Press Subsidies

Abstract

Due to its function as a watchdog or fourth estate in democratic societies and a variety of commercial challenges, policy-makers have undertaken initiatives to support the production and distribution of news. Press subsidies are one such policy initiative that particularly aims to provide support to private news producers. Paid as direct cash handouts or indirect reduced taxes and fees, they exist in some form in almost every country in the world. Subsidies are not uncontroversial, their effectiveness is unclear, and their magnitude, designs, and areas of application, differ across nations and their unique economic, cultural, and political contexts. After periods of declining political and public interest in media subsidies, the recent economic crisis of journalism, and the rising influence of various forms of click-bait, fake, native, or biased news on social media platforms, has brought state support of original journalism back on the agenda.

Press Subsidies and Business Performance of Newspaper Publishing in Three Nordic Media Welfare States

“…This is not just a Nordic phenomenon, as media subsidies elsewhere have largely remained frozen in their late 20th-century forms, not changing to nearly the same extent as the sectors they are meant to support (Nielsen, 2014). The overall question should not be how to best continue to subsidise the news media but rather how to organise digital markets in ways that best serve the interests of democratic societies (Ots & Picard, 2018). As Picard (2007, p. 242) notes, "The Nordic model appears to be based more on rhetoric and good intentions than actually producing and operating a system of support that leads to the desired outcomes."…”

“…In the Nordic countries, printed newspapers have been considered to have such an important role in the distribution of news that they have been able to enjoy multiple state subsidies, although studies show increasing levels of indifference among the public concerning support for struggling newspapers (Ohlsson, 2014). After periods of declining political and public interest in press subsidies, the recent economic crisis of news media has placed state support for journalism back on the agenda (Ots & Picard, 2018).…”

“…Still, by 2024, no resolutions have been reached regarding significant direct press subsidies. Importantly, the decisions in Finland not to offer direct press subsidies have been based on the finances of the state, rather than the supposed risks of creating unholy alliances between the news media as a watchdog over those in power (see Ots & Picard, 2018). Currently, the only direct financial support to newspapers in Finland consists of discretionary subsidies granted to newspapers in national minority languages and to Swedish-language news services.…”

“…As elsewhere, Nordic newspaper publishing companies have faced significant changes and challenges in their business environments in recent decades . Despite the large amount of public money used in the Nordic countries on newspaper subsidies over the decades, there is not much academic research on their impact and effectiveness, i.e., the extent to which subsidies achieve their purposes or how distinctive national subsidy schemes and objectives may have differentiated the structures of the newspaper markets (Ots & Picard, 2018;Wirén et al, 2021). This is partly due to the difficulty of isolating or establishing any causal relationships between subsidies and specific outcomes in the industry (Ots & Picard, 2018).…”

“It’s New to Us”: Exploring Authentic Innovation in Local News Settings

“…There has been increasing expectation among industry, social media, and policymaking circles that local news media should innovate to cope with the crisis, with innovation portrayed as a panacea to local news media's many problems. The push for innovation has influenced government policies and subsidies designed to support the sector (Ots & Picard, 2018).…”