How do state broadcasters fit into this theory? The CBC and BBC produce content in a similar style to the for-profit broadcasters (better, but definitely similar in more ways than its not), but without the advertising mission.
Not always - the BBC was mentioned above and they are far less politicised than many of the other U.K. news outlets. It is argued that any bias comes from the demographic of those who want to work there rather than political pressure from above. A good local news source that is government funded, Radio New Zealand, would fall into the same catagory in my opinion.
https://en.m.wikipedia.org/wiki/Criticism_of_the_BBC
Most people can see this effect more clearly on the state-run news outside their own country.