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Published on April 17, 2008

Author: Quintilliano

Source: authorstream.com

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EU Television Without Frontiers Directive Full text of the directive is available at: http://europa.eu.int/eur-lex/en/consleg/pdf/1989/en_1989L0552_do_001.pdf:  EU Television Without Frontiers Directive Full text of the directive is available at: http://europa.eu.int/eur-lex/en/consleg/pdf/1989/en_1989L0552_do_001.pdf Slide2:  One issue that divides the U.S. and Europe is trade in audiovisual products, particularly television programs and movies. Europeans want to keep the lid on imports of American films and TV programs to give local products more space. But they also want to use the media to forge a sense of European unity: television is seen as the best way to help citizens acquire an awareness of the history and culture of their neighbors. And they want to protect their unique cultures against the subversive onslaught of Walt Disney and MacDonalds. :  Europeans want to keep the lid on imports of American films and TV programs to give local products more space. But they also want to use the media to forge a sense of European unity: television is seen as the best way to help citizens acquire an awareness of the history and culture of their neighbors. And they want to protect their unique cultures against the subversive onslaught of Walt Disney and MacDonalds. The U.S. position:  Americans see European attempts to stimulate endogenous (local) production of audiovisual products are simply a means of protecting domestic industries from foreign competition. They argue that this restricts the free flow of information and abrogates provisions of the World Trade Organization. The U.S. position Slide5:  The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. WTO agreements are negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. The regulations Television Without Frontiers Directive, adopted by the Council of the European Communities (now European Union). European Convention on Transfrontier Television, adopted by the Council of Europe, an organization of 45 West and East European states.:  The regulations Television Without Frontiers Directive, adopted by the Council of the European Communities (now European Union). European Convention on Transfrontier Television, adopted by the Council of Europe, an organization of 45 West and East European states. Both sets of regulations stipulate that: Parties to the agreements should guarantee free reception or retransmission on their territories of TV programs from other signatories. They govern the amount and kind of advertising permitted.:  Both sets of regulations stipulate that: Parties to the agreements should guarantee free reception or retransmission on their territories of TV programs from other signatories. They govern the amount and kind of advertising permitted. They protect minors against exposure to pornography or gratuitous violence, They provide for a right of reply for persons whose reputations are injured by an assertion of incorrect facts.:  They protect minors against exposure to pornography or gratuitous violence, They provide for a right of reply for persons whose reputations are injured by an assertion of incorrect facts. They seek to promote endogenous (local) production of television programs, in part by specifying that a majority should be made in Europe. :  They seek to promote endogenous (local) production of television programs, in part by specifying that a majority should be made in Europe. Reasons for adoption of the regulations: 1. Technology Until recently the limited number of channels available required that the broadcast spectrum be used for public service broadcasting, rather than for the benefit of commercial interests. Rapid changes in communications technology have made this argument largely irrelevant. :  Reasons for adoption of the regulations: 1. Technology Until recently the limited number of channels available required that the broadcast spectrum be used for public service broadcasting, rather than for the benefit of commercial interests. Rapid changes in communications technology have made this argument largely irrelevant. Cable systems are providing a variety of additional channels. Several direct broadcast satellites offer programs ranging from news and sports to movies and music TV that can be received simultaneously in several countries. :  Cable systems are providing a variety of additional channels. Several direct broadcast satellites offer programs ranging from news and sports to movies and music TV that can be received simultaneously in several countries. New techniques for terrestrial broadcasting, such as low-power TV, have increased the number of local channels. Digital television typically allows between eight and 12 channels to occupy the same capacity required by a single analogue channel. Most European Union countries expect to switch to digital television by 2012. :  New techniques for terrestrial broadcasting, such as low-power TV, have increased the number of local channels. Digital television typically allows between eight and 12 channels to occupy the same capacity required by a single analogue channel. Most European Union countries expect to switch to digital television by 2012. 2. Economics As in the United States, the past few years in Europe have seen an increasing tendency towards deregulation and privatization in various sectors, including broadcasting. :  2. Economics As in the United States, the past few years in Europe have seen an increasing tendency towards deregulation and privatization in various sectors, including broadcasting. Most European countries now have dual systems, with private, commercial channels supplementing or competing with the national public service networks. :  Most European countries now have dual systems, with private, commercial channels supplementing or competing with the national public service networks. The number of private channels now exceeds the number of public-service channels, which usually are financed by viewer license fees, or a combination of license fees and advertising.:  The number of private channels now exceeds the number of public-service channels, which usually are financed by viewer license fees, or a combination of license fees and advertising. Only a handful of the new channels introduced in the past decade are public services. By far the majority are privately owned, commercial channels, funded by advertising, subscriptions, or pay-per-view. As a result of these developments, the number of channels available in the EU nations increased in significantly. :  Only a handful of the new channels introduced in the past decade are public services. By far the majority are privately owned, commercial channels, funded by advertising, subscriptions, or pay-per-view. As a result of these developments, the number of channels available in the EU nations increased in significantly. 3. Political The striving for greater economic and political unity in Europe was a major incentive to adoption of TV Without Frontiers. The preamble to the Council of Europe's TVWF convention notes that the council's aim is to “achieve greater unity between its members.” :  3. Political The striving for greater economic and political unity in Europe was a major incentive to adoption of TV Without Frontiers. The preamble to the Council of Europe's TVWF convention notes that the council's aim is to “achieve greater unity between its members.” The Directive of the European Community states that its objectives include: -- establishing an even closer union among the people of Europe, -- fostering closer relations between the states belonging to the Community, -- ensuring the economic and social progress of its countries by common action to eliminate the barriers which divide Europe.”:  The Directive of the European Community states that its objectives include: -- establishing an even closer union among the people of Europe, -- fostering closer relations between the states belonging to the Community, -- ensuring the economic and social progress of its countries by common action to eliminate the barriers which divide Europe.” The EU’s founding document, the Treaty of Rome, which established the European Community in 1957, requires that obstacles to freedom of movement of goods and services among Member States be abolished. Broadcasting is considered a service within the meaning of the treaty, and broadcasts across frontiers are one of the ways of pursuing EU objectives. :  The EU’s founding document, the Treaty of Rome, which established the European Community in 1957, requires that obstacles to freedom of movement of goods and services among Member States be abolished. Broadcasting is considered a service within the meaning of the treaty, and broadcasts across frontiers are one of the ways of pursuing EU objectives. The Single European Act (SEA), aims to achieve a single internal market -- an area without internal frontiers in which the free movement of goods, persons and capital is ensured. The intention of the TVWF Directive is to create a common market in broadcasting.:  The Single European Act (SEA), aims to achieve a single internal market -- an area without internal frontiers in which the free movement of goods, persons and capital is ensured. The intention of the TVWF Directive is to create a common market in broadcasting. Under previous EU rules, any state could block incoming broadcasts, except in border regions where there is unavoidable overspill. Now Member States cannot object to programs from other EU countries being received and retransmitted in their own territory, provided these programs conform to the regulations. :  Under previous EU rules, any state could block incoming broadcasts, except in border regions where there is unavoidable overspill. Now Member States cannot object to programs from other EU countries being received and retransmitted in their own territory, provided these programs conform to the regulations. What’s covered 1. Advertising and sponsorship: The regulations limit the amount and kind of advertising. Advertising should be recognizable as such, and prohibit subliminal and “surreptitious” advertising -- defined as representing the name or trademark of a supplier of goods or services with the intention of advertising. :  What’s covered 1. Advertising and sponsorship: The regulations limit the amount and kind of advertising. Advertising should be recognizable as such, and prohibit subliminal and “surreptitious” advertising -- defined as representing the name or trademark of a supplier of goods or services with the intention of advertising. Advertising spots should generally not interrupt programs. Instead, ads should be inserted between programs or, in the case of programs more than 45 minutes long, they may be interrupted once for each complete period of 45 minutes.:  Advertising spots should generally not interrupt programs. Instead, ads should be inserted between programs or, in the case of programs more than 45 minutes long, they may be interrupted once for each complete period of 45 minutes. No commercial breaks in news and current affairs programs, documentaries or children's programs if the program duration is less than 30 minutes. The total amount of advertising should not exceed 15 percent of daily transmission time, or more than 20 percent in any given clock hour – in other words, no more than 12 minutes of commercials per hour.:  No commercial breaks in news and current affairs programs, documentaries or children's programs if the program duration is less than 30 minutes. The total amount of advertising should not exceed 15 percent of daily transmission time, or more than 20 percent in any given clock hour – in other words, no more than 12 minutes of commercials per hour. Ads directed at children cannot encourage them to buy a product by exploiting their inexperience or credulity, nor directly encourage them to persuade their parents to buy the product advertised. Sponsors cannot influence the content and scheduling of programs in a way that will affect the editorial independence of broadcasters.:  Ads directed at children cannot encourage them to buy a product by exploiting their inexperience or credulity, nor directly encourage them to persuade their parents to buy the product advertised. Sponsors cannot influence the content and scheduling of programs in a way that will affect the editorial independence of broadcasters. There is a complete ban on advertising cigarettes or other tobacco products. Ads for alcoholic beverages cannot be aimed specifically at minors, nor give the impression that drinking leads to enhanced physical performance, or to social or sexual success.:  There is a complete ban on advertising cigarettes or other tobacco products. Ads for alcoholic beverages cannot be aimed specifically at minors, nor give the impression that drinking leads to enhanced physical performance, or to social or sexual success. 2. Protection of minors: Both directives further seek to protect the “physical, mental or moral development of minors” through a ban on programs that involve pornography or gratuitous violence at times when children are likely to watch them. :  2. Protection of minors: Both directives further seek to protect the “physical, mental or moral development of minors” through a ban on programs that involve pornography or gratuitous violence at times when children are likely to watch them. 3. Right of reply: TV broadcasters are required, in terms of both documents, to provide a right of reply, or equivalent remedies, to persons whose reputation and good name have been damaged by an assertion of incorrect facts in a broadcast. :  3. Right of reply: TV broadcasters are required, in terms of both documents, to provide a right of reply, or equivalent remedies, to persons whose reputation and good name have been damaged by an assertion of incorrect facts in a broadcast. 4. Independent producers: The EU stipulates that Member States should ensure, where practicable, that broadcasters reserve at least 10 percent of their broadcast time for European works created by independent producers. The intention is to stimulate new sources of TV production, especially the creation of small and medium-sized enterprises (SMEs), and to offer new opportunities for employment in the cultural field. :  4. Independent producers: The EU stipulates that Member States should ensure, where practicable, that broadcasters reserve at least 10 percent of their broadcast time for European works created by independent producers. The intention is to stimulate new sources of TV production, especially the creation of small and medium-sized enterprises (SMEs), and to offer new opportunities for employment in the cultural field. Important events:  Important events Commercial pressure in TV is increasingly inducing commercial broadcasters to acquire the exclusive rights to transmit events with mass appeal - and this applies in particular to broadcasters of pay-TV. This results in a danger for the public that the most important sporting and cultural events can no longer be received in the form of a television program that is free to all. Slide31:  The directive stipulates that each Member State may take measures to ensure that broadcasters do not broadcast on an exclusive basis events which are regarded as being of major importance for society in such a way as to deprive a substantial proportion of the public of the possibility of following such events on free television. Member States may draw up a list of events that must be broadcast unencrypted (not scrambled) even if pay-TV stations have bought exclusive rights. These events may be national, such as the Tour de France or Britain’s Cup Final, or international, such as the Olympic Games, the European Football Championship or the World Cup.:  Member States may draw up a list of events that must be broadcast unencrypted (not scrambled) even if pay-TV stations have bought exclusive rights. These events may be national, such as the Tour de France or Britain’s Cup Final, or international, such as the Olympic Games, the European Football Championship or the World Cup. 6. European content: The regulations require that a majority of the programs broadcast should be of European origin, rather than imports. Article 4 of the EU Directive and Article 10 of the Council's Convention both require that Member States shall “ensure where practicable and by appropriate means, that broadcasters reserve for European works a majority proportion of their transmission time” :  6. European content: The regulations require that a majority of the programs broadcast should be of European origin, rather than imports. Article 4 of the EU Directive and Article 10 of the Council's Convention both require that Member States shall “ensure where practicable and by appropriate means, that broadcasters reserve for European works a majority proportion of their transmission time” European works are defined as works originating from EU Member States, or other European nations that are members of the Council of Europe. Productions that are not European works but are jointly produced by Member States and third countries will be treated as European works if the major proportion of the costs is covered by Community co-producers, who also must control production.:  European works are defined as works originating from EU Member States, or other European nations that are members of the Council of Europe. Productions that are not European works but are jointly produced by Member States and third countries will be treated as European works if the major proportion of the costs is covered by Community co-producers, who also must control production. Economic Arguments in favor of “quotas”: The European Single Market is the largest and richest in the world, with 454 million consumers -- more than the United States and Japan combined -- and a GNP of more than $5 trillion. At present, however, the market for television producers is fragmented and lacks the economies of scale. :  Economic Arguments in favor of “quotas”: The European Single Market is the largest and richest in the world, with 454 million consumers -- more than the United States and Japan combined -- and a GNP of more than $5 trillion. At present, however, the market for television producers is fragmented and lacks the economies of scale. It is much cheaper for European nations, especially the smaller ones, to import programs from larger ones than to make their own. A program imported from the United States for showing in European often costs about one-tenth as much as a local production, because most of the American production costs are covered in the huge domestic market. European broadcasters have become huge markets for imported television programs. :  It is much cheaper for European nations, especially the smaller ones, to import programs from larger ones than to make their own. A program imported from the United States for showing in European often costs about one-tenth as much as a local production, because most of the American production costs are covered in the huge domestic market. European broadcasters have become huge markets for imported television programs. Europe runs a large and growing trade deficit in such audiovisual products as TV programs and movies. It is estimated that the EU deficit amounts to about $7 billion a year - dominated by U.S. imports. At the same time, European film exports to the U.S. comprise just one per cent of the total U.S. market.:  Europe runs a large and growing trade deficit in such audiovisual products as TV programs and movies. It is estimated that the EU deficit amounts to about $7 billion a year - dominated by U.S. imports. At the same time, European film exports to the U.S. comprise just one per cent of the total U.S. market. European producers argue that the money now paid for U.S. imports could be used instead to improve the amount and quality of locally-produced programs. It would also slow the “brain drain” of talented producers and artists to Hollywood. :  European producers argue that the money now paid for U.S. imports could be used instead to improve the amount and quality of locally-produced programs. It would also slow the “brain drain” of talented producers and artists to Hollywood. Cultural arguments in favor of quotas: The concern is that programs from the United States are invading Europe and threaten to submerge its traditional cultures. Europeans expect that “television will play an important role in developing and nurturing awareness of the rich variety of Europe's common cultural and historical heritage.” But most of the films shown in the EU come from one single non-member country -- the U.S.A. :  Cultural arguments in favor of quotas: The concern is that programs from the United States are invading Europe and threaten to submerge its traditional cultures. Europeans expect that “television will play an important role in developing and nurturing awareness of the rich variety of Europe's common cultural and historical heritage.” But most of the films shown in the EU come from one single non-member country -- the U.S.A. The creation of a common market for television products is thus one essential step if the dominance of the big American media corporations is to be counterbalanced. Europe's traditional concept of public broadcasting, with its emphasis on information, culture and education, rather than on commercial entertainment, is threatened by U.S. imports. :  The creation of a common market for television products is thus one essential step if the dominance of the big American media corporations is to be counterbalanced. Europe's traditional concept of public broadcasting, with its emphasis on information, culture and education, rather than on commercial entertainment, is threatened by U.S. imports. The concern is that if viewers were to abandon these public service channels in favor of commercial offerings, there would be political pressure to do away with TV license fees. The public service channels would either have to lower their standards to compete for mass audiences with the commercial services, or dwindle into elitist media with limited support.:  The concern is that if viewers were to abandon these public service channels in favor of commercial offerings, there would be political pressure to do away with TV license fees. The public service channels would either have to lower their standards to compete for mass audiences with the commercial services, or dwindle into elitist media with limited support. Carol Tongue, a British member of the European Parliament, summed up the cultural and economic arguments for quotas: “Let us create space for European programmes to circulate, enhancing our culture, increasing mutual understanding and creating thousands of jobs in our creative arts. Again, broadcast and investment quotas are ways to encourage this. . . :  Carol Tongue, a British member of the European Parliament, summed up the cultural and economic arguments for quotas: “Let us create space for European programmes to circulate, enhancing our culture, increasing mutual understanding and creating thousands of jobs in our creative arts. Again, broadcast and investment quotas are ways to encourage this. . . “. . . In a situation of imperfect market competition, special policies are required to ensure that all Europe's voices are heard and all Europe's stories are told, and that Europeans gain economically and culturally from an ever-growing industry.” :  “. . . In a situation of imperfect market competition, special policies are required to ensure that all Europe's voices are heard and all Europe's stories are told, and that Europeans gain economically and culturally from an ever-growing industry.” In 2004 the European Council agreed on a draft for a new European Constitution. One major addition to the previous treaties that served as a constitution is the inclusion of culture in the fundamental goals the Union pursues. :  In 2004 the European Council agreed on a draft for a new European Constitution. One major addition to the previous treaties that served as a constitution is the inclusion of culture in the fundamental goals the Union pursues. Article I-3 stipulates that “The Union shall respect its rich cultural and linguistic diversity and shall ensure that Europe’s cultural heritage is safeguarded and enhanced”. This means that cultural identity is an absolute right and a fundamental goal of the European Union.:  Article I-3 stipulates that “The Union shall respect its rich cultural and linguistic diversity and shall ensure that Europe’s cultural heritage is safeguarded and enhanced”. This means that cultural identity is an absolute right and a fundamental goal of the European Union. Slide46:  However, the proposed new constitution was delivered a setback. It had to be approved by all members before coming into force. But voters in France and The Netherlands voted against it. The document now will have to be renegotialed. Implementation of the Directives The Directive and the Convention set minimum standards that Member States are expected to adhere to. But countries may apply stricter rules for domestic productions. :  Implementation of the Directives The Directive and the Convention set minimum standards that Member States are expected to adhere to. But countries may apply stricter rules for domestic productions. The Netherlands expects the national public broadcaster, NOS, to acquire 25% of its programs from independent producers, rather than the 10% required by the Directive.:  The Netherlands expects the national public broadcaster, NOS, to acquire 25% of its programs from independent producers, rather than the 10% required by the Directive. In France, 60% of television programs must be European, including at least 40% made in France. :  In France, 60% of television programs must be European, including at least 40% made in France. Switzerland, a member of the Council of Europe but not of the EU, requires satellite broadcasters serving Switzerland to broadcast at least an hour of Swiss programming a week, and to contribute to a fund used to subsidize Swiss film production. :  Switzerland, a member of the Council of Europe but not of the EU, requires satellite broadcasters serving Switzerland to broadcast at least an hour of Swiss programming a week, and to contribute to a fund used to subsidize Swiss film production. Compliance with the content rules Every two years, Member States are required to provide the European Commission with a report on application of the 50% rule. A recent report from the Commission noted that its objectives had largely been achieved. :  Compliance with the content rules Every two years, Member States are required to provide the European Commission with a report on application of the 50% rule. A recent report from the Commission noted that its objectives had largely been achieved. Overall, the report said, “the television channels’ broadcasting of European works and independent productions satisfactorily complies with the rules contained in the Directive, and the aims of the Directive have been generally achieved.” The average of European works broadcast by the major channels varied from about 53% to 82% . Most public service channels are meeting or exceeding the quota.:  Overall, the report said, “the television channels’ broadcasting of European works and independent productions satisfactorily complies with the rules contained in the Directive, and the aims of the Directive have been generally achieved.” The average of European works broadcast by the major channels varied from about 53% to 82% . Most public service channels are meeting or exceeding the quota. In one respect, however, the regulations have been less successful. They are intended to encourage a wider exchange of programs among European nations. But although domestic production has increased, the proportion of fiction programs of European origin imported by EU Member States has dropped. :  In one respect, however, the regulations have been less successful. They are intended to encourage a wider exchange of programs among European nations. But although domestic production has increased, the proportion of fiction programs of European origin imported by EU Member States has dropped. Slide54:  In almost every EU member country, locally produced programs draw the biggest audiences. Programs imported from Hollywood are the second most popular. Europe's terrestrial TV channels get only 8 per cent of their programs from other European countries The U.S. perspective: To American producers of movies and television programs, the European content rules are perceived as a threat. Despite the size of the U.S. domestic market, export earnings are often essential for a TV studio to break even on the cost of producing a program. In recent years, nearly half of the revenue from exhibition in motion picture theaters has come from outside the United States. :  The U.S. perspective: To American producers of movies and television programs, the European content rules are perceived as a threat. Despite the size of the U.S. domestic market, export earnings are often essential for a TV studio to break even on the cost of producing a program. In recent years, nearly half of the revenue from exhibition in motion picture theaters has come from outside the United States. Foreign markets generate a large share of the revenue from television and video as well, around 40 percent of the total revenue earned by those media. Sale of American films and TV programs abroad are the second largest export after defense and a major contributor to the U.S. trade balance. :  Foreign markets generate a large share of the revenue from television and video as well, around 40 percent of the total revenue earned by those media. Sale of American films and TV programs abroad are the second largest export after defense and a major contributor to the U.S. trade balance. In the European market alone, the U.S. earns $7 billion more from sales of its films and TV programs than the European countries earn in the United States. American producers see the European market as having the greatest potential for growth in the coming decade, not only for exports but for mergers and takeovers. They are determined, therefore, to protect their interests.:  In the European market alone, the U.S. earns $7 billion more from sales of its films and TV programs than the European countries earn in the United States. American producers see the European market as having the greatest potential for growth in the coming decade, not only for exports but for mergers and takeovers. They are determined, therefore, to protect their interests. U.S. concerns Adoption of the EU Directive raised fears that European quotas would limit American export earnings. Jack Valenti, chairman of the Motion Picture Association of America, told Congress: “The Directive will stifle growth in existing TV markets, and impose severe limits on emerging markets, including private TV and satellite broadcasters. The real impact may not be felt so much in existing markets as in markets just beginning to develop.” :  U.S. concerns Adoption of the EU Directive raised fears that European quotas would limit American export earnings. Jack Valenti, chairman of the Motion Picture Association of America, told Congress: “The Directive will stifle growth in existing TV markets, and impose severe limits on emerging markets, including private TV and satellite broadcasters. The real impact may not be felt so much in existing markets as in markets just beginning to develop.” The House of Representatives unanimously passed a resolution denouncing the Directive and deploring the damage that could be inflicted on the U.S. broadcasting and film industries.:  The House of Representatives unanimously passed a resolution denouncing the Directive and deploring the damage that could be inflicted on the U.S. broadcasting and film industries. Congressmen argued that the local content rules are not, as Europeans claim, a matter of cultural sovereignty, but instead an attempt to protect European industries from foreign competition, particularly from the United States.:  Congressmen argued that the local content rules are not, as Europeans claim, a matter of cultural sovereignty, but instead an attempt to protect European industries from foreign competition, particularly from the United States. Rep. Sam Gibbons, chairman of the House Ways and Means Committee, said that cultural protectionism was not the issue. “The issue is censorship, the issue is restrictive trade practices.” As Rep. Bill Frenzel (D-Minn.) phrased it, “we should never let culture become the last refuge of trade scoundrels.” :  Rep. Sam Gibbons, chairman of the House Ways and Means Committee, said that cultural protectionism was not the issue. “The issue is censorship, the issue is restrictive trade practices.” As Rep. Bill Frenzel (D-Minn.) phrased it, “we should never let culture become the last refuge of trade scoundrels.” The larger concern is that a unified Europe will close its borders to American imports generally. In addition, there is concern that the European action could encourage other nations to restrict imports on the grounds of culture, health or safety as a means of solving trade problems. :  The larger concern is that a unified Europe will close its borders to American imports generally. In addition, there is concern that the European action could encourage other nations to restrict imports on the grounds of culture, health or safety as a means of solving trade problems. In December 2005 the EU proposed an update for the TV without Frontiers”Directive. The aim is to keep pace with rapid technological and market developments in Europe’s audiovisual sector. The proposal aims to reduce the regulatory burden on Europe’s providers of TV and TV-like services and to give more flexibility for financing audiovisual content by new forms of advertising. :  In December 2005 the EU proposed an update for the TV without Frontiers”Directive. The aim is to keep pace with rapid technological and market developments in Europe’s audiovisual sector. The proposal aims to reduce the regulatory burden on Europe’s providers of TV and TV-like services and to give more flexibility for financing audiovisual content by new forms of advertising. The modernisation of the EU rules on audiovisual media content is part of the i2010 strategy which aims at a European Information Society for growth and jobs :  The modernisation of the EU rules on audiovisual media content is part of the i2010 strategy which aims at a European Information Society for growth and jobs "My aim is for Europe's audiovisual content industry to flourish under one of the most modern and flexible set of rules in the world" -- EU Commissioner Viviane Reding :  "My aim is for Europe's audiovisual content industry to flourish under one of the most modern and flexible set of rules in the world" -- EU Commissioner Viviane Reding “The new rules should open up multimedia opportunities, boosting competition and consumer choice, while promoting public interest objectives such as the protection of minors and cultural diversity.” :  “The new rules should open up multimedia opportunities, boosting competition and consumer choice, while promoting public interest objectives such as the protection of minors and cultural diversity.” The proposal distinguishes between “linear” services (e.g. scheduled broadcasting via traditional TV) which “pushes” content to viewers), and “non-linear” ones (such as on-demand films or news, or the Internet), which the viewer “pulls” from a network. :  The proposal distinguishes between “linear” services (e.g. scheduled broadcasting via traditional TV) which “pushes” content to viewers), and “non-linear” ones (such as on-demand films or news, or the Internet), which the viewer “pulls” from a network. Today’s TV broadcasting rules would apply to linear services in a modernized, more flexible form. Non-linear ones would be subject only to a basic set of minimum principles, e.g. to protect minors, prevent incitement to racial hatred and outlaw surreptitious advertising. :  Today’s TV broadcasting rules would apply to linear services in a modernized, more flexible form. Non-linear ones would be subject only to a basic set of minimum principles, e.g. to protect minors, prevent incitement to racial hatred and outlaw surreptitious advertising. In the future, broadcasters would be able to choose the best moment to insert advertising in programs, rather than being obliged, as they are now, to allow at least 20 minutes between advertising breaks. However, the amount of advertising would not be allowed to increase. The Commission proposes to maintain the existing 12 minutes per hour ceiling. :  In the future, broadcasters would be able to choose the best moment to insert advertising in programs, rather than being obliged, as they are now, to allow at least 20 minutes between advertising breaks. However, the amount of advertising would not be allowed to increase. The Commission proposes to maintain the existing 12 minutes per hour ceiling. Slide70:  Cinematographic films, children programmes and news remain protected and may only be interrupted once per each period of 35 minutes time. The new Directive would also support new forms of advertising, such as split-screen, virtual (product placement) and interactive advertising. :  The new Directive would also support new forms of advertising, such as split-screen, virtual (product placement) and interactive advertising. Product placement:  Product placement By liberalizing product placement advertising, European government officials say they hope to give a competitive lift to the local audiovisual industry. They are conscious of growing revenue in the United States, with some studies showing that product placement advertising there has risen annually by 21 percent a year since 1999. Product placement advertising at present is banned outright in countries like Britain, Germany and France but is legal in the United States. The proposed TVWF new rules would, for the first time, explicitly define product placement. Except in news, current affairs and children’s programs, clearly identified product placement would be permitted in Europe, both in linear and non-linear audiovisual services. :  Product placement advertising at present is banned outright in countries like Britain, Germany and France but is legal in the United States. The proposed TVWF new rules would, for the first time, explicitly define product placement. Except in news, current affairs and children’s programs, clearly identified product placement would be permitted in Europe, both in linear and non-linear audiovisual services. Broadcasters will be obliged to clearly identify the product placement deal at the beginning of the program. :  Broadcasters will be obliged to clearly identify the product placement deal at the beginning of the program. Undue prominence:  Undue prominence There are also rules on "undue prominence" of a product. "It's acceptable if James Bond drives a BMW or an Aston Martin, as it could be part of the dramatic denouement," an EU spokesman said. "But not if the camera lingers on the car's badge for five minutes." European content:  European content For traditional television, the directive will retain its demand for European productions to account for at least half of broadcasts where practicable and that independent European producers should be granted at least 10% of broadcast time. Slide77:  Since the directive came into force, broadcasters have comfortably met these targets, and now an average two-thirds of programs shown on television are made in Europe and a third are independent. However, for nonlinear services, there will be no such quotas. Slide78:  Sponsorship will not be allowed for news or children's programs, while other rules will protect public health--banning tobacco and prescription medicines, and regulating the presentation of alcohol. Overall, no more than 12 minutes of advertising will be allowed per hour--as before--with a limited frequency, depending on the type of program. The revision of the TVWF Directive is part of the EU’s new strategy to boost the digital economy. In 2005 the Commission adopted the initiative “i2010: European Information Society 2010” to foster growth and jobs in the information society and media industries. i2010 is a comprehensive strategy for modernising and deploying all EU policy instruments to encourage the development of the digital economy :  The revision of the TVWF Directive is part of the EU’s new strategy to boost the digital economy. In 2005 the Commission adopted the initiative “i2010: European Information Society 2010” to foster growth and jobs in the information society and media industries. i2010 is a comprehensive strategy for modernising and deploying all EU policy instruments to encourage the development of the digital economy In its i2010 initiative, the Commission outlines three policy priorities: First: To create an open and competitive single market for information society and media services within the EU. This includes modernisation of the rules on audiovisual media services :  In its i2010 initiative, the Commission outlines three policy priorities: First: To create an open and competitive single market for information society and media services within the EU. This includes modernisation of the rules on audiovisual media services Second: To increase EU investment in research on information and communication technologies (ICT) by 80%. Europe lags behind in ICT research, investing only €80 per head per year as compared to €350 in Japan and €400 in the US. :  Second: To increase EU investment in research on information and communication technologies (ICT) by 80%. Europe lags behind in ICT research, investing only €80 per head per year as compared to €350 in Japan and €400 in the US. Third: To close the gap between the information society “haves and have nots”, the Commission will propose: -- A plan for e-Government for citizen-centred services (2006); -- Three “quality of life” ICT flagship initiatives (technologies for an ageing society, intelligent vehicles that are smarter, safer and cleaner, and -- Digital libraries making multimedia and multilingual European culture available to all. :  Third: To close the gap between the information society “haves and have nots”, the Commission will propose: -- A plan for e-Government for citizen-centred services (2006); -- Three “quality of life” ICT flagship initiatives (technologies for an ageing society, intelligent vehicles that are smarter, safer and cleaner, and -- Digital libraries making multimedia and multilingual European culture available to all. Slide83:  Recently, some of the heat has gone out of the debate over “quotas”. Instead, both the EU and the U.S. have been paying more attention to issues related to copyright – the unauthorized copying of music or video products that is costing producers on both continents a great deal of money. Slide84:  However, another source of conflict at present has to do with EU rules against monopolies, including those in the information sector. In July 2006, the EU Commission fined Microsoft some $300 million for allegedly infringing EU anti-monopoly rules. Other US companies also face fines.

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