Broadcasting System in Italy: Evolution and Perspectives

Italian public broadcasting service (RAI) has had a monopoly until the middle of the 1970s. The peculiarity of public monopoly in broadcasting is its tendency to secure political rather than economic rents. The dangers that public monopoly causes to consumers (viewers-listeners), has not emerged at least until the mid-seventies for the simple reason that broadcasting has been conceived under the ideological umbrella of public good rather than in terms of opportunity costs. A law limiting monopoly has taken fourteen years to be passed so that the proliferation of private radio and television stations has orgininated the subrogatory intervention by the Constitutional Court. From 1975 to 1989 regulation has tended to perpetuate RAI's monopoly, in a context which was very different from the one in which the RAI was established. It is no wonder, therefore, that reforms have been motivated by RAI's financial crisis in the seventies and eighties, and not by political choices. The 1990 law puts a stop to public monopoly in broadcasting giving rise to what now appears to be a duopoly, but which in 1990 to many seemed to introduce a contestable market able to respond to both consumers' demand and technological innovations more efficiently, so ensuring more freedom of information.