by Thinus Ferreira
The South African government's controversial plan for an expanded new TV tax described as "a road to hell" is gathering steam with claims that a law to force laptop and tablet owners as well as DStv, StarSat and Netflix subscribers to pay for the SABC will generate more money for the broadcaster and "will get people more interested in watching programmes of the SABC".
With only 24% - a falling percentage - of TV households still bothering to pay for a SABC TV Licence, the South Africa public broadcaster and the country's department of communications and digital technologies, are desperate to try and dig the struggling SABC out of its financial black hole through finding new additional income streams.
Part of the aggressive new plan contained in draft legislation from communications minister Stella Ndabeni-Abrahams, is to enlarge the fishing net of available SABC TV Licence revenue beyond the public broadcaster's own struggling collection fees division.
Changes to legislation would make private companies like pay-TV providers, as well as local and global video streaming services with a presence in South Africa, responsible for ensuring that their customers have a valid TV licence or to tack it on as a fee - whether those consumers watch the SABC or not.
Owners of tablets and laptops will also be forced to have and pay a SABC TV Licence whether they watch or consumer SABC content or not.
The initial inclusion of smartphones that was included in the plan as well has now been dropped from the Draft White Paper on Audio and Audio-Visual Content Services Policy Framework.
A grudge purchase
During an appearance of the SABC top executives and board as well as the department of communications before parliament's portfolio committee on communications on Tuesday and where the broadcaster shared details of its financial situation, it once again became clear how the vast majority of South Africans are going out of their way to avoid paying a SABC TV Licence.
A growing number of South Africans regard a must-buy SABC TV Licence as a once-off grudge purchase in order to buy a TV set.
In 2019 the SABC had 401 321 new TV Licence holders who paid for one just to buy a TV set. Of them, only 68 093 bothered to pay for a first-time renewal when it was due after a year.
"This percentage of 17% of first-time SABC TV Licence renewals have been higher in the past, so clearly either the evasion rate or the attractiveness of the SABC's content did not speak to our audiences," Yolande van Biljon, SABC CFO told parliament.
Meanwhile, the SABC sits with a massive 76% SABC TV Licence "evasion rate" meaning that 76% of South African TV households that the public broadcaster are aware of and send a SABC TV Licence bill to, do not bother to pay their annual licence fee.
Only 24% are still paying with the rate that keeps declining as the country's overall TV watching universe expands.
Besides the SABC's TV Licence database there are millions more South African TV households with one or more TV sets that the SABC is not aware of and that don't have licences.
There are also many millions more DStv and StarSat subscribers, as well as people with laptops and tablets, and a growing number of Netflix, Showmax and Amazon Prime Video subscribers.
'A road to hell'
On Tuesday Zandile Majozi, IFP MP, said "With the SABC draft bill moving for SABC TV Licence fees to the streaming services of Netflix - we support that. We believe it's a good strategy to begin with".
"It will generate more income for the public broadcaster and also it will get people more interested in watching programmes of the SABC".
Cameron MacKenzie, DA MP, warned that "we've seen a general public outcry at the minister's initiatives or ideas around collecting from Netflix and Showmax and MultiChoice and these other things of 'when you get a phone you must get a TV licence'."
"If you read the national mood, I think it will be very dangerous for any politician or any minister to go down in that direction - it really is a road to hell. I think we should stay well away from that," he said.
Pinky Kekana, the deputy minister of communications, said that "the industry is moving aggressively moving online and the SABC is trailing behind".
"The main goal is for us to declare the SABC as public service media. And once we do that, then it will be able to be competitive".
"If you look at the old TV1 which was predominantly English and Afrikaans, the old Springbok radio - they were well funded."
New 'public household levy' for the SABC
She said that the South African government is looking at introducing a type of "public household levy that can assist the SABC to then have proper funding".
"We must initiate some of the discussions, mindful of what Cameron MacKenzie was saying. We can't fold our arms and say the status quo must remain when we know our public broadcaster is dwindling".
"These are the things that we should put in the public arena and look at whether government can fund the SABC directly from the fiscus or whether we can be creative in looking at the household levy".
Pinky Kekana said that "both from the department's side and from the SABC's side we're working very closely together to say, 'What are the options?' And these are not conclusive. Members can still look into some of those things, and indeed even when the amendments to the audio and audio-visual white paper engagement takes place".