January 1, 1996

Long-term economic effects of broadcasting policy

Since the introduction of commercial television in 1989, public broadcasting stations suffer from declining market shares in viewers and advertising income.

This report looks at the long term financial consequences of retaining the current public system and at several policy-models that could improve the financial situation. The possible future developments of the television market are placed in three different long-term CPB-scenario's, so that the uncertain future of the media market can be taken into account. A simple model is developed to look at developments of advertising-income and television licence fees, under different assumptions and against the background of the three scenario's until the year 2010.


Eric Bartelsman
Taco van Hoek
Martin Koning