Thursday, June 11, 2020

South Africa's public broadcaster once again restructuring, SABC looking to switch to a new operating model to ensure financial viability.



by Thinus Ferreira

South Africa's public broadcaster is once again restructuring with the SABC that announced on Thursday that it is looking to switch to and implement a  new "Target Operating Model" to ensure that the struggling broadcaster can get to and then maintain itself as a financially stable and self-sufficient broadcaster not requiring government bailouts.

The SABC says it has started talks with staff, as well as internal and external stakeholders about a new operating model - something which has been hastened because of the devastating impact of the Covid-19 coronavirus on the SABC's finances.

The SABC's suggested new operating model has been developed to meet new business requirements and market conditions with the broadcaster that says that the "strategic renewal initiative is aimed at overhauling the SABC into a fit-for-purpose public broadcasting service that is financially sustainable, self-sufficient and appropriately capacitated to execute its mandate effectively".

The SABC said that its operations have been "severely impacted by the ongoing economic downturn, ever-changing consumer needs and content consumption patterns as well as rapid technological advancements".

"The Covid-19 pandemic has now added further complexity and has accelerated the need for the SABC to act with urgency in ensuring that crucial business fundamentals are preserved as the trading environment continues deteriorate".

"The newly-developed target operating model enables the SABC to reinvent itself, review its business model and revenue portfolio, and to holistically reassess its input costs as well its resource capacity."

The SABC says that the suggested operating model will give the SABC "capacity to fulfil audience needs and preferences, meet market demands in a more competitive and efficient manner, whilst allowing for flexibility to respond timeously to perpetual dynamics in business environment".

The SABC says that a skills audit of staff is underway and that the broadcaster has started engagements with staffers, labour representatives and other stakeholders "outlining the unavoidable and urgent need for this strategic renewal initiative".

Madoda Mxakwe, SABC CEO, says "We fully acknowledge that this is a journey that requires level-headedness, collective consideration and cooperation".

"This process is aimed solely at ensuring the long-term existence of a resilient and sustainable public broadcaster that will continue to comprehensively and diligently serve millions of South Africans who rely on it for education, information and entertainment."

"We have an obligation to recreate an SABC that will outlive us, an SABC that will survive another 84 years and serve several generations to come."