CAN MARKET FAILURE EXPLAIN THE EXISTENCE OF PUBLICLY FUNDED BROADCASTING SERVICE IN THE DIGITAL ERA?

Over the last few decades, technological developments have had a considerable impact on the broadcasting market. The methods of transmission have altered where broadcasting signals have been subject to dramatic enhancements. In terms of classification, broadcasting shifted from a pure public good to a club good and in the digital era, encryption enables governments to deal with negative externalities in the broadcasting market. In fact, broadcasting spectrums are not as scarce as previously experienced, thus, due to technological developments, the market failure framework cannot be considered as a legitimate rationale for publicly funded broadcasting services in the digital era