SABC PRESENTATION TO THE PORTFOLIO COMMITTEE ON

Transcript:SABC PRESENTATION TO THE PORTFOLIO COMMITTEE ON:
SABC PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS 21 August 2018 2 Table of Contents INTRODUCTION BROADCASTING OF SPORTS CASH FLOW AND PAYMENT OF CREDITORS GOVERNANCE MATTERS RAISED WITH THE COMMITTEE Introduction The SABC is in a process of rehabilitation and renewal - must be carefully managed and restored to ensure fulfilment of its unique public mandate. Good progress made in stabilising the SABC, strengthening governance and regaining integrity. However, current financial position remains dire. Developed a new strategic Roadmap. Is aimed at ensuring that the SABC operates competitively in evolving media and digital landscape and provide informative, educational and entertaining content to all South Africans. Main objective is to ensure financial sustainability. Focus is also on reducing operating costs. Review of the SABC’s operating model will assist to ensure that the organisation is properly aligned for future operations and is fit for purpose. 3 Introduction (cont) 4 Profitable growth is critical for long-term financial sustainability. In order to achieve this the SABC will have to address the challenges with its funding model, cost base and operational inefficiencies. Negotiations with third parties to ensure that maximum value is obtained, maintaining and monitoring capital utilisation, identification of and investment into new revenue growth areas, and driving cost-efficiencies throughout all operations are crucial elements to reach profitability levels in the current competitive landscape and economic climate. The SABC will work hard to ensure that the organisation is run efficiently and effectively, and to redirect spending and simplify procedures in a way that supports a more sustainable and creative public broadcaster. 5 BROADCASTING OF SPORTS Broadcasting of Sports SPORTS OF NATIONAL INTEREST DEVELOPMENTAL SPORTS MINORITY SPORTS SABC ‘s Public Mandate. Regulations lists 22 sporting events as National Sporting Events. Sports of National Interest focus on culture, nation building, the African agenda and restoring of human dignity. Public demand for major sporting events has enforced late schedule changes on all 3 SABC channels. SABC has consistently faced public pressure and condemnation when it has failed to broadcast these events. 6 Broadcasting of Sports Sports Rights costs have been escalating by exorbitant amounts far beyond inflation which have become unsustainable for the SABC. Sports Rights are set by Rights Holders - growing demand of new entrants in this landscape will cause the escalating trajectory of costs to continue. SABC cannot compete or sustain the status quo of incurring excessive expenditure for Sports Rights and production