Economic differences among regional public service broadcasters in Spain according to their management model. An empirical analysis for period 2010-2013

Abstract

Purpose: This piece of research quantifies and analyses empirically the given economic differences among public service television in Spain according to the adopted management model (classic or outsourced). Design/methodology/approach: In so doing, an average contrast of different economic variables studied in the literature is conducted (audience share, total assets, public subsidies, cost of personnel, suppliers spending and profit after taxes). In addition, these variables are related so as to calculate productivity obtained by each two groups of television operators. This analysis is conducted for period 2010-2013, featured by a crisis context in the Spanish economy. Findings: Management model adopted by each regional broadcaster impacts on different economic variables as obtained share, total assets, public subsidies, cost of personnel, suppliers spending or profit after taxes. Moreover, those public corporations adopting an outsourced management model present better productivity values. Research limitations/implications: Only one country has been analyzed for a 4 years period. Practical implications: Regional public service broadcasters with an outsourced model present less economic losses and require less public subsidies by their corresponding regional governments. Social implications: Outsourcing part of the value chain can be useful so as to guarantee sustainability of regional public service television. Originality/value: It has been proven empirically that the management model of a regional public service television impacts its economic results.