Crowding out: Is there evidence that public service media harm markets? A cross-national comparative analysis of commercial television and online news providers

Abstract

The impact of public service media (PSM) on media competition has become a topic of debate in many European countries. Some argue that PSM could starve commercial media, or discourage them from entering markets in the first place because they shrink commercial audiences, lowering both advertising income for free commercial television and willingness to pay for commercial products. Despite its prevalence as a policy argument, there has been limited research about the crowding out concept – and almost no research that is independent, comparative, and considers broadcasting as well as online markets. This article addresses these shortcomings by examining whether there is any evidence to support the crowding out argument by analysing national broadcast and online markets in all 28 European Union countries. More specifically, we focus on data on market resources, audience performance and payment for digital news. The analysis reveals little to no support for the crowding out argument for broadcasting and related online markets.

Keywords

Commercial media crowding out economics policy public service media public value test

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