Broadcasting and telecommunications have undergone a very rapid transformation from provision by public sector monopolies to provision by many private (and public sector) firms. This transformation has been stimulated by measures adopted by the European Union which, particularly in the case of television, have led to significant unanticipated consequences - notably increased consumption of non-European programming. Public service broadcasters have been particularly marked by such changes and, in spite of the addition of the `Amsterdam Protocol' to the European Treaty, continue to function in a hostile environment. Not least because broadcasting is a failed market but a failed market with positive social consequences. Making broadcasting markets fit the neo-classical economic model on which the Treaty is based risks social loss. However, public service broadcasters must also change if they are to realize their positive potential and play a part in the evolving EU broadcasting markets.
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