The Media Sector Feels The Love From Politicians, Or Not

Michael Hedges June 22, 2020 - Follow on Twitter

Economic uncertainty is more than just an irritant for political sphere. It is a call-to-arms. Even those governments tight with budgets, touting the free market, have rushed bailouts to imperilled business sectors. Airlines and golf courses are, it seems, needy recipients. Solutions for the media business vary considerably.

Norwegian legislation on media support - the Media Support Act - is pending approval. The current proposal, outlined this past week (June 19) by Culture Minister Abid Raja, leans heavily on independence. “It is more important than ever that we have access to diverse, independent and reliable media.” If passed it would implement direct grant programs outlined last year, before the coronavirus upturned economics. Minister Raja emphasized “predictable financial frameworks.”

Also included in the draft legislation is a four-year guarantee of financial independence for public broadcaster NRK. The legislation would also affirm independence for Norway’s Media Authority in evaluating individual requests for media support. “We believe that the statutory enforcement of the Media Authority's independence is a good grip to ensure the distance to arm's length between political governing authorities and the media, says Media Authority director Mari Velsand in the same statement.

Danish proposals for timely media support, quite modest, have drawn broad criticism for ignoring local news media. This drew headlines as Jysk Fynske Media, publisher of several local newspapers, announced major cost reductions. “That’s bad news,” said Culture Minister Joy Mogensen, quoted by journalisten.dk (June 11).

“It is clear that the corona crisis and the shutdown of society have not made it easier with the pre-existing conditions of regional and local press,” she added. “We have to deal with local and regional media experiencing a decline in advertising and circulation. In recent years, savings have been commonplace for local and regional media. It is a worrying development.”

The Danish Culture Ministry, so far, has opposed increasing money for the established media support program or shifting about the line items. There is a separate program, which media outlets can subscribe, offering partial compensation for lost advertising revenue. In recent years the Danish government has spent lavishly on media projects of dubious consequence primarily conceived to cannibalize public broadcaster DR for political purposes. While the idea of supporting local news media resonates broadly, past experience has not enhanced political will for media sector spending.

Many politicians feel the appeal of an indirect approach. Institutional information campaigns related to the coronavirus pandemic, thus, have popped up among newspaper pages. In Switzerland, this educational outreach came from the Federal Office of Public Health, which contracted several newspapers, large newspapers. Local and smaller regional newspapers were largely not included.

Subsidizing distribution is another favored indirect support mechanism. In several countries postal subsidies are common. The Swiss government boosted postal and delivery aid by CHF70 million (about €66 million), mostly accruing to large publishers. The right-wing Swiss People’s Party (SVP) complained, opposing media support funding unless free newspaper titles are included. Blinky, blinky went the politicians. SVP founder and patron Christoph Blocher owns 30 free titles.

“To let competition to play out would be to accept that available content becomes more standardized and diversity would be left behind,” said Council of States spokesperson Stefan Engler, quoted by Swiss-German regional public broadcaster SRF (June 18). So far, the Swiss Council of States have approved roughly CHF150 million (about €141 million) to support newspapers and local radio and TV channels, including CHF30 million (about €28 million) for online publishers. About half that amount would come from funds from the public broadcasting household license fee. The Federal Council, which gets the last word, has scheduled a debate for later this summer.

The French government, owing to relative scale, is dealing with much bigger numbers for a media support plan. Under pressure from an “impatient” media sector, reported Les Echos (June 11), the Parliament will take up the relevant debates this coming week (June 22). “There will be many specific measures for the press and the media in addition to the €3.5 billion already announced for the culture sector,” said a government statement. That number includes partial unemployment support, special consideration for freelance workers and loan guarantees. “We are examining the possibilities with the Parliament, which has a very busy schedule.”

See also...

• Hot Topics - Media Support