TV Licence fee hike could be on the cards
The SABC is seeking to increase TV Licence fees as part of its efforts to achieve sustainability, citing low compliance rates and an outdated funding model.
The South African Broadcasting Corporation (SABC) is looking to update TV Licence fees as part of its path to sustainability. The current fee stands at R265 per annum and has not been increased since 2013.
The SABC plans to apply to the government for a fee hike and explore alternative collection methods, reports BusinessTech.
TV Licence compliance is reportedly incredibly low, with fewer than 20% of licence holders actually paying. The SABC attributes this to the younger generation not seeing the TV Licence as a legitimate thing.
Many young people use their parents' TV Licence and when they move out, they never get their own. The broadcaster says that it's the same pool of people who have always paid the licence fee that continue to do so, with no new licence holders being acquired.
The licence fees amount to approximately R800 million a year, which is the SABC's basic income. The broadcaster has presented a 7-point plan to achieve sustainability, including interim measures to update TV Licence fees and explore alternative collection methods.
The SABC is working to ensure a smooth transition to a new funding model to avoid disrupting this income stream.
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