Can SABC survive the digital age, or will ‘Netflix and chill’ triumph?

“Simunye – one time,” remains the soundtrack to fond childhood moments for most, echoed by vivid memories of unforgettable television storytelling.

Sadly, SABC’s once popular theme song could soon become a nostalgic soundbite in SA’s broadcasting archives, as the public broadcaster continuously struggles to keep its doors open.  

Cashflow challenges have plagued the parastatal in recent years amid an increasingly competitive broadcasting space in the digital era – leaving the broadcaster leaning on its post mid-century legacy.   

Sunday Times reported that SABC last recorded profit in the 2013/14 financial year – nearly 10 years ago.

ALSO READ: SABC on the brink of business rescue, report

Dear Chairperson

SABC CFO Yolande van Biljon penned a memo to the SABC Board’s chairperson Khathutshelo Ramukhuba, in June, calling for urgent intervention in the institution’s leadership.  

Warning against the likelihood of going under business rescue, Viljoen said the SABC could follow in the footsteps of the South African Post Office.

Despite a 50-year track record, it seems the SABC’s pockets may not be deep enough to keep up with operational costs. According to Sunday Times, Biljon’s memo reported a projected R1 billion loss for the 2022/23 financial year.

After a series of financial icebergs, there are rising concerns about the future of the national broadcaster, with most wondering if it will stay afloat – or sink in debt.

ALSO READ: Ramaphosa appoints new SABC board – see who made the cut

Digital extinction

While global peers like ABC and CBS quickly jumped aboard the digital train in the late 2000s to harness the power of the internet, the national broadcaster rested on its laurels – choosing tradition over evolution.

According to a Broadcast Media Africa report, only 31 percent of South African viewers still tuned into SABC channels during the 2021/22 financial year, down by 35.8 percent compared to the period prior.  

Can the public broadcaster adapt to the digital landscape, or will the institution succumb to financial extinction?

Netflix & Chill

South Africans are increasingly opting for online streaming platforms, which are conveniently accessible on mobile devices over lounging on the couch to watch good old telly.

‘Netflix and chill’ has become a popular phrase in the urban dictionary, with the international streaming site gaining popularity among South African audiences.

ALSO READ: Metro FM shows growth in latest radio trends but streaming platforms pose a threat

According to Statista, Netflix boasted over 2.6 million African subscribers in 2021, while MultiChoice’s Showmax amassed over 861 thousand.

SA’s online streaming market has grown remarkably in the last couple of years, attracting more global players like Amazon Prime Video, Disney Plus and Viu – giving South Africans multiple viewing choices at affordable subscription fees.

Here’s what it costs monthly to subscribe to popular online streaming platforms in 2023.

• Netlfix – R99
• Showmax – R99
• Amazon Prime Video – R79
• Disney Plus – R119
• Viu – R69

Something old, something new

MultiChoice remained profitable in 2023, sustaining its crossover between relatively old school satellite television and new age online streaming.

CEO Calvo Mawela said in statement earlier this year that MultiChoice managed to achieve a trading profit through subscriptions and overall performance in the “Rest of Africa”, since listing in 2019.

He said the achievement came after absorbing R3bn in losses over the last four years.

“We increased the breadth and depth of services offered to our customers, and continued to grow our entertainment ecosystem” Mawela said.

ALSO READ: MultiChoice bets on a future beyond pay TV

Licensed to watch?

Adding to the SABC’s financial strain, is the decline in TV licence fee compliance rate.

The broadcaster reported that 81.7 percent of TV licence holders didn’t pay their annual fees for the 2021/22 financial year – making only R815 million of the total  R4.446 billion TV licence bill.

Here’s how much it costs to comply in 2023.

• First time applicants – R265 annual fee.
• Renewals – R336 annually / R28 monthly with additional fees.
• 10% monthly penalty for non-payment.