With digital switchover looming in most European countries, many broadcasters in the region require public funding to offset declining ad revenues.
In the UK, Channel 4 said it is facing a £100m funding shortfall as the growth of multichannel TV take-up fragments audiences and hits ad revenues. Consequently, the Government is mulling options for the future funding of Channel 4.
The Commission said that Europe’s public broadcasters receive more than €22bn (£18bn) annually from licence fees or direct government aid, placing them third, after agriculture and transport companies, among recipients of state aid in Europe.
Brussels’ Competition Commissioner Neelie Kroes said: My goal is to help stakeholders in the broadcasting sector to meet the challenges of the new media environment, allowing a high quality and modern public service, while at the same time maintaining a fair level playing field between the different actors.
The new guidelines give member states flexibility to assess the funding needs of their broadcasters. It also sets out flexibility for public service broadcasters to build up cash reserves to help them withstand declining revenues.
After consultation, the Commission will adopt a final set of new guidelines in the first half of
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