Political Winds Shift, Media Adjusts Again

Michael Hedges June 10, 2019 - Follow on Twitter

The center-right coalition of Liberal Alliance and Danish People’s Party that had led the country off and on for more than a decade was overrun by a new center-left coalition of the Social Democratic party, Radical Left, Socialist People’s Party and Red-Green Alliance. The new coalition - referred to as the Red Block - wants little to do with the media policies that came before, almost.

“There is a consensus on adjusting and changing the media deal that has been made,” said Social Democratic Party culture and media spokesperson Mogens Jensen, quoted by Politiken (June 6). Mr. Jensen is the odds-on favorite as the next Minister of Culture and Media.

Debate in Sweden over solutions for the dearth of news coverage in local areas - the “white spaces” or vita fläckar problem - has continued for more than a decade. With well-known attachment to social democracy Swedes place trust in social and institutional cohesion. News outlets serving local communities, some quite distant from major urban centers, are viewed as essential and worthy of support.

Local newspapers in Sweden instil greater public confidence than those centered on national coverage, said the annual Confidence Barometer (Förtroendebarometer) of the Swedish Media Academy (Medieakademin), reported media news portal medievarlden.se (March 22). For the survey, local newspapers were defined as any daily newspapers other than Dagens Nyheter, Svenska Dagbladet and evening newspapers. Nearly half the respondents (47%) have confidence in their local newspaper, reversing a five year decline, though still below the 50% of 2013. Confidence in Dagens Nyheter, published by Bonnier AB, fell to 44%, with Svenska Dagbladet, published by Schibsted, unchanged at 40%.

But far more Swedes - 65% - expressed confidence in public radio SR (Sveriges Radio), unchanged year on year. For public television SVT (Sveriges Television) the sentiment was at 61%, a slight increase. Private commercial broadcasters, radio and television, held the confidence of 47% of Swedes, equal to local newspapers.

Public broadcaster Sveriges Radio (SR) operates 26 regional stations branded as the P4 network. These are general interest stations, which includes considerable local news. The aggregate market share of the P4 network for the most recent week (April 1st) is 48.2%, according to market researcher TNS Sifo. SR and SVT are publicly funded through the household license fee. SVT offers regional news windows.

Private commercial radio in Sweden was completely reorganized in 2018. Three national licenses were created, following the trend seen elsewhere. Bauer Media operates Mix Megapol, Nordic Entertainment Group (NENT, formerly Modern Times Group - MTG) operates Rix FM and NRJ Group operates the NRJ franchise. Of the 35 restructured regional or local licenses most were acquired by or are contracted to Bauer Media and NENT. The license auctions generated about SEK 900 million (€85 million). Through deregulation, commercial radio, originally licensed to local areas, is almost entirely produced for broad national audiences.

Community radio stations on about 150 FM frequencies are local access services authorized to non-profit organizations. A few are also available on local cable systems. In some locations community radio licenses have been acquired by commercial radio operators.

“That there are places in the country that have no local coverage is scary,” said incoming (February 1) Culture Minister Amanda Lind to media trade portal medievarlden.se (February 22). “It is very dangerous for democracy. So now we agree that we should further strengthen the media support, which is good.” Media support (read: subsidies) is very much under debate.

In Sweden subsidies for local newspapers, print and online, are allocated by the Media Subsidies Council (Mediestödsnämnden), which is administered by media regulator Swedish Press and Broadcasting Authority (MPRT). In February the Media Subsidies Council replaced the Press Support Council, allowing grants to online publishers. Grants are meant “for local journalism in areas with poor journalistic coverage as well as innovation and development.” There is a 30% coverage threshold, largely based on the respective advertising markets, below which publishers can make claims on the funds.

For 2019, 73 publishers divided up nearly SEK 500 million (€48 millon). In reality, large publishers receive large grants. This year, Göteborgs-Posten, published by Stampen Media, benefitted from SEK 40 million (€3.8 million), the maximum amount, reported medievarlden.se (February 22). Last year, Svenska Dagbladet received the maximum grant.

The acquisition of Mittmedia, publisher of 28 local newspapers, by Bonnier News Group with Norwegian publisher of local news outlets Amedia as a minority partner, announced in February, put an exclamation point to the economic realities of local news publishing. While negotiations were still in progress, the Swedish Competition Authority (Konkurrensverket) gave a preview. “Support for activities with strong local roots should be given priority over support to established media companies that extend their news coverage to the area in question,” said its statement (January 17). Schibsted also bid for Mittmedia. The Competition Authority signaled its approval (March 26).

See also...

• Hot Topics - Media in Sweden