomazulu Mda 07 December 2009 PBI Conference: Kyoto, Japan 2009. INTRODUCTION. OVERVIEW CONTEXT OF SOUTH AFRICAN BROADCASTING SYSTEM EVOLUTION OF SA BROADCASTING: POST 1994 POLICY AND REGULATION SECTORAL ARRANGEMENTS

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OVERVIEW CONTEXT OF SOUTH AFRICAN BROADCASTING SYSTEM EVOLUTION OF SA BROADCASTING: POST 1994

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  1. Reflections on the State of Public Service Broadcasting in South AfricaNomazulu Mda07 December 2009PBI Conference: Kyoto, Japan 2009

  2. INTRODUCTION 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

  3. CONTEXT OF SOUTH AFRICAN PUBLIC SERVICE BROADCASTING • 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)

  4. 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

  5. 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

  6. 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?

  7. 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.

  8. Our Citizens

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