Public service broadcasting, children’s television, and market failure: The case of the United Kingdom

ABSTRACT Domestically produced children’s television is frequently highlighted as both an area of market failure, and also as an area where children’s changing consumption habits necessitate new and different ways of thinking about funding children’s content across a range of platforms. In the light of a recent U.K. proposal to set up a Public Service Content Fund to support “genres” under threat, including children’s programming, this article considers how you fund diverse high-quality children’s content in a more challenging media environment where children’s content is arguably still a market failure “genre.” The first part of the article provides context by outlining the market failure characteristics of children’s content as a framework for analyzing the validity of market failure arguments across a range of platforms. It then investigates the causes of perceived market failure in the U.K. children’s television production market. The final part examines the implications of recent U.K. policy responses to provision for children that seek to address market failure through (1) the possible introduction of a contestable fund for public service content; (2) more stringent obligations on the British Broadcasting Corporation; and (3) the re-imposition of quotas on commercially funded public service broadcastings (ITV, Channel 4, Five). Drawing on regulatory and stakeholder responses, it concludes that attempts to overcome market failure in U.K. children’s television appear unsuited for funding the longer-term curation, distribution, and discovery of new types of content on platforms other than broadcasting.