From user generated content to user generated (crowdfunded) public service: A proposal for a new participatory model of funding PSM.

Tiziano BoniniIULM University of Milan

Ivana PaisCattolica University of Milan

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Since the end of the 1900s, PSM have been called into question by both the

liberalization of the telecommunications markets (Lowe & Berg 2013) and by

the emergence of the Internet and digital culture (Bardoel and Lowe 2007;

Enli 2008). Changes due to market liberalization and the spreading of the

Internet have added to the crisis of traditional funding models (advertising

and public funding): the economic crisis that began in 2008 has transformed

the old media’s advertising markets, and has caused problems for several

States’ finances, many of which in Europe have begun cutting PSM budgets.

Since their establishment, PSM have never been under as much pressure as

with today’s ongoing financial, economic and political crisis. European PSM

are now strained by budget constraints, editorial independence, technological

challenges, audience shares and public service values.

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PSM challenges #1: budget constraints

The total level of PSM funding in the European Broadcasting Union (EBU)

area was EUR 33.8 billion in 2012. This represents an increase of 1.3% over 5

years (2007-2012). However, if the effect of inflation were taken into account,

then the 2012 total funding of PSM would be down 9.8% between 2007 and

2012 (EBU 2014a).

At the same time, the commercial revenues of most EBU Members have been

steadily falling since 2005. EBU research shows that “in 2007 advertising

brought in 16.6% of the total income

of EBU Members and was the second highest source of revenue. From 2007, it

dropped gradually to reach 10.5%

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PSM challenges #2 Political pressures on editorial independence and PSM’s reputational crisis

The decline of trust in PSM is not only due to political intervention in public service management, but is also

the effect of a more general decline of trust in traditional institutions. (Debrett 2010). In many countries, the

authority of traditional organizations is at stake: labour unions and political parties are losing members,

people’s trust in parliaments and politicians is declining.

“These developments are the broader context in which PSM operate”, claimed a recent EBU report: “they

will affect PSM in many ways. Firstly, a declining trust in traditional institutions is likely to affect PSM as well.

In some countries, because PSM are considered to be part of a distrusted political system, in others because

they are seen as inert, unwieldy and inward-looking companies that have difficulties in adopting to a fast-

changing environment.” (EBU 2014a: 42).

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Despite their continuous technological update, PSM have had to face many threats

and challenges: an explosion of content on new platforms, convergence,

competition from digital and internet companies, new gatekeepers. PSM are no

longer the only players on the market, and must deal with a fragmentation of

audiences due to the increase in platforms (YouTube, Spotify, pay-per-view digital

thematic TV channels, tablets, smartphones, etc.) as well as changes in the habits of

media content consumption (e.g. the increase of non-linear or on-demand TV

viewing and radio listening and ‘second screen’ usage). According to EBU data

(2014a), in the five largest European countries (UK, Germany, France, Spain and

Italy) both linear and non-linear or on-demand TV viewing increased in the years

up to 2012. After 2012, the total viewing time is expected to continue to increase,

but on-demand will grow faster and at the expense of linear TV viewing. In 2020,

48 minutes out of 273 minutes per day is expected to be viewed as non-linear (i.e.

17.5% of total viewing time).

PSM challenges #3: Technological challenge

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PSM challenges # 4: decline of the audience share

A low market share limits PSM’s possibilities to fulfill their remit and ultimately

impacts their legitimacy. This could induce politicians to reduce their funding. In

turn, less funding decreases programme quality and audience reach, and increases

licence fee evasion, which again affects support for PSM, generating a downward

spiral. As Bardoel & d’Haenens claimed, “a sound relationship with the public and

civil society has become vital, since the relation with politics has its drawbacks.

Popular support can also compensate for a too-close relationship with, or

dependence on, politics, because for most mixed income-based PSBs the

counterbalance of commercial income (advertising) tends to decrease. Hence the

importance of public funding and popular support only becomes more

crucial.” (2008: 340-41)

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changing public service values

Recent debates make it clear that a transition from traditional values associated to PSM in

the 1900s is underway, leading to a new series of values that are more suitable to the

context of the network society, which places social benefits before economic ones. The

process formally began in 2004, with the BBC’s publication of the document Building

Public Value: Renewing the BBC for a Digital World. Here, the BBC proposed increasing its

public value by encouraging citizens to use, understand and enjoy digital information

technologies; supporting active and informed citizenship; by providing programmes that

enrich lives and culture, included multimedia interactive resources and participatory

story-telling projects. This transition to a new social role of PSM in the digital age is still

in its early stages, but it has already found its way into the official documents of PSM.

EBU recently published the document EBU Vision 2020. Connecting to a networked society – in

which this transition towards the social benefits of PSM is highly emphasized: “The key is

to open our organizations and connect with a networked society by continuously building

trust and Return on Society (RoS)” (EBU 2014a: 10)

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The participatory turnA recent EBU (2014a) Visions 2020 document, claims that the focus of PSM should

shift:

“ - from an emphasis on PSM as a ‘deliverer’ to a two-way

approach that fosters dialogue and interaction;

- from ‘one-to-many’ to a more personalized approach

that satisfies a wider range of needs for varied quality in

a diversified society;

- from a closed, or fortress-like institution to one

that is open and connected to networks of people,

communities, cultural organizations and civic society” (2014a: 11)

There is some evidence that users have also become more active, and that the so-called

‘90–9–1% rule’ is changing. This marketing ‘rule’ states that only 1% of the audience

actively contributes to online content and initiates conversations, 9% occasionally

respond with a small comment to online discussions, while the vast majority, 90%, only

passively follow what is going on. The BBC has conducted research showing that only

23% currently remain passive, while 60% participate in easy ways on social media

platforms (liking, sharing, posting short comments, etc.) and 17% are very active (EBU

2014a).

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If PSM have recently opened up more to audience participation in content production, there is still no trace of them

opening up to audience participation in their economic management and editorial decisions. Audiences still have no

seats on any PSM company’s board of directors, though audiences are their main stakeholders in many countries. In

order to achieve the full participation of citizens who play an active role in the decisions made by public media

companies, allowing a few editorial spaces and reworking the UGC is not enough. Full citizen participation in public

media also includes what Carpentier calls “structural participation”, where citizens have a voice in the company’s

editorial choices. For this reason, this article will attempt to test our proprosal for reforming the PSM funding model

based on the licence fee, through the mix with the crowdfunding model, adopted from the most popular digital

platforms for crowdfunding.

If the PSM audience is made up of citizens, then PSM must guarantee these rights to them. Opening up the

possibility for citizens to use crowdfunding to decide how to allocate a part of the resources gathered through the

licence fee means recognizing citizens’ increased decision-making power, making them responsible for choices.

Allowing citizens, who are required to pay the licence fee, to use crowdfunding mechanisms to decide which editorial

formats and genres should receive greater funding would mean giving them the power to choose regarding a part of

the money they are obliged to pay; it would mean the PSM saying to their audiences: “What you see and what you

listen to is not only what I have selected, bought and produced for you, but also what you have decided was better to

select, buy and produce”.

proposal for a crowdfunded PSM licence fee

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methodology

- Online Survey (distribution started November 6 2014 and will run till the end of 2014) (https://jfe.qualtrics.com/form/SV_byMPR7V1JWXih9P)

- Facebook fan page for comments and discussionswww.facebook.com/canonereloaded

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game rulesYou are going to pay your licence fee online. When paying online you are requested if you want to control the 20% of the licence fee (20 euros) and decide how to allocate it.To play the game, you will be asked to pay a 5 euros crowdfunding fee (this fee is needed for the operational costs of the crowdfunding platform)

Now you can play: which programmes you would like to invest on? You can choose more than one programme, until the end of the 20 euros. You can invest 1,5, 10 or 20 euros in one programme. To each investment will be granted a different reward.

reward #1: 1 euro: digital thanks in the programme website

reward #2: 5 euro: thanks in the ending titles of a TV programme or, for a radio programme, a special live thanks from the hosts to one supporter for every episode (e.g.: “This programme his supported by Tiziano Bonini)

reward #3: 10 euro: you are member of the community of the programme. You will receive a newsletter for every episode of the programme, including all the contents and links of the episode

reward #4: 20 euro: you are a “gold” member of the community of the programme. You will receive the same newsletter for reward #3 and you will also be periodically emailed and asked an opinion about content decisions, guests to invite, new episodes valuation. Periodically, the programme will choose a member of this community to be invited into the programme.

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