Group report, submitted to the Commission. The Media Portfolio Board, showed that TV royalties generated revenue of Rs 815.1 million in 2022, up from Rs 788.4 million in 2021, up 3.4% year-on-year.

The broadcaster considers an increase in fees paid for a successful media campaign – however, even with a slight increase, they note that the fee collection compared to a total of Rs 4.4 billion has been set up. bill

Only 18.3% of total license fees were billed as revenue, similar to 17.9% recorded in 2021, SABC said

Recorded by the Broadcasting Commission. Note that the TV license fee evasion rate is therefore still worrisome, as the license fee collection rate shows a evasion rate of 81.7% in 2022, similar to the 82.1% indicated in year 2021.

SABC has a database of 10.5 million licensees – which means there are still about 8.6 million TV licensees.

Above all, SABC realized that there was not much they could do about the situation.

“While there are legal requirements to allow imprisonment for non-compliance, limited resources and cost implications make enforcement economically unfeasible,” SABC said, adding that added that the cost of television royalties was also higher than last year, reaching 8.9%. from 8.1% by 2021.

Proposed changes to address non-compliance

to replace the current TV license system with what would be called a “public media tax” – in an effort to limit the high levels of television license fee fraud .

National broadcaster said the new tariffs would not be suitable for equipment and would apply to all households and businesses.

It will also depend on whether or not South Africans can access the content, not just whether they view it. As a result, South Africans will have to pay royalties even if they don’t watch SABC content – just being able to access it on any device is enough.

ANC also supported this proposal. Speaking at a post-conference briefing in August 2022, Communications Minister Khumbudzo Ntshavheni said the party had decided to continue the proposal, noting that the current television licensing system was not working.

“The public broadcaster must be strengthened. SABC has both commercial mandate and public trust. On the public side, we want SABC to be funded by the national tax authority, but we also propose to tax households,” she said.

“Television license agreement doesn’t work, it really affects SABC’s viability.”

SABC says the adoption of a new TV licensing system in South Africa is one of the key interventions that need to be taken to make the national broadcaster financially viable.

Finance

SABC reported a loss after interest and taxes of Rs 258 million and a negative operating cash flow for the financial reporting period of Rs 353 million.

Unspent balance R86 million from refinancing capital of R3.2 billion from shareholders stabilized the cash position of the company. SABC said its working capital remained stable, with current net assets of Rs 677 million.

Even so, according to SABC, the company is expected to break even in 2022/23