This article explores how a public service broadcasting company, namely ORF in Austria, has dealt with the challenges created by the dual system. An investigation of market requirements, public programming mandate, cost structure and financing needs reveals how economic and political constraints are interrelated. To illustrate this phenomenon, we focus on programming, specifically on the highly successful genre of popular folksy music ('Volkstümliche Musik'). Opinions of decision-makers responsible for programming strategies at the Austrian PSB company are linked with a detailed empirical analysis of one prosperous production within that genre. This enables us to draw a number of conclusions on the strategies pursued by public service broadcasting companies to master the changed market conditions and draw attention to so far unattended topics. / Series: Department of Economics Working Paper Series