The main aim of this discussion is to describe and analyse the external environment in which the SABC operates, in order to determine which type of market structure can be found in the market. The South African Broadcasting Corporation (SABC) is South Africa's national public broadcaster with a strategic purpose of broadcasting for the total empowerment of its citizens. As such it is obliged to offer the public a comprehensive range of distinctive programs and services. Therefore, it must educate, inform, entertain and develop culture and education and as far as possible secure fair and equal treatment for the various cultural groupings in the nation.
That being said, although the SABC is a state owned enterprise, like any other business must it must maintain efficient, profitable operations to meet the expectations of the stakeholders. It also faces challenges that many other media firms face, for example competition for audiences, technological advancement etc. This discussion will be divided into three parts. Firstly it will define the media market in which the SABC operates. Then describe the current market structure the SABC finds itself in and lastly the core part of the essay will evaluate the forces affecting the SABC and its markets and how these impact on the organisation and function of the SABC.
2. THE SABC MEDIA MARKET.
In the media industries, the terms target audience and target market are sometimes used interchangeably. Though not exactly synonymous both terms refer to reaching a type of audience. Specifically, media outlets try to attract enough of an audience to obtain a dominant share of the market (Albarran 2013:24). But what exactly is a market?.
Albarran (2013:24) draws the definition from the study of economics that describes market as a "place where consumers and sellers interact with another to determine the price and quantity of the goods produced".