Proportionate regulation
Maintain an inclusive definition of European Works
MPA members are highly incentivised to invest in and distribute European film and television. The 2023 Media Outlook highlights that EU27 works already represent nearly a third (28%) of works available in EU Video On Demand (VOD) catalogues, in addition to 9% UK works.
Research has shown that media services providers make investment decisions mostly based on the local cultural specificity of a production, along with the available incentives.
Changes to the definition for European works would damage the production ecosystem, reducing crucial opportunities for international co-productions, which provides a critical solution for the funding of high-end projects.
Recommendation:
The EU should uphold the existing definition of European Works which provides a healthy framework for co-productions.
Enforce the principles of Country of Origin, Proportionality and Non-Discrimination
The country of origin principle ensures that providers of broadcast channels or VOD services based in one country are only subject to one set of rules from a ‘country of origin’. This provides a foundation of legal and business certainty on which investment can thrive. Financial obligations imposed on AV services in recent years erode this principle and create barriers to entry and growth for new market entrants, inflate production costs, and undermine economic decision-making. MPA members are facing increasing fragmentation and burdensome, discriminatory local policies which are rarely subject to impact assessments.
Requirements are often excessively high, in some cases reaching 20% or more of revenue, often disproportionate to market size, and are inadequate to preserve the diversity of services offered, including by thematic channels. This undermines the digital single market, the diversity of media offerings, and the cross-border provision of services, and encourages a ‘tick box’ approach to investment.
Meanwhile, media service providers also face viewing time competition, particularly among younger audiences, from social media and video-sharing platforms who are subject to different regulatory constraints.
Recommendation:
The EU should prioritise proportionality and flexibility when considering financial obligations, enforce the key principles of country of origin, proportionality and non-discrimination, and issue guidance on this to Member States.