The South African Broadcasting Corporation (SABC) wants government to give it R1.6 billion to enable it to provide new content as part of SA's migration from analogue broadcast to digital television.
Local broadcasters will turn on digital television next April in preparation for a commercial launch next September, as part of government's plan to turn off the outdated analogue signal by the end of 2013.
Digital television has the potential to provide many new channels, but there are concerns that the national broadcaster does not have the capacity to deliver on its promise of new channels and an interactive service, and fears that the budget may not be used effectively.
Migrating to digital television will enable it to offer 17 TV channels - including SABC 1, 2 and 3, a 24-hour news channel, a sports offering, 18 radio stations and an interactive video service.
CTO Richard Waghorn says the cost of content, without the news and sports channels, will come to R1.6 billion. The broadcaster has budgeted R90 million for marketing, and R145 million for a “digital playoff” or control centre, over the same period, he says.
Waghorn was responding to questions during a recent Parliamentary communications committee meeting.
Government allocated the broadcaster R230 million for its operations in the current financial year, according to Treasury's most recent estimates of national expenditure. It is projected to need a total of R1.8 billion to operate digital TV, and R2.3 billion to replace aging equipment, over the next four years.
More to watch
According to the SABC's presentation, its new channel line-up includes a health station, one targeted at education, a children's channel, news, and various regional offerings.
The broadcaster will also make use of digital television's functionality to offer up to four alternative audio tracks, interactive applications and closed-caption subtitles. Its presentation indicates that migration will enable it to deliver on its public broadcasting mandate.
The SABC says it is on track for a full launch of digital television next September, and a soft launch in April. However, delivering its full channel line-up is “subject to funding”.
All the new digital channels will be phased in between April next year and 2014/5, says the SABC.
The broadcaster says it is operating a digital play-out facility on a trial basis and is converting the final control centres to digital format. One new digital final control centre has been built and is in operation, and the three current centres will be converted by March.
Its current master control room will be replaced with a new digital control centre, which will be implemented in early 2013. However, it says this is now “launch critical” as the trial play-out facility will meet requirements for the first year.
Not all good
Democratic Alliance (DA) deputy shadow minister of communications Niekie van den Berg said the SABC should be concerned about financial health, as its track record over the past few years had not been good, and it was still in the recovery stage.
Van den Berg asked if the broadcaster was “ready to carry out the wonderful plan” and if it was being honest, as there have been issues with its financial stability in the past.
SABC board member Lumko Mtimde argued the broadcaster had never been “in trouble”, but confronted challenges. Migrating would not be an easy process, but the SABC has the required leadership and commitment, he said.
Mtimde said the broadcaster had submitted its budget and if it was turned down, it had another plan in place. The broadcaster earns about 80% of its revenue from advertising, 14% from compulsory TV licences and the balance from government.
In 2008/9, the SABC was plunged into a serious crisis relating to finance and government issues. It had asked government for a R2 billion bailout and subsequently secured a R1 billion loan from Nedbank on the back of government guarantees.
Acting CEO Phil Molefe previously told a Parliamentary committee that the broadcaster was in the stability phase of its turnaround. He said the broadcaster hoped to turn a profit of at least R12 million by next March.
However, Molefe said there was not enough money to do all the things the SABC wanted to do, and its public mandate function should be funded by government.
Concerning history
DA shadow minister of communications Natasha Michael says accurate costing is required from the SABC. She is concerned that the broadcaster always requires government to provide it with more money and there is always a worry about how the money will be used.
Strategy Worx MD Steven Ambrose believes “the promise of new content by the SABC is empty as far as I'm concerned”. He says the broadcaster does not have the capacity to successfully fill the air with new content.
Content is key to the sustainability of the digital environment, notes Ambrose. The SABC has a “poor track record” of performing and has a reputation for wasting state money, he adds.
Ambrose argues the broadcaster is promising more content to justify the need for more cash from government, but there is no guarantee that it will be used efficiently.
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