Page 51 - AIB | The Chanel | Issue 2 2012

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THE CHANNEL | ISSUE 2 2012 | 51
annual revenue. In other words, the
explosive growth in consumer
choice has not, as was widely
feared, been accompanied by any
diminution in broadcasters’
investment in programming.
In its “EU Digital Agenda” and a
recent “Green Paper on Audiovisual
Content” , the European Commission
has asked many questions of
broadcasters and other operators.
Running through many of these
questions is a clear theme: are
current arrangements for the
production and distribution of
audiovisual content optimal in
ensuring consumer satisfaction,
and in encouraging European
players to exploit the full potential
of the Internet. It is not part of the
EC’s role to intervene to shore up
specific business models. Instead, if
consumers wish to see a different
form or content, or the same content
via a new platform or in a new way,
it is broadcasters’ duty to anticipate
and serve that demand. So, are we
doing enough? E‐media were asked
to examine four broad areas.
FOURBROADAREAS
Investment in content. Here, the
intention is to put a pan‐European
figure on the scale of commercial
broadcasters’ annual investment in
original content – the €15bn figure
mentioned above. We have
deliberately not followed the logic
of the quota provisions in the EU
Audiovisual Media Services
directive (unaltered since 1989)
because the quota rules exclude
from their scope broadcasters’
investment in sport and news
(ironically perhaps the two most
politically‐sensitive programme
genres, and certainly among the
most expensive). Nor, in the time
available, have we aimed for a
figure which includes every
European commercial broadcaster.
Instead, we assumed that the
operators in the larger European
markets would, logically, represent
the heaviest investment in
European content and therefore
have calculated a figure based on
the investment of 19 of the largest
ACT member companies. We
recognise of course that a
significant part of the European
media industry is occupied by
publicly‐funded operators, so one
would need to add their
programme spend to achieve a pan‐
European total.
From broadcasters to cross‐platform
operators. We aim to show the extent
to which European broadcasters are
embracing the Internet as an
opportunity. The once‐fashionable
belief that the Internet would “kill
off” TV appears less credible by the
day (rather, one might ask what the
Internet would look like without
TV content?) as broadcasters have
enthusiastically launched new
online services to grow and
complement our existing broadcast
businesses.
Does content cross frontiers? The
EC, legitimately, wishes to create a
single market in digital content.
There is some concern in the TV
industry that the Commission is
perhaps underestimating the extent
to which content already crosses
frontiers, maybe because it is
distributed via niche channels or
because it is the programme format
rather than the finished series
which is exported.
Are "rights problems" behind a
[perceived] lack of transfrontier
distribution? There is, we hope,
common ground between the EC,
established stakeholders, and new
entrants that rightsholders and
creators have a right to be paid for
the distribution of their work. If we
accept that rightsholders must be
paid, then clearly acquisition of
rights is an issue for any operator,
new or established, national or
transfrontier. But this does not
mean that “rights” are a barrier to
new services, and we asked E‐
media to explore and quantify
some of the non‐rights factors
which will influence a decision on
which territories to target.
The European Commission is
posing a range of very pertinent
questions at a crucial time in the
development of our sector. It is a
common belief in the media
business that the TV sector is a
vehicle for growth and innovation.
But at a time when our sector is
changing faster than ever, and
being scrutinised more than ever by
EU regulators, we need to illustrate
the benefits that €15bn annual
investment in content can bring to
the European economy. We look
forward to continuing the debate. ■
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