Cutback in government spending on media

In 2006, public spending on media amounted to 897 million euro; adjusted for price changes that is 22 percent down on 1999. Central government accounted for 758 million euro. The bulk of the amount goes to the public television channels Nederland 1, 2 and 3 and radio channels Radio 1, 2, 3, 4 and 5. On the provincial and municipal level, the government financed local and regional television and radio channels.

Declining government spending on media can be attributed predominantly to cutbacks in the public sector and also to declining advertising revenue. The government uses advertising revenue to fund the media. Advertising revenue declined due to the recession in the period 2000–2003, fierce competition from the Internet and commercial channels and loss of broadcasting rights of the premier football league matches 2005. The public channels have regained the rights to broadcast premier league matches in 2008. Public spending on the provincial and municipal level was fairly stable over the period 2000–2006.

Government spending on media (in constant prices)