European Media Policy in 2006

Nordicom - Media Policy Newsletter No. 3, 2006 Editor: Anna Celsing Rue Cherpion 46 B-1390 Grez Doiceau Belgium +32 10 84 15 33 anna.celsing@skynet....
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Nordicom - Media Policy Newsletter

No. 3, 2006

Editor: Anna Celsing Rue Cherpion 46 B-1390 Grez Doiceau Belgium +32 10 84 15 33 [email protected] Publisher: Ulla Carlsson NORDICOM University of Gothenburg Box 713 SE-405 30 Göteborg Sweden

European Media Policy in 2006 Summary and Analysis of Some Major Issues European media policy makers are increasingly aware of the growing economic importance of the media industry in the wake of digitisation and convergence. Therefore one of the main aims of media policy in 2006 has been to boost production of European content and make it available online. This requires modernization of the legislative framework, not least of regulation on audiovisual services and copyright, two of the main issues of the year. Evoking inherent tensions in the information society – between old and new players, media users and copyright holders – these questions demand delicate balancing acts by policy makers who sometimes seem to end up pleasing no-one. To enhance media skills and protect children against harmful content on the Internet is considered even more important, as is evident from the increased attention to media literacy in 2006, another recurrent theme during the year.

Promising Sector In March 2000 the EU governments adopted a comprehensive strategy to boost growth and jobs in Europe, known as the Lisbon Agenda. Since then, “contributing to the Lisbon Agenda” has been the main objective in most EU policy areas, not least media policy involving what is considered to be the most promising sector of the EU economy. Evidence of the value of the creative sector was provided in a recently published EU study on the economy of culture in Europe. The study shows that the culture and creative sector is a growing industry, developing at a higher pace than the rest of the economy. In terms of jobs the sector even out-performs the rest of the economy. It also drives many other parts of the European economy, in particular innovation and the ICT sectors. The study was warmly welcomed by the EU Ministers of Culture at their meeting in Brussels in November. “Now we can prove the importance of the culture sector to our Finance Ministers”, commented one of the Ministers, suggesting that the European Commission continue to provide more statistics of this kind.

Content Online Policy issues related to the Lisbon Agenda have been a priority of both the Austrian and the Finnish EU presidencies in 2006. In March the Austrian presidency organised an EU conference on “Content for Competitiveness” in Vienna to highlight the importance of this industry and discuss ways to strengthen its development. A few months later Viviane Reding, EU Commissioner for the Information Society and Media, launched a public consultation on ways to stimulate the growth of a European single Market for online content and make it more competitive. What are the remaining obstacles to the development of a competitive, pan-European online content industry and how can the EU help tackle them? were her main questions.

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Nordicom - Media Policy Newsletter The results of the consultation will be used in elaborating a policy document on content online to be published shortly, perhaps even before the end of 2006. Most likely the Commission Communication will contain proposals for EU measures to increase the competitiveness of the European online content sector by way of new or revised legislation, promotion of best practices and various types of support.

Digital Libraries A “flagship” EU project involving online content is Digital Libraries, an initiative launched by the European Commission in 2005 to encourage digitisation of Europe’s written and audiovisual heritage and making it available on the Internet. In August 2006 the Commission adopted a Recommendation on this matter to accelerate the process. The recommended measures should lead to a more coordinated approach in the Member States to key issues for digitisation, online accessibility and digital preservation, explains the Commission urging the Member States to set up large-scale digitisation facilities and encourage collaboration between cultural institutions and the private sector in order to create new ways of funding digitisation. With regard to copyright issues representatives of the media industry were relieved to read the Commission’s recommendation: “Since intellectual property rights are a key tool to stimulate creativity, Europe’s cultural material should be digitised, made available and preserved in full respect of copyright and related rights”. However, since only part of the material held by libraries, archives and museums is in the public domain, the Commission recommends that licensing mechanisms are encouraged in areas such as orphan works – copyrighted works whose owners are difficult or even impossible to locate - and works that are out of print or distribution. At their meeting in November EU Ministers of Culture welcomed the Commission Recommendation and invited Member States to address the issues identified. Although preparations should be made for making available all categories of cultural material for the European Digital Library one could concentrate on textual content in its early stages, suggested the Council, also underlining the importance of undertaking the work will full respect for copyright legislation.

Revision of TV Directive As for legislative changes, the main focus of EU media policy in 2006 has been the revision of the Television Without Frontiers directive. In December 2005 the European Commission presented its proposal for a revised legal framework, now called the Audiovisual Media Services directive. Its main innovations are “modernised and more flexible” advertising rules, the introduction of rules regarding product placement (thereby legitimating this practice) and a basic tier of obligations for all audiovisual media services, irrespective of the technology used to deliver them. The Commission’s draft directive has provoked much debate and controversy both in Parliament and the Council. MEP Ruth Hieronymi – responsible for the Culture Committee’s report on the directive – received many hundreds of amendments from her fellow MEPs before the first reading in Parliament on 13 December. In the Council, too, there has been disagreement, as was evident at the Council meeting on 13 November when seven Member States – among them Sweden – refrained from supporting the compromise General Approach on the directive adopted at the meeting. (Sweden’s main objections were that rules on alcohol advertising and advertising directed to children were not as stringent as had been hoped for.)

Controversial Issues Particularly controversial have been the provisions on advertising, product placement and jurisdiction. The Commission’s proposal to widen the scope of the directive – which unleashed a wave of lobbying by

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Nordicom - Media Policy Newsletter providers of new services and others in the media industry – has also been much discussed. Ms Hieronymi and the Council Presidency seem to share a wish to conclude negotiations on the directive as soon as possible. The compromise texts adopted by Parliament and the Council are similar in many respects; some amendments even have the same wording. Both institutions have clarified and somewhat narrowed the proposed scope of the directive to television and “TV-like” on-demand services “under the editorial responsibility of a media service provider”. This would not cover for example weblogs and other user-generated content or services not primarily intended to provide audiovisual content. In both Parliament and the Council there has been much resistance to allowing product placement. Now they propose that it would be permitted only in a limited range of programmes – mainly film, TV series and sports broadcasts – and only on certain conditions. Product placement of tobacco products and prescription medicines would not be allowed, nor should there be any direct encouragement to purchase products; the editorial independence of the broadcaster must not be affected and viewers must be well informed about the existence of product placement.

Advertising Breaks The frequency of advertising breaks in films shown on television was another contentious issue. An amendment allowing such breaks “once for each scheduled period of 30 minutes” was adopted in Parliament, but only with 324 votes in favour and 323 against. (The Culture Committee had proposed 45 minute intervals and the Commission 35 minutes between breaks) This vote brings Parliament’s amendment into line with the Council’s, also proposing a 30-minute interval.

Cooperation between Member States Both institutions have introduced amendments which would give Member States more of a say in preventing television channels based abroad to circumvent national rules on advertising directed to children and the like. Sweden and some other Member States had, however, hoped for more legally binding wording on cooperation between the Member State having jurisdiction and the one to which the broadcasts are targeted. In the coming months the Council will discuss Parliament’s amendments and prepare its Common Position, which most likely will be adopted in May 2007. Then the draft legislation will return to Parliament for a second reading. Once finally adopted by both institutions Member States will have two years to transpose the directive to national law, proposes the European Parliament.

Copyright Issues Keen to promote the development of online content, the European Commission is increasingly concerned about problems regarding intellectual property rights (IPRs) brought about by digitisation. In the spring of 2006 the issue came up in connection with a consultation on the Commission’s Digital Libraries initiative. The replies showed that opinions were divided on copyright issues, in particular between cultural institutions and right holders. Whereas the latter emphasised the adequateness of the present copyright rules, cultural institutions and content users stressed that changes were needed to facilitate access to content. In July the Finnish EU Presidency organised a conference in Helsinki on copyright policy. Here several Commission officials stressed the need to strike the right balance between the different, sometimes contradictory, interests at stake. “It is important to provide wide access to online content while ensuring sustainability of the creative process”, said Odile Quentin, director General of the Commission DG Education and Culture.

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Nordicom - Media Policy Newsletter

Protests by Authors The media industry often voices concern about the Commission’s “negative” views on copyright. Two Commission Recommendations – one adopted in 2005 on the management of online rights for musical works and another on copyright levies as compensation for private copying which is to be adopted shortly – have caused a flurry of protests by authors and the industry.

The main idea of the Recommendation on online licensing was to facilitate EU-wide licensing as it seemed to the Commission that the development of new online service was hampered by overly-complex arrangements for cross-border licensing. Including some indirect criticism of the present management of copyright the Recommendation has been perceived by some as a threat to the system of collective copyright management.

Copyright Levies Phased Out? The current system of copyright levies is outmoded and does not take into account the phenomenon of convergence, says the Commission, which seems to prefer technological solutions, such as the Digital Rights Management (DRM) systems. Furthermore, the considerable differences in copyright levy rates among the EU Member States pose a significant burden on stakeholders and may be disruptive to trade the internal market, says the Commission, which has also voiced criticism on the collective management of rights in this context. Now many fear that the pending Recommendation on copyright levies will lead to a phasing out of copyright levies and an obligatory use of the often criticised DRM systems, which during the autumn has caused a frenzy of lobbying in Brussels by musicians, filmmakers and other artists. At a conference in late November Charlie McCreevy , the EU Commissioner responsible for copyright issues, tried to assuage the artists’ apprehensions emphasising that he was in no way against fair compensation for private copying per se but had concerns about “some current schemes for fair compensation.” “We also wonder whether consumers are getting a fair deal as they should”, he added, pointing out that he had “worked hard to find a balanced way forward, one that takes into account the best interests of all stakeholders, rightsholders, industry and consumers”. The Recommendation was to be adopted in December. However, as a result of political pressure from the French Prime Minister and others, the Commission recently decided to postpone it, explaining that “more reflection is required on this complex issue”.

Media Literacy Programme? To increase media literacy is important, say not only educators, children’s organisations and politicians. New media services providers are also keen on such education, pointing to it as one of the measures better suited – and preferable – to regulation of online services. This may partly be the reason why Information Society and Media Commissioner Viviane Reding is showing an increasing interest in the subject. In the spring of 2006 she set up a Media Literacy Expert Group – including several experts from the Nordic countries – whose task it is to analyse and define media literacy objectives and trends, to highlight and promote good practices at European level and propose actions in the field. In the autumn a consultation was launched to seek the public's views on media literacy and information about initiatives in commercial communications, film and the online world. The results of the consultation will be used in the elaboration of a Commission Communication on media literacy – most likely containing proposals for

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Nordicom - Media Policy Newsletter EU measures - to be published in 2007.

Empowering Children In the Council of Europe, too, there is a growing interest in the subject. In September the Committee of Ministers adopted a Recommendation on “empowering children in the new information and communications environment”. Here much emphasis is placed on active use of the media. Member States should ensure that children acquire the necessary skills to create, produce and distribute content and communications, as well as encourage the development of pedagogical material and learning tools, are some of the recommendations. The European Parliament has long shown an interest in media literacy. During the first reading on the revision of the Television Without Frontiers directive in December a number of amendments were adopted mentioning the importance of media education and media skills. “It is therefore of crucial importance that Member States and national regulatory authorities actively promote the development of media literacy in all sections of society…”, stresses Parliament. At the same plenary Parliament adopted an EU Recommendation on the protection of minors and human dignity in audiovisual and online information services. Here again the importance of medie literacy is underlined. Among the measures recommended in this field are continuing training of educators and teachers, an integrated educational approach forming a permanent part of school curricula as well as specific media literacy programmes.

2007 a busy year It looks as if 2007 will be a busy year for media politicians in Europe. Aside from continued work on the revision of the TV directive they will have a number of new Commission documents and proposals to get their teeth into. Soon the Communication on content online and – maybe – the Recommendation regarding copyright levies mentioned above are expected. In the near future Commissioner Reding has also promised to publish a Commission Working Paper on media pluralism, a topic close to the heart of the European Parliament. For many years Parliament has requested EU measures to ensure media pluralism. In Parliament’s recent first reading of the draft TV directive the topic was once again brought up in a number of amendments.

Mobile TV Mobile television is a development of much interest to Commissioner Reding, who has announced that she will be issuing a Communication on the subject in “early 2007”. In the coming year a review of the important Commission’s guidelines regarding state aid to broadcasting and cinema is also expected, as is the Communication on Media Literacy mentioned earlier. Furthermore attention will focus on spectrum and other infrastructure issues. The European Commission is carrying out a review of the EU legislative framework for electronic communications and in 2007 Commissioner Reding intends to bring forward concrete legislative proposals.

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Nordicom - Media Policy Newsletter

About the newsletter European Media Policy is a newsletter from NORDICOM providing an up-date on policy developments at the European level. We concentrate on news from the European Union – current issues and trends in media policy, new proposals for legislation, debates in the European Parliament, recently taken or impending policy decisions and reactions among those concerned, new support programmes and EU studies in the field etc. There will also be some coverage of developments in the Council of Europe. The newsletter will normally be published three times per year. The December issue will provide an overview of the main events of the year and comment on media policy trends.

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