Iceland’s media policy and the Nordic media welfare model : A fragile support and uncertain future

The Icelandic media system shares many characteristics with the media systems of other Nordic countries. In a Nordic comparison, however, the state has until very recently been less active in the media market, and the consensual characteristic of the Nordic media welfare state model has been largely absent. The media market in Iceland has been in turmoil for over a decade, and most news media companies have been run at a loss or with meagre returns for years. This has led to a fundamental but hotly debated shift in media policy, introducing press subsidies for the first time. It has thus been argued that in Iceland, a market libertarian approach to media policy has been challenged by the Nordic media welfare state model. Findings from an analysis of the legislative debate about the media policy change indicate that support for a Nordic media welfare state model is unstable in Icelandic politics, thus its future is uncertain.