In 2023, the revenues of domestic media experienced a decline of 4%. Despite a modest increase in user-generated income of 1.6%, advertising revenues contracted by 12% year-on-year. The predominant cause of this downturn can be traced to the diminishing income of daily and weekly newspapers, which saw a staggering quarter reduction of revenue at constant prices when compared to the previous year.
A significant portion of media revenue, approximately 62%, is derived from user contributions, contrasting with 38% from advertising, equating to 18.7 billion ISK in user-generated revenues versus 11.4 billion ISK from advertisements. The share of the National Broadcasting Service (Ríkisútvarpið) in media revenues rose slightly from 26% to 27%, concurrently with an increase in its advertising share from 20% to 22%. The five largest players in the media market captured 87% of the combined media revenues in 2023.
Following a brief period of growth in media revenues post the 2020 Covid-19 pandemic, media income has once again diminished when adjusted for inflation. Revenues in 2023 fell by 1.3 billion ISK compared with the previous year, entirely attributed to the contraction of advertising revenues. User revenues in 2023 increased by 300 million ISK, while advertising revenues plummeted by 1.6 billion ISK. A considerable portion of the decline in advertising income can be attributed to the cessation of the free daily Fréttablaðið in the first half of the year, but the paper had been among the largest entities in the advertising market.
The evolution of media revenues is depicted in the accompanying chart below, illustrating the media income from 2010 to 2023 as an index calculated at constant prices. Following a period of revenue growth in 2015–2017, income has once again reversed course, decreasing by over 15%. This decline is largely due to a reduction in advertising revenues, which are now firmly 35% lower than in 2016 when they peaked, and over 6% lower than in 2010. The reasons for the drop in advertising revenues are twofold: the outflow of advertising funds to foreign entities (predominantly social media and search engines) and the emergence of new media distribution channels such as streaming services (see news release 27 November 2024). On the other hand, user-generated revenue has risen by 16% since 2010.
The revenue trends vary significantly between different media types, as shown in the table below. Daily and weekly newspapers, mainly, along with magazines and periodicals in somewhat lesser degree, have experienced substantial income reductions over an extended period. In a span of just over a decade, from 2010 onwards, revenues from daily and weekly newspapers have halved, with advertising revenues plummeting significantly by 60%, compared with a nearly 30% decline in user-generated income. The income contraction in the publication of magazines and periodicals during the same time frame amounts to approximately 30%. Conversely, other media have seen revenue increases, with radio growing by 25%, television by 16%, and online media revenues quadrupling. Podcast revenues have likewise quadrupled since 2020.
The changing consumption patterns of the public in recent years are somewhat reflected in the altered distribution of income among media outlets, as highlighted in the table below. In 2023, 55% of media revenues were generated by television and 15% from radio. The share of daily and weekly newspapers in media income stood at 13%, online media at 12%, and magazines and periodicals at 4%. The share of podcasting in media revenues remains exceedingly limited at just 1%.
Since 2010, the share of daily and weekly newspapers in media revenues has seen a decline from 27% to 13%, during which television's share has increased from 51% to 55%, and online media has risen from 2% to 12% by 2022. The share of magazines and periodicals has nearly halved, dropping from 7% to 4%, while radio's share has seen a slight increase from 13% to 15%. Accompanying the decline in advertising revenues over several years, the share of user-generated income has gradually risen. The following table illustrates the internal distribution of media revenues by type from 2010 to 2023.
The proportion of media revenues derived from user contributions has risen from 57% to 62%, with the share from advertisements decreasing from 43% to 38%, representing a shift of five percentage points favoring user revenues. The development of each media type varies significantly in terms of this internal ratio between user and advertising revenues. For instance, user revenues for daily and weekly newspapers exceeded those of 2010 by 13 percentage points in 2023; for television, the increase was six percentage points, and for online media, it rose by 17 percentage points. In contrast, advertising revenues from magazines and periodicals outweighed their user income by 32 percentage points. The internal revenue distribution for radio remains unchanged.
Out of the total media revenues of approximately 30 billion ISK in 2023, 8.1 billion ISK were allocated to the National Broadcasting Service, while 21.9 billion ISK went to privately owned media outlets. The share of the National Broadcasting Service in media revenues grew by one percentage point over the past year, reaching 27%. Its share of revenues from radio increased by one percentage point to 64%, while its television revenue share rose slightly from 31% to 32%. Over a more extended period, the National Broadcasting Service's share of media revenues rose from 24% in 2010 to 27% in 2023. Concurrently, its share in radio revenues decreased from 67% to 64%, while the share in television decreased by one percentage point to 32%.
Between 2022 and 2023, the National Broadcasting Service's share of advertising revenues increased from 20% to 22%. Similarly, its share of advertising revenues concerning television rose from 56% to 57%, however, it remained unchanged in radio at 37%. Since 2010, the National Broadcasting Service's share of media advertising revenues has increased by three percentage points, from 19% to 22%, while its television share grew from 45% to 57%, representing a change of five percentage points. Meanwhile, its share of radio advertising revenues has contracted by five percentage points, dropping from 42% to 37%.
In consideration of the revenue distribution among media outlets, a significant degree of concentration can be observed in the Icelandic media market. In 2023, 87% of the total media revenues were attributed to five media operators (including the National Broadcasting Service), 94% of user fees and 76% of advertising revenues also fell within their purview.
When focusing solely on privately owned media, 84% of the combined revenues accrued to five operators, with 93% of user fees and 72% of advertising revenues.
About the data
Information regarding media revenues is acquired from media operators to the Media Commission from 2011 onward and from annual reports. In instances where operator data is lacking, revenues are estimated based on value-added tax reports and any other available information. Previously published data is revised with access to new and hitherto unknown information.
Media is here defined to include daily and weekly newspapers, magazines and periodicals, radio, television, online media, and podcasts. Information on revenues from other media is provided in the accompanying numerical annex. Media revenues are defined here as income generated from sales to users, including subscriptions, individual sales, and broadcasting fees charged to taxable individuals and corporations intended to support the mandatory operations of the National Broadcasting Service, as well as from the publication and dissemination of advertisements alongside sponsorship revenues. Income from other activities, nor official subsidises to privately owned media, is included. Information regarding the revenues of specific privately owned media entities is not disclosed.