The new Audiovisual Media Services Directive

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From Television without Frontiers to Audiovisual without Borders The new Audiovisual Media Services Directive Anne Deltour Administrator European Commission DG Information Society and Media Audiovisual and Media Policies Social Dialogue Committee,20.09.2010

Introduction Present Framework - Need for change New Audiovisual Media Services Directive Directive 2010/13EU Scope Jurisdiction Commercial Communications Protection of Minors and human dignity Promotion of European Productions Right to Information/short reporting Independent regulators Co-/Self-Regulation Conclusion Outline

Introduction: Importance and size of the audiovisual market 5300 TV channels in Europe Transnational, national, local 105 billion net revenues 72 billion TV/broadcasting 33 billion retail (cinema, DVD) Distinctiveness of media services: High impact of television on public opinion and its social and democratic functions: information, education, entertainment; objectives of general interest to be achieved: cultural diversity, consumer protection, protection of minors, human dignity Media are both cultural and economic services

Need for a change Economic changes due to market fragmentation/ channel explosion Technological changes: Digitisation, Convergence of Internet and TV, PVRs, VOD, mobile TV, IPTV Level playing field: regulated broadcasters vs. non-regulated media service providers

Previous Framework: the 1989/ 1997 Television Without Frontiers (TWF) Directive Purposes: Eliminate the obstacles to the internal market Set high standards, especially on consumer protection (advertising) and protection of minors

Need to find a balance between : harmonization and subsidiarity and an economic and a cultural approach

Means: Principle of one country of jurisdiction only (country of origin) for each broadcaster Harmonisation of the applicable laws by setting minimum standards But leaving a margin of manoeuvre for MS (stricter national rules remain possible)

Need for change: Timeline of revision 2003 1 st Consultation - Communication 2004 Focus groups 2005 2 nd Consultation & Commission Proposal 2006 General Approach (Council) and EP First Reading May 2007 political agreement between Council and EP at common position stage Autumn 2007 formal adoption 19/12/2007: Entry into force 18/12/2009: End of transposition period

Modernisation: the Audiovisual Media Services (AVMS) Directive Directive 2010/13/EU Scope: Extension to on-demand media * New: Graduated regulation Jurisdiction: reversal of subsidiary criteria, Cooperation and circumvention procedure TV advertising: More flexible rules, Product Placement New: Encouragements to use soft law instruments (code of conduct regarding advertising in children s programmes) Short reporting Independent regulators

Scope: new notions (I) Audiovisual Media services: Services as defined by the Treaty Under the editorial responsibility of a media service provider Having as principal purpose The provision of moving images To inform, entertain and educate To the general public By e-communication networks

Scope: new notions (II) Media Service Provider: Has editorial responsibility Effective control of the selection and organization of content Determines how programmes Set of moving images with or without sound are organized Schedule (linear) Catalogue (non-linear)

Scope: new notions (III) Television broadcasting: Linear audiovisual Media Service Provided by a Media Service Provider For simultaneous viewing Of programmes On the basis of a programme schedule

Scope: new notions (IV) On-demand AVMS: Non-linear audiovisual Media Service Provided by a Media Service Provider For viewing of programmes At the moment chosen by the user On the basis of a catalogue of programmes

Not subject to amended Directive Private correspondence Non-economic activity AV content only ancillary on-line editions of newspapers and magazines car manufacturer travel site No editorial activity Platforms for the exchange user generated content

Structure : 3 parts Applicable to all services General Provisions (definitions.) Basic tier of obligations identification, Prohibition of incitement to hatred AVCC qualitative rules, Sponsoring, product placement disabilities Applicable to non-linear services Protection of minors Promotion of European works Applicable to linear services Events of major importance and short extracts Promotion of European works and independent productions Advertising quantitative rules and some qualitative rules Protection of minors Right of reply

Jurisdiction Country of origin principle applicable both to linear and non linear audiovisual media services Stricter rules possible for broadcasters under own jurisdiction Establishment criteria Main provisions unchanged, except reversal of order of subsidiary criteria re. satellite transmission (uplink location comes before satellite capacity)

Jurisdiction: Safeguards for linear services (i) Generally: Better cooperation of regulators and MS (art. 30) Ex: UK-Sweden Agreement Protection of minors, incitement to hatred No change in the formal procedure in TWFD (ex-ante Commission control : art. 3, par. 2&3)

Jurisdiction: Safeguards for linear services (ii) Circumvention of stricter national rules 1 st step: Cooperation procedure Broadcast directed wholly or mostly at another MS (Origin of revenues, main language, specifically targeted commercial communications, etc.) Request to comply with rules of public interest

Jurisdiction: Safeguards for linear services (iii) 2 nd step: Circumvention procedure Codification of ECJ case law compulsory measures (e.g. blocking, sale prohibition) possible if Cooperation procedure not satisfactory Establishment in order to circumvent stricter rules After positive decision by the Commission

Jurisdiction: Safeguards for non-linear services Same provisions as in ecommerce Directive (art. 3par. 4 to 6) Measures necessary for public policy, public health, public security, consumer protection Normal procedure : After asking the country of jurisdiction to take measures Ex-ante assessment by the Commission Emergency procedure Ex-post control by the Commission

Audiovisual Commercial Communications: Qualitative Rules (1) Extension to on demand services General - qualitative rules on commercial communications

Audiovisual Commercial Communications: Qualitative Rules 3 TYPES Presentation/identification of the commercial communications Content Specific risky products : tobacco alcohol, medicinal products, fatty food (NEW).

Audiovisual Commercial Communications: Qualitative Rules (2)Identification Presentation : Recognizable No subliminal techniques

Audiovisual Commercial Communications: Qualitative Rules (3) Content - not attempt to human dignity; - not include or promote any discrimination based on sex, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientations; - not encourage behavior prejudicial to health and safety ; - not encourage behavior grossly prejudicial to the protection of the environment - not cause physical or moral detriment to minors.

Audiovisual Commercial Communications: Qualitative Rules (4)Risky products - Cigarettes and other tobacco products: Ban - Alcoholic beverages: may not be aimed specifically at minors and shall not encourage immoderate consumption; - Medicinal products and medical treatment available only on prescription : Ban - Fatty and sweet food : code of conduct by media service providers.

Audiovisual Commercial Communications : Sponsorship (1)Identification - Information of the viewers and clear identification; - No sponsorship in news programme ; - Possibility to ban sponsorship during children's programmes, documentaries and religious programmes.

Audiovisual Commercial Communications : Sponsorship (2)Content - no influence on the content or the schedule in a way as to affect the responsibility and editorial independence of the media service provider - no direct encouragement to the purchase or rental of the goods or services produced by the sponsor

Audiovisual Commercial Communications : Sponsorship (3)Risky Products - Ban on sponsorship by tobacco industry; - Pharmaceutical industry may sponsor but not target a specific medicinal product or treatment on prescription

Audiovisual Commercial Communications: Product placement(1) PP is Prohibited but admissible in cinematographic works, films and series, sport, light entertainment but not in children s programmes OR provision of goods or services for free in all programmes incl. in children s programmes UNLESS a MS decides otherwise

Audiovisual Commercial Communications : Product placement(2)identification transparency requirement: information of the viewers of the existence of product placement. For not in house production, MS may waive this requirement.

Audiovisual Commercial Communications : Product placement (3)Content - No influence on the content or the schedule in a way as to affect the responsibility and editorial independence of the media service provider - no direct encouragement to the purchase or rental of the goods or services - no undue prominence of the service or the product

Audiovisual Commercial Communications : Product placement(4)risky Products No cigarettes and other tobacco products; No medicinal products and medical treatment available only on prescription

Audiovisual Commercial communications: Television advertising Stricter rules for TV advertising remain but are made more flexible Deletion of daily limit 12 min. limit/hour remains Simplification of insertion rules: Margin of discretion for broadcasters; Films for TV, cinematographic works, news programmes, children s programmes: 30 min. rule

Protection of Minors AV media services which might seriously impair the physical, mental or moral development of minors May not be included in any linear programmes, in particular programmes that involve pornography or gratuitous violence are only made available in such a way that ensures that minors will not normally hear or see such on-demand services. Programmes which are likely to impair the physical, mental or moral development of minors May not be included in broadcasts, except where it is ensured, by selecting the time of the broadcast or by any technical measure, that minors in the area of transmission will not normally hear or see such broadcasts. unchanged for linear services, extended to non-linear

Promotion of European works and independent productions Linear services art. 16&17 unchanged Non-linear services : art. 13 On-demand AVMS shall promote, where practicable and by appropriate means production of and access to European works Examples : financial contribution to production or rights acquisition, prominence in catalogue

Right to information, short news reports Events of major importance for society: Art 14 - list of events of major importance for society - May not be broadcast in a way as to deprive a substantial proportion of the public of the possibility of following such events on free television - Approval of the list and measures by the Commission

Right to information, short news reports Short news reports (Art 15) Where exclusive rights have been acquired Broadcaster can choose short extracts or equivalent system of access Only for general news programmes (incl. on-demand catch-up services) Compensation shall not exceed additional costs directly incurred in providing access

Independent regulators MS shall cooperate with each other and the Commission, notably through their competent independent regulatory bodies Close cooperation between regulatory bodies is particularly important with regards to the impact broadcasters established in one MS might have on another MS

Encouragements to use soft law instruments Obligation for MS to encourage co- and self-regulation at national level. Such regimes must however be broadly accepted, and provide for effective enforcement Especially for fatty food: MS to encourage media service providers to develop codes of conduct regarding audiovisual commercial communications of fatty foods directed to children

Conclusions Main objectives of the directive unchanged: effective internal market for AVMS, high standard of protection Country of origin principle: Procedural safeguards against circumvention of stricter national rules Extension of scope to take into account market developments Basic tier of obligations for non-linear services Modernisation for linear services Framework for MS to find own solutions, especially discretion for co-regulation

For more information: http://ec.europa.eu/avpolicy/index_en.htm

From Television without Frontiers to Audiovisual without Borders The new Audiovisual Media Services Directive Thanks for your attention anne.deltour@ec.europa.eu