Abstract
The media landscape is subject to substantial technological change. Given these changes, we assess whether a case for public service broadcasting (PSB) can still be made. The analysis leads to conclude that this is increasingly difficult. The main reason for this conclusion is that, due to technological developments, many market failures in the broadcasting industry are no longer relevant. The broadcasting market thus functions more and more like a normal market. This implies that the allocation tends to the efficient outcome, as long as consumer valuation is properly accounted for. This is not the case when there are externalities and possibly not when it comes to valuing quality. In the presence of these market failures, an efficient allocation is not warranted in the broadcasting industry. It is these remaining market failures that could potentially provide a rationale for a future PSB.
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Richard Nahuis: It is with great sadness that we have to inform you that Richard Nahuis suddenly passed away in December 2005 at the very young age of 34. This article is one among many of his last research efforts. We will miss him, as a colleague and as a person.
This paper benefited from comments by two anonymous referees and Marcel Canoy. The paper builds on insights from Nahuis et al. (2005) but focuses on the role of the PSB and is more European oriented.
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Van Dijk, M., Nahuis, R. & Waagmeester, D. Does Public Service Broadcasting Serve The Public? The Future of Television in the Changing Media Landscape. De Economist 154, 251–276 (2006). https://doi.org/10.1007/s10645-006-9003-4
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DOI: https://doi.org/10.1007/s10645-006-9003-4