The Audiovisual Policy of the European Union

The Audiovisual Policy

of the
European Union

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
- Lisbon

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 services
without frontiers
3

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!
4
EU : only completing, not substituting AV-policies!

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

5

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...

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)

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

8

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
9

5.1.1 Television without frontiers Directive 1989 Continued

Instruments

* MS shall not restrict TV-transmission on their territory

from other MS (exception : if rules for protection
of 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 reserved
for European works from independent procedures (or
10% of programming budget) independent of
TV-broadcasters!
10

5.1.1 Television without frontiers Directive 1989 Continued

* EC ensures compliance with Directive only
by 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

11

5.1.1 Television without frontiers Directive 1989 Continued

* 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
12

5.1.1 Television without frontiers Directive 1989 Continued

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
13

5.1.1 Television without frontiers Directive 1989 Continued

* 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

14

5.1.1 Television without frontiers Directive 1989 Continued

* 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

15

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)
16

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
17

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
18

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)

19

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
20

5.1.4. Communication on public TV (2001)

continued :
* EC checks financial situation of all publicbroadcasting 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
21

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

22

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

23

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

24

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

25

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.
26

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

27

5.1.6 Audiovisual Media Services Directive (2007)

continued
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
28

5.1.6 Audiovisual Media Services Directive (2007)

continued
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

29

5.1.6 Audiovisual Media Services Directive (2007)

continued
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)
30

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
31

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
32

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
33

5.2. EU Audiovisual Policy Financial aids:

The MEDIA-programmes

MEDIA I 1990-1995
MEDIA II 1996-2000
MEDIA Plus 2001-2005
MEDIA 2007 2006-2013
Media International 2008-2010
Media Mundus 2011-2013

200 Mio Euro

310 Mio Euro
400 Mio Euro
755 Mio Euro
8 Mio Euro
15 Mio Euro

34

5.2.1. MEDIA-Programmes - Origins:

* Rise of private TV in eighties creates additional demand
for TV-programs (films,)
* This demand gets increasingly satisfied by
US-producers
* Advance of TV leads to decrease of cinema visits,
specially of European productions

* European film production loses market shares

35

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 !

36

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

37

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 of
new technologies

38

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
39

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

40

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 MEDIAInternational 2008-2010
- Funding 8 mio Euro, 58 projects
41

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)
42

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
43

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
44

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--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-mentionedprogrammes : Reciprocity !

45

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
46

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

47

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 and
market intelligence
1) Building up websites and databases
2) Network of contact points
4) Initial training
5) Continuous training
6) Market access mechanisms
48

5.2.3. MEDIA-MUNDUS-programme
continued
Specific Objective 2: Facilitating international
co-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

49

Specific Objective 3: Distribution and circulation

support
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 audiences
and 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
50