Select Committee on European Union Minutes of Evidence


Supplementary memorandum by the Department for Culture, Media and Sport

  NOTE: This document sets out the Department's answers to the 11 questions which the Committee has set out in its call for evidence. These answers are based on the original proposals for the amendment of the Television Without Frontiers Directive which were published by the European Commission in December 2005 (COM(2005)646 final) and which are the specific subject of the Committee's Inquiry. They do not reflect possible amendments to these proposals which have been under discussion in the Council of Ministers and the European Parliament since December 2005.

3(a)   In our current rapidly converging and evolving technological and market environment, is it appropriate to try to recast the regulatory framework?

  We agree that technological and market changes have made it necessary to reconsider the regulatory framework for television broadcasting at the European level.

  2.  As the question implies, these changes—in particular, the spread of digital television, broadband, and mobile networks, and the ever-increasing capabilities of the devices which these networks serve—has led to the phenomenon of convergence. As the range of what is available on each platform increases, there is increasing overlap or interchangeability in what they are capable of offering. Television and television-like content can be offered over the Internet and over mobile networks. Conversely, some types of television service can offer interactive elements that were formerly the preserve of the Internet or mobiles (TV bingo channels offer a good example of this).

  3.  This in turn has led to a massive expansion in the number of actual or potential products, services and business models. Some of these, such as video-on-demand delivered over the Internet, are adaptations or variants of the 20th century model of broadcasting to which we have become accustomed.

  4.  But others, such as interactive games and weblogs involving user-generated content, are entirely new, and are in turn beginning to erode the clear distinction that has existed in the media world for many years—indeed, for centuries—between producer and consumer. Anyone can be his own Web publisher, and convergence will increasingly mean that there will be a wide range of platforms on which this user-generated product is accessible.

  5.  We do not disagree with the proposition that now is a suitable time to re-examine the regulatory framework which applies to these services—although it will plainly be important to reassess the issue in not very many years' time. It does not necessarily follow, however, that we need to recast that framework to embrace all these services—and indeed the Government's strong view is that this is not what is needed.

  6.  At the EU level, some degree of modernisation of the rules which apply to TV broadcasting would in our view be appropriate, in particular in as far as this involved the introduction of better regulation principles and a lighter regulatory touch. But that is not what is on offer from the European Commission's proposal for amending Directive 89/552/EC (the Television Without Frontiers—TVWF—Directive).

3(b)   What are the advantages and disadvantages of regulating this area? Are the regulatory costs proportionate to the benefits?

  7.  At the national level, the power, pervasiveness and impact of television (and radio) broadcasting have always been thought to justify regulatory intervention by Governments in democratic countries. In our view they still do. In the UK, successive Governments have used their power to license and regulate, along with control of the allocation of the frequency spectrum, not only to secure fundamental standards in the acceptability of what is broadcast but also to ensure the continuing strength of public service broadcasting by the BBC, ITV, Channels 4 and 5 and S4C. We regard this as a major public benefit.

  8.  These national arrangements need to be kept under review and periodically updated. In particular, since they involve interference in free speech, they need to be kept proportionate to the public policy goals sought.

  9.  At the European level, the development of cross-frontier broadcasting technology, in particular by satellite, has provided an opportunity to realise the benefits of a Single Market underpinned by basic standards which all EU Member States are obliged to apply to their television broadcasters.

  10.  This Single Market is based on the rules set out in the TVWF Directive, in particular the "Country of Origin" principle which it embodies. Article 2 of the Directive sets out rules which assign jurisdiction over each TV broadcaster in the EU to its single "Country of Origin". Article 2a, subject to a limited power of derogation, then requires Member States to "ensure freedom of reception" of these services on their territory. Articles 3a to 22a, and Article 23, set out the basic standards which Member States must apply to all TV services under their jurisdiction.

  11.  The Country of Origin principle in the TVWF Directive has proved central to the development of a genuinely pan-European broadcasting market. The benefits of this, in our view, come not only from the economic opportunities which it affords to multinational broadcasters (including many based in the UK) but also from the range and diversity of the TV services which viewers in the UK and around Europe can enjoy. The growth of European television services also serves to support and promote the consumer electronics and production sectors and associated services.

  12.  Any system of regulation comes with potential disadvantages. In this case, intervention at the European level risks having an unwarranted impact on freedom of speech and expression. It also risks affecting economic and technical development, and should therefore as far as possible operate on better regulation principles and with as light a touch as possible.

  13.  Beyond that, regulation at the EU level of broadcasting or audio-visual media services needs to be sensitive to the fact that it requires Member States to apply it to their own national services. Common standards which are set at Community level should be couched in terms which each Member State is able to apply in its own social and cultural context.

  14.   From the other point of view, the Country of Origin principle necessarily reduces the scope for the application of public policy interventions to TV services from abroad, which may take a significant share of the local market, and lead to advertising revenues accruing in another Member State.

  15.  So far as proportionality is concerned, the Government takes the view that the regulation of TV broadcasting at both the UK and the EU level has up to now been proportionate to the benefits which it has produced. The European Commission's proposals for amending Directive 89/552/EEC would, in our view, enable this to continue so far as the regulation of television broadcasting is concerned (though we see room for improvement, especially in the light of increasing competition to advertiser-funded free-to-air channels).

  16.  But in as far as the Commission's proposals would affect "non-linear" new media services, the Government's view is that its regulatory costs would exceed its benefits, and by a considerable margin. The fundamental proposition underlying the Commission's proposals is that a Single Market in these services would produce economic benefits, and that the imposition at EU level of the requirements set out in Articles 3c to 3h of the proposed amendment are a necessary condition for the creation of that Single Market.

  17.  There is already a functioning Single Market for these services, supported by Directive 2000/31/EC (the e-Commerce Directive). Our view is that the costs of imposing a new tier of sectoral regulation on non-linear services would be greater, and probably considerably greater, than the benefits that Europe would gain in terms of what can be only a minor improvement in the existing Single Market for them. They could cause economic damage to this dynamically expanding sector, in particular through the imposition of new, unnecessary regulatory costs which could discourage innovation and cause operators to relocate outside the EU.

  18.  The partial Regulatory Impact Assessment which we published along with our consultation document on the Directive in June this year elaborated this argument. It is borne out also by a recent report from Rand Europe that OFCOM have published which concentrates on two "non-linear" sectors—online games and mobile multimedia—which could be caught by the terms of the Commission's proposals.

4(a)   Does the Proposal sufficiently liberalise the provision of broadcasting services within the European Union?

  19.  The basic rules which the existing TVWF Directive requires Member States to impose on broadcasters concern the protection of minors and public order (Articles 22 and 22a), rights of reply (Article 23), cross-border coverage of events of major importance for society (Article 3a), "quotas" of European and independently-produced content (Articles 4 to 6), film rights (Article 7) and advertising (Articles 10 to 19a).

  20.  The Commission's proposals would add new elements to two of these requirements. In terms of the protection of public order, the proposals would require Member States to ensure that TV broadcasters did not transmit material which contained incitement to hatred on the grounds of sex, racial or ethnic origin, religion or belief, disability, age, or sexual orientation (new Article 3f), as compared with the existing Article 22a requirement in terms of race, sex, religion or nationality.

  21.  The proposals would also add a new element to the requirements on events of major importance, in that they would create a right of access to the TV signal for "short news reports" (new Article 3b). Such arrangements are currently permitted by the Copyright Directive, and are currently therefore at Member States' discretion.

  22.  The Commission's proposals do however contain important simplifications of the TVWF rules on television advertising. They also contain provisions to allow product placement. These things are however combined with a de-liberalisation in one particular area which appears to have no justification.

  23.  The TVWF Directive contains both qualitative and quantitative requirements on advertising—that is, rules about what can be advertised and how it can be advertised (the qualitative rules) and about how much advertising there can be (the quantitative rules).

  24.  With the exception of product placement (where the Commission are proposing, in new Article 3h, that Member States should be able to permit it subject to certain conditions) all of the proposals for change in television advertising rules concern the quantitative rules. The current Directive contains an array of these, set out at Articles 11 and 18.

  25.  Article 11 contains a complicated '45-minute' rule for feature films, which means that these cannot contain an advertising break unless the film is 45 minutes long, and in broad terms says that they can then have one ad break for every 45 minutes' duration. Article 11 also says that when other types of programme have advertising breaks these should be separated by intervals of at least 20 minutes, but that news and current affairs programmes, documentaries, religious programmes and children's programmes cannot contain advertising breaks if they last less than 30 minutes.

  26.  Article 18 says, in a rather complicated way, that that the maximum time per hour that can be devoted to advertising is 20 per cent (12 minutes). The Commission have proposed the removal of much of this detailed regulation. But the 20 per cent/12 minutes per hour rule would remain. So too would the 45-minute rule, but it would be turned into a 35-minute rule and apply to films, children's programmes and news programmes.

  27.  This has the effect of subjecting news and children's programming to a rule that does not currently apply to it—that is, to the requirement that these programmes cannot contain advertising breaks unless they are at least 35 minutes long. This can only have a negative effect on the transmission of this type of programming by commercial stations, and we have not heard the Commission offer any justification.

  28.  The rest of these changes are welcome in as far as they go, but there is a strong argument that they do not go far enough. Except perhaps for relays of religious services—which the Commission propose should contain no advertising breaks at all—the argument for having restrictions of this kind for any type of programming is not made out.

  29.  In our view, the need for these restrictions is based on a broadcasting environment of spectrum and service scarcity which is largely a thing of the past. Today, there is an enormous range of television services and the universal availability of a greatly increased number of channels will be secured by the switchover to digital broadcasting. There is also increasing competition for people's attention, often from other audio-visual services, notably the Internet, but increasingly through mobile devices.

  30.  In these circumstances, it is not clear to us why Member States should not, if they want, be able to allow commercial broadcasters to decide these things for themselves and be free to strike their own balance between advertising and editorial content, subject to viewer acceptability—just as is the case with other media such as the Internet, radio and the printed press.

4(b)   Does the proposal contain measures that will effectively protect public interest objectives?

  31.   The proposal bears on three public interest objectives—the protection of minors and public order, freedom of speech, and economic objectives in terms, for example, of technological development, economic growth, and jobs.

  32.  It would not achieve anything in the first of these areas and is potentially harmful in the other two. On the protection of minors and public order, the proposal purports in Articles 3d and 3e to provide protections in both broadcasting and "non-linear", on-demand services.

  33.  In as far as they would apply to online services, the protection that 3d and 3e would offer would largely be illusory, since they do nothing to prevent adults or children accessing services from outside the EU. The use by parents of blocking and filtering mechanisms, increased media literacy, and industry self-regulation on the lines of the successful Internet Watch Foundation scheme offer far more effective mechanisms for preventing access to undesirable content.

  34.  For video-on-demand, there is a successful UK industry self-regulatory scheme already in existence, operated by the Association for Television-on-Demand (ATVOD). The protections which Articles 3d and 3e offer in terms of TV broadcasting services do not go beyond what is already required of UK-based broadcasters under OFCOM's Broadcasting Code.

  35.  The proposal in Article 3e to apply EU-wide controls to online content that do not apply to, for example, printed content has implications for freedom of speech online. Interventions in free speech must be proportionate to the issues they are trying to address and take account of national circumstances, but we are not aware of anything which would require a measure of this sort to be taken across the EU. And the advertising rules at 3(g) would require us to introduce some State intervention in the Advertising Standards Authority's successful and widely-respected self-regulatory scheme.

  36.  The TVWF Directive has up to now been beneficial in economic terms, and the Commission's proposals would allow for the continuation of those benefits in so far as they affect television broadcasting. The extension of the scope of the Directive to non-linear services and the imposition on them of the requirements set out in Articles 3c to 3h would however in our view have very much the opposite effect.

4(c)   Does the Proposal achieve an appropriate balance between the objective of harmonisation and right of Member States to control audiovisual media services in a manner which reflects national concerns and interests?

  37.  No. These proposals would impose requirements on the United Kingdom and other Member States which go well beyond the essential minimum standards on which there is a consensus across the EU. In particular the prohibitions on incitement to hatred are very broad. They go well beyond general law in the UK, where the existing prohibitions are largely confined to racial hatred. They therefore interfere unjustifiably with freedom of speech in this particular sector.

  38.  Similarly, the prohibitions in respect of the protection of minors go well beyond the statutory protections which are already in place applying to the on-line sector. To apply prohibitions of this kind sensitively, without a disproportionate impact on freedom of speech, would in our view require a detailed regulatory regime such as a licensing system, underpinned by codes of practice as is the case with broadcasting. Any such scheme would impose new regulatory burdens.

5(a)   Is there agreement on the Commission's proposal to distinguish between linear and non-linear services?

  39.  We agree in principle with a distinction between "linear" television services and "non-linear" on-demand services, but it is in our view possible to improve the drafting in order to make the distinction clearer. We agree that there is a fundamental difference between television services that are broadcast simultaneously to masses of people and services which—though they might contain similar material—are "pulled down" on demand by the user.

  40.  "Linear" services, as we say in paragraph 7, have a power and pervasiveness that non-linear services lack. Their users have expectations of them in terms of detailed regulation in the interests of public protection beyond what is expected of "non-linear" services. Users of non-linear services have more choice and control over what they access, and how they access it, than the traditional model of "passive" viewing offers to consumers of linear television.

  41.  The Government therefore does not at all agree with the proposals which the Commission have made for sectoral regulation of the content of "non-linear" services.

  42.  We are working to minimise the extension of the scope of the Directive as far as possible. As part of that, we have promoted amendments which would limit the extent of the "non-linear" tier of the Directive, confining it to video-on-demand services.

5(b)   Does the Proposal go far enough in facilitating the free movement of broadcasting services?

  43.  We think that it does—it is difficult in fact to see how it could go any further. Although the proposal would amend the TVWF Directive, it would leave the existing framework for determining jurisdiction over TV broadcasting services, set out at Article 2, intact. That framework provides a logical sequence of tests which assign jurisdiction over a TV broadcaster to one Member State—its "Country of Origin"—and one only.

  44.  The proposal applies this structure also to "non-linear services", and the UK Government of course objects to that, since we do not think that these services should be included in this Directive at all. But that does not affect the suitability of the Article 2 framework for assigning jurisdiction over services covered by the Directive.

  45.  The proposal makes one other, minor change to the Article 2 framework, and we think this is sensible. It reverses the way in which the Directive assigns jurisdiction over satellite TV stations which originate from outside the EU, and have no head office or workforce here.

  46.  The current Directive assigns jurisdiction over such stations to the Member State whose satellite capacity they are using. The draft proposal assigns it instead to the Member State in which the satellite uplink—the station sending the signal up to the satellite to re-transmit back to earth—is situated.

  47.  This change reflects recent experience in France, whose national regulator (the CSA—Conseil Superieur de l'Audiovisuel) found itself having to take action against two stations from the Middle East containing anti-Semitic propaganda which were being relayed in Europe via satellite. France in fact suggested this change, and the UK supports it. It is easier in such circumstances to act against the satellite uplink rather than against the owners of the satellite, who may not have any direct control over what is on it.

  48.  Under the Commission's proposals, Member States would retain their power under Article 2a of the Directive to derogate in respect of television broadcasts which "manifestly, seriously and gravely" offend against the standards in respect of the protection of minors and public order set out at the current Articles 22 and 22a. (The Commission's proposal collapses Article 22a into new Article 3e).

  49.  The United Kingdom supports retaining this power of derogation. We are in fact the only Member State to have used it, having taken action under the Broadcasting Act 1990 to proscribe five pornographic satellite TV channels from elsewhere in the EU. The most recent proscription took place last year.

  50.  Proscription in the UK cannot take a station off the air. But it means that a range of acts in relation to the channel become criminal offences in the UK, such as selling decrypt cards "primarily" for the purpose of watching it, advertising it here, and advertising on it.

  51.  The Commission's proposals would however remove much of the power of derogation which Member States have in relation to "non-linear" services under Article 3.4 of the e-Commerce Directive (2000/31/EC). The exact relationship between the e-Commerce Directive and the Commission's proposals is not entirely clear, but Recital 10 of the proposals says that Member States "can no longer derogate" under the Directive on grounds which the proposals cover and we assume that effect would be given to this in revision of the e-Commerce Directive in due course.

5(c)   What role should industry self-regulation play in the new regulatory framework?

  52.  So far as TV broadcasting is concerned, the Government takes the view that the existing regulatory arrangements, involving OFCOM, are working well—these allow regulation to take place with as light a touch as possible. We have of course recently announced revised arrangements for the regulation of the BBC, as part of the Charter Review process.

  53.  For non-linear services—in as far as these are included in the finalised proposal at all—the Government again wishes to see better regulation with as light a touch as possible. But, despite references in the Commission's proposals such as that at Recital 25, we are clear that a revised Directive cannot allow for pure industry self-regulation—that is, regulation entirely by the industry itself, with no legislative or regulatory backstop.

  54.  There is a lack of clarity in the Commission's proposals about the regulatory regimes that will be acceptable in Member States. The Interinstitutional Agreement mentioned at Recital 25 applies to regulation at the Community rather than at the Member State level. The language of the Commission's proposals however requires Member States to ensure that the various objectives are attained, are we clear that this would place the Government under a duty which it cannot discharge by leaving implementation entirely to the industry.

  55.  That is a great pity, since UK industry has self-regulatory arrangements already in place in some of the fields covered by the Commission's proposals, and these arrangements work. We mentioned earlier the scheme for video-on-demand, run by ATVOD and the role of the Advertising Standards Authority. Others include the Internet Watch Foundation's work in respect of child pornography and a voluntary scheme run by the mobile phone industry.

  56.   Whatever the outcome of the Commission's proposals, we have pressed for amendments to ensure that these schemes can continue with as little disruption as possible.

5(d)   Should broadcasters be given greater flexibility in respect of the commercial arrangements they enter into for the financing of programmes?

  57.  We agree that they should, especially given the increased competition for advertising revenue which UK commercial public service broadcasters may come under. The Commission's proposals in respect of relaxing the quantitative rules on TV advertising are welcome, subject to the comments we have made under 3b above. But there are other important caveats.

  58.  The Commission's proposals allow for programme sponsorship, which is already permitted under the existing Directive. They also allow for product placement, whose status under the existing Directive is ambiguous.

  59.  Product placement (defined as the broadcaster accepting payment to include a product in a programme) is not allowed in the UK, though there is at least one Member State (Austria) which specifically permits it.

  60.  OFCOM's rules however do not prevent broadcasters from accepting props from companies who might want to advertise them or from showing bought-in programming (for instance, US TV series) whose original producers had entered into product placement deals. We are concerned that the Commission's proposals for identifying programmes with product placement would interfere with acquired programming in an unjustified and impracticable way, not least by focusing on a payment not only to a broadcaster or "media service provider" but to anyone in the value chain.

  61.  OFCOM last year launched a public consultation on product placement, and we expect to receive their report soon. We also posed a specific question about product placement in our own public consultation about the Commission's proposals, whose closing date was September 8th.

  62.  We will need to consider the issue in the light of a full consideration of OFCOM's report and the responses to our own consultation. In doing so, we will bear in mind the importance of continuing to ensure (as OFCOM's rules currently do) that TV viewers should always be in a position to know when they are being sold to.

5(e)   What controls should be imposed on non-linear services in respect of illegal and harmful material, such as the granting of a "right of reply"?

  63.  As already stated, the Government does not think that "non-linear" services should be subject to sectoral controls. Our view is that there is no justification for these. These services should remain—as is the case in the UK—subject to the same restrictions as apply to ordinary speech or to newspapers. What is illegal off-line is also illegal on-line, and that is the way it should stay.

  64.  It follows that we do not consider that there should be a legally enforceable online right of reply. Questions of principle aside, it is unclear how such a right could reasonably be exercised.

  65.  To their credit, the Commission do not in fact propose one. Their proposals do not amend the existing provisions about rights of reply in the TVWF Directive (Article 23). These would therefore continue to apply to TV broadcasters only.

  66.  A right of reply, or equivalent, is of course entirely appropriate for TV services, given their reach and impact. In the UK, the complaints scheme formerly operated by the Broadcasting Standards Commission is now operated by OFCOM, whose adjudications can require broadcasters to transmit retractions and apologies.

5(f)   Do quotas continue to be an appropriate mechanism for promoting the production of "European works"?

  67.   No. The UK has never favoured quotas. They are an arbitrary and essentially protectionist mechanism.

  68.  Their partial extension to online services, as suggested in the Commission's proposals (new Article 3f), is undesirable in principle, though their obligations are not onerous. We favour other mechanisms, such as obligations on public service broadcasters, and especially the BBC, and provisions for supporting UK film production and its broadcast.

October 2006

Annex I

THE SCOPE OF THE DIRECTIVE

  In its present form, the Directive concerns TV broadcasting only. The Commission proposed that it should instead be changed into an "Audio-Visual Media Services" Directive (AVMS) covering what could turn out to be a very wide range of on-demand, non-linear services and "new media" products. In the formal proposal which they published in December the Commission defined the audio-visual media services which the new Directive would cover as:

    ....a service as defined by Articles 49 and 50 of the Treaty the principal purpose of which is the provision of moving images with or without sound, in order to inform, entertain or educate, to the general public by electronic communications networks....

  Examination of this and discussion of it with the Commission and other Member States within the Council of Ministers reinforced our concern about the types of service that the Commission's formulation might cover. For example, private individuals who create and publish weblogs or personal websites can turn them into a small-scale commercial activity. They might allow third parties to place advertisements on their site, allow their site to contain sponsored links, or use micropayment systems to collect revenue from visitors to the site. These practices are increasingly common, and internet service providers supply software packages which make them easy to set up.

  In our view it was quite likely that any site or blog which generated revenue in these or other ways would be liable to be treated as a "service" within the meaning of Articles 49 and 50 of the Treaty. A site which had as its principal purpose the provision of moving images—for example, a blogger delivering what he wanted to say to camera rather than putting it in writing—would then be classed as an "audiovisual media service", and we saw this as utterly disproportionate.

  Most global and national news agencies now have websites which contain substantial moving picture audio-visual content. It is very doubtful whether websites of this kind would benefit from the exemption in Recital 15 for "electronic versions of newspapers and magazines". There is no actual printed version (for example a Reuters newspaper) to which they correspond.

  Similarly, the existing websites of actual newspapers, many of which also have moving picture content, might also be covered by the Directive. As the moving-picture content of these sites increases, as is likely, it will become steadily clearer that delivering moving pictures for information and entertainment actually is their principal purpose, and steadily less arguable that they are "electronic versions" of the printed product.

  There are similar issues in relation to online games and online gambling, both of which contain substantial moving picture content and are plainly there to "entertain" their users.

PROBLEMS WITH AN EXTENDED SCOPE OF THE DIRECTIVE

  The difficulty which the Government had with the extension of the scope of the TVWF Directive which the Commission proposed was that it would apply new, sector-specific, controls to the new media sector. The Commission has failed to make a sound case for harmonising the controls for these services. Nor is the online services industry asking for it.

  The controls which Member States would need to apply to non-linear services under the Commission's proposals are less stringent that those which apply to traditional "linear" broadcasting services.

  The exact extent of the new media services which would be covered by the Commission's proposals is not clear. It is a key priority to seek clarity on this, in as far as "non-linear" services remain within the scope of the Directive.

  Unnecessary regulation of new media services will hinder their growth and development, lead to delayed or foregone investment, and reduce the jobs and other economic benefits which they can bring to Europe. This would run contrary to the Lisbon and i2010 agendas.

  The Directive would impose an unnecessary extra tier of regulation. These services are already covered by the e-Commerce Directive.

  Member States can and have already introduced self and co-regulatory schemes to protect minors and the public interest. Self regulation is the most effective way of achieving these ends—particularly when it comes to on-demand and online services. This Directive, however, would not allow self regulation of non-linear audiovisual media services.

Annex II

AMENDMENTS PROPOSED BY THE UNITED KINGDOM

  The UK's proposed amendments cover five issues.

1.  THE SCOPE OF THE DIRECTIVE

  "Article 1

  For the purposes of this Directive:

    (a)  `audiovisual media service' means a service as defined by Articles 49 and 50 of the Treaty, provided by a media service provider via an electronic communications network within the meaning of Article 2(a) of Directive 2002/21/EC of the European Parliament and of the Council, and which is either television broadcasting as defined in Article 1c) or an on-demand service as defined in Article 1e)

    (b)  `media service provider' means the natural or legal person who has editorial responsibility for the audiovisual media service.

    (c)  `television broadcasting' (ie a linear audiovisual media service) means an audiovisual media service provided by a media service provider, who decides upon the moment in time when a specific programme is transmitted for simultaneous viewing by the general public, that is by an indeterminate number of potential viewers, and establishes the programme schedule

    ...

    (e)  `on-demand service' (ie a non-linear audiovisual media service) means an audiovisual media service provided by a media service provider, which has the following characteristics:

    (i)   Its principal purpose is the provision of programmes which are in a format suitable for television broadcasting, for example feature-length films, sports events, situation comedy, documentary, children's programmes and original drama;

    (ii)   The specific programme is viewed at the individual request of the user on the basis of a catalogue of programmes selected by the media service provider; and

    (iii)  The nature of and means of access to the service would lead the user reasonably to expect regulatory protection within the scope of this Directive. "

Supporting Recitals

Recital 13

    "The definition of audiovisual media services covers only audiovisual media services, whether scheduled or on-demand, which are mass media, that is, which are intended for reception by, and which could have a clear impact on, a significant proportion of the general public. The scope is limited to services as defined by the Treaty and therefore covers any form of economic activity, including that of public service enterprises, but does not cover activities which are primarily non-economic, such as private or semi-private websites. Nor does it cover services consisting of the provision or distribution of audiovisual content generated by users for the purposes of sharing and exchange within communities of interest. The definition excludes all services not intended for the distribution of audiovisual content, ie where any audiovisual content is merely incidental to the service and not its principal purpose. The definition also excludes services such as gambling services and online games. "

Recital 14

   [Deleted]

New Recital 16a

    "A media service provider must exercise editorial responsibility over his service. Editorial responsibility means the exercise of prior control both over the selection of the programmes and over their organisation either in a chronological schedule, in the case of television broadcasts, or in a catalogue, in the case of on-demand services. Editorial responsibility does not necessarily imply any legal liability under national law for the content or the services provided. "

2.  IMPLEMENTATION AND REGULATION

"Article 3

  ...

  3.   When implementing and enforcing the provisions of this Directive, Member States shall promote self-regulatory and co-regulatory regimes. These regimes shall be such that are broadly accepted by the main stakeholders and provide for effective enforcement in the respective Member States. "

Amended Recital 25

  In its communication to the Council and the European Parliament on Better Regulation for Jobs and Growth in the European Union, the Commission stressed that a careful analysis on the appropriate regulatory approach, in particular whether legislation is preferable for the relevant sector and problem, or whether alternatives such as co-regulation and self-regulation should be considered. [ ... ] Experience showed that co- and self-regulation instruments implemented in accordance with different legal traditions of Member States can play an important role in delivering a high level of consumer protection, since these objectives, particularly in the context of new media services, can best be achieved with the active support of the providers. Co-regulation and self-regulation instruments should therefore be used, in line with the different legal traditions, for the transposition of the Directive in the Member States. Broad acceptance of the regulatory procedure by stakeholders within the meaning of this Directive relates to the Member State, not to the Community.

New Recital 25a

    "In the area of on-demand audiovisual media services, self- and co-regulation can be an effective alternative to regulation for the purposes of delivering public policy objectives such as the protection of minors or the fight against incitement to hatred. Accordingly when implementing this Directive, Member States are encouraged to take the utmost account of the possibility of implementation by means of self- or co-regulatory mechanisms. In particular, Member States should avoid unnecessarily disrupting existing self- and co-regulatory schemes where these already provide a high level of consumer protection with regard to the matters addressed in this Directive, and should ensure that implementing measures provide a coherent system of protection alongside self-regulatory schemes already established in accordance with the requirements of Directive 2000/31/EC. "

Amended Recital 33

  "None of the provisions of this Directive [ ... ] necessarily requires that the measures in question be implemented through prior control of audiovisual media services. Member States are encouraged to put in place self- and/or co-regulatory systems."

3.  MEDIA LITERACY

"Article 3

  ...

  4.   Member States shall, by appropriate means, advance the development of media literacy amongst consumers."

New Recital

    "Media literacy refers to the skills, knowledge and understanding of consumers to enable them to use media effectively. Media literate people will be able to exercise informed choices; understand the nature of content and services; be able to take advantage of the full range of opportunities offered by new communications technologies and be better able to protect themselves and their families from harmful or offensive materials.

    It is therefore of crucial importance that Member States and national regulatory authorities actively advance the development of media literacy in all sections of society and that they conduct regular research to monitor these and to inform their approaches to content regulation. "

4.  INCITEMENT TO HATRED

"Article 3(e)

  Member States shall ensure by appropriate means that television broadcasts provided by broadcasters under their jurisdiction do not contain any incitement to hatred based on sex, racial or ethnic origin, religion or belief, age or sexual orientation.

  Member States shall ensure by appropriate means that on-demand services provided by audio-visual media service providers under their jurisdiction do not contain any incitement to hatred based on racial or ethnic origin. "

5.  ARTICLE 11 AND THE "35-MINUTE RULE"

Article 11

  1.   Member States shall ensure, where advertising or teleshopping is inserted during programmes, that the integrity of the programmes and the rights of the right holders are not prejudiced.

  2.   No advertising or teleshopping may be inserted during religious services.


 
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