Sports broadcasting: Is it a job for public service broadcasters? - A welfare economic perspective

The current policy of European public service broadcasters (PSBs) of acquiring expensive sports rights does not correspond with welfare economic principles. The Listed Events regulation prevents sports events of major importance for society from migrating to pay-TV broadcasters. Handing over expensive sports programs to commercial rivals will release resources that can be used on other activities, including programs that have characteristics of externalities and merit goods. Such a policy has been adopted by Australian PSBs.