EU commits to a EU AV sector without frontiers

The film festival of Cannes is over. The Golden Palm went to film maker Cristian Mungiu coming from the European country of Romenia for his movie 4 luni, 3 saptamini si 2 zile (4 months, 3 weeks and 2 days). It must have done the EU Ministers for Culture proud.

They gathered in the past days on Europe Day at the Cannes International Film Festival to pledge their support for Europe's audiovisual industry at a time when it faces unprecedented change, driven largely by the impact of digital technologies and the resulting change in audience behaviour.

"Technological change and convergence is presenting the audiovisual industry with some tough challenges; but real opportunities lie in store for those that can best adapt," said Viviane Reding, EU Media Commissioner. "I feel that the political commitment expressed today will pave the way for the European audiovisual industry to become a powerhouse for Europe."

The EU Ministers' commitment to the audiovisual sector was underlined by their adoption of the Audiovisual Media Services without frontiers directive (see IP/07/706). This will modernise the rules for traditional and emerging audiovisual media services in response to technological change and gives more flexibility to European TV- and filmmakers to produce digital content thanks to more relaxed advertising rules.

Ministers also discussed how audiovisual policy needs to keep up with developments in film making and distribution, and the impact of technology.

Policy initiatives taken by the Commission to support and invigorate Europe's audiovisual sector include:
- The recently-launched MEDIA 2007 programme (see IP/07/169) establishes the move to digital technologies as a horizontal priority and April's call for proposals for Video On Demand and Digital Cinema Distribution projects is an important first step in financially supporting EU players.
- The European Film Online Charter endorsed by major industry players on Europe Day in 2006 (see IP/06/672) to stimulate a vibrant European online film industry.
- Content Online is estimated to grow by over 400% during the next five years (see IP/07/95). To capitalise on this tremendous opportunity for Europe, in July this year, the Commission will publish its Content Online communication.
- Recognising the importance of mobile TV to Europe - by 2009 the worldwide market will worth €11.4 billion - the Commission urged industry and Member States to be more proactive in developing a common Europe strategy (see IP/07/340). In July the Commission's will issue a communication proposing what steps it feels are needed to make will mobile TV a success in Europe.

Evidence that EU support to Europe's film industry is having positive results can be found at major international festivals such as Cannes, Berlin and at the Oscars (see IP/07/677).

While efforts are being made to boost the sector, the Commission also recognises the need for transparency, freedom of expression and diversity in Europe's media landscape. To better understand this and how best to preserve it, the Commission has outlined a three-step approach on safeguarding media pluralism (see IP/07/52).

For more on Europe's audiovisual and media policies: http://ec.europa.eu/avpolicy/
and the latest on the 'Audiovisual Media Services Without Frontiers' Directive MEMO/07/206.

Blog Post Number: 768

Tags: audiovisual industry, European Commission

New EU Media 2007 programme

Launched yesterday evening in Berlin, the EU's new MEDIA 2007 programme will provide a €755 million boost to Europe's film industry over the next seven years. Almost 65% of the total budget will help broader circulation of European works to other countries in Europe and worldwide. MEDIA 2007 provides easier access to finance – in particular for SMEs – and increases the use of digital technologies, making Europe's audiovisual sector more competitive.

MEDIA, the European Union's audiovisual support programme, has been developing and strengthening Europe's film industry for 16 years. On 1 January 2007, Rumania became the 31st member of the MEDIA programme (EU27 + Iceland, Liechtenstein, Norway and soon Switzerland). Through MEDIA I, II, Plus and Training the previous programmes have supported the development and distribution of thousands of films; as well as training activities, festivals and promotion projects throughout the continent. Under MEDIA Plus and MEDIA Training (2001-2006) alone, more than half a billion euros were injected into 8000 projects.

Every year 300 new European film projects are funded by the European Commission, and half of the European films watched in cinemas are shown with the support of the Commission.

"Digital technologies are substantially changing the way the film industry works. Embracing digitisation by training our professionals, modernising our cinemas and developing new distribution channels are keys to success," said Viviane Reding, EU Commissioner for the Information Society and Media. "MEDIA 2007 provides the right tools to help Europe's film industry in this direction."

The €755 Million funding from MEDIA 2007 is focused on the phases before and after film production, with a budget spread across five action lines:
• Training (scriptwriting techniques; economic, financial management; digital technologies) (7%);
• Development (single projects, catalogues, new talent, co-productions, other financing) (20%);
• Distribution (distributors, sales agents, broadcasters, cinema exhibitors, digitising works) (55%);
• Promotion (market access, festivals, common events, heritage) (9%);
• Horizontal actions (to make it easier for SMEs to access funding, and to encourage the presence of European films on digital platforms) (5%), and Pilot projects (embracing new technologies, such as digital technologies for film development, production and distribution) (4%).

By making the distribution of European works a clear priority in the new programme, MEDIA is seeking to improve the market share of European films shown in Member States other than the one in which they were produced. The programme will also significantly raise the visibility of our diverse cultures on the world stage and help to increase the competitiveness of our audiovisual industry.

Such financial support for the film industry has had a strong knock-on effect in terms of investment in the sector. During the programmes preceding MEDIA 2007 (that is MEDIA Plus and Training) each €1 of Community funding generated about €6 in private investment from industry.

A total of 17 MEDIA supported films are being shown at this year’s 57th Berlin International Film Festival.

Blog Posting Number: 663

Tags: movie, film industry, audiovisual industry