Press subsidy
Despite increasing competition in the media market, delivery of the traditional morning newspaper plays a major role in citizens being able to keep themselves informed about the world around them and take part in discussions on issues of significance for society in general.
Press subsidies have existed since the beginning of the 1970s and have two main components: production subsidies and distribution subsidies. Production subsidies are a form of direct support to 'second' newspapers, i.e. newspapers that have a competitor with a higher circulation in their place of publication. Distribution subsidies are granted for cooperation in newspaper distribution on condition that at least two daily newspapers collaborate. There is also a special distribution subsidy for the delivery of newspapers on Saturdays in rural and sparsely populated areas. In addition, the daily press receives indirect support in the form of reduced value added tax (VAT).
The daily press has undergone great change in recent years and conditions for the industry have changed. For this reason, the Government appointed an inquiry in 2004 to conduct a review of state subsidies to the daily press. The Press Inquiry presented its final report Mångfald och räckvidd (Diversity and scope, SOU 2006:8) in January 2006. The previous government addressed the Inquiry proposals on production subsidies in the Government Bill Morgondagens nyheter - nya villkor för driftstödet till dagstidningar (Tomorrow's news - new conditions for production subsidies to daily newspapers, Government Bill 2005/06:201), which was presented to the Riksdag in May 2006. The proposals included a 10 per cent increase in the level of production subsidies for all newspapers except metropolitan newspapers, and a reduction in the minimum circulation threshold to encourage the establishment of new newspapers.
The Government is monitoring developments in press distribution costs closely. Newspaper company costs for delivering newspapers on Saturdays have increased sharply in recent years, especially in rural and sparsely populated areas. A special distribution subsidy was therefore introduced for these deliveries in 2002.
Press Subsidies Council
The Press Subsidies Council is the government agency responsible for allocating state subsidies to newspaper publishers.
Report on the Market Consequences of Swedish Press Subsidies
In December 2006 the Government Offices commissioned Karl Erik Gustafsson, Professor of Mass Media Economics at the Jönköping International Business School, to analyse the effects of press subsidies on the newspaper industry in Sweden and the EU. The report, The Market Consequences of Swedish Press Subsidies, has now been completed and was submitted to the Ministry of Culture on 13 February 2007. It is available to read or download as a pdf file on the right-hand side of this page.
