Public broadcaster to launch a SABC TV Licence loyalty programme with tiered-rewards to try decrease licence fee evasion rate.

by Thinus Ferreira

South Africa's public broadcaster will launch a SABC TV Licence loyalty programme, with tiered-rewards, in an attempt to get more TV households to pay their annual TV Licence fee.

According to the SABC's latest financial report of 2021/2022, only 18% of TV households which are on the SABC's books and which the broadcaster is aware of, still bother to pay a SABC TV Licence fee.

Millions more households owning TV sets without any licence and which the SABC is not aware of, are watching MultiChoice's DStv, StarSat, video streamers and other video content without any licence. 

After billing R4.446 billion in total SABC TV Licence fees during its 2021/2022 financial year, the SABC made only R815 million - meaning that a whopping 81.7% of people who have or once had a SABC TV Licence are simply not paying it, known as the fee evasion rate.

Meanwhile, the SABC spent R73 million rand on SABC TV Licence fee collection, which increased R9 million from R64 million in the previous financial year - meaning that the SABC's collection cost rate climbed further from 8.1% to 8.9%.

Now the broadcaster wants to start a SABC TV Loyalty programme.

"Why we had a slump in SABC TV Licence collections is that two of the agencies that were collecting on our behalf were underperforming and we had to terminate those agreements and go back to market and bring new ones onboard," Ian Plaatjes, SABC COO, told parliament.

"We'll be implementing a SABC TV Loyalty programme. The timing of this is really divine if you really think in terms of our streaming service SABC+ which wasn't on the cards before. Now we'll have a TV Licence Loyalty programme that we can link into that and so our marketing department is working out campaigns around that."

The SABC wants a TV Licence Loyalty programme that integrates with its existing TV Licence database, offers tier-specific rewards to customers, allows them to earn rewards, and enables the easy spending, transfer and donation of earned rewards.

The loyalty programme must also offer promotions, competitions and surveys.

MultiChoice adjusts DStv Rewards tiering levels upwards from July, making it more difficult after less than a year for DStv customers to get a gold star for its loyalty programme.

by Thinus Ferreira

From July, MultiChoice is making it harder to earn a gold star with the pay-TV operator that is adjusting upwards the points needed for the tiering levels of DStv Rewards and with the change coming 8 months after it launched its loyalty programme in November 2020.

MultiChoice isn't giving any explanation for the tiering points adjustment with DStv subscribers who join DStv Rewards who will now be required to earn more points or stars to reach the various star-levels of the loyalty programme from 1 July 2021.

MultiChoice is adjusting the tiering requirements after DStv Rewards has been in operation for just over half a year.

DStv Rewards introduced four different star-based tiering levels in late-2020. The higher the level, the more rewards a DStv subscriber earns. The more DStv products and services a customer uses the more points they earn as they progress up through the various tiering levels.

DStv Rewards launched with Blue Star Starter Status (0 - 30 stars), Silver Rising Star Status (31 - 60 stars), Gold Super Star Status (61 - 90 stars) and Platinum Legend Status (91+ stars).

From July all the levels require more stars. Blue Star Starter Status is changing to 0 - 33 stars, Silver Rising Star Status is changing to 34 - 63 stars), Gold Super Star Status is changing to 64 - 93 stars, and Platinum Legend Status can now only be reached with 94 stars or more.

MultiChoice spokesperson Sbu Mpungose didn't respond with answers to questions in a media enquiry made last week about the DStv Rewards tiering adjustment.

MultiChoice was asked why the DStv Rewards tiering levels are being adjusted and why it is being revised upwards and what the factors are that influenced the decision, and why the structural earning adjustment is being made so soon after the loyalty programme was launched.

MultiChoice was also asked what the response has been from DStv subscribers to the DStv Rewards programme so far and how many customers have accessed it, as well as what surprised the Randburg-based pay-TV operator so far regarding the usage of its loyalty programme by its customers.