1 the audiovisual policy of the european union the audiovisual policy of the european union

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The Audiovisual Policy of the European Union

The Audiovisual Policy

of the

European Union

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The Audiovisual Policy of the EU

1. Legal Base:

° Treaty of Rome 1957:no legal base (TV hardly existed…)

° 1974:ECJ-judgement defines TV-«signal» as a «service »…

° … which is concerned by « freedom of service delivery » according Art.59 and art.60

° 1989 EU-directive « Television without frontiers »

° 1992 Maastricht-Treaty: Art 151 contains « TV » in context of « culture »

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1. AV-Policy of EU : Legal Base –Continuation :

° 1997 Treaty of Amsterdam : « Protocol » on public broadcasting added

° 2000 Treaty of Nice : Art.157 replaces unanimity voting on « industry » (including TV) by qualified majority in Council

° 2000 Fundamental Rights Charter : Art.II-11 guarantees freedom of media and media plurality

° 2007 EU-directive « Audiovisual media serviceswithout frontiers »

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2. Audiovisual Policy of EU-principles :

° AV is both « services » as well as « artistic creation »

° But AV is also a technical-industrial production

° Subsidiarity of MS, but also .....

° EU-Support of cooperation between MS in field of AV

° Completion and support of AV-policies of MS

° No harmonisation of AV-policies of MS!

° EU : only completing, not substituting AV-policies!

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3. Audiovisual Policy of EU – goals :

° Audiovisual transborder services not to be hindered

° Maintaining and strengthening of European identity

° Maintaining and strengthening of European creative/artistic production

° Maintaining of « special position » of public TV

° Strengthening of European AV-industry

° Protection of consumers (viewers/listeners) and of youth

° Media pleuralism, freedom of opinion and for media

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4. Audiovisual Policy of EU – Intermediary Summary:

° AV sector underlies to contradictory principles ,f.i. :

- As cultural production it is « national domain »… - but against US-influence strengthening of « European identity » by EU is allowed !

- As «services» free circulation/exchange on Common Market…

- but as public broadcasting exempt of EU competition law !

° AV sector develops much faster than EU-legislation on AV media

° AV policy concerns only actors in MS, but AV-media are by nature international...

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5. Audiovisual Policy of EU - Instruments:

° Regulation

° Financial support

5.1. Regulation:

* Directive «Television without frontiers» (1989) * «Protocol» in annex of Amsterdam - Treaty 1997* EC-Communication on public TV (2001)* EC-Communication on film industry (2001)* Directive «AV-media services» (2007)

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5.1.1 « Television without frontiers » - Directive 1989

Motives :

* TV spillover into neighbour countries

* Satellite TV covers several countries

* Private TV competes with public broadcasting monopolies

* Increasing demand for content because of multiplication of TV stations (also cable TV, local, regional TV)

* US entertainment content threatens EU content

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5.1.1 « Television without frontiers » - Directive 1989 – Continued…

Principles :

* «Directive» addressed to MS – implementation by national laws needed

* Free flow of TV programmes/broadcastinig services throughout EU, between MS

* Strengthening of European AV-production and TV-programme content

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Instruments

* MS shall not restrict TV-transmission on their territory from other MS (exception : if rules for protectionof minors are infringed)

* TV-stations have to ensure «where practicable»a majority of «EU-works» in programme,excluding time for news, sport, games, advertising

* 10% of transmission time «where applicable» reservedfor European works from «independent procedures» (or 10% of programming budget) »independent » ofTV-broadcasters!

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* EC «ensures compliance» with Directive onlyby reports, statistics about fulfilment of quotas

* Limits for advertising : - 15% maximum of daily transmission time and- 20% within given hour period- seperate «blocs» for advertising obligatory

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* Interdicted :

- surreptitious advertising

- interruptive advertising

° (but « natural breaks »ok!)

° (but once after 45 min of one programme OK)

° other detailed procedures for interrupting as in

children programmes…)

- advertising for tobacco and prescription medicines

- advertising directly exhosting minors to buy product

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Interdicted :

* Advertising which lacks respect of human dignity, includes discrimination (race, sex, nationality), offenses religious/political beliefs, is dangerous to health/safety/environment

* Sponsorship of programmes is permitted if

- programme not influenced by sponsor

- sponsored programme is identified as such

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* Sponsorship of programmes is permitted if – continuation….

- Sponsored programme does not encourage buying of product of sponsor

- Not by a tobaccocompany, for medical products/treatments

- Programme is « news »

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* Special rules for advertising for alcohol (e.g. encourage immoderate consumption)

* Protection of minors :

- programmes impairing physical/mental development of minors (violence, pornography) interdicted

- exception : transmission time « not normally » seen by youth

- programmes must not incite hatred on grounds of race, sex, nationality

* Right of reply for any person damaged by incorrect facts

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5.1.1 « Television without frontiers Directive » - Problems :

- Legal uncertainties

- Scarcity/costs of european AV-content

- No «hard» measures against infringement of EU-content rules (only reports… »shaming and blaming »)

Therefore revision of Directive in 1997:

* Principle of jurisdiction : MS is responsible for TV, if its head quarters and programming decisions are located on its territory (or satellite frequences given by it)

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5.1.1 « Television without frontiers Directive » Problems - continued :

* Events of major importance for society(such as sporting events) :

- must be open for free broadcasting to everybody, list of events by MS

- must be broadcast unencoded even if exclusive rights purchased by pay-TV-channels

* Teleshopping : subject to most of rules for advertising. Blocks to last at least 15 minutes

* Protection of minors : potentially «dangerous» programmes have to be preceded by accoustic or optical signal

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5.1.2. «Protocol» in Amsterdam Treaty (1997):

Protection of public broadcasting:

Problem: - public broadcasting frequently obtains «state aids» (license fees; fixed tariffs for TV advertising…)

- State aids in principle interdicted or only with special permission

«Solution»: Protocol protects public broadcasting of application of EU-law, if

* State aid is necessary for accomplishing public broadcasting obligations

* And if competition between actors is not substantially influenced

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5.1.2. Amsterdam Protocol-problems :

° Cross-financing ° What/how much is «public» in public broadcasting? ° Each MS defines «public» tasks of public broadcasting

differently ° «New services»?

Detailed regulations in :

° Council decision on Public Broadcasting (1999) ° EC-Communication on application of rules on state-aids for public broadcasting (2001)

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5.1.3. EC-Communication on public TV (2001):

Contains obligations for public broadcasting :

- General audiences must be able to use its offered services

- Technological progress has to be used

- Advantages of new AV-services have to be propagated

- Digital technology is to be used

- «Broad spectrum of program content» and ...

- «high viewing quotas» are to be pursued

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5.1.4. Communication on public TV (2001) continued :

* EC checks financial situation of all public-broadcasting stations separately/individually

* Prerequisites for approval of state-aids:

- Democratic, social and cultural demands have to be satisfied by program

- Media pluralism is maintained

- Supply of AV-services is maintained (territorial, timely)

- Not only entertainment, but also information/education is offered

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5.1.4. Communication on public TV (2001) – continuation :

- Adherence to and communication of common values as…

° freedom of opinion, speech

° right of counterstatement ° fair balance of program contents ° protection of intellectual property rights ° cultural and linguistic pluralism ° protection of minors, consumer interests

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5.1.5. Communication on film industry (2001):

Problems: - State aid to film industry (1,6 m E p.a.)

- "State" = Nation, Region, community…

- State aids in EU in principle interdicted / obligation of approval

„Solutions": - Film-Communication 2001 protects film industry of EU-law, if state-aids fulfil certain criteria

- Film-communication prolongated 2009-2012

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5.1.5. Film Communication – criteria for approval of state aids :

- Other MS are not discriminated – equal treatment !

- Free movement of goods and services guaranteed (free access to markets/exchange of programs)

- Focus on «cultural creativity», not on other aspects of film industry

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5.1.5. Film Communication – criteria for approval of state aids – continuation :

- Compliance with upper limits of state aids (maximum 50 % of production costs to avoid competition with aids attracting for instance US-producers…)

- Up to 20 % of production costs may be spent in other

than in subsidising country

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5.1.6 Audiovisual Media Services Directive (2007):

Motives :

* Technological progress since 1989/1997* Market developments

Principles :

* Technological neutrality – Directive concerns any AV content, irrespective of technology used for delivery (TV, Internet, mobile phone)

* Distinction between « linear » (traditional) and « non-linear » (on demand) services * Services concerned are commercial (not private internet websites!),directed to general public and designed as a « programme » (so AV-elements on websites are not covered!), and under editorial responsibility.

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5.1.6 Audiovisual Media Services Directive (2007) – continued…

Rules applied to linear services only :

* Events of major importance

* Quota for European TV programmes

* Time limits for advertising and tele shopping

* Protection of minors – stricter rules than for on-demand

* Right of reply

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Rules applied to non-linear services only :

* protection of minors only for content «seriously» impairing minors* Only «general promotion» of European works

Rules applied for non-linear and linear services :

* Identifying the media provider* Interdiction of incitement to hatred* Accessibility for people with disability* Advertising rules* Sponsoring rules* Product placement rules

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Restrictions by MS for receiving possible if

* approved by Commission

* exceptional circumstances as

° for TV : serious violations against human dignity or protection of minors

° for on-demand : also for risk to public health, security, consumer protection

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What is new ?

* Wider coverage : covers all media services,«on-demand» and «linear»

* Different levels of strictness, «graduated regulation» : because viewers can control on-demand offers better, fewer/less strict rules apply

* Restriction of unsuitable content : e.g. neo-nazi propaganda, which cannot be restricted in its country of origin

* Same rules apply for all forms of «commercial communication» (advertising, sponsorship, teleshopping)

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5.1.6 Audiovisual Media Services Directive (2007) –

What is new? - continued…

* Promotion of European works also by non-linear services !

* Product placement : allowed, if identified, if not unduly prominent, if not unhealthy

* Television advertising : new challenges addressed, as unhealthy foodstuff

* Access for disabled persons : TV stations must offer e.g. subtitling and audio description

* Independent national regulators recognised, must cooperate

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5.1.6 Audiovisual Media Services Directive Results :

Infringement procedures, examples :

* Estonia warned to apply its advertising rules (2009)

* Court action against Spain because of excessive spot-advertising (2008)

Promotion and distribution of European works, examples :

* Eight report (2008) : - 63% of transmission time « European » works

- 35% independent works

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5.1.6 Audiovisual Media Services Directive Results - continued :

°Lowest quota of European works: - 50% Ireland

°Highest quota of European works: - 86% Denmark

°Lowest quota of Independant works : - 16% Denmark

°Highest quota of Independant works : - 45% Austria

* Seventh report (2006) :

- 60% European works - 30% Independent works

* Sixth report (2005) :

- 67% European works (still EU -15!!) - 38% Independent works

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5.2. EU Audiovisual Policy – Financial aids:

The MEDIA-programmes

MEDIA I 1990-1995 200 Mio EuroMEDIA II 1996-2000 310 Mio EuroMEDIA Plus 2001-2005 400 Mio EuroMEDIA 2007 2006-2013 755 Mio EuroMedia International 2008-2010 8 Mio EuroMedia Mundus 2011-2013 15 Mio Euro

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5.2.1. MEDIA-Programmes - Origins: * Rise of private TV in eighties creates additional demand

for TV-programs (films,…)

* This demand gets increasingly satisfied byUS-producers

* Advance of TV leads to decrease of cinema visits, specially of European productions

* European film production loses market shares

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5.2.1. MEDIA-Programmes – Principles:

* Support only of pre- and post production-activities of film production itself !

* Film distribution (within EU and outside) has priority - 65% of subsidies!

* Leverage-effect of subsidies : Each Euro of subsidies “produces” 6 Euros of private

investments !

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5.2.1. MEDIA-Programmes – Objectives:

* Strenghtening of competitiveness of EU-film industry (2007 : market share of Hollywood in EU is 63%!!)

* Strenghtening of production and distribution of European AV-products within and outside of EU

* Promotion of cultural diversity in Europe and facilitation of intercultural dialogue

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5.2.1. MEDIA-Programmes – Instruments:

* Promotion of networks of training institutions (e.g. for screenplay writing; project development; film management; use of new technologies…)

* Support of distribution (e.g. distribution companies; DVD; production; cinemas; TV-transmission…)

* Boosting of marketing activities for films

* Encouragement of pilot projects – use ofnew technologies

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5.2.1. MEDIA-Programme – Problems:

* Low endowment

* MS with strong vs MS with weak film industry

* Still dominance of US-film supply

* Distribution companies frequently non-European

* Language barriers (subtitling; dubbing)

* National support programs for film continue to exist – competing subsidies/competition with subsidies,

not for subsidies

* Cinema is under pressure of DVD, “video on demand”

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5.2.2. MEDIA-2007 – New accents :

Reasons : Digitalisation; enlargement to the “east”

Additional objectives :

* Focus on SME-structures

* Facilitation of private investments

* Focus on MS with weak film industries (language problems…, size of MS)

* Priority for impacts of digitalisation

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5.2.3. MEDIA-MUNDUS-programme :

Purpose :

* To strenghten cultural and commercial relations between EU-film industry and film-makers of third countries

* Two way flow of films/AV-works, mutual benefits

Basis :

* Experiences of «Preparatory Action» MEDIA- International 2008-2010 - Funding 8 mio Euro, 58 projects

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5.2.3. MEDIA-MUNDUS-programme : Experiences with « Preparatory action » –

continued…

- Funded projects :

° continuous training of AV-professionals

° promotion of films(reciprocal)- support of marketing/distribution agreements

- support of marketing outside/within EU

° cinema networks which devote programming mainly to EU films and third countries’ films

° awareness-raising for EU/third country films (reciprocal)

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Experiences with « Preparatory Action » -continued…

Eligible costs :

- between 50% (in EU MS) and 80% (in third countries)

Eligible applicants :

- «coordinator» of applicant group located in EU- at least one applicant located in third country- only legal persons

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Experiences with « Preparatory Action »–continued…

Selection criteria for projects :- operational capacity- financial capacity

Award criteria for projects :

- quality of proposals submitted in terms of objectives and priorities set

Problems : * small amounts of funding * «discrimination» in funding of big MS film

producers vs.others

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Experiences with « Preparatory Action »

Motives :

* Small presence of EU films on big markets like Asia, Latin America

* To increase competitiveness of film industries in EU, third countries (mainly vis-à-vis US films!)

* To fill the gap left by film support programmes like MEDIA, Euromed Audiovisual, EU-ACP support programme for film and cinema/AV industries

* Difference of preparatory action to above-mentioned- programmes : Reciprocity !

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5.2.3. MEDIA-MUNDUS-programme :

Motives :

* Increasing demand for content due to Video-on-demand, internet TV or multichannel-digital TV

* Increasing cultural diversity of film offer in EU

* Intensifying intercultural dialogue

* Positive experiences with «preparatory action», interest of third countries

* Strengthening of «Europe in the world», «soft diplomacy»

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5.2.3. MEDIA-MUNDUS-programme – continued …

Procedure of decision-making 2008/2009 :

* Stakeholder consultation

* EC-interservice consultation

* Public online-consultation of interested parties

* Expertise by external consultants

* Public hearing

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5.2.3. MEDIA-MUNDUS-programme – continued…

Funding : * 15 mio Euro 2011-2013 * first call for proposals 2nd half 2010

Objectives :

Specific Objective 1: Information exchange andmarket intelligence

1) Building up websites and databases

2) Network of contact points

4) Initial training

5) Continuous training

6) Market access mechanisms

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5.2.3. MEDIA-MUNDUS-programme – continued …

Specific Objective 2: Facilitating internationalco-production activities

1) Development

a) Script development

b) Co-production markets/partner search (pitching)

2) Co-production

a) Supplement existing co-production funds

b) Access to finance

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Specific Objective 3: Distribution and circulationsupport

1) Support to partnerships of rights holders, sales agents and distributors

2) Cinema network

3) Support to broadcasters and digital platforms Specific Objective 4: Reach new audiencesand promote Film literacy

1) Festivals

2) Special events

3) Networks to target young audiences including education activities

4) Support for TV programmes dedicated to young audiences

1 the audiovisual policy of the european union the audiovisual policy of the european union

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