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Audiovisual media services

New times call for new audiovisual rules

Audiovisual media are subject to the rules of the single European market, like other goods and services.

The audiovisual media services directive (AVMSD) has paved the way towards a single European market for audiovisual media services:

  • harmonising certain rules for the provision of audiovisual services
  • facilitating the provision of audiovisual media services across the EU on the basis of the country of origin principle
     

The AVMSD sets out the basis for an open and fair EU market for audiovisual services. The directive regulates both traditional TV broadcasting and new on-demand services, although to a different degree. 

The timeline below gives an overview of the current debates in the Council to update the directive. 

The country of origin principle (COO)

COO is a cornerstone of the directive. Service providers are subject only to the rules applicable in the country where they are established. On average 31% of video-on-demand services available in one member state are established in another member state.

In light of rapid technological changes, emergence of new business models and changing viewing behaviour, the Commission decided to modernise the directive and adopted an amending proposal in May 2016. Among the main elements of the proposal is:

  • the extension of the scope of the directive to video-sharing platforms, to ensure protection of minors and protection against hate speech and violence
  • further alignment of rules for linear and on-demand services to make TV more competitive in relation to video-on-demand service providers
  • reinforcement of the independence of national regulators and creation of a European body of national regulators (ERGA) to ensure better and more harmonised implementation of the directive

The AVMSD is part of the digital single market strategy which aims to ensure that Europe's economy, industry and society take full advantage of the new digital era. The marketplace and technology are developing rapidly, the EU has to ensure that relevant rules keep pace with these changes.

Over a million EU citizens are directly employed in the audiovisual and media sector. The audiovisual and media sector needs to adapt and create a media framework for the 21st century.

EU in the new digital era

  • TV viewing time is decreasing

  • young people's TV viewing time has dropped by 7.5%

  • Internet video share in consumer internet traffic is expected to increase from 64% in 2014 to 80% by 2019

Why does it need to be revised?

Since its adoption in 2010, the audiovisual media landscape has changed significantly. Viewers, and particularly minors, are moving from traditional TV to the online world, while the regulatory burden is much higher on TV.

This covers not only the more traditional media such as television (including TV ads, sponsorship, product placement), but also, new media  digital publications and online services. The proposal aims to cover video-sharing platforms and video-on-demand (VOD) services. Social media was included at a later stage in the discussions.

The directive therefore, introduces flexibility when restrictions only applicable to TV are no longer justified. At the same time, it ensures that consumers will be sufficiently protected in the on-demand and Internet world, while ensuring that innovation is not stifled. The idea is to achieve a balance between competitiveness and consumer protection.

European Regulators Group for Audiovisual Media Services (ERGA)

ERGA brings together heads or high level representatives of national independent regulatory bodies in the field of audiovisual services, to advise the Commission on the implementation of the EU's AVMSD.

The aim of the proposal is to respond to the unprecedented technological and market changes that the digital shift has brought about in order to preserve the competitiveness of Europe's audiovisual industry, while preserving general public interests, such as:

  • the protection of minors
  • media freedom and pluralism
  • cultural diversity
  • consumer protection

It provides the necessary rules to shape technological developments in order to protect our citizens and particularly our children from harmful audiovisual content, such as hate speech, violence and terrorism, whilst preserving freedom of speech.

On the basis of the outcome of a public consultation carried out by the Commission the following issues have been identified for review in the revised AVMSD:

  • ensure a level playing field for audiovisual media services
  • provide for an optimal level of consumer protection
  • protect users and prohibit hate speech and discrimination
  • promote European audiovisual content
  • strengthen the single market
  • strengthen media freedom and pluralism
  • access to information and accessibility to content for people with disabilities

In detail

The agreement between the Council and the European Parliament strikes a balance between the current rules and the need to reform. The new rules:

  • create a level playing field between all operators in protecting viewers, independently from the service they provide and the platform they use. Users will get equal protection whether they are watching a film on traditional tv or an on-demand tv.
  • introduce a clear responsibility for video-sharing platforms to improve the protection of minors and all users from violent or harmful content, as well as hate speech. Member states will be able to take action through their national audiovisual regulators against those operators not respecting the rules

An important element of the new rules is the extension of scope to video-sharing platforms and on-demand services which aim to:

  • increase cultural diversity and promote European content, as providers of on-demand audiovisual media services will have to ensure that at least 30% of their catalogues consist of European content and that this is given adequate prominence
  • free up resources to be invested in the production of European content as member states may require a financial contribution from tv and on-demand media service providers, including those established in another member state, with exemptions that could make life easier for start-ups and small companies

Other distinctive elements of the new rules include:

  • improving cooperation between member states' audiovisual authorities by strengthening the European regulators group for audiovisual media services (ERGA) and setting out its role in EU law
  • guaranteeing flexibility as member states will be able to adapt the rules to national circumstances and even adopt stricter rules if they so wish

In the Council

In May 2016, the Commission presented its proposal to the Council and the European Parliament as part of its digital single market strategy. The proposal has been under examination in the Council during several presidencies and a progress report was presented by the Slovak Presidency in November 2016.

In May 2017, the Council reached a general approach, the Ministers' views diverged the most on the extension of scope to video-sharing platforms, the provisions on jurisdiction and the promotion of European works in on-demand services. Eight member states opposed the general approach, mostly because of the extension of the scope to audiovisual content on social media and the 30% quota of European works imposed on on-demand services and a possibility to request financial contributions from certain TV broadcasters.

In total, 10 trilogues have taken place. The ninth informal trilogue which took place on 26 April 2018 secured a political agreement on the key outstanding issues, thus paving the way for the final agreement that was reached during the last trilogue on 6 June 2018. 

On the 13 June, Coreper confirmed the final compromise text. This final text was forwarded to the European Parliament for endorsement and adoption in the first reading.

On the 6 November 2018, the Council adopted the directive. 

Background

The current EU's audiovisual media services directive governs EU-wide coordination of national legislation on all audiovisual media, both traditional TV broadcasts and on-demand services.

The Commission organised a public consultation to seek the views of all interested parties on how to make Europe's audiovisual media landscape fit for purpose in the digital age. The consultation took place from July to September 2015.

Filters

2019

Council discusses ways to strengthen the audiovisual sector

The Council held a public debate, entitled 'Strengths, innovation potential and global competitiveness of the European cultural, creative and audiovisual industries'.

2018

Council adopts new rules to protect minors and more EU content

The EU updates rules for audiovisual media services; traditional television and new services such as on-demand broadcasting will now compete on a level playing field. Also new rules for video sharing platforms ensuring that viewers, and in particular minors, will be better protected from violent or harmful content or hate speech.

The new rules also aim to increase cultural diversity and promote European content by introducing a quota of at least 30% of European content in the catalogue of providers of on-demand audiovisual media services. 

Council agrees new rules to protect minors and more EU content

EU ambassadors confirmed an agreement to modernise the existing rules on the provision of audiovisual media services in Europe. To ensure a level playing field between the traditional broadcasting sector i.e. television, and new services such as video on-demand services, video-sharing platforms and the audiovisual content on social networks. Objectives include:

  • to better protect viewers
  • to encourage innovation
  • to promote European audiovisual content

2017

Adapting to technological changes, preserving European competitiveness and fundamental values in audiovisual services

The Council reached a general approach on the proposal for a revised directive on audiovisual media services.  Several main issues caused divergence:

  • scope of the directive
  • jurisdiction rules
  • quota for European works
  • financial contributions