Supporting the audiovisual sector

within a European framework

Dr Sally Broughton Micova

Outline

• European Regulatory Framework

• Intervention Tools

– Content quotas

– Public Service Broadcasting

– Subsidies

• Other European Standards & Opportunities

European Regulatory Framework

European Union:

• Implementation of Audiovisual Media

Services Directive (AVMSD) within 2 years

• EU Competition rules – The use of “State aid”

in public service broadcasting”

Council of Europe:

• Convention on Transfrontier Television (CTT)

Content Quotas

The Rules:

• At least 50% transmission time should be

“European Works” (CTT & AVMSD)

• At least 10% transmission time or 10%

production budget should be independent

production (AVMSD)

Flexibility in further defining what qualifies

as transmission time and as content

Content Quotas

Practices:

• Targeting specific types of content by defining

transmission time

– Ex. Macedonia defines as drama, documentary,

educational, informative, concerts, dance, opera,

sitcoms, comedy…

• Focusing on production spend for independent

production

– Ex. Italy requires PSB to to spend 15% of total revenue on independent producers with 20% for production or purchase of works originally produced in Italian language.

Content Quotas

Practices:

• Domestic quotas based on language or “original

productions”

– Ex. UK requires 50% “original production” (in-house

or commissioned) in license agreement

– Ex. Slovenia requires 20% in-house production, 5%

in Slovene language or of recognized minorities

Trade offs: Quality vs Quantity

Content Quotas

Recommendations:

• Define transmission time to encourage specific

genres: informational, cultural, educational

• Focus on production spend for independent

production rather than transmission time

• Be careful about high quotas as they don’t often

lead to quality

• Consider annual or monthly rather than daily to

give broadcasters flexibility and encourage

investment in more substantial content.

Public Service Broadcasting

The Rules (EU):

• Defined as a service of general economic

interest – aid is compensation for service

• Must have public service remit defined by the

state that is as precise as possible

• There must be transparency of funding

• May launch new services on new platforms

Public Service Broadcasting

The Rules & Recommendations (CoE)

• Adequate, sustainable and accountable funding

(Rec.1878 (2009))

• Independent, accountable, transparent

management (CM/Rec.(2012)1)

• To provide television and radio in minority

languages (Charter for Regional and Minority

Languages)

Public Service Broadcasting

Practice:

• PSB as investor in domestic content with obligations to commission from independent sector.

– Nearly everywhere in Europe

• PSB as driver of innovation in new kinds of services such as interactive and online content

– Ex. Estonia, UK

• PSB as investor/producer in cinematic works

– Ex. France, Switzerland, Italy, Greece

Public Service Broadcasting

Recommendations:

• Ensure independence and adequate funding for

PSB

• Through obligations or facilitation, position the

PSB as important investor in independent

production sector

• Clearly define PSB remit to meet needs of

diverse population with special attention to

children and minorities

Subsidies

The Rules:

• Comply with EU competition rules, generally

under exception for cultural preservation

• Apply financial assistance also to audiovisual

works in minority languages (CoE Charter on

Regional and Minority Languages)

Subsidies

Practice:

• Contested funding from state budget, license fee

or other public funds distributed through

competition

– Ex. Croatia has a fund drawn from 3% of the PSB

license fee

• Tax incentives such as relief or rebates for

production (both domestic & foreign)

– Ex. Belgian tax relief attracted international

productions, helped professionalize industry and

increased domestic production

Subsidies

Recommendations:

• Make good use of public funding for production

by distributing based on transparent, fair

competition to get the best production.

• Provide tax incentives to producers, especially

the independent production and to international

productions.

Other Standards & Opportunities

Investment in training and education:

• Focus on technical and creative professionals

• Utilize apprenticeship schemes

Become part of Creative Europe programme to

access EU funds for audiovisual production

Encourage other public institutions such as

museums, libraries, and universities to work with

PSB and independents on content

Questions

Dr Sally Broughton Micova

s.e.broughton-micova@lse.ac.uk

@broughtonmicova