Across Central and Eastern Europe, public service media (PSM) are under growing political and economic pressure. Funding mechanisms are being questioned, licence fees challenged, and more voices ask: “Why should I pay for something I don’t use?” At the same time, digital platforms and global tech giants dominate advertising markets and capture audience attention, destroying the advertising model that sustained free and independent media for decades.

To respond effectively, we need strong arguments. That is precisely what The Economic Imperative of Investing in Public Interest Media (2025), delivers.

A high-level economic appeal

Authored by 11 leading economists - including Stiglitz and Acemoglu - the paper reframes media as essential public infrastructure. It treats information as a foundational input for economic growth, governance and trust. Because information is a public good that markets cannot provide in sufficient quality or quantity, investment in media is not market distortion but the correction of market failure. Since reliable information benefits everyone, governments have both the right and the responsibility to ensure its availability.

Contribution to prosperity

Empirical evidence shows that media freedom correlates positively with economic growth. Research across 97 countries finds that a decline in press freedom can harm living standards. Public interest media also improve transparency, information flow and predictability, lowering transaction costs and making markets more efficient.

Promoting good governance and building trust

Independent media promote good governance and social trust, two cornerstones of dynamic economies. Studies consistently link media freedom with stronger control of corruption. When citizens have access to trustworthy information, they can hold officials accountable and ensure public funds are used efficiently. Strong media therefore save money by reducing waste and abuse.

Information, productivity, and innovation

The economists note that the true value of public interest media extends beyond GDP. Reliable information generates broad productivity gains. During the COVID-19 pandemic, accurate health communication reduced infections and sustained productivity. In India, expanding access to regional radio increased farmers’ yields by up to 15%, proof that factual information directly improves livelihoods and output.

Combating disinformation and protecting democracy

Public interest media are also the most effective antidote to disinformation, a phenomenon with real economic costs. In 2024 alone, 90 countries were targeted by foreign information manipulation across 38,000 channels. Such interference erodes trust, destabilizes democracy and distorts markets. Disinformation fuels polarization and uncertainty, undermining policymaking and investor confidence. Public interest media strengthen the information environment, limiting falsehoods and protecting both democracy and economic stability.

Addressing long-term risks: climate and sustainability

Misinformation also hinders action on climate change and other long-term risks. Without reliable coverage, voters and policymakers may underestimate the urgency of action. The economic stakes are huge: global income could drop 19% by 2050 and up to 50% of GDP by 2100 without decisive measures. Public interest media are vital to building the informed consensus needed for sustainability and long-term stability.

Limiting market power and enabling regulation

Another crucial function of public interest media is countering excessive market power in the digital economy. Societies can only regulate what they understand. By equipping citizens and policymakers with trustworthy information, public service media enable effective oversight of sectors such as AI and Big Tech. Smart regulation, in turn, supports fair competition and curbs inequality. Without such counterweights, digital markets risk becoming extractive and exclusionary rather than innovative and inclusive.

The cost of monopoly and media capture

Top-heavy markets dominated by a few platforms are inefficient and socially risky. They distort competition, misallocate profits and suppress innovation. Dominant firms can also shape or suppress coverage to protect their interests - a modern form of media capture that increases inequality and weakens democracy. Public interest media help counter these effects by diversifying voices, ensuring transparency, and keeping information a public resource rather than a private monopoly.

Regulating Big Tech and sustaining information ecosystems

The economists call for digital platforms to contribute financially to the sustainability of the information ecosystem. Platforms extract enormous value from public content and citizens’ attention but return little to the systems that sustain quality and trust. The report proposes tools such as digital services taxes, revenue-sharing schemes, and public-interest media funds partly financed by technology companies. This aligns with European initiatives like the Digital Markets Act and the European Media Freedom Act: pragmatic, fiscally responsible ways to sustain independent media.

Efficiency, legitimacy, and cost-effectiveness

Finally, the report tackles the question of legitimacy. Supporting public interest media, the authors argue, is among the most cost-effective ways to strengthen economies and democracies. The benefits go far beyond direct users: better governance, reduced corruption, higher productivity, and greater trust yield measurable economic value. The report decisively rebuts the “why pay if I don’t use it” argument - showing that investment in media generates positive externalities across society. Everyone benefits from the stability and predictability that come from well-informed decision-making.

This report offers an evidence-based framework for action. It speaks the language of efficiency, investment, and market correction - not ideology. It gives finance ministries and policymakers a credible rationale for stable and independent PSM funding. Above all, it reinforces the principle that strong, independent public service media are preconditions for effective markets, social trust and democratic resilience.