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Report cautions Dutch on cutting TV ads

1,900 jobs, $175 mil could be lost without ad revs

AMSTERDAM — A McKinsey Report in Holland indicates it will cost the Dutch government plenty if it cuts commercial advertising from its three state channels.

Dutch public broadcasting system NOS gets most of its operating funds from advertising and license fees, but some political parties have suggested that anywhere from one to all three of the state TV channels should become noncommercial.

The report, commissioned by the pubcasters, says loss of advertising would increase aud losses, and subsequently on the license fees that can be charged to viewers.

If all three channels go noncommercial, the system would have a deficit of around $175 million a year, the report estimates. If two were made noncommercial, it would put the system into the red by $115 million annually.

In a worst-case scenario, the report predicts that if all three channels went noncommercial, some 1,900 jobs would be lost in the state system, and commissions to the independent sector would also be affected.