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State Aid for Newspapers: Theories, Cases, Actions PDF

396 Pages·2013·4.6 MB·English
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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. ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. 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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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
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