Promotion of European Works – an overview of the current situation Seminar on the promotion of European audiovisual works in linear and on-demand media services Belgrade - 26 February 2015 Krisztina Stump

Linear services - Application report every 2 years • Reporting obligation of MS to the Commission about the proportion of EU works and independent productions • Report published by the European Commission every 2 years

Application reports available under:

http://ec.europa.eu/digital-agenda/en/avmsdreports-european-works

Findings of the last reports - linear • 2009-2010 report published in September 2012 • 2011-2012 report to be finalized soon – will feed into the REFIT of the AVMSD General findings of the reports: - Most MS have no difficulties to fulfil the obligatory shares (both for European and independent productions) - Significant differences between MS with regard to the share and also regarding monitoring methods

Monitoring • Significant burden on broadcasters and regulatory authorities – but seems to be necessary to ensure the enforcement of the rules • Guidelines give the possibility to exempt channels with a very low audience share (below 0,3%) from the reporting obligation – in the previous reporting period 11 MS granted such exemptions • Local channels, channels broadcasting in a nonEU language and channels solely transmitting news, sports events, games, advertising, teleshopping are exempt

• Monitoring of the entire programme flow or sampling (the previous is preferable to have reliable results) • Verifying the data submitted by broadcasters is essential • Several MS use specific software solutions for the collection of the data • Some MS commission external companies to help with the verification of the data • Guidelines / consultations with broadcasters about methodology etc. seems to be useful

General trends – European works • Average transmission time for EU works for the EU 27 was 63,8% in 2009 and 64,3% in 2010 • Slight upward trend: 1.7% increase between 2007-2010 • On Member State level, the average share varied between 44% (Ireland) and 83% (Hungary) in 2009 and between 47.4% (Slovenia and UK) and 81% in Hungary • Three Member States had difficulties to achieve the required proportion in that period (Ireland, Slovenia and the UK)

General trends - Independent productions • EU average was 34,1% in 2009 and 33,8% in 2010 • Slight decrease (1,5%) between 2007-2009 • Decrease already detected during the previous reporting period • On Member State level the share varied between 14,5% (Slovenia) and 59,7% (Belgium) in 2009 and from 14,8% (Italy) to 61,7% (Belgium) • All MS reached the required 10%

Recent European works by independent producers • The EU average was 62.1% in 2009 and 61,8% in 2010 • Slight decrease (1.2%) between 2007-2010

Independent productions • MS have also the possibility to introduce investment obligations instead of a share in transmission time (10% of the programming budget) – Italy and France have such systems • The AVMSD does not lay down an exact proportion for recent independent productions. The requirement is to "earmark an adequate proportion"

Reasons for non-compliance • Recently launched channels • Problems with the acquisition of European programmes (particularly for small MS and small broadcasters) • Broadcasting material from the parent companies' stock • Difficult economic conditions during the reference period • Thematic channels

Measures undertaken by MS • Significant differences between MS • Measures range from contacting the broadcaster and asking explanations to sending warnings and letters of formal notice to the initiation of penalty procedures (in 5 MS in the previous reporting period) • MS are reminded to take efficient measures against non-compliant broadcasters

Non-linear services: Art. 13 AVMSD • On-demand AVMS shall promote, where practicable and by appropriate means production of and access to European works • Examples: - Share in the catalogue - financial contribution to production or rights acquisition - prominence in catalogue

Reporting obligation every 4 years • Reporting obligation of MS to the Commission about the proportion of EU works and independent productions • Report published by the European Commission every 4 years • First report published in 2012 – however without sufficient data to draw conclusions

Promotion of EU works in on-demand services in practice • Different ways to implement Art. 13 in MS • Questionnaire sent to the Regulators on their experience with Article 13 • Stakeholder event in November 2013 • Question in the Green Paper Consultation "Preparing for a Fully Converged Audiovisual World: Growth, Creation and Values"

• Report of the European Audiovisual Observatory on the presence of European works in catalogues

Green Paper "Preparing for a Fully Converged Audiovisual World: Growth, Creation and Values" - feedback document and executive summary of the replies published in September 2014 under: https://ec.europa.eu/digitalagenda/en/news/publication-summaries-greenpaper-replies

Sample study of the European Audiovisual Observatory on the presence of selected European works in VoD providers catalogues Published on our website in July 2014: http://ec.europa.eu/digitalagenda/en/news/demand-audiovisual-marketseuropean-union-smart-20120028

Providers with the highest shares of European works from the sample: o Germany: 72% (iTunes), 58% (Videoland), 48% (Maxdome); o France: 60% (iTunes), 42% (Orange VoD), 20% (Sony Enter); o Italy: 40% (iTunes), 16% (Chili TV), 12% (Cubovision); o Belgium: 34% (iTunes); 18% (Univers Ciné), 16% (Telenet); o Netherlands: 28% (Ximon), 18% (Videolandondemand and Moviemaxonline); o Denmark: 48% (TDC), 34% (Viaplay), 22% (iTunes); o Poland: 26% (vod.pl), 22% (Ipla.tv), 10% (iTunes);

Hearing on the promotion of European films and TV series on-line: Presentations available at: https://ec.europa.eu/digitalagenda/en/news/hearing-promotion-europeanfilms-and-tv-series-line-read-presentations

Summary paper "Promotion of European works in practice" published in July 2014

Available on our website: http://ec.europa.eu/digital-agenda/en/news/promotioneuropean-works-practice

Obligatory shares in the catalogue: • Several Member States introduced an obligatory share (10-60%) in the catalogue. • As a standalone obligation (5 MS)or in combination with other measures (8 MS) • Many see however this measure as not efficient for VoD (availability in the catalogue does not lead necessarily to consumption; forces operators to invest in works just to reach the required share – can lead to the acquisition of works with low audience appeal)

Financial contributions • Several MS have imposed such obligations in combination with other measures, e.g. together with obligatory shares (2 MS), together with promotion tools (1 MS), or with both (1 MS). Some apply it as alternative measures. • Financial contributions are seen as efficient by several respondents, however many say that it imposes the highest burden on VoD operators – could slow down the development of this emerging market

Prominence tools • Seen as most efficient least intrusive by many • Seems to work particularly efficiently when there is a close cooperation between the VoD providers and the regulator • Operators seem to be favourable of this obligation • Giving sufficient flexibility regarding tools instead of detailed prescribed measures seems to be more efficient

Examples of prominence tools applied in MS: - Indicating the country of origin in the catalogue - Providing possibilities to search for EU content - Placing information / promotion materials on such works on the front page - Highlighting EU works in the catalogue - Using trailers or visuals

Thank you for your attention!

Krisztina Stump [email protected]