I haven’t put pen to paper on the Ofcom PSB review. The review is thorough but transparent, the best take on it is from Ofcomwatch – I’ve added a link to a pdf of Stigler’s seminal article.

Nobel winner George Stigler famously observed [pdf] that firms often acquire policy or regulation so as to serve their interest, not the public interest.

Ofcom’s Public Service Broadcasting (PSB) review looks like it could be headed directly down this path.

The regulator paints a dire picture of the future of quality television broadcasting and strongly suggests a state subsidy should be offered. The likely beneficiary? Channel 4.

Ofcom say Channel 4 ‘will need greater certainty in its funding model.’

‘Greater certainty’ in this context = money. And the likely source? The BBC licence fee.