PLAN 2020/21-2022/23 CONTENTS GLOSSARY OF TERMS BRC Broadcast Research Council Compound Average Growth Rate 2 Glossary of Terms CAGR CDN Content Delivery Network 2 Contents DAF Delegation of Authority Framework 4 Chairperson Forward DCDT Department of Communications and Digial 6 GCEO Forward Technologies DOH Department of Health DSTV Digital Satellite Television 10 PART A: Company Purpose and Strategic Overview DTH Direct Satellite Television 10 Vision DTI Department of Trade and Industry 10 Mission DTPS Department of Telecommunications and 10 Values Postal Services 10 Legislative and other Mandates DTT Digital Terrestrial Television 13 Situational analysis EBAF Enterprise Broadcast Architecture Framework 18 Organisational Environment ECA Electronics Communications Act EPG Electronic Programme Guide 20 SABC Services EU European Union 21 Strategic Planning Process FCC Final Control Centre FET Further Education and Training 30 PART B: Delivery on Strategy FM Frequency Modulation 30 Strategic FY2020/21 - 2022/23 FPB Film and Publication Board 30 Pillars and Goals GIS Geographic Information Systems 31 Financial Sustainability GDP Gross Domestic Product 34 Content and Platforms ICASA Independent Communications Authority of South Africa 36 Digital ICT Information Communications and Technology 38 Human Resources IP Internet Protocol 39 Governance ITA Invitation to Apply 41 Partnerships ITU International Telecommunication Union 42 SABC Predetermined Objectives: FY2020/21 – FY2022/23 LTCP Long Term Capex Plan 43 SABC Predetermined Objectives: FY2020/21 – Quartely Targets MAM Media Asset Management MOI Memorandum of Incorporation 51 PART C: FY2020/21 - FY2022/23 Budget MTEF Medium-Term Expenditure Framework NDP National Development Plan 62 ANNEXURES OOH Out-Of-Home ANNEXURE D: Strategic Risk Register, Risk Management Plan and Risk 80 Over-The-Top Management Plan and Risk Management Framework OTT PBS Public Broadcasting Services 94 ANNEXURE E: Fraud and Corruption Policy PCS Public Commercial Service 94 ANNEXURE F: Materiality and Significance Framework PFMA Public Finance Management Act No. 1 of 1999 PPPFA Preferential Procurement Policy Framework PWC Price Waterhouse Coopers Sources used in compiling Corporate Plan SA South Africa PWC Entertainment and Media Outlook (2019 - 2023) South African Broadcasting Corporation Global Media Outlook (2019 - 2023) SABC www.tradingeconomics.com SOC Limited http://www.treasury.gov.za/ SETA Sector Education Training Authority https://www.resbank.co.za/ SMME Small Medium Micro Enterprise STB Set Top Box TAMS Television Audience Measurement Survey TTA Target Technologies and Architectures TVWS TV White Space VOD Video on Demand 2 South African Broadcasting Corporation [SOC] Ltd VISION To become the leading, credible voice and face of the nation and the continent. MISSION A high-performing, financially sustainable, digitised national public broadcaster that provides compelling information, educational and entertaining content via all platforms. CORPORATE VALUES RESPECT Respect will be our currency in our engagements internally and externally. TRUST We will cultivate an environment of trust with each other. INTEGRITY We will always do what is right. QUALITY The quality of our work will be of the highest standard. SABC Corporate Plan - FY 2019/20 to 2021/22 3 CHAIRPERSON’S FOREWORD “The children of any nation are its future. A country, a movement, a person that does not value its youth and children does not deserve its future.” - OR Tambo and via OTT services combined with investment in new content is key to ensuring the long term stability and relevance of the SABC. As the public broadcaster, the SABC has a duty to create more youth-orientated programming and to more fully reflect the lives and interests of the 28,8% of South Africa’s population that are younger than 15 years. We should be thinking of compelling programming for our children and youth and how to support and create opportunities in a difficult economy. Youth unemployment has been identified as one of the biggest challenges facing our society and the SABC wants to play its part, working with all stakeholders including independent producers, government and educational institutions. Our children and the youth of this country must find content that educates, informs and entertains across our television, radio and digital platforms. The publication of the SABC’s new Editorial Policies in March 2020 was a bright landmark for the public broadcaster after the culmination of an extensive public consultative process. The Editorial Policies apply to all programming output by the BONGUMUSA MAKHATHINI public broadcaster. They deal extensively with News and The 2019/20 financial year began in very uncertain conditions. Editorial content but also include policy and guidelines for digital The SABC Board was still inquorate in March 2019 and the media platforms, languages, local content, violence, children’s, organisation urgently needed a financial injection in order religious and educational programming, and set out the various to implement a lasting and sustainable turnaround. In 2018, complaints procedures available to the public. The policies will the Board and management had begun the tough process of be enforceable and binding on our Board, management and dealing with the SABC’s legacy governance failures and it was employees and will also guide our stakeholders as to what is important that momentum was not lost in this process. The expected from the SABC. SABC also faced the challenge of covering the national elections We can be truly proud of these Editorial Policies which have set in May 2019 without the Board – the accounting authority of the the benchmark for news and content organisations in South public broadcaster - in place. Africa and across the continent. At the end of the financial year, I am now pleased to report Simultaneously, as we migrate to digital broadcasting platforms, that the SABC has turned an important corner, with a freshly- the SABC will leverage online platforms to allow customers to constituted board including eight new members appointed access SABC content and services anywhere, anytime and on in April, widely-praised for delivering a balanced coverage of any device. the elections in May, and significantly, the Board approving a National Treasury-supported turnaround plan in September After years of underinvestment, the SABC has lagged behind 2019. on the technology side. The public broadcaster is committed to playing a more central leadership role in ensuring digital migration The SABC had met all of Government’s Preconditions for the and full analogue switch off happens sooner rather than later. recapitalisation of the organisation and received R3.2bn in two tranches – R2,1bn in October 2019 and R1.1bn in March 2020. In making this happen, the SABC Board has a fiduciary duty The Board is very appreciative of the quality and comprehensive to take decisions that will be in the long-term interest of the work by our executives in achieving this funding milestone. With public broadcaster. It is therefore vital that the SABC is able to strong governance at its core and expertly led by GCEO Madoda independently decide on which platforms will be in the SABC and Mxakwe, the SABC now has a comprehensive roadmap for our audiences’ best long term interests. the future, taking into account international best practice, the The SABC’s turnaround plan therefore envisages a far greater demands of our public mandate obligations and the need to deployment via satellite in the digital migration process. transition the SABC to digital platforms for all our audio and audiovisual content. The SABC has also approved an OTT strategy with the medium term goal that the SABC acquires its own OTT streaming Our increasingly large market share of the online and 24-hour platform. This will allow the public broadcaster to control its own television news markets has also proved that our audiences destiny into the future. want credible news they can trust from a broadcaster they can believe in. Soon after the elections in May, SABC’s 24- CONCLUDING REMARKS hour news channel was on 38% market share just ahead of its There is certainly light at the end of the tunnel, however without nearest rival. Despite years of editorial interference at the SABC significant changes in the regulatory landscape, a negotiated as reported by independent Tholoe Commission in August reduction of signal distribution costs and a fit for purpose 2019, our management has gone a long way to rebuilding public structure, the SABC is at risk of sluggishness. Being bold and trust. It is noteworthy that SABC News Online is the 2nd most decisive in implementing the approved turnaround strategy is accessed online news source in the country. one of our critical success factors. Clarity of roles and holding The creation of fresh, compelling content is a key part of any each other accountable at all levels is of paramount importance. broadcasting and media business, and, by necessity, it is the With committed and highly engaged employees, a supportive cornerstone of the SABC’s turnaround plan. The SABC must Shareholder, enthused and loyal audiences, satisfied clients, create, commission and licence relevant content that is exciting a responsive Portfolio Committee, a caring yet courageous and relevant to all our audiences. Executive team and a fully supportive board, the SABC has a SABC audience numbers have come under pressure and like bright future ahead. public broadcasters all over the world, we have to find innovative Bongumusa Makhathini ways to survive in a world without borders and with more heavily Chairperson of the SABC Board resourced competitors. We believe that the migration to digital platforms like DTT, DTH GCEO FOREWORD “It always seems impossible until it’s done” - Nelson Mandela There needs to be a demonstrable correlation between the increase in audience growth and the commercialisation thereof. • With regard to Human Resource, work will continue towards building a fit-for-purpose structure, that is, an optimal operating model, supported by an aligned organisational structure resourced by a solid capable talent base.