Table Of ContentMedia Business and Innovation
Paul Murschetz Editor
State Aid for
Newspapers
Theories, Cases, Actions
Media Business and Innovation
Series Editor:
M. Friedrichsen, Berlin, Germany
For furthervolumes:
http://www.springer.com/series/11520
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Paul Murschetz
Editor
State Aid for Newspapers
Theories, Cases, Actions
Editor
PaulMurschetz
ICT&SCenter
UniversityofSalzburg
Austria
ISBN978-3-642-35690-2 ISBN978-3-642-35691-9(eBook)
DOI10.1007/978-3-642-35691-9
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Preface
“Onlyanihilistwouldconsideritsufficienttorelyonprofit-seekingcommercialinterestsor
philanthropytoeducateouryouthordefendthenationfromattack....Justastherecamea
momentwhenpolicymakers recognized thenecessity ofinvesting taxdollarstocreatea
publiceducationsystemtoteachourchildren,soamomenthasarrivedatwhichwemust
recognizetheneedtoinvesttaxdollarstocreateandmaintainnewsgathering,reporting
and writing with the purpose of informing all our citizens” (Robert W. McChesney and
JohnNicols2012).
“Mediaarenormativelyexpectedtoprovidediverseandpluralisticcontentthatincludesa
widerangeofinformation,opinions,andperspectivesondevelopmentsthataffectthelives
ofcitizens.Mediaareexpectedtomobilizethepublictoparticipateinandcarryouttheir
responsibilitiesinsociety:Mediaareexpectedtohelpcitizensidentifywithandparticipate
inthelivesoftheircommunity,theirstateandthenation.Mediaareexpectedtoservethe
needs and represent the interests of widely differing social groups and to ensure that
informationandideasarenotnarrowedbygovernmental,economic,orsocialconstraints.
Simultaneously,theyareexpectedtoservetheeconomicself-intereststoproduceprofits,to
grow,andtocontributetonationaleconomies”(ProfessorRobertG.Picard2005).
“Whenagovernmentgivesfundstothepress,itasksinreturntoexertsomekindofcontrol
overit”(JamesMurdoch2011).1
1JamesMurdochinMay2011atameetingofyoungpublishersintheItaliantownofBagnaia.
v
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Contents
PartI StateAidforNewspapers:AnIntroduction
1 TheContext,Purpose,andStructureoftheBook . . . . . . . . . . . . . 3
PaulMurschetz
2 StateAidforNewspapers:FirstTheoreticalDisputes . . . . . . . . . . 21
PaulMurschetz
PartII TheoreticalExplanationsforStateIntervention
3 StateSupportforNews:WhySubsidies?WhyNow?WhatKinds? . . 49
RobertG.Picard
4 IndustrialSubsidies:SurveyingMacroeconomicPolicyApproaches ... 59
NikolaosZahariadis
5 GoodIntentions,BadResults:TheEffectsofNewspaperSubsidies
onJournalisticQuality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
ChristianM.WellbrockandMartinA.Leroch
6 StateAidtothePressintheEU:LegalIssuesandTrends . . . . . . . 85
EvangeliaPsychogiopoulou
7 PressGovernance:ANewConceptforAnalyzingPressRegulation . . 99
ManuelPuppis
PartIII CaseStudyEvidenceandGovernmentActions
8 Australia:StateAidtoNewspapers—NotaPriority . . . . . . . . . . . 115
FrancoPapandreaandMatthewRicketson
9 Austria:PressSubsidiesinSearchofaNewDesign . . . . . . . . . . . . 133
PaulMurschetzandMatthiasKarmasin
10 Belgium:BigChangesinaSmallNewsEconomy . . . . . . . . . . . . . 149
IkePiconeandCarolinePauwels
vii
viii Contents
11 Bulgaria:PressSubsidiesintheShadows . . . . . . . . . . . . . . . . . . . . 163
GeorgiKantchevandNellyOgnyanova
12 Finland:TheRiseandFallofaDemocraticSubsidyScheme . . . . . 179
HannuNieminen,KaarleNordenstreng,andTimoHarjuniemi
13 France:PressSubsidies—InefficientbutEnduring . . . . . . . . . . . . 195
MatthieuLardeauandPatrickLeFloch
14 Germany:EvaluatingAlternativestoFinanceQualityJournalism . . . 215
CastulusKoloandStephanWeichert
15 Greece:PressSubsidiesinTurmoil . . . . . . . . . . . . . . . . . . . . . . . . 237
StylianosPapathanassopoulos
16 Hungary:TheStateasStrongMediaGovernor . . . . . . . . . . . . . . . 253
AgnesUrban
17 TheNetherlands:InitiativestoSubsidisePressInnovation . . . . . . 271
LouLichtenbergandLeend’Haenens
18 Russia:SubsidiesBetweenIndustrySupportandStateControl . . . 291
MikhailMakeenko
19 Sweden:StateSupporttoNewspapersinTransition . . . . . . . . . . . 307
MartOts
20 Switzerland:TheRoleofSwissPostinIndirectPressSupport . . . 323
AlfredHugentoblerandChristianJaag
21 UnitedKingdom:SubsidiesandDemocraticDeficitsinLocalNews . . . 337
DavidBaines
22 TheUnitedStatesofAmerica:UnfoundedFears
ofPressSubsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357
VictorPickard
PartIV ConclusionandFutureOutlook
23 StateAidforNewspapers:ASummaryAssessment . . . . . . . . . . . . 375
PaulMurschetzandJosefTrappel
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
List of Figures
Fig.2.1 Theeffectofanewspapersubsidyanddeadweightloss . . . . . .. 36
Fig.7.1 Mediagovernanceashorizontalandverticalextensionof
government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Fig.7.2 Domainsofpressgovernance . . . . . . . . . . . . . . . . . . . . . . . . 104
Fig.8.1 CirculationofAustraliandailynewspapers,1992–2012 . . . . . 122
Fig.8.2 MainmediaadvertisingRevenue,2001–2011 . . . . . . . . . . . . . 123
Fig.8.3 Printandonlineadvertising,2002–2011.(a)Totalprint
andonlineadvertising.(b)Printandonlinedisplayadvertising.
(c)Printandonlineclassifiedadvertising.(d)Printandonline
“SearchandDirectories”advertising . . . . . . . . . . . . . . . . . . . 124
Fig.12.1 Totalannualexpendituresforpresssubsidies1950–2000 . . . . 188
Fig.14.1 Germany:Media—Dailyreach(a)andcontributionto
totalrevenues(b)media . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Fig.14.2 Changingreadershipstructurefornational(a)andregional(b)
dailiesaswellasdecliningoverallaudience(c) . . . . . . . . . . . 219
Fig.14.3 Germany:Newspapertitles—20largestdailynewspapersin
termsof(paid)circulation(2010) . . . . . . . . . . . . . . . . . . . . . 220
Fig.14.4 Germany—Revenuestructure(a)andlong-termtrendsof
revenuecontributions(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Fig.14.5 Relativeimportanceofnewspapertypes(a)andkeyfigures
forlargesttitlesandpublishers(b) . . . . . . . . . . . . . . . . . . . . . 222
Fig.16.1 Revenuefromgovernment-sponsoredadvertisementatNepszava
(2007–2011) ...................................... 263
Fig.19.1 Annualcostsofdirectpresssubsidies1990–2011 . . . . . . . . . . 313
Fig.19.2 Numberofnewspapertitles . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Fig.19.3 Newspapercirculation(weekdays) . . . . . . . . . . . . . . . . . . . . . 316
Fig.19.4 Ownershipconcentration,newspapers
published3–7days/week . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316
Fig.20.1 Numberofpresstitlesandrun1995–2011 . . . . . . . . . . . . . . . 325
Fig.20.2 Changeinadvertisingrevenuespermediatype(2001–2009) . . . 325
Fig.20.3 StructureofthepresstitlesdeliveredbySwissPost/million
copiesperyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
Fig.20.4 Effectivereductionfortitlesbenefitingfrompresssubsidies . . . 330
ix
Description:Ever since newspaper companies first turned to their governments for support in the 1950s, print media has been supported by state aid in many parts of the world. Today, the principles and practicalities of these subsidies have been called into question, endangering the secure funding of expensive h