Literature review revealed that the BBC is not funded by government funding. It is funded through license fees paid directly by viewers. This distinction is important. A transactional relationship between any service provider and the consumer ensures that the service provider is driven by the needs of the payer. If the call for a change in the funding model of the SABC is arguing for an increase in license fees to be of similar proportion as the BBC then this will place a stiff challenge on the SABC to deliver audience satisfaction and debt collection.
Furthermore, every programme needs to be commercially viable. SABC 1 earns between 65-75% of its revenue through just 4 prime-time slots. For a significant time the SABC 1 Nguni news bulletin broke even. Even for commercial broadcasters, not every slot or programme is a revenue driver. Children’s programming is notoriously difficult to make commercially viable. Live sport is becoming priced out of the range of most broadcasters never mind the public service ones (Television Industry Emergency Coalition, 2009).
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Advertisers and public service broadcasters do share one thing in common. They both want large audiences. However, the SABC audience portfolio and programme mix across TV and radio is determined entirely by the SABC’s remit, its license conditions and regulations. Advertisers cannot unduly influence this. By and large advertisers are less interested in content they’re interested in audiences that match their brands and they’re happy to find them where they are. They buy the audiences that the SABC delivers (Television Industry Emergency Coalition,