Analyzing Financial Survival Strategies for Public Service Broadcasters in Disruptive Environments: A Case Study of SABC and Alternative Funding Models

Abstract

Following the upsurge in globalization, digitization, and audience fragmentation, public service broadcasting and its legitimacy are often questioned, if not undermined. This study explores the financial survival of public service broadcasters in the digital era. The lack of funding for public broadcasters has a bearing impact, affecting the delivery of public mandate, diversity of content, cultural diversity, inadequate production of television content, and editorial independence due to the lack of funds. In production, producers often need reduced production budgets, thus limiting the quality of the media output and the representation of audiences. Using a qualitative approach, in-depth interviews, and the case of the South African Broadcasting Corporation (SABC), this study argues that traditional public broadcasters need to modernize their business operations and adopt technology and innovation to survive against competition while retaining the public service mandate as its Unique Selling Point (USP). This paper also highlights internal and external organizational impediments that have thus far hindered the successful financial operation of the SABC. This, therefore, leads to questions about the legitimacy and democratic role of public broadcasters. In response to the financial challenges exerted by poor funding from the government, poor commercial revenues, and TV license evasion, this study argues that public broadcasters can deploy multiple alternative revenue streams to harness revenues to make up for the shortfalls with traditional revenues. As a result, this study recommends four funding models for the SABC to harness alternative revenues: Services and Commercial model, Endowment Funding and Licensing and Public Private Partnership (PPP) initiatives and the Hybrid model. This study also reveals that the legitimacy of the SABC as a public broadcaster is hanging on a shoestring until the matter of Analogue Switch Off (ASO), Set Top Boxes (STBs), and Digital Terrestrial Television (DTT) are successfully resolved by the government.