The EBU commissioned an independent study to consider the theory that PSM news and information online somehow “crowds out” or hinders the profitability and viability of commercial news services. Crowding out refers to the theory that increased public spending on PSM online news may have negative effects on competition by displacing commercially funded activities, The pan European (peer-reviewed) study, Economic study on the impact of publicly funded PSM activities on commercial online news publishers, released today by Oliver and Ohlbaum found no empirical evidence whatsoever of PSM news negatively impacting commercial online news revenues or reach. On the contrary, the data show that PSM contribute positively to the online news ecosystem. 

Specifically, the study concluded that a 100% increase in PSM online news item output is associated with an increase in publisher online news revenues of 28%. It also found that a 100% increase in PSM online news weekly reach is associated with an increase in traditional publisher online news weekly reach of 43%. In short, PSM do not hinder commercial media, but rather appear to positively impact both their visibility and economic sustainability in the digital environment.

On a broader note, it is regrettable that the “crowding out” myth is still being aimed at PSM online news. Such arguments simply do not reflect the rapid globalization and digital evolution of European media markets in recent years. Recent EU legislation (the European Media Freedom Act) recognizes that content and distribution formats are converged; and that private and public audiovisual providers and press services must all grow in the online sphere in a platform, technology, and format-neutral way. The Act underlines that audiovisual providers, radio and press services are all considered to be “media service providers” now, whatever the platform they are on.

Quality media promotes and grows the appetite for quality information and debate. This is what matters for the future of democratic Europe. European media providers of all kinds must find a way to work together, cooperate and align to protect the precious European media ecosystem and the democratic values it stands for.