Com4803

1. INTRODUCTION:

This assignment will identify the operational of the SABC in the external environment and again the determination of the market structure category that it can be found in this market.

The South African broadcasting corporation (SABC) is the South African broadcaster, and it provides nineteenth radio stations (both local and national) and it broadcast four television broadcasts to the residents of South Africa.

The Broadcasting Regulatory Framework does not only determine type of the environment in which it functions. SABC functions in a market that is characterise by the dynamic change and it determines the contextual of the economic within the broadcasting industry. The migration from analogue to digital TV has also played a significant role in the SABC market structure.

This assignment will be separated into three categories; the first one will be the definition and explanation of the functionality of media markets that SABC functions in, and Secondly the market structure of the SABC and lastly the external forces that affects the markets and the SABC.

2. THE SABC MARKKET:

Markets can be defined as the place where consumers and the seller meet directly or through intermediaries to set up the price and the quantity of the products produce (Albarran 2010:26). This definition, there is an outline of the three elements in the market, this includes; buyers, sellers and products. In this case, the sellers can be classified as the SABC radio stations and as well as the television stations, the suppliers are the one that manufacture the SABC’s products and in this case, the radio stations and television programmes are specifically for the buyers, off which they are the consumers of service manufactured, and advertisers.

This shows that mostly the media industries functions in a dual-product market. Organisations produce/ manufacture on product, they involve in separate goods and services markets. (Albarran 2010:26)

The “dual product” model...