MEDIA PLUS PROGRAMME OF SUPPORT FOR THE
EUROPEAN AUDIOVISUAL INDUSTRY
(21082)
5799/00
COM(99) 658
| (a) Commission Communication on a proposed programme in support of the audiovisual industry (MEDIA Plus — 2001-2005).
(b) Draft Decision on the implementation of a training programme for professionals in the European audiovisual programme industry (MEDIA — Training) (2001-2005).
(c) Draft Decision on the implementation of a programme to encourage the development, distribution and promotion of European audiovisual works (MEDIA Plus — Development, Distribution and Promotion) (2001-2005).
|
| Legal base:
| (a) None
(b) Article 150 EC; co-decision; qualified majority voting
(c) Article 157 EC; unanimity
|
| Document originated:
| 14 December 1999 |
| Forwarded to the Council:
| 31 January 2000 |
| Deposited in Parliament:
| 24 March 2000 |
| Department:
| Culture, Media and Sport
|
| Basis of consideration:
| EM of 5 April 2000 |
| Previous Committee Report:
| None |
| To be discussed in Council:
| Possibly in the May Culture/Audiovisual Council
|
| Committee's assessment:
| Politically important |
| Committee's decision:
| Not cleared; asked to be kept informed of progress
|
Background
2.1 The MEDIA programme (Measure to Encourage
the Development of the Industry of Audiovisual Production) was
first established in 1991 and ran for a five year period to the
end of 1995[1]
and was followed by MEDIA II, which is due to finish at the end
of December 2000. The aim of MEDIA II is to strengthen the competitiveness
of the European Audiovisual industry through measures to provide
incentives in two different areas of activity — training
and development, and distribution. It was implemented by two Decisions[2].
A further objective is to encourage the circulation of European
works transnationally, within and outside the EU.
The Commission Communication
2.2 The Commission says that the two proposals
for Council Decisions, which it presents in an annex to the Communication,
follow the same approach, One covers the implementation of a training
programme for professionals in the European audiovisual programme
industry — (MEDIA - Training) (2001-2005) and the
other a programme to encourage the development, distribution and
promotion of European audiovisual works (MEDIA Plus - Development,
Distribution and Promotion) (2001-2005). In drafting them,
the Commission has taken into account the results of the mid-term
assessment of MEDIA II[3]
and of the wide-ranging consultation conducted with professionals
since 1997, including the report from the High-Level Group on
Audiovisual Policy. This led to a new approach based, the Commission
says, on the following principles:
"— The support mechanisms set up at
European level must take account of national diversity by being
complementary to national and regional policies and by bringing
the added value of the European dimension.
"— Community aid must therefore concentrate
on attaining industrial and structural objectives, while nevertheless
bearing in mind the specific needs of countries and regions with
a low audiovisual production capacity and/or small geographical
or language areas.
"— The European Union must give priority
to establish automatic mechanisms or support mechanisms for companies
based on market performance with a view to generating structural
effects in the sector.
"— The new opportunities for exploitation
opened up by digital technology provide new scope for both creation
and distribution which must be taken into account. It is, however,
difficult at this stage to assess the real consequences of these
developments in the medium and long term. The approach adopted
by the support systems in order to strengthen European operators
must be pragmatic, in synch with the audiovisual market and reflect
the changes in the sector (technological neutrality). To this
end, it is necessary:
"— to set up and
develop an information system for monitoring developments in the
market in response to technological developments (pilot projects),
"— to make regular
assessments and make the necessary adjustments to the support
mechanisms,
"— to set up an
information system for exchanging experience with Member States
with a view to achieving synergy."
2.3 The European content industry appears
to the Commission to be inadequately prepared for the new digital
economy and continues to suffer from structural weaknesses:
"— on top of the fragmentation of
individual revenues as a result of the increasing number of distribution
channels, there is also a fragmentation of the national or regional
markets, weakening the transnational movement of programmes within
the European area;
"— this fragmentation leads to a vicious
circle of under-investment right from the conception of audiovisual
works, and then at the production and distribution stage, resulting
in low profitability of the works and hence a reduced investment
capacity; and
"— finally, this fragmentation is
reflected in an under-capitalisation of undertakings that jeopardises
their industrial development strategy at international level,
particularly in terms of building up catalogues of rights which
are sufficiently attractive to find different windows of exploitation
in all types of medium."
The draft Decision on training
2.4 The measures proposed will work alongside
those taken by Member States and those implemented under other
Community programmes such as SOCRATES and LEONARDO. They are aimed
at the:
"— application of the new technologies
to the production and distribution of audiovisual programmes with
a high artistic value and a strong commercial potential;
"— exploitation of the development
potential of the European and international market;
"— economic and commercial management,
including the legal aspects, financing of production, marketing
and distribution;
"— writing techniques, in particular
for interactive programs intended for the new means of electronic
dissemination.
"In addition, the programme will encourage:
"— networking, co-operation and the
exchange of know-how between the partners concerned by the training
activities (training establishments, professional associations,
undertakings);
"— training the trainers."
2.5 Support will be in the form of grants
of up to 50% of project costs in most cases, but 60% for training
courses in certain areas, with a ceiling of one million euro per
training centre per year. Maximum contract terms will be three
years.
The draft Decision on development, distribution
and promotion
2.6 The measures proposed for supporting
development activities will aim to:
"— encourage the investment of resources
in the development of projects (writing and finalisation of the
script, establishment of the financing plan, etc), while insisting
that, right from the development stage, there must be an international
marketing strategy aimed at exploiting the work on a large number
of media (direct and derived exploitation);
"— encourage the most dynamic independent
producers to implement genuine commercial development strategies
based on packages of products."
2.7 The actions will be targeted at companies
producing fiction, documentaries, animated films and interactive
products, whether on-line, off-line or hybrids.
2.8 In order to secure a strong position
in the market, it is essential to have a command of distribution
techniques and networks, allowing the investments to be amortised
and generate profits. The measures proposed for supporting distribution
activities must make it possible to:
"— improve the movement and profitability
of European works on the European and world market for all the
media available to consumers;
"— strengthen the competitiveness
of distribution companies (cinema, video, TV) and the compilation
and exploitation of catalogues of European copyrights;
"— develop networking and joint strategies
at European level by developing the links between distribution
and production;
"— increase the production of works
intended for the European market (distribution-led production),
while respecting linguistic and cultural diversity;
"— develop the public's knowledge
of, and taste for, works from other European countries, thereby
strengthening European cultural identity in all its diversity
(multilingualism);
"— use pilot projects to encourage
a permanent link between the programme and technological change,
in particular by promoting the programming of European audiovisual
works on digital special-interest channels."
2.9 To achieve some of these objectives,
assistance will cover the multilingual aspects of production,
such as dubbing and subtitling, soundtracks and aid for cinema
operators to encourage them to screen a more significant proportion
of European films in premiere cinemas for a minimum screening
period. In the case of television, aid will encourage co-operation
between broadcasters belonging to different language zones. As
regards the distribution of European works on-line (Internet,
pay-per-view, and so on), the aim is to encourage the development
of catalogues of works in digital format.
2.10 Support for promotion has similar
objectives but will be more specifically aimed at improved market
access and will include encouraging participation in festivals
and other international events inside and outside Europe.
2.11 A series of pilot projects are
envisaged to "promote conditions in which companies in the
audiovisual content sector can seize the best opportunities offered
by new production and dissemination services". Priority will
be given to projects which aim to digitise European audiovisual
programme archives and to a project aimed at promoting dissemination
by thematic digital channels and services.
2.12 Under this Decision, financial support
for development will generally take the form of conditionally
reimbursable loans for individual projects and non-reimbursable
subsidies for catalogues of projects. The contribution will usually
be limited to 50% of costs but may be raised to 60% for projects
that "exploit European cultural diversity". Support
for distribution will be on a similar basis. Support allocated
to promotion and pilot projects will generally be in the form
of non-reimbursable subsidies.
2.13 The MEDIA programme is open to members
of the EEA and to applicant countries.
The Government's view
2.14 The Secretary of State for Culture,
Media and Sport (The Rt. Hon. Chris Smith) says that the UK does
not operate domestic programmes which overlap with the objectives
of the actions undertaken by the MEDIA programme.
2.15 In a full appraisal of the proposals,
the Secretary of State says that the Government supports in principle
the Commission's overall proposal to concentrate on training,
development, distribution and promotion. This reflects the findings
of the joint industry/Departmental Film Policy Review of the UK
industry which identified similar priority areas. He comments
that the dislocation between the financing of production and the
eventual distribution of the finished work can lead to a lack
of development of projects of high commercial potential. In general,
therefore, the Government supports measures aimed at strengthening
the European audiovisual industry which will lead to the development
of integrated, distribution-led structures and enable it to compete
within the global markets.
2.16 The Government accepts that it is important
for the European industry to be in a position to meet the challenges
of the new technologies and, therefore, welcomes the emphasis
on the use and exploitation of these, but, the Secretary of State
says, it will seek to encourage the Commission to develop synergies
with other programmes and initiatives, and to ensure consistency
with the eEurope initiative[4],
which has been welcomed by the European Council.
2.17 In principle, the Minister says, the
Government also welcomes the proposal to allow the Commission
to undertake new Pilot Projects to enable the programme to adapt
to technological developments.
"Such Pilot Projects should provide flexibility
within the programme to enable the Commission to undertake research
into areas relating to emerging technologies. We would, therefore,
seek to ensure that the Pilot Projects proposed in the Communication
concentrate on innovative projects in new and emerging technologies".
The financial implications
2.18 The Minister refers to the limited
financial resources that will be made available under this programme
and suggests that, if loans made under MEDIA II could be rolled
forward into MEDIA Plus, these repayments could be a source of
extra funds. The budgets proposed are 50 million euro for MEDIA-Training,
an increase of 5 million euro over that element of MEDIA II, and
350 million euro for MEDIA-Development, Distribution and Promotion,
up from 265 million under MEDIA II. The Minister says that the
Government would be reluctant to see a total for the MEDIA Plus
programme beyond 310 million.
Consultation
2.19 The Minister notes that the Communication
is the result of extensive consultation by the Commission. The
Government will hold continuing discussions, as specific issues
arise, with key organisations, companies and trade bodies in the
audiovisual industry and other organisations and individuals involved
in the programme.
Conclusion
2.20 We have recently considered a series
of documents from the Commission on the effects of the new technologies,
including a Communication in which it set out the Principles
and guidelines for the Community's audiovisual policy in the digital
age[5],
which it issued on the same date as this Communication in December.
We did not clear that Communication, but noted that individual
proposals arising from it would be the subject of separate Explanatory
Memoranda. MEDIA Plus is one such.
2.21 The new technologies featured in
a recent debate[6],
but this concentrated on the regulation of the European communications
infrastructure and services and radio spectrum. The proposals
put forward here relate to content. Although more closely tied
to the new technological developments, the proposals do not represent
a radical departure from the earlier support provided under MEDIA
II, despite expectations aroused by the extensive consultations.
2.22 We question whether the UK should
agree to support an industry that is generally so well resourced
and whether, as has been proved in this country with films for
minority audiences, it should not be left to market forces to
put up the funds required. We note the justification set out in
the Commission Communication, but we ask the Minister for a fuller
explanation for the Governments decision to support the programme.
2.23 The Minister tells us that he expects
discussion on these proposals to continue under the French Presidency.
We also ask him to keep us informed of progress and of any changes
to the proposals which may be made as a result of discussions
at the Culture/Audiovisual Council in May.
2.24 Meanwhile, we shall not clear the
document.
1 Council Decision 90/685/EC of 21 December 1990, OJ
No. L 380, 31.12.90, p.37. Back
2 Council Decision 95/564/EC of 22 December 1995, OJ No. L 321,
30.12 95, p.33 and Council Decision 95/563/EC of 10 July 1995,
OJ No. L 321, 30.12.95, p.25. Back
3 (19996) 6887/99; see HC 34-xix (1998-99), paragraph 14 (12 May
1999). Back
4 (20858) 14205/99; see HC 23-viii (1999-2000), paragraph 7 (9 February
2000). Back
5 (20991) 14261/99; see HC23-xiii (1999-2000) paragraph 9 (5 April
2000). Back
6 Official Report, European
Standing Committee C, 16 February 2000: Telecommunications
legislation and radio spectrum policy. Back
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