Online distribution of audiovisual and music works in the EU - Tuesday, January 24, 12:30 to 14:30

Introduction

New technologies and the Internet brought about huge challenges but also opportunities for the European audiovisual and music sectors.

Starting with the opportunities, broadcasters, producers and artists may virtually reach consumers throughout Europe and therefore find new sources of revenues. Let's take the example of the music sector; according to the Nielsen music figures, digital single sales across the continent accounted for 170 million units in the first half of 2011, an increase of 21 million singles sold compared to the same period in 2010.

In the audiovisual sector, new trends such as catch-up TV become more and more important. According to a Communications Chambers study undertaken in the UK, live broadcasting will retain its primary role but a much larger share of consumption will shift to new patterns of consumption such as on demand or catch-up TV, downloads through online platforms or shares via social networks.

Despite these figures, the European Commission acknowledged in its Green Paper on the online distribution of audiovisual works that pan-European distribution of audiovisual content remains limited.

In the second meeting of the IP Forum, I will have the privilege to exchange views with Neelie Kroes, Vice-President of the European Commission. We will focus on the ways to facilitate cross-border distribution of audiovisual and music content by drawing on the experience of our 5 experts representing a wide range of sectors. We will also elaborate on the legal economic, linguistic and cultural barriers and on the ways to overcome them in order to boost the digital single market.

Pratical information

Tuesday, January 24 from 12:30 to 14:30

Programme 

Key note speech:

 - Neelie Kroes, Vice- president of the European Commission
 - Marielle Gallo, MEP

Members of the Panel:

Q&A

Closing remarks:

- Cecilia Wikstrom, MEP

Venue

European Parliament
Room P7C50 (PHS building)

© European Union 2011 PE-EP/Pietro Naj-Oleari

Conclusions by Marielle Gallo

When we reflect on the regulation of the "audiovisual sector" we should bear in mind that we have to adopt both a sector by sector approach and a global one.

The "audiovisual sector" encompasses different industries with their own distribution models and needs. However, new devices, such as smartphones, social media and the Internet are disrupting these distribution models; for instance, in the United States, some studios authorised the distribution of films on social media for 3 dollars and as we all know, Spotify is now available on Facebook. Today, we witness an increasing convergence of the distribution of content that will be amplified by the cloud computing. In the cloud computing era, users can access content wherever they are and through different devices. In this respect, I was very glad to hear that VP Kroes will propose a European Cloud Strategy before summer.

The European Commission is currently examining the results of the consultation on the Green Paper for the online distribution of audiovisual content and we are also expecting a proposal for a directive on the collective rights management. Which initiatives are needed to foster the digital single market?

On the audiovisual sector, I believe we have to be realistic. It has been demonstrated by the KEA study commissioned by DG INFSO that the fragmentation of the internal market is partly due to linguistic and cultural specificities across borders. Greater circulation of audiovisual works does not necessarily imply greater levels of consumption. Therefore, we should create a cross-border demand for European audiovisual works. To do so, the European Union should contribute to the digital marketing strategies of right holders wishing to access cross-border markets (for example VOD), and also encourage subtitling and dubbing for foreign language content. Moreover, the licensing process should become more efficient and less costly.

We should also bear in mind that there are several others obstacles to the development of a genuine digital single market. VAT is an example. As some of you may recall, I have drafted a resolution together with Diana Wallis and Arlene McCarthy requesting for the application of a reduced VAT rate for the online distribution of content that would make legal offers less costly and, thus, more attractive for the end users.
In his speech Mr. Ormala has mentioned some other obstacles; cross border payment mechanisms, consumers' rights protection etc.

Concerning the music sector I very much hope that the upcoming proposal of the European Commission will make up for the consequences of the 2005 Recommendation. Contrary to a generally accepted analysis, authors' societies deliver pan-European licences. But only for their own repertoire. Therefore, we have to figure out a model that enables platforms to benefit from pan-European and also multi-repertoire licences.

During the second meeting of the IP Forum, we also had the chance to exchange our views on piracy. As stated by VP Kroes, "sites that knowingly enable massive copyright infringements and make large sums of money at the expense of creators need to be stopped". I have been asked several times to make a comment on SOPA and PIPA. My position is crystal clear. We need legislation on piracy that is efficient and also proportionate without undermining the legitimate activities of companies online.

The audiovisual and music sectors depend heavily on copyright which is "the blood of the media" as put by a consultant. Our responsibility as policy makers is to help our cinema, TV, music and press undergo the important changes that technology brought about. We should not let them down.