"This report presents four models of direct media subsidies in Europe: from Serbia, Croatia, Sweden and the European Union as well as an overview of reduced VAT rates for newspapers, digital publications and periodicals in EU countries and Serbia. In recent years, the value of direct state aid for m ... edia has been questioned, while indirect subsidies, such as tax exemptions, have been the model preferred by governments and welcomed by media owners. This is especially the case with reduced VAT rates, which have been introduced in all EU Member States and beyond." (Executive summary) more

"[...] Examples of support for non-profit media in France, the Netherlands, and Croatia demonstrate that it is possible, within a relatively short period, to develop the media system’s third sector, which is overall better at serving the communication needs of many cultural, local, and interest co ... mmunities. In order to multiply these and other similar types of support, and to make the public funding of media structures and public service journalism resistant to austerity policies, media policies should locate new funding sources and democratise the methods of their distribution. In the Netherlands, local radio outlets receive funds collected via a small tax, while French community radio outlets are funded through a special tax on the advertising revenues of commercial media. The Finnish model of charging, as a public fee, a certain percentage of individual income has unburdened citizens who are less well off, cut the cost and increased the overall extent of payment. There is no reason whatsoever not to make funds collected in a similar fashion the basis for the funding of non-profit journalism in South East Europe. The ascent of the internet as a dominant communication channel has given media organisations the capacity to distribute content instantly and at virtually no cost, to circumvent printing expenses, and to achieve much more besides. Yet it has done away with any possibility of charging for journalistic content. So far, every attempt at finding a convincing business model for monetising digital content has ended in failure, while revenues from internet subscriptions and digital advertising continue to grow. It is of strategic importance to use at least a small portion of the generated profits to fund the production of quality online content. And if content is to serve the interests of the public, only public policy measures will do." (Executive summary) more