State Aid for Independent News Journalism in the Public Interest? A Critical Debate of Government Funding Models and Principles, the Market Failure Paradigm, and Policy Efficacy

Abstract

This study critically reviews scholarly debates on state aid for independent, professional news journalism in the public interest, its funding models and principles, the market failure paradigm, and policy efficacy. State aid is handed out by government agencies which believe that their support can help independent, professional journalism thrive in the digital, mobile, and platform-dominated future. Government support mainly comes as direct financial grants or indirect tax offsets. It aims at engendering economic opportunity and prosperity, while safeguarding journalistic independence and quality of output. Ideally, this shall foster the production, distribution and consumption of original and high-quality news in the public interest, which, in turn, shall keep people informed, facilitate public debate, and hold power to account. Still, this study finds arguments that government funding models for independent journalism in the public interest are limited by several critical challenges that endanger their principles, do not avert failure in the news media market and prevent effective policy governance. These deficits may even be exacerbated in the digital era.