BREAKING. At the SABC 'short term cost cutting is happening on content, posing a longer term risk for the SABC.' - National Treasury.

The SABC is trying to save money by cutting down on content and the cost of content which is going to have an impact on advertisers and eventually advertising revenue, and that is posing a long term risk, the National Treasury warned the South African government and the SABC in parliament today.

''In terms of the SABC's cost cutting, basically what's been happening is that people cost has not been cut but there is a significant saving of R600 million on content management,'' said the National Treasury chief director Avril Halstead. 

''There was a saving on content, but obviously content drives your programming schedule,'' she said. ''Your programming schedule drives who wants to advertise, and therefore drives your advertising revenues. We're worried that short term cost cutting is happening on content management but it's posing a longer term risk for the SABC in losing advertising revenue and losing market share. That ultimately will have a negative impact on the institution. Meanwhile the SABC is failing in achieving savings in people costs,'' said Avril Halstead.

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