Today the European Parliament’s Legal Affairs Committee (JURI) voted on the proposed Online Broadcasting’ Regulation. We are encouraged by the approach taken by many JURI members to limit the regulation’s scope to broadcasts of news and current affairs.

Mathieu Moreuil, Chair of Creativity Works! said: “Today’s vote acknowledges the importance of territorial exclusivity as the lifeblood of Europe’s creative industries.  As the legislative process continues, we call on EU legislators to bear in mind the concerns expressed across the creative and cultural sectors and to ensure that the growth of European industries and reinvestments in high quality EU content are fostered, not impeded.”

Today’s outcome recognises once more the importance of territorial exclusivity – the mechanism that allows European culture to thrive and be accessible to audiences over multiple distribution channels

Territorial exclusivity brings together creators and business partners from various European countries to create your favourite films, TV programmes and sports in a wide range of creative and business relationships.  Any attempts to reduce or weaken territorial exclusivity will diminish the ability of rights-holders to licence content on a territory-by-territory basis,  leave all European consumers worse off and leading to:

• a 25% reduction in consumer welfare, alongside a price increase of 12% – European consumers paying more for less.[1]
• an overall consumer welfare loss estimated at €9.3bn, risking 48% of TV and 37% of film output.[2]
• a fall of 35% in locally produced, culturally diverse content for Eastern Europe and Baltic countries. [3]

BACKGROUND

The way viewers choose to access audiovisual content is changing; catch-up and simulcast are many European viewers’ preferred way of accessing TV programming. From a commercial standpoint, there is nothing ‘ancillary’ about these services; they account for a significant part of the licensing that enables broadcasters to produce and distribute film and other audio-visual content throughout Europe.

Without the contractual freedom to license rights to the online environment, the capacity to recoup investment and reinvest in new content will diminish, resulting in harmful effects for European films, television drama and programmes, news and sports content, as well as increased prices and a reduction in consumer choice and cultural diversity.

Note to the editors

For further information please contact :

• Stephanie Pochon; e-mail: StephaniePochon@gpluseurope.com or tel. +32 485 95 46 46
• Ana Panchevska; e-mail AnaPanchevska@gpluseurope.com or tel.+32 470 90 16 07

[1] Oxera study: The impact of cross-border access to audiovisual content on EU consumers

[2] Ibid

[3] Oxera study : The impact of cross-border access initiatives on consumers in Eastern European and Baltic countries