South Africa's struggling public broadcaster that is mired in financial problems despite another billion rand government bailout is facing possible collapse the City Press newspaper reported on Sunday.
The overstaffed and bloated SABC wants to get rid of thousands of workers and told parliament two months ago that the impact of the Covid-19 coronavirus pandemic in South Africa has caused a predicted shortfall in revenue of at least R1.7 billion for its current financial year.
The SABC also told parliament last month that it needs and has applied for additional government funding relief to help make up for the revenue shortfall because of Covid-19.
South Africa's governing ANC political party and its current disgraced minister of communications, Stella Ndabeni-Abrahams, are against retrenchments at the struggling SABC and doesn't want the public broadcaster to lower its salary bill as its single biggest expense.
As the biggest cost driver at the SABC, a whopping 41% of the struggling broadcaster's expenditure goes to just paying salaries. Shockingly, the SABC only spends 22% on actual content.
"It is time for a collaborative approach by all stakeholders to deal with the huge cost base that threatens the the viability of the SABC," the broadcaster says.
According to documents from the SABC's board and executives, the public broadcasters is imploring that "We must collectively ensure that the SABC does not collapse under our watch".
According to City Press, the SABC held a virtual meeting with trade unions Bemawu and CWU on Friday "about measures to prevent a collapse".
The SABC describes its latest financial battle amidst Covid-19 in the document as "the most critical for the future and sustainability of this 84-year old institution" given "the dwindling advertising revenues in the industry and the SABC".
The SABC says it has looked at the role of MultiChoice and eMedia Investments that runs e.tv and the Openview satellite platform, online video streaming services like Showmax and Netflix, and evolving consumer behaviour and that the SABC will have to reinvent itself.
"Against this backdrop the SABC must reposition itself and get ready for the future with customer-centred business models. A target operating model provides an ideal framework for this."
"The proposed target operating model will give birth to a redesigned SABC that is modern, agile and is future-focused"," the SABC says.