Select Committee on European Scrutiny Thirteenth Report


AUDIOVISUAL POLICY IN THE DIGITAL AGE


(20991)
14261/99
COM(99) 657

Commission Communication: Principles and guidelines for the
Community's audiovisual policy in the digital age.
Legal base:
Document originated: 14 December 1999
Forwarded to the Council: 17 December 1999
Deposited in Parliament: 18 February 2000
Department: Culture, Media and Sport
Basis of consideration: EM of 17 March
Previous Committee Report: None
To be discussed in Council: 16 May Culture/Audiovisual Council
Committee's assessment: Politically important
Committee's decision: Not cleared; further information requested

The Commission document

  9.1  The Commission introduces this Communication by commenting that the audiovisual sector is undergoing major changes as a result of the introduction of digital technologies and that the growth of the sector poses two challenges:

    "First, it is necessary to ensure that the legislative framework allows the audiovisual sector to maximise its potential for growth and job creation in Europe, whilst continuing to safeguard general interest objectives. Secondly, the Community must maximise the competitivity of the European audiovisual industry in order to ensure that digitisation does not simply result in a flood of imported or archive (repeated) material."

  9.2  The European audiovisual market remains overwhelmingly dominated by American productions. The annual EU trade deficit with the USA in this sector is approaching 7,000 million euro, the Commission notes.

    "American productions account for between 60 and 90% of Member States' audiovisual markets (receipts from cinema ticket sales, video cassette sales and rentals and from sales of television fiction programmes), whilst the respective European share of the American market is of the order of 1 or 2%."

  9.3  The average European watched over three hours of television per day in 1998 and European audiences show a clear preference for content in their own language. Since the audiovisual media play a major rôle in the transmission of social and cultural values, there are major public interests at stake, the Commission says. These include the protection of minors and the consumer and the preservation of Europe's cultural diversity. In promoting the production and circulation of quality content which reflects European values and linguistic identities, the challenge is to ensure that this content continues to be available, despite usually being more expensive than imported material.

  9.4  The production and distribution of European works can be encouraged by creating a secure and stable legal framework. The changes in the sector are likely to require the framework and the various support mechanisms to be adapted and the Commission recognises that it is important for all interested parties to be informed of the strategy it intends to adopt over the next five years. It has concluded from the consultation exercises it has carried out in recent years that the fundamental goals should remain the same but that new approaches and techniques would appear to be necessary for the future. Its consultations, which were part of a wide-ranging review, included:

  • the Green Paper on Convergence of the Telecommunications, Media and Information Technology Sectors[29];

  • the European Audiovisual Conference organised by the Commission and the British Presidency in Birmingham in April 1998;

  • the major review of the regulatory framework for the electronic communications infrastructure known as the 1999 Communications Review[30] which recommended five general principles. These were that regulation should be:

    —   based on clearly defined policy objectives;

    —   the minimum necessary to meet those objectives;

    —   further enhance legal certainty in a dynamic market;

    —   aim to be technologically neutral; and

    —   be enforced as closely as possible to the activities being regulated.

  9.5  Although these principles are also valid for content regulation, they need to take account of the specific nature of the sector and the Commission proposes that a separate approach should be adopted to regulating content. For instance, when applying the test of proportionality, the degree to which an individual user can exercise choice must be taken into account. Rather than constructing a new regulatory framework, it would be preferable to build on existing instruments and principles and to promote initiatives for self-regulation.

  9.6  The Commission sets out a timetable for 10 key actions, which we reproduce below. As well as advancing supporting arguments for selecting these actions, which include a further MEDIA programme[31], which the Commission regards as of crucial importance for the future of the European audiovisual industry, it covers other issues, which include:

Access to audiovisual content

  • Content must be readily accessible. Viewers will need an Electronic Programme Guide (EPG) to navigate through the multitude of content on offer in a digital broadcasting environment. As EPGs will be able to influence both the presentation and availability of content, important questions arise relating to pluralism, cultural diversity and other general interest objectives, as they do in the case of the Application Programme Interface[32] (API). The API dictates which EPG can be installed in decoders and digital televisions. Both APIs and EPGs also give rise to significant questions with regard to access to infrastructure.[33]

  9.7  At this early stage, when markets and technological developments are highly unpredictable, the Commission says that it does not propose any specific action but it will monitor the sector closely.

Copyright

  • The Internet makes possible new ways and means of distributing audiovisual works and with digital technology it is possible to make perfect copies. The Commission says that it considers the rapid adoption of the proposed Directive on Copyright and Related Rights in the Information Society[34] to be of paramount importance.

Regulatory authorities

  • Its consultations lead the Commission to suggest some common guidelines:

    "—   regulatory authorities should be independent of government and operators;

    "—   content issues are essentially national in nature, being directly and closely connected to the cultural, social and democratic needs of a particular society, in line with the principle of subsidiarity, therefore, content regulation is primarily the responsibility of Member States;

    "—   technological convergence requires increased co-operation between the regulators concerned (communication infrastructures, audiovisual sector, competition);

    "—   regulatory authorities can contribute to the development and implementation of self-regulation. In this respect, the Commission will examine the utility of establishing a specific forum for European-level co-operation between regulators, operators and consumers in the audiovisual sector."

The Government's view

  9.8  The Secretary of State for Culture, Media and Sport (the Rt. Hon. Chris Smith) comments:

    "The UK welcomes the policy document as a contribution to transparency and to forward planning in light of increasing globalisation and rapid technological change. The UK welcomes the evolutionary approach which the Commission is proposing, whereby the fundamental principles of the Community's audiovisual policy would be retained, but closely monitored and adapted as necessary. As the majority of the actions listed are not new, and have already been the subject of extensive consultation, the Communication is acceptable in this respect.

    "The UK Government supports the Commission approach of adopting a single set of regulatory principles on which any future proposals would be based which would apply to both content and infrastructure regulation, whilst recognising the specificity of the audiovisual content. We also agree that the relevance of the current regulatory framework should be monitored closely with a view to adaptation where necessary. The UK will publish a White Paper later this year which will take fully into account the ongoing European work and proposed actions."

Consultation

  9.9  The UK consulted widely on the Convergence Green Paper1 and any specific proposals on actions listed by the Commission in this document will be the subject of further consultation when they issue, the Minister says.

Timetable

  9.10  The Secretary of State says that the 16 May Culture/Audiovisual Council is likely to be asked to agree Conclusions related to this Communication and that a preliminary draft was expected to be issued before the Working Group meeting on 22 March. Two aspects have been singled out by Member States: digital terrestrial television and public service broadcasting. He points out that the UK, Sweden and Spain have already developed digital terrestrial platforms.

Scrutiny

  9.11  This document was adopted by the Commission on 14 December and issued in English on 3 January. It was not deposited until 18 February and the EM was signed on 17 March. We are seeking an explanation for the delay in deposit.

Conclusion

  9.12  Although rambling and repetitive, this Communication is a landmark document in that it encompasses a wide range of issues connected with the digital revolution, brings together the Commission's thoughts on the approach to be adopted to it at this stage, and presents in one paper a number of actions which the Commission is proposing to take.

  9.13  As the Secretary of State says, most of these actions have been under discussion for some time, but this paper makes a useful contribution to transparency and to forward planning. We thank him for his comments and ask him to provide us with a Supplementary EM in due course on any formal response the Government makes to it. In the absence of such a response, we shall await his Explanatory Memoranda on any specific proposals submitted for our consideration.

  9.14  Meanwhile, we do not clear the document but ask the Secretary of State to provide us with an EM on the draft Conclusions, and a copy of the unofficial text, in time for us to consider it before the 16 May Council.


29  (18724) 13289/97; see HC 155-xiv (1997-98), paragraph 5 (28 January 1998) and HC 155-xxiii (1997-98), paragraph 1 (1 April 1998); Official Report, European Standing Committee B, 8 April 1998; (19979) 6751/99; see HC 34-xx (1998-99), paragraph 10 (19 May 1999). Back

30  Commission Communication, Towards a new framework for Electronic Communications Infrastructure and Associated Services: the 1999 Communications Review: (20666) 12839/99; see HC 23-ix, paragraph 7 (16 February 2000). Back

31  (19996) 6887/99; see HC 34-xix (1998-99), paragraph 14 (12 May 1999). Back

32  The API can be compared to a computer operating system. It defines how software applications are managed and displayed. Back

33  See section 4.2.5 of the 1999 Communications Review (see footnote 23 above). [Comm Com Towards a new frame..]. Back

34  (18820 )5562/98; see HC 155-xviii (1997-98), paragraph 1 (25 February 1998); (20191) 8723/99; see HC 34-xxiii (1998-99), paragraph 2 (23 June 1999); and Official Report, European Standing Committee C, 27 October 1999.  Back


 
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