Economics report demands urgent investment in journalism

Economics experts including two Nobel Prize winners have called for immediate action to prevent what they term an "information Armageddon" that threatens both democratic societies and economic growth. A September 2025 report from the High-Level Panel on Public Interest Media argues that governments must treat journalism as essential economic infrastructure rather than optional cultural spending.

According to the statement released on September 28, 2025, coinciding with the International Day for Universal Access to Information, declining investment in public interest media poses "grave dangers to the existence of free, open and fair societies and to the overall performance of our global economy."

The 11-member panel includes Nobel Prize Economic Sciences winners Joseph Stiglitz (2001) and Daron Acemoğlu (2024), alongside prominent economists from institutions including Columbia University, MIT, and the London School of Economics. Their analysis comes as digital advertising markets experience significant consolidation, with Google's platform advertising revenue reaching 90% concentration while publisher revenues decline.

Platform concentration threatens media economics

The economists warn that major technology platforms have fundamentally altered the information economy's structure by extracting value from content producers without adequate compensation. According to the report, "The informational good that public interest media provide is being captured for private profits by these companies, who are further able to control and to charge rents on its distribution."

This shift reflects broader trends documented by PPC Land's analysis of advertising revenue flows, which showed how AI features increasingly retain users within platform environments rather than directing traffic to external news websites where advertising revenue generates publisher income.

The panel notes that Russia's annual disinformation spending exceeds $1.5 billion, three times the foreign aid that major democracies dedicate to supporting independent media globally. This imbalance creates what the economists describe as "a society where technology threatens the information ecosystem rather than supports it."

Six economic justifications for media investment

The panel's analysis identifies six specific areas where public interest media creates measurable economic value:

Economic growth acceleration: Research across 97 countries demonstrates that press freedom correlates positively with economic growth, while deteriorating press conditions can jeopardize living standards. The Panama Papers investigation alone enabled governments to recover $1.86 billion in taxes, with France reclaiming over €450 million through similar investigations.

Governance improvements: Media oversight creates accountability mechanisms that support "inclusive and sustainable economic development." Independent media enables citizens to hold public officials accountable, with studies showing "strong positive relationship between media freedom and the effective control of corruption across different countries."

Productivity enhancement: Access to quality information helps correct market asymmetries and guides economic decisions toward more efficient outcomes. Research from India showed regional radio expansion increased farmers' crop yields by 15%.

Disinformation prevention: The economists quantify substantial costs from false information, including reduced stock performance from corporate disinformation campaigns and increased healthcare costs from misleading health claims.

Market competition regulation: Independent media provides essential oversight of digital monopolies, with the panel noting that "societies can only regulate what they are able to know and understand."

Digital inequality reduction: Universal information access helps bridge economic divides, particularly important as retail media networks capture increasing market share while traditional publisher revenues decline.

Technical solutions require immediate implementation

The panel proposes specific mechanisms to address what they characterize as market failure in information provision. Their recommendations include direct government subsidies distributed through independently governed entities, tax credits for news organizations, and digital levies on major platforms.

According to the economists, "It is time for governments to act decisively on preventing digital and AI platforms from free riding on the work of primary content providers." They advocate for tighter copyright enforcement, removing fair use exemptions that benefit technology companies, and developing new business models for content licensing.

The report emphasizes timing sensitivity, noting that fully 9% of the US journalistic workforce was eliminated in 2023, with cuts continuing across Europe and becoming "increasingly existential in smaller, more fragile, low- and middle-income markets."

International coordination mechanisms needed

The panel calls for enhanced multilateral support, noting that current Official Development Assistance for media represents only 0.05% of total development aid over the 2016-2022 period. They advocate for mechanisms similar to those used for global health initiatives, citing the International Fund for Public Interest Media as a model for coordinated international action.

Professor Mariana Mazzucato, who directs UCL's Institute for Innovation and Public Purpose, emphasized that "public interest media are like the central banks of the informational economy: providing the confidence in the system that is necessary for it to function."

The analysis connects media economics to broader technological trends affecting the advertising industry, including AI's impact on content monetization and the migration of advertising spending toward platform-controlled environments.

Marketing industry implications

For the marketing community, the panel's findings highlight fundamental changes in how advertising value flows through digital ecosystems. As PPC Land has documented, traditional open web display advertising faces increasing pressure from privacy regulations and platform consolidation.

The economists note that without adequate support for independent media, "neither national economies nor trade and capital flows between them can function effectively." This assessment carries particular relevance as programmatic advertising evolves and brands seek alternatives to traditional publisher partnerships.

The report's release during the International Day for Universal Access to Information underscores connections between media sustainability and broader information rights. UNESCO's 2025 theme focuses on environmental information access, but the economists argue that reliable information infrastructure requires economic sustainability across all content categories.

Dr. Vera Songwe, who chairs the panel, warned that current trends point toward "a once-in-a-generation opportunity to build an information economy fit for the future" that requires immediate action before traditional media infrastructure collapse becomes irreversible.

Timeline

• September 28, 2025: High-Level Panel releases economic statement on International Day for Universal Access to Information
• September 2025: Google implements RTB privacy settlement valued at $21.6 billion
• September 2025: Retail media projected to capture 20% of global advertising revenue by 2030
• August 2025: Google's platform revenue concentration reaches 90% as network advertising declines
• July 2025: Netflix completes proprietary ad tech rollout, declares business will "roughly double"
• June 2025: High-Level Panel on Public Interest Media formed and first convened

Summary

Who: A High-Level Panel comprising 11 prominent economists including Nobel Prize winners Joseph Stiglitz and Daron Acemoğlu, representing institutions from Columbia University, MIT, and London School of Economics.

What: Release of comprehensive economic analysis calling for urgent government investment in public interest media, treating journalism as essential economic infrastructure rather than cultural spending.

When: September 28, 2025, timed to coincide with the International Day for Universal Access to Information, marking a decade since the day's designation.

Where: The statement addresses global media economics with specific focus on democratic nations facing digital platform concentration and declining traditional publisher revenues.

Why: To prevent what the panel terms "information Armageddon" - the collapse of independent journalism that would undermine democratic governance, economic stability, and market efficiency while enabling disinformation campaigns to destabilize societies.