Cost-cutting packages and major strategic shifts are reshaping the landscape – while the role as a trusted voice in uncertain times grows stronger.

“At a time when facts and objectivity are being challenged by misinformation and conspiracy theories in digital ecosystems, it is crucial that NRK and public service reinforce their role as reliable sources and key societal institutions,” says Jørgen Heid, Director of the Strategy and Media division at Norwegian NRK.

From breaking news and social information to children’s programmes, documentaries, drama, live broadcasts and sport – Nordic public service broadcasters have a wide-ranging mandate. They rank among the most trusted media in Europe and top public confidence surveys, according to a new report from Nordicom, the Nordic Centre for Media Research at the University of Gothenburg. Yet the same study also shows that there is mounting economic pressure.

A turbulent global environment, competition from new digital players, rising costs and political decisions have set the ground shaking. For many companies, funding is being tightened, and they are facing major changes, including cost-cutting packages and restructuring.

Fredrik Stiernstedt, Professor in Media and Communication Studies at Södertörn University, Stockholm sees two developments unfolding simultaneously. A technological and digital transformation where international platforms are gaining ground, competition is intensifying, and broadcasters’ ability to reach mass audiences is being challenged. Secondly, there is a growing political and ideological critique, which has strengthened over the past 15 years, partly driven by the rise of right-wing populist parties in Europe, traditionally more critical of public service, according to Stiernstedt.

“These two developments have had concrete political consequences. In many places, public service budgets are tightened, or new types of mandates introduced, where broadcasters are required to deliver certain types of content while being constrained in others.”

He also sees a third factor at play; the geopolitical changes following Russia’s full-scale invasion of Ukraine and the new security situation.

“This has increased costs related to security work within public service and the civil preparedness responsibilities that all Nordic public service companies carry. But they have not necessarily received full compensation for these rising costs.”

So, there are storm clouds brewing on the horizon. Recently Swedish SVT announced that it will have to cut SEK 355 million by 2027. The reasons: The company has a new mandate to be technologically neutral and ensure secure digital distribution, but there are also increased costs for the terrestrial network, which TV4 left last year. Programme operations will have to cut SEK 220 million, News and sport SEK 80 million, and Administration and technology SEK 55 million.

”SVT must pay more than SEK 190 million extra per year to broadcast via the terrestrial network – a significant expense the company has not previously had. Another reason for the cuts is the need to allocate more funding to security and civil preparedness. A third factor is that costs are rising faster than the level of public funding,” says Michael Österlund, one of the two newly appointed programme directors.

How will the savings package hit? Will there be staff cuts?

”We cannot rule out layoffs, but we are still in the analysis phase, so it is too early to say exactly how the budget cuts will affect the organisation.”

How will this impact what the viewers watch?

”Some shows will be produced more efficiently, but others have to be cancelled. This time, both external commissions and in-house productions will be affected.”

At the same time, major structural changes are under way – five programme areas are reduced to three, and two management teams merged into one. Drama is included in Fiction & Children, and Minorities in Society & Factual. The reorganisation began last autumn, and will take around 18 months, according to Michael Österlund, who says the real impact on the programme offering will likely be visible around 2028.

“The main change is that we are moving away from the traditional commissioner–producer model. Previously, a small central group held the budgets and commissioned programmes from the production division. It concentrated decision-making, and risked slowing development. By removing the commissioning layer, we can simplify the structure, reduce management costs, and work more directly. I estimate we will save around SEK 10 million in senior salary costs alone.”

Finland’s Yle is also facing major savings of EUR 66 million by 2027, following a parliamentary decision. In addition, the VAT on its public funding will increase from 10 to 14 per cent from next year on. The savings will result in fewer programmes, a reorganised structure, and a simpler management model. For example, the Sports and events unit will be integrated in the News and current affairs division.

In total, 309 positions will disappear – 156 through redundancies, while the remainder through retirements and other measures.

“We are going through a major cost-saving programme that started at the end of 2024. It has led to organisational changes. We could not have implemented this without major structural adjustments,” says Jere Nurminen, Director of Communications, Brand and Marketing at Yle.

In addition, the company is required to increase its purchase of content from independent production companies by 15 to 20 per cent up to 2030.

“Finland as a country is facing a very difficult financial situation, and the entire public sector is subject to savings across all areas. As a public service broadcaster, we also have to do our part – that was the political view. But it was also very important to safeguard our broad mission, which is actually slightly expanded compared to before.”

Nurminen also notes that the company’s digital services are prioritised in the new strategy.

“We are present on social media, across various platforms, but the goal is always to direct viewers to our own platforms.”

In Norway, a similar process is under way. A reorganisation of the content division in Oslo was recently completed, introducing five programme areas and a shared staffing matrix. Changes are also ongoing within the news division to create more streamlined media workflows.

“One of the most far-reaching measures is the merger of radio, television and online lines into a single publishing line. A matrix organisation is being introduced here as well, in order to create more development opportunities for employees, strengthen skills development, and better utilise the division’s flexibility,” says Jørgen Heid:

”The background to all these changes is fundamentally clear: rapid technological development and the intensifying competition for audience attention.”

He acknowledges that staff reductions may be necessary, but cannot specify how many positions could potentially be affected.

“The main purpose of the reorganisations is to ensure that NRK remains relevant for everyone in the future, by facilitating greater flexibility, improved joint prioritisation, and more targeted, personalised public service broadcasting. While efficiency and better resource utilisation are important goals in preparing for the future, our primary drive is strategic adaptation to a new media market, not a pure cost-cutting objective of the kind implemented at Yle. Nevertheless, we will need to gradually reduce staffing over the coming years.”

The major changes reflect a broader trend across the Nordics. It began with Denmark and DR being the first to implement major restructuring and cuts several years ago, says Fredrik Stiernstedt.

“But the overall trend is similar across the whole Nordic region.”

What effects do you think this will have in the longer term?

“Most Nordic public service broadcasters are in a position where it is difficult to cut costs anywhere other than in programming or staff. Naturally, that has consequences for programme output. At the same time, these are large media organisations with many employees and substantial budgets. It is not a matter of flagship news shows disappearing. Rather, changes are likely to be more gradual. Expensive entertainment formats, sports coverage and drama production could be areas that are deprioritised. It is quite possible that budgets will shrink over time, potentially affecting quality.”

At the same time, demands are increasing on public service to take a stronger role in areas such as civil preparedness and fact-checking in a world of deepfakes, AI-generated content and disinformation.

” One of NRK’s main objectives is to strengthen and develop democracy and to help people better understand society,” says Jørgen Heid at NRK:

”We formulate it as follows: ‘We must be first with the latest news – and explain and provide context.’ The latter part is particularly important. There is an increasing need to better understand the world around us when so much is happening every single day”.

In SVT’s new strategy towards 2030, emphasis is placed on verification and investigative journalism, investments in digital security, and ensuring that relevant information reaches the public quickly in a time marked by uncertainty, war in the region, and disinformation. “When reality becomes difficult to navigate, SVT must stand for knowledge that can be trusted,” SVT’s CEO Anne Lagercrantz described the company’s new strategy in a press release.

Finland’s Yle has established an entirely new verification team that focuses on uncovering scams, social media fakes and hidden information. It consists of one producer and several journalists, and similar teams have been established at other public service broadcasters across the Nordic region.

”Trustworthy news, fact-checking and battling the disinformation are actually first priorities in our new strategy. I think all public service broadcasters are putting more and more effort into that in these uncertain times,” says Jere Nurminen.

Fredrik Stiernstedt shares a similar view.

”Public service enjoys exceptionally high levels of public trust. Policymakers are aware of this, and recognise the value of independent platforms in the current geopolitical climate. The argument that public service is essential for national preparedness will likely grow stronger,” says Stiernstedt, adding:

”However, for public service to function as a civil preparedness resource, it must maintain high trust and continue to reach broad audiences. That means it cannot become too narrow. It needs broad entertainment and drama offerings that attract large audiences and maintain its position as a strong and widely used brand. There is a potential conflict here: If financial constraints reduce quality or limit large-scale programming, the long-term value of public service as a preparedness resource may gradually erode.”