Plan signals possible end to TV licences in South Africa
A long-standing system may be nearing its conclusion as plans take shape to replace TV licences with a modern funding model.
South Africa may be entering a period of major change in how public broadcasting is funded, with strong indications that the current TV licence system is approaching its end. Government and SABC leadership have openly acknowledged that the existing model no longer reflects how audiences consume content, nor does it provide the financial stability the public broadcaster requires. As a result, alternatives are now being actively developed to replace TV licence fees with a more sustainable and modern approach.
What has prompted the push to end TV licences?
The TV licence scheme has long been intended as a primary source of income for the South African Broadcasting Corporation (SABC). In practice, this goal has become increasingly difficult to achieve. A steady rise in non-payment has left the broadcaster under severe financial pressure, with fewer households contributing despite continued access to content across multiple platforms.
According to MyBroadband, avoidance of TV licence payments has grown significantly over the past few years, increasing from 69% in 2019 to 85% in 2025. This sharp rise has placed the sustainability of the system into question, a reality that has been publicly acknowledged by both the SABC’s executive leadership and its board.
How has SABC leadership responded to the failure of the system?
In mid-November 2025, SABC board chair Khathutshelo Ramukumba stated that reliance on TV licence fees is no longer viable. He pointed to changes in viewing habits, noting that many South Africans now consume media through smartphones, laptops, gaming consoles, and streaming platforms rather than traditional television sets.
Ramukumba highlighted that international series, podcasts, and short-form digital content dominate modern viewing, leaving the TV-based licensing model increasingly disconnected from reality. In his view, this shift makes it unreasonable to expect a system tied to television ownership to support a national broadcaster in the digital age.
Is the SABC TV licence scheme considered outdated?
SABC CEO Nomsa Chabeli has also acknowledged that the TV licence scheme has failed. While she agrees that the system is no longer relevant, her explanation focuses on broader payment behaviour within the country. Chabeli has attributed widespread non-payment to a long-standing culture of avoiding fees for services, a challenge faced not only by the SABC but also by providers of electricity and water.
She has described the TV licence model as archaic and outdated, stressing that the introduction of a new funding approach is essential for the broadcaster’s survival. In her view, continuing with the current scheme is not an option if the SABC is to remain operational and fulfil its public mandate.
What replacement models are being considered?
Both Ramukumba and Chabeli have expressed support for a universal, technology-neutral public media levy. This levy would apply regardless of the type of device used to access content and would be collected by the South African Revenue Service. The intention is to align public broadcasting funding with modern consumption habits while improving compliance through the existing tax collection framework.
Chabeli has also mentioned funding from the national fiscus as another possible option, which would require National Treasury to directly support the SABC’s operations. Ramukumba, however, has opposed this approach, arguing that repeated bailouts undermine the broadcaster’s independence and do not provide a lasting solution.
Why is a new funding model seen as critical?
The SABC’s financial pressures extend beyond licence fee avoidance. Advertising revenue has been declining, and the shrinking base of paying licence holders has intensified the strain. Ramukumba has stated that the broadcaster does not require ongoing bailouts, but rather a structured and sustainable funding intervention that recognises its public value while safeguarding its independence.
This perspective has reinforced the view that a systemic change, rather than temporary financial support, is necessary to stabilise the organisation.
Who is developing the new funding framework?
The Department of Communications and Digital Technologies has appointed BMI TechKnowledge to develop a new, sustainable funding model for the public broadcaster. The appointment was made in September 2025, with the department describing it as a key step in securing the future of the SABC and its mandate.
BMI TechKnowledge is a South African research and advisory firm with experience in economic modelling, broadcasting market analysis, and regulatory policy support. Its role is to assess viable funding alternatives and propose a framework suited to current and future media consumption patterns.
Why has the process been delayed?
Communications minister Solly Malatsi has confirmed that finalisation of the new funding model has been slightly delayed. The original deadline of 15 December 2025 was extended to 6 February 2026 at the request of BMI TechKnowledge.
The company cited work disruptions during the festive season and limited stakeholder availability in December as reasons for the extension. The department approved the request to allow for a more thorough and inclusive consultation process with relevant stakeholders
What happens once the model is finalised?
Malatsi has indicated that a first draft of the funding framework is expected by mid-December, with the final report anticipated by early February. However, implementation will not be immediate. Any public sector funding model has implications for how Treasury allocates resources, meaning further consultation will be required.
The department will engage with the Minister of Finance once proposals are submitted, a step that underscores the complexity of transitioning away from TV licences. While the direction appears clear, the practical steps towards ending the current system are still unfolding, signalling that the conclusion of TV licences may be approaching, but not yet complete.
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