Austrian federal government presents new media funding package: 22.5 million euros for delivery and digitalization

The annual delivery subsidy of 22.5 million euros is intended to secure the so-called "last mile," that is, the costly delivery of newspapers to the front door or letterbox. According to Babler, it is essential that postal codes play no role in accessing news: "Die Postleitzahl dürfe beim Zugang zu Nachrichten keine Rolle spielen, sagte Babler." The originally announced 25 million euros were also slightly reduced; 2.5 million euros are to flow into the Digital Transformation Fund.

Digital transformation is being expanded

The previous Digital Transformation Fund, which had been endowed with 20 million euros since 2022, will be increased to 22.5 million euros per year for 2027 and 2028, according to ÖVP parliamentary group leader Ernst Gödl. This is intended to fund specific projects rather than distributing funds according to the watering-can principle. Gödl emphasized that the delivery subsidy was essentially a concrete subsidy for rural regions: "Die letzte Meile ist die teuerste."

Funds for media literacy (Medienkompetenz) will be significantly increased: instead of the previous 700,000 euros, three million euros will in future flow to media providers who build up or expand corresponding offerings. Additional funds are earmarked for measures to strengthen media literacy, particularly among young people. Overall, the government plans to allocate around ten million euros for media literacy and the "Junge Medien" program.

"Junge Medien" program endowed with seven million euros

The new "Junge Medien" funding program is endowed with seven million euros and is aimed at start-ups as well as established media companies. Support will be provided for innovative journalistic formats for young target groups, whose offerings must be freely accessible. An independent expert jury is to decide on the allocation. According to Gödl, the call for proposals is still being prepared and will not be completed until the second quarter of 2027 at the earliest.

Babler explicitly classified media policy as democracy policy: "Demokratiepolitik" is the central keyword, not power politics. "Es muss egal sein, ob jemand am Land lebt oder in der Stadt – alle sollen einen Zugang zu Qualitätsjournalismus erhalten," said the Vice Chancellor. His ministry had already switched off the "unkontrollierte Hinausschießen" of advertising inserts; in future, domestic media should "wo nötig und gewollt gezielt gefördert werden."

Foundations for the 2028 reform

The cornerstones of the future funding architecture are already in place: a technology-neutral basic subsidy is to secure journalistic jobs, supplemented by funds for innovation, digital business models, start-ups, and media literacy. Requirements for funding include editorial independence, compliance with ethical guidelines, and the provision of journalistic services in the public interest. The minimum assessment basis for diversity-promoting funding has been lowered to 100,000 euros in order to make access easier for smaller and non-commercial media.

For 2028, Babler announced a further, more extensive restructuring of the domestic media funding system. The basis for this is a study presented in April by Medienhaus Wien. The reform is to focus on quality, independence, and the minimization of political influence. NEOS media spokesperson Henrike Brandstötter referred to a "Zukunftsforum" in autumn, at which the future of the ORF and the role of public-service broadcasting are to be discussed.

Reactions to the package were politically mixed. The FPÖ sharply rejects the reform. Media spokesperson Christian Hafenecker spoke of a "Gleichschaltung per Förderprogramm" and fears the "Umbau des österreichischen Medienmarkts in Richtung ehemaliger DDR". The FPÖ criticized that the state decides what quality is, which mindset is the right one, and who gets money. Their criticism was also directed at a looming "regierungsfrommer Blätterwald".

Criticism from FPÖ and Greens

The Greens also assessed the package negatively. Media spokesperson Sigi Maurer described the proposal as "völlig unzureichend" and criticized that it comes "viel zu spät". The reform is, once again, only being announced and is supposed to come "wenn überhaupt" at the earliest in 2028. Maurer also pointed out that regional free media distributed without subscriptions do not receive a delivery subsidy.

NEOS media spokesperson Henrike Brandstötter was fundamentally open to the package, but set out concrete conditions. The delivery subsidy will only be paid out to news media with a concrete business model and subscriptions, Brandstötter clarified. She explicitly addressed Russia, with which one finds itself in a "hybriden Krieg". Democracy is being attacked with lies, disinformation, and fake news. Brandstötter described the delivery subsidy as "Übergangsförderung" for media that sell subscriptions; "Lifestyle-Zeitungen" should not benefit from it.

The industry itself also spoke up. The Association of Austrian Newspapers (VÖZ) welcomed the package and spoke of "Planungssicherheit" for the media landscape. The new VÖZ president Rainer Nowak, managing director of the "Presse," described the planning security for media companies as "wichtig und richtig". VÖZ managing director Gerald Grünberger pointed out that one faces "einer Übermacht der Big-Tech-Unternehmen" and underscored the relevance of the Digital Transformation Fund. The VÖZ had previously warned, however, against additional funding bureaucracy.

Industry associations react cautiously positive

The Association of Austrian Private Broadcasters (VÖP) was also satisfied. VÖZ managing director Corinna Drumm described the package as a "wichtiges Signal" for private broadcasting. The continuation of digital transformation funding was particularly welcomed; stronger support remains "dringend notwendig".

There was recently disagreement over the funding of free media, which the ÖVP in particular advocated, as Gödl confirmed. However, no delivery subsidy for free papers is planned in the package now presented. Free media remain eligible for funding under the Digital Transformation Fund, which will be extended for 2027 and 2028.

In the restructuring from 2028, new framework conditions are also to be created to better evaluate the efficiency and benefit of submitted projects. The delivery subsidy and the "Junge Medien" program must undergo a notification procedure with the EU Commission; the Digital Transformation Fund only requires an extension application. Babler had described the negotiations as "sehr ambitioniert" and emphasized the intention to invest in "qualitative und kritische Medien". Print must be secured; place of residence must not play a role.

The responsible department is the Federal Ministry of Housing, Arts, Culture, Media and Sport. Babler emphasized that, especially in times of disinformation, fake news, and targeted manipulation, offerings for media literacy are becoming increasingly important. Gödl referred to the state's responsibility to secure journalism in the long term in order to counter growing disinformation and polarization.