Economics, public service broadcasting, and social values

The traditional rationale for the production and transmission of public service broadcasting (PSB) arises from the perceived social importance of the broadcasting media and their potential influence on values, attitudes, and beliefs. There are also strong arguments for the provision of PSB arising from the economic analysis of broadcasting markets. Economic theory indicates that an unregulated, fully commercial system of broadcasting would result in market failure. This supports the case for some form of government intervention in broadcasting to ensure the provision of PSB programming. The empirical literature provides insights into the economic characteristics of PSB organizations. The provision of PSB by state-sponsored, noncommercial broadcasters is currently under considerable pressure, particularly from new broadcasting technologies. The traditional providers of PSB thus face an uncertain future.