Exploring alternative revenue sources that can be utilised to improve advertising revenue at SABC public broadcasting radio stations

Abstract

This qualitative study explored alternative revenue sources within and outside PBS radio stations that can be utilised to improve revenue generation at South African Broadcasting Corporation (SABC) Public Broadcasting Radio Stations (PBS). PBS radio relies heavily on traditional advertising revenue, sponsorships and TV licence fees, revenue sources are insufficient to sustain public broadcasting radio service in South Africa because funding from the South African Government is limited to specific projects. Public broadcasting radio services in South Africa have to provide content of public value while remaining competitive and profitable.

The SABC is the sole owner of fifteen public broadcasting radio stations, making it one of the dominant media owners in South Africa. SABC owns all public broadcasting radio stations and has the highest audience penetration in South Africa which should translate into receiving the highest revenue share. However, this is not the case. Commercial radio stations earn a bigger percentage of the pie of advertising revenue although PBS radio stations command higher audience penetration.

Semi-structured interviews were conducted with fifteen public broadcasting radio station managers and three senior public broadcasting managers to ascertain what alternative sources within and outside the radio station can help improve the revenue of the radio stations. The analysis of the data collected through interviews identified that there are a number of alternative sources which can assist in improving the revenue of the radio stations. It is therefore time that PBS Radio stations monetise their audience and not

rely heavily on traditional advertising revenue. Six important alternative revenue sources are identified as follows:

• Radio station events and outside broadcasts: Revenue generation potential is immense with opportunities for gate-takings, sponsorship and advertising or promotional revenues.

• Broadcast syndication and sale of content: Original programming content and popular music genre playlists are sought after by the public or other entities that are prepared to pay for the content.

• Radio Station Websites: Opportunities to generate revenue by marketing website opportunities to the public and advertisers.

• Merchandising: Radio audiences like to own radio station branded merchandising like t-shirts, caps and jackets which can be made available at radio stations and retail stores for the public to purchase.

• Cellular or mobile phones: Mobile phones provide an interactive element to radio campaign advertisements, competitions, and promotions, which should be monetised as an extension to advertisers‟ radio campaigns.

• Social Media Platforms: Radio campaigns are extended to social media platforms like Facebook, LinkedIn, Instagram, Pinterest and Twitter to target a larger audience.