Competition in many market-driven media systems in advanced industrial countries can sometimes compromise traditional public service broadcast values such as programming for diversity, citizenship, minority interests and national identity. This study investigates the presence and effects of commercial-logic in a state-owned broadcaster in a developing country: the Malawi Broadcasting Corporation. Using indepth interviews and analysis of records on finance and programme schedules, the study finds overwhelming indicators of the presence of commercial logic, not driven by competition, but a commitment to provide a public service under deteriorating financial conditions. Distinguishing between the impacts of advertising and sponsorship markets on media output, the study finds contradictory effects of commercialisation. Some effects confirm some of the adverse effects of commercialisation such as heavy sponsorinfluence on programme content, self-censorship among programme producers who avoid injuring sponsors and producers paying more attention to sponsored programmes at the expense ofthe quality of some non-sponsored public service programmes. However, effects are not always contrary to public service broadcasting but may Indeed reinforce such broadcasting. Commercialisation in some instances has led to the sustenance of a range of non-sponsored public service programmes including programmes to promote culture and civic rights. In general, this study highlights the need to focus on what is realistically possible within the dynamics of the Malawi Society as a precondition for a proactive and elaborate strategy for commercialisation ofthe country's public broadcaster.