Market failure exists when the competitive outcome of markets is not
efficient from the point of view of the economy as a whole. This is
usually because the benefits that the market confers on individuals or
firms carrying out a particular activity diverge from the benefits to
society as a whole.
Wales is facing a media market failure that will leave the nation with a deficit of reliable information, according to a report by the Institute of Welsh Affairs.
Cutbacks in spending on broadcast programmes made for Wales,
falling numbers of trained newspaper journalists and a weak commercial
radio sector present a “major challenge” for the nation, the report
said.
The IWA Wales Media Audit 2015 published on Wednesday warned: “At a
time when Wales as a democratic entity has never been more clearly
defined, the sources of information for debate and scrutiny about our
government, culture and identity are drying up. This represents a major
challenge to our society and democracy. Wales has seen market failure
writ large.”
The report pinpoints a slide in spending and output over a decade, with BBC Wales spending on English-language programmes falling quickly since 2006, down by 25% to £20m annually.
ITV Wales has cut its English-language programmes for Welsh viewers
to 1.5 hours a week from four hours, and the report notes that there has
been a total reduction in spending on TV programmes for Wales across
the BBC and ITV from £39m to £27m.
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