Inhabitants: 376.000 (2021)
Households: 163.000 (2021)
Average household size: 2.3 people (2021)
Religions: Evangelical Lutheran (73.8%), Roman Catholic (31%), other Christian denominations (51%), as of 2019
Largest city: Reykjavík (135,688, January 2022)
Form of government: parliamentary republic
Head of State: Guðni Th. Jóhannesson (since 2016)
Head of the government: Katrín Jakobsdóttir (Left-Green Movement, since 2017)
Unemployment rate: 3.51% (May 2022)
State indebtedness: 75.02% of GDP (2021)
Gross domestic product: $25.46 billion (2021)

Digital advertising expenditure: EUR 76.60 million (2022)
Television viewing time per inhabitant: 101 Minutes (2020)
Large media and communication companies: Sýn hf., Torg ehf., Ríkisútvarpið (RÚV), Árvakur hf., Sjónvarp Símans, Birtíngur útgáfufélag ehf.
Broadcasting fees: Legal entities and natural persons between 16 and 70 years of age will pay a broadcasting tax (Útvarpsgjald) of 18,800 ISK (135.47 euros) in 2022, depending on an income limit and other individual characteristics.

Introduction

Iceland is the second-largest island nation in Europe by area, after the United Kingdom. The main island is the largest volcanic island in the world and is located in the far northwest of Europe. With a population of just 376,000 and a population density of only 3.5 inhabitants per km², the country is also the most sparsely populated country in Europe. At the same time, Iceland is one of the world's leading countries in terms of standard of living and per capita income (GDP). According to the Human Development Index (HDI), the country ranks third behind Switzerland and Norway, making it one of the most highly developed countries in the world (as of 2021).

For many centuries, Iceland was a predominantly agricultural country. Fishing – especially deep-sea fishing from the 19th century onwards – was of particular importance to the Icelandic economy. By contrast, at the beginning of the 21st century, around 73 percent of Icelanders worked in the service sector, and a further 22 percent worked in industry. In contrast, only around 5 percent of the Icelandic population was part of the primary sector. Nevertheless, the ties to fishing companies remain significant. For example, parts of the private media are sometimes owned by fishing companies, which is why they are repeatedly accused of directly influencing media reporting and thus – at least indirectly – influencing political decisions in this field.

In this extremely sparsely populated island nation, media appear to play a central role. Nationwide communication was established, particularly through print media – and later also through radio and television – whereas local media had little success due to the low population density. Finally, digitalization opened up new opportunities at the beginning of the 21st century. With the advent of the internet, Icelanders were able to interact via social media. Not least due to the geographical distance inevitably resulting from the low population density, broadband expansion – later primarily to full fiber optic – progressed rapidly in Iceland. Given these circumstances, it is hardly surprising that Iceland is now one of the world's leading nations in terms of internet provision and use. Furthermore, various online news portals operating according to journalistic standards have found their way into the Icelandic media system and have thus contributed to an increase in both quantity and quality – after all, the latter had previously been repeatedly compromised by the influence of private sector and political decision-makers.

Newspaper

As early as 1848, print media had achieved considerable popularity in Iceland. About the newspaper Thjooolfur Reykjavik readers received weekly domestic and international news. For residents of the island nation's more remote areas, print media consumption was severely limited until efficient means of transport became widespread, as they were difficult to reach. When it finally became logistically possible to supply large parts of Iceland with newspapers in the 20th century, the country developed into one of the nations with a particularly strong response to the print media and regularly ranked among the world's leading nations in terms of newspaper readership density. Print media reached its peak in the 2000s, when annual figures of between 70 and 80 percent of daily newspaper readership were reached.

However, the trend in newspaper readership has always been declining. In the 2010s, online media became increasingly prevalent in Iceland, increasingly pushing back the influence of print media. In 2020, only about one in four Norwegians read a print newspaper, while online news was consumed daily by almost every Icelander. As early as 2013, 86 percent of Icelanders surveyed stated that they consumed online news content daily. One year later, the number rose to 95 percent. To this day, the proportion of consumers of online news content in Iceland has stagnated at this level.

Despite the sharp decline in response from print media, Iceland’s free and largest-circulation newspaper, Freed, with 75,000 printed copies per issue, a relatively high value, although its circulation has also declined in recent years. Founded in 2001, the newspaper, which can be located on the center-left political spectrum, is published by the media group Torg ehf. , the second largest media group in the country. Another important name in the Icelandic print market is the newspaper MorgunblaðiðFounded in 1913, Iceland's oldest daily newspaper is historically associated with the conservative Independence Party and politically leans toward the center-right. For much of the 20th century, the paper dominated the Icelandic newspaper market. With 50,000 copies printed daily, the circulation figures published by the private media group Árvakur hf. The newspaper, published by the company, still holds a solid second place today. The print editions of the two newspapers, Fréttablaðið and Morgunblaðið, are particularly popular among middle-aged and older readers.

In addition, the Icelandic news media market includes a weekly, free business newspaper, Videoskiptablaðið, focusing on news and culture. The news portal Mannlíf among the most widely read online news media in the country. Equally worthy of mention are the newspapers Hour and Kjarninn, which, while not among the most widely read news sites in the country, are quite influential and frequently cited by the mainstream media. Stundin is a subscription-based newspaper published twice a month both online and in print. The online medium Kjarninn publishes the weekly magazine Visbending which focuses on economic topics. Until its discontinuation in 2008 due to the financial crisis, Icelanders in the greater Reykjavík area also received the daily newspaper 24 hours (until October 2007 Blaðið). Furthermore, the newspaper was available for free at gas stations and stores throughout the country. The newspaper was published by the company Ar and days, which had been half-owned by Árvakur hf. since December 2005.

A special feature of the Icelandic newspaper market is that, as a small market, there is little scope for dividing readership according to purchasing power and other socioeconomic criteria. As a result, Icelandic newspapers are largely aimed at the general population and not at specific readership groups. The strong position of free newspapers in the Icelandic media market is also something special. In 2010, Iceland and Luxembourg were the only European countries where the circulation of free newspapers was higher than that of their paid counterparts. Furthermore, the free newspapers were multipurpose newspapers with solid reporting on national and international events, not tabloids.

Broadcasting

Even before public broadcasting began throughout Iceland, there were several private radio stations in Reykjavík and Akureyri. The first radio station, Hf Útvarp, began broadcasting in 1926, but was discontinued in 1928 due to lack of commercial success. Even though Hf Útvarp was not profitable, the station succeeded in familiarizing Icelanders with the possibilities of radio technology and thus made a significant contribution to the establishment of public broadcasting.

As a result, radio broadcasting throughout Iceland finally began in 1930 with the establishment of public broadcasting Ríkisútvarpið (RUV) RÚV started broadcasting via the transmitter Ras 1 to broadcast all-day radio programs. The station focused primarily on domestic political, economic, and religious topics, but also broadcast music, children's programs, and other news. The first news broadcast, on December 20, 1930, addressed the Great Depression at the time.

Today, Rás 1 focuses primarily on news coverage of current political, economic, and social events at home and abroad, and broadcasts cultural programs that address art, history, literature, the Icelandic language, and social and environmental issues. For example, Rás 1 regularly broadcasts concerts by the Icelandic Symphony Orchestra. Ras 2 On December 1, 1983, a second public radio station was finally launched. Initially, it was aimed more at younger listeners, for example, by broadcasting pop shows or predominantly playing music from the current singles charts. Over time, Rás 2's programming has become more diverse and now also appeals to older segments of the population. Although the radio theater, which has been broadcast since 1947, is broadcast primarily on Rás 1, theater performances can now also be heard occasionally on Rás 2.

In the summer of 2004, RÚV started experimental broadcasts of the radio station Rondo, which plays classical music and jazz via an automated program. Furthermore, the youth radio station, broadcast via the internet, launched in May 2018. Ruv ZeroEspecially during the day, the station usually has no fixed programming and primarily plays music. In the evenings, TV shows are usually broadcast. RÚV Núll can therefore be viewed as a webcast – a combination of television and radio broadcasts over the internet.

It was not until 30 September 1966 – relatively late compared to other European countries – that Iceland began broadcasting via the Sjónvarpið (“The Television”) Television broadcasting. Sjónvarpið is still the only public broadcaster and for a long time was also the only television station in the country, meaning that RÚV held a broadcasting monopoly until 1986. With the Broadcasting Act passed at that time, commercial broadcasters were finally permitted. Stöð 2 from the then media group 365 miles was the first private television station to broadcast. Sýn hf. operated television station is still the largest private television station in the country. Besides Stöð 2, there are four other private television stations – Sjónvarp Símans, Hringbraut and N4In general, RÚV and Sýn hf. dominate Icelandic television with a market share of 55 and 36 percent, respectively, among 12- to 80-year-olds.

Fig. I: TV market shares of media groups in Iceland among 12- to 80-year-olds

Television in Iceland has a remarkable history. Aside from its relatively late start in 1966, television programming was broadcast only on Wednesdays and Fridays until the 1970s. Even after daily television programs began, Thursday remained television-free until 1986. Furthermore, television programming was suspended for the entire month of July until 1983. 

Internet

According to various internet user surveys, this sparsely populated country ranks among the top countries in the world in terms of both deployment and usage. Furthermore, Iceland has consistently been a leading nation in the adoption of new internet access technologies, beginning with dial-up connections in the 1990s. Today, Iceland leads the world in fiber optic internet deployment. 90 percent of Icelandic households have access to FTTH (full fiber) internet services, offering speeds of 1 Gbps for residential customers. Furthermore, Iceland has submarine bandwidth capacity across three cables.

Broadband internet access quickly gained traction in Iceland due to the early adoption of IPTV technologies in the early 2000s. Cable and satellite TV services are virtually nonexistent, so television delivery via DSL or fiber optics was already in high demand. The majority of internet connections in Iceland are therefore via fiber optic or VDSL, with Icelandic telecommunications companies Síminn hf., NOVA as well as Vodafone Iceland (Sýn hf.) The main providers are the most important fiber optic network operators in Iceland are the Síminn hf. group, which operates a GPON fiber optic network, and Ljosleiðarinn, operator of a Bitsteam Access PTP fiber optic network. In addition to the two dominant operators, there are also smaller, locally operating companies.

In terms of internet connection types, fiber optic (PTP and GPON), VDSL/2, and ADSL are the most common types. While DSL usage peaked at 98 percent in 2008, it declined sharply due to the rapid expansion of fiber optic networks in the 2010s. The fact that 90 percent of Icelandic households already use fiber optics, but the share of fiber optic connections is estimated at only around two-thirds, is due to the fact that the dominant telecommunications provider, Síminn, has only been offering services via Ljósleiðarinn's wholesale fiber optic network since 2021, following a long dispute over fiber optic access.

Fig. II: Internet connections in Iceland 2020

The most visited website by Icelanders in 2017 was the social network Reddit from the US media group Advance Publications, followed by the search engine Google from Alphabet Inc. The noticeable dominance of international media corporations in the ranking underscores the inevitably lower diversity of domestic media offerings due to the small population. Among the ten most visited websites, only three are Icelandic parent companies. With the online newspaper Sight by Syn hf. ranks the most visited site of an Icelandic media group in fifth place, closely followed by the online news portal MBL by Árvakur hf. (6th place). Also represented is the public broadcaster RÚV (9th place), which offers a wide range of online news, television, and radio programs via the internet.

Table I: The most visited websites in Iceland in 2017

Rank	Webpage:	Description	Parent company
1.	Reddit.com	Social network	Advance Publications
2.	Google.is	Search engine	Alphabet Inc.
3.	Google.com	Search engine	Alphabet Inc.
4.	YouTube.com	Video portal	Alphabet Inc.
5.	Visir.is	News	Sýn hf.
6.	MBL.is	News	Árvakur hf.
7.	IMDB.com	Streaming platform	IMDb.com, Inc.
8.	Facebook.com	Social network	Meta Platforms, Inc.
9.	Ruv.is	Broadcasting	RUV
10.	Wikipedia.org	Encyclopedia	Wikimedia Foundation

Source: Clement (2021)

Regulations

Well into the second half of the 20th century, the Icelandic media landscape was much more closely intertwined with the country's political institutions than it is today. It was only from the 1970s onward that the influence of political parties on society in general—and the media in particular—began to diminish. The "political parallelism" in the media gave way to an increasingly market-oriented media landscape, against which the public broadcaster RÚV also had to assert itself. As a result, in the last decades of the 20th century, the institutional ties between politics and public broadcasting were largely dismantled.

In recent years, the owners of private media outlets in particular have frequently been accused of attempting to influence reporting. The country's second-largest daily newspaper, Morgunblaðið, is primarily owned by several fishing entrepreneurs and has long been considered a mouthpiece for the Independence Party. In the past, the newspaper has opposed fisheries policy reforms and Iceland's potential EU membership. The newspaper's editor-in-chief since 2009 has been Davíð Oddsson, former Icelandic Prime Minister (1991 to 2004) and former leader of the Independence Party.

Nevertheless, today's Icelandic media landscape, which emerged at the beginning of the 21st century, is characterized by greater quantity and diversity than would be expected in a country with approximately 380,000 inhabitants. According to the 2022 SGI Report published by the Bertelsmann Foundation, in 2020 Iceland had two national daily newspapers, two weekly newspapers, one biweekly newspaper, and several online news portals independent of the traditional media, which are playing an increasingly important role in Icelanders' daily news consumption. In addition to these nationwide media, there are also several small regional and local newspapers. However, given the low population density, local media in Iceland have traditionally been rather weak.

Despite this increasing competition – not least due to the emergence of online media – public broadcasting has been able to maintain a stable position in the Icelandic media market. In addition to RÚV, Icelandic media are dominated by three other private media groups – Sýn, Torg, and Árvakur – in terms of revenue, reach, and employees. Following the media market's numerous mergers and acquisitions in recent years, Sýn hf. is now arguably the most important media group in the country. As recently as 2017, 365 miðlar, operator of several television and radio stations, newspapers and online sites, as well as magazines and telecommunications services, was by far the largest media company in the country. Through the sale of 365 miðlar's broadcasting division to Sýn hf. (Vodafone Iceland), the group now owns the news channel Stöð 2 as well as Radio Bylgjan. Furthermore, in 2017, Sýn also Sight 1, the country's most-read online news site at the time. The most-read newspaper in Iceland, Fréttablaðið, and its online news site of the same name were also part of 365 miðlar and are now part of the media company Torg ehf. Torg also publishes the tabloid DV and its online counterpart and is the owner of the talk show television channel Hringbraut and the associated online format.

Major media policy reforms in recent years have included the introduction of the Information Act (Upplýsingalög) in 1997 and its revision in 2011. The law guarantees the right of access to official information. Originally, minutes, working documents, and other records related to the Council of State (Ríkisráð), the Cabinet, and ministerial meetings were exempt from this regulation. The 2011 amendment (Lög um Stjórnarráð Íslands) finally stipulated that the Icelandic government must provide the media with the agenda of cabinet meetings and publish them on its website after each meeting.

Even though public broadcasting is occasionally still accused of exerting political influence, it enjoys high levels of acceptance among the Icelandic population. One of the main criticisms in recent years has been the accusation by some members of the government that the broadcaster takes a biased stance in its reporting. RÚV has, in part, played an important role in uncovering political scandals. A key reason why public media in Iceland are largely accepted despite these accusations is certainly that, in a country with such a small population and population density, a leading media outlet like RÚV is of particular importance. As in other Nordic countries, public broadcasting is financed through a broadcasting tax (Útvarpsgjald). In 2022, this tax will amount to up to 18,800 ISK (135.47 euros), depending on income and other individual characteristics. Furthermore, RÚV is permitted to generate one-third of its revenue through advertising.

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