straits
Jacquie Golding-Duffy
THE South African Broadcasting Corporation (SABC) is caught between a rock and a hard place with a mandate tailored to serve the needs of a diverse audience, but a lack of funds to fulfill this goal.
The mandate has put financial pressure on radio stations still under the SABC’s control.
SABC general manager for corporate communications Enoch Sithole says the mandate issued to the corporation by the Independent Broadcasting Authority (IBA) – and approved by the government – although “necessary”, needed some form of financial backing from the government.
“The upgrading of SABC radio stations is imperative, but money is the crucial issue if the mandate is to be fulfilled.
“It was told to us that our 16 radio stations have to increase their local content, broadcast more news and current affairs programmes and concentrate on educational material. All these additional briefs issued by the IBA and the government mean the SABC is in dire need of money,” says Sithole.
SABC radio services chief executive Govin Reddy was quoted earlier this week as saying that the government had two choices: either to fund the deficit, or to allow the SABC to keep the money generated from the sale of its six regional radio stations.
The alternative, Reddy said, was to cut down the public broadcaster’s mandate as the corporation was considering shutting down some of its African language broadcasts in a bid to compensate for revenue lost following the privatisation of its six radio stations.
However, Sithole disagrees with Reddy. He argues that the axing of African language radio stations is “definitely not on the cards” as the radio sales funds “will be forthcoming”.
“I am confident that the government will hand over the funds generated from the privatisation process of the radio stations. The question is how much will be handed over.”
Sithole says the IBA and the government have “acknowledged” that the SABC is in financial difficulty, adding that the Post, Telecommunications and Broadcasting Ministry has agreed to introduce new legislation next year, allowing the government to fund the SABC in future.
However, the finer details of the exact nature of funding still need to be thrashed out, he says.
The relaunch of the SABC radio stations on Saturday is therefore timely, argues Sithole, as the repositioning will be followed by financial aid.
Radio Active marketing director, Ken Modise, agrees. The radio stations` relaunch, conducted to the tune of R3-million, is “extremely cost-effective”, he says.
Modise explains that the bulk of the money will be used to pay for the hiring of the Johannesburg Stadium where the relaunch party will be held on Saturday, as well as to pay for the artists who will perform.
“Some of the cost is also owing to the marketing strategies which involve redesigning logos.
“To change the names of 10 language-based radio stations for R3-million is cheap when compared with market-related costs,” he says.
However, Modise is not as confident as Sithole regarding government funding.
Modise argues that the majority of radio stations are unable to cover their costs and with increased demands being placed on the SABC to upgrade language-based stations, the corporation may be forced to close down its non-profitable operations.
Modise says only about four of the 16 radio stations are profitable, with the rest, although generating revenue, incapable of sustaining themselves.
“It is clear if push comes to shove, and a pure business decision has to be made, then these radio stations that cannot cover their own costs, will have to go.
“But the SABC is in a difficult position because it is not our decision to decide the future fate of these stations. The decision lies with the government and the public.”