Most of today’s public-service television broadcasters began life as state-owned monopolies. At the time, few viewers disputed their right to exist, though some lamented the lack of alternatives. But today, as governments deregulate broadcasting markets and commercial channels proliferate, one question demands to be asked: are public-service broadcasters (PSBs) an anachronism? The answer is no; PSBs can play a legitimate role in the contemporary market, both as competitors of their commercial counterparts and as programmers exercising influence well beyond their own market share.

Television broadcasting was originally placed in public hands because it has the power to shape the way people view the world. To constrain that power, governments developed mission statements committing broadcasters to use it in a socially constructive manner. This approach might seem outdated to many sophisticated people today. Nonetheless, most governments still want their broadcasters to maintain high standards.

The mission statement of the BBC (United Kingdom), for example, declares that its programs should "inform, educate, entertain, and enrich the lives of audiences in ways which the market alone will not; bring people together for moments of celebration, common experience, and in times of crisis; and help broaden people’s horizons." Almost all PSBs have something...