SECTOR 3 Scores: Individual scores: 1 Country does not meet indicator 2 Country meets only a few aspects of indicator 3 Country meets some aspects of indicator 4 Country meets most aspects of indicator. 5 Country meets all aspects of the indicator Average score: 3.0 (2008 = n/a; 2006 = n/a) 3.7 The state/public broadcaster is adequately funded in a manner that protects it from arbitrary interference through its budget and from commercial pressure. 77 per cent of SABC resources come from commercial funding (advertising and sponsorships), 18 per cent from licence fees, 2 per cent from government allocations, and the balance from sale of merchandise, rental of studios and the like. The dominance of funding derived from commercial activities stands in stark contrast to the public mandate of the SABC. The public broadcaster is clearly susceptible to commercial pressure, evidenced by the fact that prime time television space is given over almost exclusively to formulaic and cheap entertainment programmes such as sitcoms and soapies that deliver large audiences to advertisers. Government has to find a way to increase public funding of the national broadcaster either through some kind of parliamentary grant or through increased licence fees or both. The licence fee presently stands at R250 (US$ 34) a year per household, with about 33 per cent of households not having a television licence. Half of those who do are either defaulting on their payment or only partially paid up: either because they are simply too poor or because they are not motivated and feel they are not getting value for money. Over the last five years the SABC has been in constant financial trouble, leading to a crisis point in 2009 when government had to guarantee a substantial bank loan for the broadcaster to continue honouring its obligations. The National Treasury and the Department of Communications are now putting pressure on the SABC to develop and implement a “turn-around strategy” which would ensure that the corporation is managed in a cost-effective way. One immediate consequence is 50 AFRICAN MEDIA BAROMETER SOUTH AFRICA 2010