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Client Stories

The SABC Transforms to Strengthen Public Service Broadcasting for Total Citizen Empowerment

Capgemini drives strategy and transformation to help galvanize the business and build a value proposition for the future

“ The work that has been carried out by Capgemini has given the SABC new impetus and resilience in its continued endeavor of being the leading African Broadcaster and leader in digital broadcasting. ”Sipho Sithole, Head of Strategy and Risk Management, SAB

The Situation

In a culturally rich and diverse country, the South African Broadcasting Corporation (SABC) reaches over 24 million people every day through its 18 radio stations and three free TV channels. The SABC’s ambition is to play an important role in nation building and secure a stable funding base for a sustainable future.
South Africa presents unique challenges to a public service broadcaster due to cultural and lingual diversity, and wide economic disparity among a population of 48 million. The SABC is charged by the Government to serve South Africa with content that reflects and promotes that rich cultural diversity.
As wealth grows, more households can afford multi-channel TV. Greater channel choice eats into the SABC’s audience share. SABC’s share of radio listening is also falling as competitor commercial stations launch. These multiple threats prompted the Corporation to review the way it served audiences and plan for a digital future in which a growing proportion of media consumption takes place online and via mobile devices. Also, as market leader, the SABC is expected to drive the launch of Digital Terrestrial TV (DTT) in South Africa. Together, these aspirations and increased competitive threats mean that the SABC also needs to adjust its funding base and cut costs to deliver its public service ambitions.

The Solution

Capgemini in partnership with its South African associate, Gemini Consulting, was invited to help with the program to turn vision to reality. In collaboration, joint teams:

  • developed a new audience segmentation as a tool to improve the provision of public service broadcasting to all South Africans
  • positioned new channels and services across TV, radio and new media
  • refreshed the public service vision and measured the public value that the SABC creates through its services
  • drove savings and efficiencies from core processes to contribute to financial sustainability
  • enhanced people capabilities and mobilized the organization around the transformation agenda.

The Result

The Corporation testifies to positive benefits of the partnership. A clear strategy roadmap has been defined with agreed tasks, activities and priorities. Tracked milestones and deliverables have involved management at all times, ensuring strong buy-in to program goals. It has also mobilized the organization to adopt change as it ripples through the corporation. The new audience segmentation model developed by Capgemini has helped the SABC to understand its audiences better and target more clearly its radio and TV services to South Africa’s diverse population, including new media distribution platforms. The advertising industry has responded positively to the segmentation and it is now being adopted widely in the industry.
Detailed market research to ask people about the value they attach to the SABC has revealed that the public value created by the SABC substantially exceeds the monies received via the licence fee and direct Government funding. This finding provides a strong base for the SABC to engage with the Government and other stakeholders to identify a future, more sustainable funding solution.