TST can close by raising concerns about media pluralism

Qused by Lusa, the same source states that “the possible closure of the TST raises legitimate concerns regarding media pluralism and access to reliable information”.

However, demand for “STT services has decreased significantly in recent years as Finnish media companies have developed their own digital news operations and have come to meet their needs by other means,” he explains.

Many of STT’s customers “have already reduced their dependency on the [news] agency and are increasingly able to obtain content through other channels,” he continues.

However, “some smaller journalistic organizations depend more on national and international news coverage, known to be reliable, offered by the STT”.

Therefore, “the closure of the STT would represent a setback for the Finnish media scenario and for the availability of reliable information,” the spokesman said.

According to the Ministry, support mechanisms or public aid cannot replace the need for a viable business model.

“STT would need to adapt to the changes” of what customers want and, this, “in turn, would require committed owners, willing to support the necessary transformation in the long term.”.

In recent years, “STT has received specific state aid”, but it has continued to face significant structural challenges, as the demand for its traditional news agency services has remained in decline, says the same source.

Ultimately, “it is up to STT shareholders to decide whether they are willing to invest in the company, support its transformation and commit to its long-term development.”.

On the possibility of TST moving to the state level, despite being discussed, it does not seem feasible.

“However, it alone would not solve the underlying challenges related to the long-term decline” of the demand for traditional news agency services in Finland.

In addition, “the State is not the most appropriate shareholder to develop and manage a commercial media business,” he considers.

The central issue is that, if RTS remained deficient, the State might eventually have to “cover losses repeatedly”, rather than create the necessary conditions for long-term sustainability, the spokesman points out.

Moreover, the Finnish State “already plays an important role in the media market through the public broadcaster (Yleisradio)”.

Furthermore, Finland “is facing considerable fiscal pressure and the government has to make difficult choices regarding spending on a wide range of public services and political priorities. In this context, the level of demand for the implementation of new support mechanisms is high”, so for these reasons, “state ownership is not considered a viable solution”, he adds.

Asked whether they spoke with Brussels on the subject, the spokesman says that “priority has been to understand the situation of the RTS, evaluate different options and monitor the outcome of the ongoing restructuring process.”.

Faced with the uncertainty of its future, “there is currently no concrete proposal requiring discussions with Brussels”.

The situation of the TST “is difficult and regrettable” and, “at the same time, illustrates a broader challenge that journalism and the media face”.

In this sense, “more comprehensive question is how we can ensure that professional journalism remains viable in the future,” he concludes.

On 30 September, the Finnish news agency STT announced that it would proceed with a significant restructuring of its operations, resulting from its persistent lack of profit, which could lead to the closure of news and photography operations.

The STT was founded in 1887, which makes it one of the oldest news agencies in the world. STT's Communication Services division was established in 2004 and in 2010 the Finnish news agency acquired Lehtikuva, Finland's oldest photography agency, founded in 1951.