Tax-funded media and independent journalism: Finding the right model

While tax-funded media can work under specific conditions, India's experience suggests that a model focused on subscriptions and private advertisements is more suitable for maintaining editorial independence, fostering innovation, and creating a more democratic and informed society

Ahaan Kapoor Oct 14, 2024
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Representational Photo (Independent media)

When debating how to fund journalism, various models are considered, including advertising, subscriptions, and public funding. While public funding, implemented in several countries, offers some advantages, its risks often outweigh the benefits. In a democracy, the media should serve as a watchdog, holding the government accountable. Public funding can compromise this role, as seen in India with Doordarshan, where government influence has led to biased reporting. Despite successful tax-funded models like the BBC and Deutsche Welle, which maintain editorial independence through robust oversight and stable funding, India's experience highlights the potential pitfalls.

The British Broadcasting Corporation, popularly known as the BBC, operates on a television license fee set in five-year agreements, ensuring freedom from political and commercial pressures. The fact that the license is set in five-year periods drastically reduces any motive for price manipulation. For example, in the 2010-2016 period, the fee was frozen at 145.50 pounds. In the 2017-2022 settlement, the fee started at 157 pounds and rose to 159 in line with inflation. This fixed rate ensures that the channel is not beholden to the government in power. Further, Ofcom, the UK’s communication regulator,  oversees the BBC’s financial management, ensuring that the terms of the Royal Charter are followed and resources are allocated fairly and efficiently.

Similarly, in Germany, the public and state-owned channel, Deutsche Welle (DW) has also managed to successfully operate independently, despite being tax-funded like the BBC. One reason for this is the instrumental role played by the opposition in parliament in maintaining accountability of the channel. Members of the opposition participate in debates, raise questions and suggest changes. They scrutinize the federal budget which includes the funding for the DW.  Oversight bodies like the administrative and broadcasting council may also include representatives from opposition parties that ensures transparency in the Deutsche Welle. This is a very unique model, as in most countries the opposition doesn't play a significant role in state-funded media operations. Another advantage of DW’s model is that it does not broadcast in Germany. It is an international channel and plays almost no role in the national coverage, limiting domestic influence.

Risks for government-funded media

A tax-funded model can only work if it couples with editorial independence, accountability, and stable funding. In India, Doordarshan illustrates the risks of government-funded media, with criticism over editorial independence and quality. The channel has been accused of promoting government propaganda, leading to declining viewership and trust. For example, recently, the logo was changed from ruby red to saffron - the colour of the current party in power, BJP,  which triggered criticism from opposition parties. The fact that this change took place during the elections led to even more questions. Another controversy was the airing of “The Kerala Story”, a film released in 2023 and aired by Doordarshan during a significant political period.  The movie faced criticism for misrepresenting religious conversion and terrorism on scales that did not match the data. It was considered by many to align with BJP’s stance on national security and religious radicalization.

Furthermore, in India, the rise of subscription-based models over traditional advertising and tax-funded approaches suggests a popular predisposition for independent journalism. A hybrid model combining subscriptions and private advertisements may offer the best balance, minimizing political and commercial pressures. This approach allows the media to remain financially independent while providing high-quality, influence-free news. The subscription model ensures non-rivalry and non-excludability, making it a sustainable choice for modern journalism.

While tax-funded media can work under specific conditions, India's experience suggests that a model focused on subscriptions and private advertisements is more suitable for maintaining editorial independence, fostering innovation, and creating a more democratic and informed society.

(The author is a student at Sanskriti School, New Delhi. Views are personal. He can be contacted at ahaankapoor10@gmail.com )

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