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Javnost - The Public, Vol. 23 - 2016, No. 3

Reconciling the Economic Sustainability of Radio Broadcasters in Slovenia with Pluralism and Diversity

, , pages: 327-342

The generous licensing policy for terrestrial radio in Slovenia led to an overcrowded market with limited geographical coverage, creating a situation whereby the advertising revenues of a large number of operators were insufficient for them to break even. Small regional broadcasting operators are not only economically inefficient since they cannot exploit economies of scale, but also do not fulfil the social goal of media policy in terms of pluralism and diversity. Therefore, consolidation through mergers and networking could improve their economic viability, while the social goals of media policy could be achieved by other means, such as a public interest test and the co-existence of public broadcasters and radio stations of a community type whose economic survival would be supported by public and other non-profit funds. Such a media policy would require a relaxation of the ownership rules and strengthening of the role of regulation and regulatory institutions which should monitor the fulfilment of economic, social and public policy goals.

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