SABC blackout on the cards

State-owned digital and technology distributor Sentech is set to switch off the SABC’s signal by the end of December if the broadcaster does not reach an agreement to pay the debt it owes its fellow state-owned enterprise (SOE).

As of March 2025, the SABC owed Sentech around R1 billion in unpaid signal costs, with the amount making up more than half of the company’s annual revenue. 

However, the SABC has said that as part of any agreement to pay back its debt should include a renegotiation of the prices it pays for the distribution of its signal. 

The debt owed to Sentech by the SABC threatens the survival of both SOEs, with both indicating the current arrangement cannot continue past December. 

This was revealed by the Chairperson of Parliament’s Portfolio Committee on Communications and Digital Technologies, Khusela Diko. 

“We want the matter to be finalised urgently. I am worried when they are talking about three months to resolve the issue,” Diko said. 

“When we spoke to both Sentech and the SABC, they indicated that they don’t think they can continue with their operations in the current state beyond December of the current year.” 

Sentech has threatened to cut off the SABC’s signal distribution as it cannot afford to carry the broadcaster anymore. It is currently paying R70 million a month to subsidise the SABC’s signal costs. 

At the same time, Diko warned that the SABC is on the edge of collapse due to its own outdated infrastructure and broken funding model. 

“It is at risk of collapse. It is burdened by unsustainable debt, outdated infrastructure, and a broken funding model,” Diko said. 

Diko said it is crucial that the SABC makes its way through Parliament as it may be the last chance the broadcaster has to survive. 

“The Bill has now been delayed for more than six months, with no clear urgency from the Department to resolve the matter. This delay has left the Bill stuck in Parliament while the SABC’s financial and operational crisis continues to worsen,” Diko said.

SABC running out of road

SABC CEO Nomsa Chabeli warned in July that there is a real possibility of a total blackout from the state broadcaster if Sentech switches off its transmitters due to unpaid debt. 

“Because of the legacy debt from Sentech, we are at a point where they have indicated that they will start switching off transmitters,” she told the Portfolio Committee on Communications and Digital Technologies in July.

If a broadcaster’s transmitters are switched off, the signal from the station is no longer broadcast, which results in a loss of service. This means that people within the transmitter’s range will not receive the station’s programming. 

Therefore, if Sentech were to switch off the SABC’s transmitters, it would cause a total blackout of the state broadcaster.

Chabeli told Parliament that this is a direct result of the SABC’s broken funding model and historical debt burden. 

“The business model was designed for a world that no longer exists, and the SABC does not have the control to change,” she said.

She explained that making the SABC financially sustainable requires legislative and regulatory change.

This is because TV license fee compliance continues declining. The fees people pay have also remained static for years, and have a 40% cost of collection.

She further highlighted that there have been tectonic shifts in the marketplace and that global tech giants control advertising revenue, from traditional broadcast to digital media.

The situation has left the SABC with no access to capital or an overdraft to invest in what it needs to remain relevant and sustainable.

She explained that this leads to a downward spiral, as content is the prime driver of advertising and sponsorship support.

The lack of funding further means that the SABC cannot invest in new digital platforms and applications despite the demand and growth in this area.

She said the state broadcaster has exhausted its financial resources and that there is now a significant going-concern risk.