A solution to the TV licence debacle that won't burn a hole in South African's pockets
It has been a few years now since SABC has been struggling for funding and mainly due to the collapse of the TV licence model.
75 inch TCL QLED 4K Smart TV
Photo Credits Ziyaad Plaatjes
With decoders, streaming services, streaming devices, and the option of watching something without a TV, the SABC has been a hitting a brick wall on how to collect their annual fee of R265.
They have proposed many different new models to receive revenue, including that service providers like DStv and Netflix should collect a fee from their subscribers on behalf of the SABC.
The latest proposed new funding model was submitted on the 6th February by tech research and advisory firm BMIT, which we will soon find out what it is.
It has been reported that TV licence avoidance rates have grown from 69% in 2019 to 85% in 2025. The 15% who are still paying the annual fee are also reported to be customers who have been for many years, with hardly any new subscribers being reported, as the younger generation are simply using their parents or grandparents licence to obtain a TV.
We have no information currently on what the proposed model could be, but we do have a proposal of our own.
Let's first look at the facts.
At the moment it's difficult to monitor who has and is operating a TV in each household in South Africa. The SABC also faces the challenge of who has a valid licence or if there is any licence in a household at all.
South Africans can purchase TVs from someone who is selling them in their private capacity, and a licence will not be required.
The SABC has no authority or system whereby they can hinder your viewing or switch off your TV remotely. Unlike Netflix or DStv, if you don't pay your monthly subscription to them - the service is either paused or cancelled.
There is no one closely monitoring if households' TV licences are valid. In South Africa we have the traffic department who are constantly checking that our vehicle license and driving license are up to date, and will issue fines if it is not to ensure that we pay the fee annually or every 5 years in the case of the driving license.
Again the SABC has no authority to confiscate your TV, and even if they could they would have to re-sell your TV to someone who would need to have a TV licence to own, and they would probably end up with millions of TVs, disgruntled citizens, and still no revenue.
We know that only 15% of South Africans pay their licence.
With this is mind it is physically impossible to send someone to each household to check who is not paying, and the problems which would arise could be:
- the cost involved in this exercise, fuel, time, remuneration for consultants who do the home visits. These costs might outweigh what they would receive from collections
- deferring payment. We know the slogan "Pay your TV licence, it's the right thing to do." Most South Africans are aware that the non-payment could affect the credit score, and it is not a prescribed debt, meaning it does not fall away after 3 years. However 85% of the nation still choose not to pay as there is no real threat, in their mind.
This is where our solution comes in.
We as consumers are always saddled with the bill, but what if for once large corporations foot the bill?
Instead of South Africans paying an annual licence to watch TV, the SABC takes a percentage from the likes of Samsung, Hisense, LG, TCL, Skyworth, and other TV manufacturers from the sales of TVs.
There are new customers of TV sets every year, first-time buyers, upgrades, extra TVs, business TVs, the list goes on.
TV sets start from about R2000 and range up to R300 000.
Major retailers have reported that people are buying new TVs all the time. Most households have more than one TV, and are only expected to pay one annual fee of R265. Or there are multiple families with multiple TV sets in their homes currently using one TV licence.
The industry reported an estimated turnover of R8 billion from TV sales in recent years.
If the above proposal is implemented, South Africans will have piece of mind, as we are used to being charged 15% VAT on products, and this amount would just be absorbed into the retail price of TV sets.
With R8 billion being generated annually, even if the SABC were to collect 1% from this, well you do the math.
The above is my opinion and "my proposal" to the SABC. It does not reflect the views of iloveza.com, and I am more than happy to facilitate the process of this model.
Ziyaad Plaatjes is the Co-Founder of iloveza.com & Let's Torque ZA, the Founder of the After Fajr Grind Academy, a Radio Co-Host for a youth focussed programme, Level Up, on Radio Islam International, previously a Radio Host for the longest running award-winning Motoring show in South Africa - Bumper2Bumper on Cii Radio, and a Brand South Africa Play Your Part Ambassador, who was named one of Mail & Guardian's Top 200 Young South Africans in the Arts, Entertainment, Film & Media Category.
He is a Bachelor of Commerce Honours graduate and has been running businesses since the age of 13. Ziyaad is a social media fundi and content creator, but has taken on many roles in various industries over the years. With his entrepreneurial skills and vast knowledge he assists individuals and businesses to grow and achieve their goals.
Find him at: Instagram: @ziyaad_86 / @ilovezacom / @letstorqueza / @b2bcii X: @ziyaad86 / @ilovezacom / @letstorqueza / @b2bcii Facebook: iloveza.com / Let's Torque ZA LinkedIn: Ziyaad Plaatjes / iloveza.com YouTube: iloveza.com SoundCloud: iloveza.com / Radio Islam International TikTok: @ilovezacom / @b2bcii Threads: @ilovezacom iono.fm: Bumper2Bumper Hashtags: #AfterFajrGrind #iloveza❤️🇿🇦 #LetsTorqueZA #LevelUp #B2BCii #WheresDaddyZA E-mail: ziyaad@iloveza.com
