Radio broadcasting started in 1925. The single network was patterned after the British Broadcasting Corporation (BBC), with a strong commitment to public service ideology, while the chaotic situation in the United States at the time was a model to be avoided. Three lodestars for Swedish broadcasting policy had emerged as guiding principles for broadcasting: accountability by parliamentary control, popular education as a primary purpose, and equal service to all. All services developed within these goals were to be financed by a license fee paid on radio receivers.

     Television services started in 1957. The decision to entrust them to the same public service company as radio was controversial. Television in Sweden was long synonymous with Sveriges Radio and, after 1978, the separate but affiliated company Sveriges Television (SVT). Public service television had a monopoly on Swedish viewers from the start in September 1957 until New Year's Eve 1987, when the first satellite channel started transmitting to Swedish households from the United Kingdom. In the monopoly era, radio and television were characterized by a kind of cultural paternalism; as defined by the early planners for radio, the media should enlighten and teach. The cultural elite remained highly skeptical of commercialism in broadcasting.

     Television took Sweden by storm. Households were quick to purchase TV sets despite their relatively high price. Living rooms throughout the land were rearranged around the new medium. Paternalistic or not, whatever the single channel had to offer got nationwide attention.

     Television soon became, and still is, the dominant medium during election campaigns, and the parties anxiously monitor every newscast and debate. The World Cup Soccer tournament of 1958 was a technical triumph for the fledgling company, and with it SVT entered into international collaboration. News reporting evolved into a daily evening newscast (Aktuellt) in 1962.

     Theatrical productions, documentaries, and other nonfiction dominated programming, while feature films, serial fiction, and entertainment occupied a smaller share of airtime. Original dramatic productions have been important for SVT from the start. The legendary film director Alf Sjoberg directed Hamlet for live trial transmission as early as 1955. Ingmar Bergman made his television debut in 1957 and continued to produce widely acclaimed productions for SVT, including Scenes from a Marriage, The Magic Flute, and Fanny and Alexander.

     A special fee for television (in addition to the radio license fee) generated revenue that enabled the company to extend distribution and expand production capacity. However, Parliament, which controlled the purse strings, was not particularly keen for the company to lengthen program schedules. The general sentiment there was that people should not spend too much time watching television.

     In spite of this view, 12 years after the first channel came on the air, Swedish viewers gained access to a second channel, also produced by Sveriges Television and financed by receiver license revenue. The control of television by the nonprofit monopoly came under fire again in the I 960s, but in 1966, Olof Palme, then minister of cultural affairs (later prime minister), emphatically rejected the idea of a privately owned, commercial rival. The profit motive, he argued, was a threat to program quality.

     In the wake of the wave of radicalism that swept through Europe in the late 1960s, Sveriges Television experienced some hard times. Some programs had been highly critical of the Social Democrats and their allies, the trade unions . These programs were analyzed in detail after complaints were filed with the Broadcasting Commission, the regulatory organ that supervises public service broadcasters' fulfillment of the Broadcasting Act and their contractual agreements with the government. The Board of Governors, which at that time included representatives of central institutions of Swedish society, were also asked to keep a tighter rein on the company's staff. Some believe that the government's irritation lay behind a program of budget reductions that was imposed on the company in the 1970s. By that time, virtually all Swedish households had TV sets, ending the possibility of increases in funds derived from licensing more and more sets; any increase in SVT's budget would instead require raising the amount of the annual fee.

     In 1986, the two channels were given new, contrasting missions. TV 1 remained an all-round channel with all in-house production located in Stockholm. TV2, however, was to produce all its programs from ten district offices that the Riksdag had instructed SVT to establish. At least half of all first-run productions (excluding news and live sports) were to originate in TV2. The aim was to ensure that more of the country would be represented in programming and to create a wider market for independent producers. (In the current contractual agreement, for 2002-06, the quota for programming originating through this strategy has been raised to 55 percent.)

     In addition to original material created by TV 1 and TV2, both channels filled out their schedules with a selection of foreign programs. Programs from the BBC and ITV have always been a priority. Despite an ambition to mirror many different cultures outside Sweden, a good share of program imports comes from the United Kingdom and the United States.

     What finally brought the Riksdag to dissolve SVT's monopoly in 1991 was the advent of foreign-based satellite channels that addressed the Swedish audience directly as well as via carriage on cable networks. It became apparent that further resistance was futile. Unless a domestic commercial channel were allowed, advertising revenue that might be used for domestic production would flow abroad. Therefore, in 1992 a concession to transmit over the terrestrial network was granted to TV4, a private channel. The terms of the concession contained assumptions similar to those supporting public service broadcasting: TV4 must be accessible throughout Sweden, offer good news coverage of the entire country, and carry a specified volume of Swedish-produced programming for children and youth. In return, the channel would have a monopoly on TV advertising over the terrestrial network, albeit the rules for advertising were less liberal than the European Union (EU) regulation applying to satellite channels based in other EU countries.

     TV4 had started as a satellite/cable channel. When it began transmitting via the terrestrial network, it was an immediate success in terms of both economic returns and ratings . Within a few years, TV4 had become the single most popular channel in Sweden and the prime commercial contender. Today, Bonnier, Sweden's largest media group, controls the largest share of the channel. TV4's principal rivals in the competition for advertising revenue are TV3 and U.S.-owned Kanals. That TV4 is accessible to all households and can sell local advertising gives the channel a competitive advantage.

     Two companies now dominate viewers' consumption: SVT (42 percent), whose two channels are exclusively license financed, and TV4 (28 percent). Other Swedish commercial channels together have about 20 percent of the market, while the remaining 10 percent is shared by a number of pay-TV channels and foreign satellite channels . Digital distribution got under way in 1999 and is slowly growing. Still, it will be some years before a multitude of digital channels fragments the audience because the size of the Swedish market will limit the number of viable channels.

     The Swedish market is small, about 4 million households, which means that potential players of license fees, targets for TV commercials and subscribers to pay-TV channels are few. They can support only a limited number of costly productions or upscale program acquisitions. The occasions when mass audiences do gather around their sets (major sports events and very popular entertainment programs) suggest, however, that television might attract more viewers most of the time where greater resources are put into programs.

     The public service channels continue to be predominantly informational, although they do offer some very popular serial fiction, entertainment, and special events that reach a good share of the population. The Olympic Games and World Cup Soccer Championships are examples, as is Robinson, the Swedish version of the British format best known by its American title, Survivor. Commercially financed channels are steered by demographics and relatively small budgets. In recent years, several Swedish program concepts have been exported to other European countries. So far, the growing pay-TV market has invested little in commissioned Swedish production except for soccer and ice hockey matches. Even though SVT's share of total television revenue is less than half, the public service broadcaster still puts more money into Swedish productions than all the commercial channels together. For the public service channels, the public's willingness to pay the receiver license fee (currently SEK 1,740 p.a., of which 60 percent goes to SVT, 35 percent to public service radio, and 5 percent to educational broadcasting) is crucial. Yearly polls show that most people feel they are getting value for money. A majority of Swedes want the SVT channels to remain free of commercials, and the share voicing that view has increased over the past decade. Irritation over advertising messages on the commercial channels is growing. In many countries, pay TV has proven a strong competitor, but Swedish households remain lukewarm. In fact, one viewer in three is content with only the three nationally distributed terrestrial chan­nels: SVTI, SVT2, and TV4.

     TV4 is the largest channel thanks to a combination of news, family entertainment, and commissioned serial fiction. In the late 1990s, TV4 altered its program mix to include more fiction and entertainment after having lost some of its market share to satellite channels. Competition for young viewers tops the agenda for all channels operating on the Swedish market today. In their attempts to capture young viewers, all the channels are offering more Swedish and Anglophone entertainment: serial drama, reality soaps, and magazines.

     Swedish programs do attract viewers. In 2000, they represented 70 to 80 percent of total airtime on the SVT channels. The commercial channels carry less: 50 percent of the programs on TV4 are Swedish productions and roughly 15 percent on the principal Swedish satellite channels. SVT produces most of its Swedish output in house, with the exception of some entertainment and programs for youth. The other companies commission programs mainly from independent producers, which has stimulated growth in this business sector.

     SVT has a strong position among children and older viewers and dominates in news production and Swedish drama. Teenagers and young adults prefer the private channels, which offer more fiction and series. But SVT's fiction production is highly valued both by Swedish viewers and on the international program market. The company's capacity enables it to take part in coproductions and makes it one of the leading film producers in northern Europe. SVT has been recognized with a number of International Emmy Awards: for the original drama, The Tattooed Widow, in 1998; for photographer Lennart Nilsson's remarkable medi­cal series, The Miracle of Life, in 1996; and for the ballet performance, Rok, also in 1996.

     Despite the proliferation of channels, viewing time has not increased notably since the days before satellite and cable. Sweden has among the lowest viewing figures in Europe, with an average 2.5 hours per day and person. In the monopoly era, the low figures were generally attributed to the seriousness of SVT's output. More important factors are probably the high rate of employment outside the home among women and leisure activities outside the home. Then there is the "midnight sun factor": viewing plummets during the summer months.

Digital Television

     Conversion to digital mode has been discussed in Sweden since the mid- I 990s. In 1996, the Riksdag moved to allocate a number of digital frequencies in the terrestrial network that might accommodate 35 to 40 channels (compared to three analog channels today). Satellite channels are almost totally digital, and cable is partially converted. The role of the public sector in this development is controversial; critics find it an inappropriate use of public funds. Most viewers (two out of three) receive television via cable or satellite dish and have no use for the terrestrial network. Judgments differ as to whether the terrestrial network, with its fewer channels and higher cost of distribution, will be competitive with other digital platforms. All things considered, it would appear that multiple distribution systems will continue to operate alongside one another in the digital age.

     Digital television poses many challenges. For SYT, the challenge is how to finance a more segmented output without either commercial revenue or commercial incentives. The public service broadcaster's presence in a variety of technical platforms is accorded value per se. SVT plans at least four digital channels: the present all-around channels plus niche channels for news and special events and young viewers. The commercial channels have a similar strategy in mind: a broad channel to enhance brand-name awareness, complemented by specialized channels and interactive services for pay. For them, the challenge is to retain their commercial revenue in an increasingly international media environment.