Media 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 ThiSisaFMBlankPage 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 SpringerHeidelbergNewYorkDordrechtLondon LibraryofCongressControlNumber:2013956622 #Springer-VerlagBerlinHeidelberg2013 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe Publisher’s location, in its current version, and permission for use must always be obtained from Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter. 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Printedonacid-freepaper SpringerispartofSpringerScienceþBusinessMedia(www.springer.com) 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 ThiSisaFMBlankPage 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
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