FIFTH COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the application of Articles 4 and 5 of Directive 89/552/EEC "Television without Frontiers", as amended by Directive 97/36/EC, for the period 1999-2000

TABLE OF CONTENTS

INTRODUCTION

I. COMMISSION'S OPINION ON THE APPLICATION OF ARTICLES 4 AND 5 FOR THE PERIOD 1999/2000

1. Application by the European Union Member States

1.1 Requirement to broadcast a majority proportion of European works

1.1.1 Assessment at Community level

1.1.2. Assessment at national level

1.2 Works by independent producers

1.2.1 Assessment at Community level

1.2.2 Assessment at Member State level

1.3 General conclusion

2.1 Requirement to broadcast a majority proportion of European works

2.2 European works by independent producers

2.1 Requirement to broadcast a majority proportion of European works

2.2 European works by independent producers

II. - SUMMARY OF THE REPORTS FROM THE MEMBER STATES

III. - SUMMARY OF THE REPORTS FROM THE MEMBER STATES OF THE EUROPEAN FREE TRADE ASSOCIATION PARTICIPATING IN THE EUROPEAN ECONOMIC AREA

IV. ANNEXES

ANNEX 1 List of television channels in the European Union Member States which failed to achieve the majority proportion of European works and/or the minimum proportion of 10% of European works by independent producers

ANNEX 2 Parameters used to calculate the average transmission time of European works by the channels of the European Union Member States (taking audience rating into account) -- Article 4 of the "Television without Frontiers" Directive

INTRODUCTION

This communication, drawn up pursuant to Article 4.3 of Council Directive 89/552/EEC [1] of 3 October 1989 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities, as amended by Directive 97/36/EC of the European Parliament and of the Council of 30 June 1997 [2] (hereinafter referred to as the "Television without Frontiers" Directive), constitutes the Commission's fifth report on the implementation of Articles 4 and 5.

[1] OJEC L 298, 17.10.1989.

[2] OJEC L 202, 30.07.1997.

This document includes a statistical statement on the achievement in 1999-2000 of the proportion referred to in Articles 4 and 5 for each of the television programmes falling within the jurisdiction of the European Union Member State concerned and those of the Member States of the European Free Trade Association participating in the European Economic Area (hereinafter referred to as EFTA). The Member States are under an obligation to provide the Commission with a report every two years on their application of Articles 4 and 5. Under the provisions of the Treaty, the Commission is responsible for ensuring compliance with this requirement.

The purpose of this document is to bring these national reports, together with the Commission's opinion on the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, to the attention of the Member States, the European Parliament and the Council.

It comprises three parts and two annexes:

* Part I - Commission's opinion on the application of Articles 4 and 5 for the period 1999-2000;

* Part II - National reports from the European Union Member States;

* Part III - National reports from the Member States of the European Free Trade Association participating in the European Economic Area;

* Annex 1: List of television channels in the European Union Member States which failed to achieve the majority proportion of European works (Article 4 of the Directive) and/or the minimum proportion of 10% of European works by independent producers (Article 5 of the Directive);

* Annex 2: Parameters used to calculate the average transmission time of European works by the channels of the European Union Member States (taking audience rating into account) -- Article 4 of the Directive.

I. COMMISSION'S OPINION ON THE APPLICATION OF ARTICLES 4 AND 5 FOR THE PERIOD 1999/2000

1. Application by the European Union Member States

Under Article 4.3 of the "Television without Frontiers" Directive, the Commission is responsible for ensuring the application of Articles 4 and 5 in accordance with the provisions of the Treaty.

The European Union Member States and the EFTA Member States participating in the European Economic Area are under an obligation to provide the Commission with a report every two years on application of Articles 4 and 5, including (i) a statistical statement on the achievement of the proportion referred to in these Articles for each of the television programmes falling within the jurisdiction of the Member State concerned, (ii) the reasons, in each case, for the failure to attain that proportion, (iii) and the measures adopted or envisaged in order to achieve it.

Article 4.3 of the Directive provides that the Commission may take account in its opinion, in particular, of (non-exhaustive criteria):

- progress achieved in relation to previous years;

- the share of first broadcast works in the programming;

- the particular circumstances of new television broadcasters;

- the specific situation of countries with a low audiovisual production capacity or restricted language area.

To assist the Member States with their monitoring responsibilities, guidelines drawn up by the Contact Committee [3] have been suggested for the implementation of Articles 4 and 5. These guidelines, which are intended to clarify certain definitions so as to avoid differences of interpretation and application of the Directive [4], entered into force on 1 January 1999 and therefore cover the reference period (1999-2000) of this report.

[3] http://europa.eu.int/comm/avpolicy/regul/twf/art45/art45-intro_en.htm

[4] By way of illustration, section 2.2 of the guidelines states that it is not necessary for national reports to include data on channels broadcasting exclusively "news, sports events, games, advertising, teletext services and teleshopping".

This is the background against which the opinion set out in this document should be examined. For the first time, it shows the general trends observed both at Community level and in the individual Member States concerned. To this end, a series of indicators based on the criteria set out in Articles 4 and 5 of the Directive has been developed to provide an objective analysis grid.

Article 4 (European works):

* Indicator 1: average transmission time reserved for European works by the European channels with the highest audience ratings [5] in each Member State concerned.

[5] For each year under consideration, the audience share is based on the most recent figures published by the European Audiovisual Observatory: Statistical Yearbook 2000 (Volume 2) "Household audiovisual equipment, transmission, television audience". Except in specific cases, all channels with over 3% audience share (whole day) over each of the two years under consideration were taken into account.

* Indicator 2: compliance rate of channels (achieving or exceeding the majority proportion) of all types, in each Member State concerned [6].

[6] This is obtained by determining the number of channels achieving or exceeding 50% and applying that figure to the total number of channels concerned by Article 4 of the Directive in each Member State.

* Indicator 3: general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period (1999-2000) [7].

[7] This is obtained by determining the balance of the channels showing an increase, a decrease, or no change, irrespective of the actual proportion of transmission time allocated to European works. Account was also taken of new channels entering the national market under consideration during the reference period.

Article 5 (European works by independent producers):

* Indicator 1: average air time, or alternatively, depending on the choice made by the Member State when transposing the Directive, the average proportion of the programming budget allocated to European works by independent producers.

* Indicator 2: compliance rate of channels of all types (achieving or exceeding the minimum of 10%) in the Member State concerned [8].

[8] This is obtained by determining the number of channels achieving or exceeding the minimum of 10% and applying that figure to the total number of channels concerned by Article 5 of the Directive in each Member State.

* Indicator 3: general trend, in terms of number of channels of all types, in the proportion of European works by independent producers broadcast in each Member State concerned over the reference period (1999-2000).

* Indicator 4: average air time, or alternatively, depending on the choice made by the Member State when transposing the Directive, the proportion of the programming budget allocated to recent works by independent producers

* Indicator 5: general trend, in terms of number of channels of all types, in the proportion of recent works by independent producers broadcast in each Member State concerned over the reference period (1999-2000).

Subject to the option taken by some Member States pursuant to Article 3.1 of the "Television without Frontiers" Directive of establishing more detailed or stricter rules in the areas covered by the Directive [9], these indicators enable an overview of implementation of Articles 4 and 5 to be obtained for the period 1999-2000.

[9] In practice, a majority of Member States have made use of this option (e.g. exclusion of studio productions in Italy, positive definition of the works to be included in Germany, 60% requirement for transmission of European works in France, 25% allocation to works by independent producers in the United Kingdom and the Netherlands, etc.).

1.1 Requirement to broadcast a majority proportion of European works

1.1.1 Assessment at Community level

The first general conclusion concerns trends in the number of television channels in Europe.

As a preliminary point, the total number of channels [10] of all types in Europe (the European Union Member States and the EFTA Member States participating in the European Economic Area) was around 550 in January 1999 and 670 in January 2000. The total number of channels as at January 2001 was around 820.

[10] This figure is based on the data published by the European Audiovisual Observatory in its 1999, 2000 and 2001 yearbooks. It includes the national channels (with terrestrial broadcasting licence), national channels (cable and/or satellite and/or DTT, no analogue terrestrial transmission), foreign dedicated channels and channels intended for foreign markets. It does not, however, include non-networked regional/local broadcasts, local stations and regional or local channels.

The number of channels concerned by Articles 4 and 5 of the "Television without Frontiers" Directive [11] continued to increase overall compared with the previous period (1997-1998) and within the reference period of this report (1999-2000), reflecting the dynamism in European audiovisual supply. This increase was considerable in most European Union countries, and particularly so in countries such as Spain, France, Italy, Sweden and the United Kingdom.

[11] The reporting obligation under Article 4(3) applies to all transmissions by broadcasters within the jurisdiction of a Member State, with the following exceptions:

As regards methodology [12], some Member States still failed to provide full information, particularly with regard to cable and/or satellite television channels (which are often omitted from national reports). The Commission would therefore point out that the obligation set out in Article 4.3 applies to each of the television programmes within the jurisdiction of the Member State concerned [13]. Terrestrial television, on the other hand, is covered more or less exhaustively in the Member States' reports.

[12] It is worth adding that the nature and intensity of controls are often variable between Member States: daily monitoring of programming, statistical reports, surveys, sampling, estimates in some cases, etc. Furthermore, they may be carried out by the sector's independent regulatory authority or, in some cases, directly by the competent government department.

[13] The second paragraph of Article 4.3 states that "[the] report shall in particular include a statistical statement on the achievement of the proportion referred to in [Article 4] and Article 5 for each of the television programmes falling within the jurisdiction of the Member State concerned, the reasons, in each case, for the failure to attain that proportion and the measures adopted or envisaged in order to achieve it."

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The second conclusion concerns the average transmission time reserved for European works by the channels with the highest viewing figures [14] (cf. indicator 1):

[14] In practice, with a few exceptions, the data on the proportion of transmission time allocated covered all channels with over 3% of the audience share for each of the years under consideration.

- the average transmission time of European works for all European channels, in all Member States, was 60.68% in 1999 and 62.18% in 2000, representing a 1.50 point increase over the reference period;

- depending on the Member State in question, the average transmission time varied between 52.94% and 71.46% [15] in 1999 and between 55.33% and 71.18% in 2000 [16], with the exception of Portugal [17] (48.7% in 1999 and 49.5% in 2000) and Luxembourg (100% in 1999 and 2000);

[15] One country had a slightly higher figure but has not been included here because, in the absence of full data, it did not include all the channels concerned with an audience share of over 3% over the reference period.

[16] One country had a slightly higher figure but has not been included here because, in the absence of full data, it did not include all the channels concerned with an audience share of over 3% over the reference period.

[17] Portugal, however, in accordance with the principle of progressive achievement of the target, made striking progress compared with the previous period (43.4% in 1997-1998) and approached the 50% threshold in 2000.

- the trend in the broadcasting of European works, in terms of number of channels, was upward in 12 Member States. It was stable in one Member State and (very slightly) downward in the other two. The overall trend was therefore positive over the reference period.

The third conclusion refers to the total number of channels which achieved or exceeded the majority proportion of their transmission time of European works over the reference period (cf. indicator 2):

- the average compliance rate for all European channels in all Member States was 68.58% in 1999 and 72.50% in 2000, representing a 3.93 point increase over the reference period. This is a particularly impressive figure given the considerable increase in the number of channels, essentially special-interest channels, over the same period;

- the compliance rates for all types of channel varied, according to the Member State under consideration, between 55% and 100% in 1999 and between 53% and 100% in 2000, with the exception of Italy which did not meet the majority proportion of transmission time (42% in 1999 and 49% in 2000);

- the average compliance rate, in terms of number of channels of all types, rose in nine Member States, was stable in four and fell in two. The overall trend was therefore positive.

The fourth conclusion concerns the general trend, in terms in terms of number of channels of all types, in the scheduling of European works over the reference period (cf. indicator 3).

- The national reports revealed an upward trend in 14 Member States, the level in the fifteenth remaining stable. The general trend was therefore positive overall over the reference period.

In conclusion, these generally positive results -- most indicators showing an increase over the reference period -- would appear to suggest that the objectives of the "Television without Frontiers" Directive are being achieved.

The table below shows the situation of implementation of Article 4 of the Directive across the Community over the period concerned.

European works (article 4 of the "Television without Frontiers" Directive)

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1.1.2. Assessment at national level

Austria

ORF 1 and ORF 2, which together represented an audience share of 57.5% in 1999 and 55.6% in 2000, on average broadcast 56.6% and 58.8% of European works in 1999 and 2000 respectively, representing an average increase of 2.2 points over the reference period.

* Over the entire reference period, of a total of three channels mentioned in the report, two exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. Only ORF 1 was significantly below this threshold (34% in 1999, 36.6% in 2000). The compliance rate, in terms of number of channels, over the whole period was therefore 66.66%. The reasons for the case of non-compliance were given in the report. Main points made were that the proportion of European works broadcast was increasing, German productions were becoming more popular (particularly television films). The report underlined the parallel increase in transmission of European works on ORF 2 which belongs to the same broadcasting organisation. No particular measure had been taken or was envisaged to rectify the situation. The Commission observes that Austria is in the specific situation of a country with low audiovisual production capacity. However, in the case of ORF 1, it would point out that one of the reasons for the proportion defined in Article 4.1, which applies each year, is to ensure equal competition between all television programmes of broadcasters falling within the jurisdiction of the Member State concerned [18].

[18] Cf. the second paragraph of Article 4.3 of the Directive and point 2.2 of the suggested guidelines for the monitoring of the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, dated 11 June 1999.

* Of the three channels mentioned in the report, two were increasing the proportion of their transmission time allocated to European works and one was decreasing it. The general trend, in terms of number of channels of all types, was an overall increase in scheduling of European works over the reference period.

Belgium [19]

[19] Because two separate reports were sent in, a distinction has been made in the assessment between the channels of the French Community and those of the Flemish Community. The figures were aggregated for the Community-level assessment (cf. above). The Commission would also point out that channels RTL TVi and Club RTL are identical to those broadcast by CLT S.A. in Luxembourg. This being the case, they are included in the reports of both these countries. The same applies to Liberty TV, which is included in both the Belgian and Luxembourg reports.

French Community

The channels RTBF 1, RTBF 2, RTL-Tvi and Club, which together represented an audience share [20] of 43.4% in 1999 and 44.8% in 2000, broadcast an average of 66.83% and 67.20% European works in 1999 and 2000 respectively, representing an average increase of 0.38 points over the reference period.

[20] Notable is the high penetration of the French channels TF1, France 2 and France 3, which represented an audience share of over 30% over the reference period.

* In 1999, of a total of eight channels covered by Article 4 of the Directive [21], four exceeded the majority proportion of transmission time laid down in that Article. RTL-TVI was the only channel to remain slightly below this threshold (49.1%). No figures were supplied for three channels [22]. The compliance rate in terms of number of channels was therefore 50%. For 2000, of a total of eight channels covered by Article 4 of the Directive, five exceeded the majority proportion of transmission time laid down in that Article. No data were provided for three channels [23]. The compliance rate in terms of number of channels was therefore 62.5%. The case of RTL-Tvi aside, there was, according to the report, no need for any particular measures. Concerning the two variants of the basic Canal + programme, the report indicated that a sampling-based system for measuring programme transmission would be put in place in 2002. The Commission would point out that the proportion defined in Article 4.1 applies, for each year, to each of the television programmes falling within the jurisdiction of the Member State concerned. All these programmes must supply data providing an appropriate basis for measuring the extent to which the proportions provided for by Article 4 of the Directive are progressively being achieved [24].

[21] The channels HSE, devoted exclusively to teleshopping, and Canal Z, devoted exclusively to economic and financial news, were not included.

[22] In addition to Liberty TV, for which there were no data, the report indicated that two further Canal + channels were not mentioned (lack of data).

[23] In addition to Liberty TV, for which there were no data, the report indicated that two further Canal + channels were not mentioned (lack of data).

[24] Cf. second paragraph of Article 4.3 of the Directive and point 2.2 of the suggested guidelines for the monitoring of the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, dated 11 June 1999.

* Of the five channels for which full data were supplied for the reference period, two were increasing the proportion of their transmission time allocated to European works, and three were reducing it. The general trend, in terms of number of channels of all types, in the programming of European works over the reference period was therefore downward overall.

Flemish Community

* The channels VRT TV1, VRT Canvas/ Ketnet, VMM-VTM, VMM-Kanaal 2, which together accounted for an audience share of 63.7% in 1999 and 66.1% in 2000, broadcast an average of 51.75% and 53.25% of European works in 1999 and 2000 respectively, representing an average 1.5 point increase over the reference period.

* For 1999, of a total of nine channels mentioned in the report, four exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, while five were well below it. These were Kanaal 2 (25%) and the special-interest channels of the Canal + group, which had a proportion of 20% or lower (Canal+ grijs, Canal+ blauw, Canal+ geel, Canal+ 16/9). The compliance rate, in terms of number of channels, was 44%. For 2000, of a total of ten channels mentioned in the report, 5 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, while four were well below it. These were: Kanaal 2 (30%) and the special-interest channels of the Canal + group, which ranged from 27% to 42% (Canal+ grijs, Canal+ blauw, Canal+ 16/9). Canal + geel provided no data [25]. The compliance rate in terms of number of channels was 50%. The reasons for the cases of non-compliance were stated. In the case of Kanaal 2, the report cited the increase in the proportion of European works and the fact that the channels of the VMM broadcasting organisation taken together exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. In the case of the Canal + group's channels, the reason was essentially the special-interest nature of their programmes (films).

[25] According to the report, this channel was replaced by Canal+ 16/9 as from 5 December 1999.

Concerning Kanaal 2, the Commission would point out that the proportion laid down in Article 4.1 applies to all television programmes of a broadcaster falling within the jurisdiction of the Member State concerned. Finally, in general terms, the Commission notes the progress achieved over the reference period by all the channels below the target, in line with the principle of progressive improvement.

* Of the eight channels for which full data were supplied, seven had increased the proportion of their transmission time allocated to European works and one was stable (at 100%) over the reference period. The trend, in terms of number of channels of all types, in the scheduling of European works was therefore upward overall over the reference period.

German-speaking Community no report was received from the Belgian authorities.

Germany

* ARD, ZDF, Kabel 1, ProSieben, RTL, RTL 2, SAT 1, which together represented an audience share of 83.40% in 1999 and 83.3% in 2000 broadcast on average 60.22% and 63% European works in 1999 and 2000 respectively, representing an average 2.78 point increase over the reference period.

* For 1999, of a total of 23 channels mentioned in the report [26], 14 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, seven were below it and two (albeit news channels) supplied no data [27]. The compliance rate in terms of number of channels was 61%. For 2000, of a total of 24 channels mentioned in the report, 15 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, seven were below it and no data were provided for two [28]. The compliance rate, in terms of number of channels of all types, was 62.5%. The seven channels which were below the target for the whole of the reference period were: Kabel 1 (25.4% in 1999, 27.90% in 2000), ProSieben (46,20% in 1999, 46 in 2000), RTL 2 (36% in 1999, 46% in 2000), Super RTL (33,70% in 1999, 38.20% in 2000), 13 TH Street (20% in 1999, 17% in 2000), Première (35% in 1999, 33.1% in 2000), Studio Universal (30% in 1999, 35% in 2000). The reasons for the cases of non-compliance were stated. These included, depending on the case: recency of the channel, its means of operation (pay TV), the special-interest nature of the programmes, or the channel's structure. Concerning remedial measures adopted or envisaged, the report made reference to ongoing dialogue with the various broadcasters. The Commission notes in particular the recurring difficulties of the three channels with an audience share of over 3%: Kabel 1, ProSieben and RTL 2. However, the two latter channels were very close to achieving the target in 2000.

[26] In contrast to the preceding report (1997-1998 period), Deusche Welle TV was not mentioned.

[27] These were channels N-TV and VH 1.

[28] These were channels N-TV and VH 1.

* Of the 21 channels for which complete data were provided, 11 increased the proportion of their transmission time allocated to European works, four were stable and six reduced it over the reference period. The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

Denmark

* The channels DR 1, TV2 and TV Danmark, which together represented an audience share of 71.9% in 1999 and 72% in 2000, broadcast an average of 60.66% and 61% European works for 1999 and 2000 respectively, representing a 0.34 point increase over the reference period.

* For 1999, of a total of five channels mentioned in the report, four exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. Only TV Danmark was below this threshold (36%). The compliance rate, in terms of number of channels, was 80%. For 2000, of a total of seven channels mentioned in the report, five exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, while two -- TV Danmark (42%) and TV 2 Zulu (41% in 2000) -- were below it. The compliance rate, in terms of number of channels, was 71.40%. The report gave the reasons for the cases of non-compliance. TV Danmark has recorded constant growth since 1997 and, according to the estimates submitted, further growth is likely in 2001. TV 2 Zulu, on the other hand, is a recent channel which only began broadcasting on 15 October 2000. The Commission observes that Denmark is in the specific situation of a country with low audiovisual production capacity and restricted language area, and notes the progress made over the reference period, in accordance with the principle of progressive improvement.

* Of the five channels with complete data, two increased the proportion of their transmission time allocated to European works, one remained stable (at 100%), and two showed a reduction over the reference period. To this should be added the results of two new entrants to the market which devote a large part of their broadcasting schedule to this type of work. The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

Greece

* The channels ET 1, NET, ALPHA, ANTENNA, STAR and MEGA CHANNEL, together representing an audience share of 83.4% in 1999 and 83.7% in 2000, broadcast an average of 71.46% and 71.18% European works in 1999 and 2000 respectively, representing a slight 0.28 point drop over the reference period.

* The Commission observes that all the channels mentioned in the report exceeded the majority proportion of transmission time laid down in Article 4 of the Directive over the entire reference period (with levels varying between 51.9% and 96.04%). The compliance rate, in terms of number of channels of all types, was 100%.

* Of the ten channels for which complete data were available, eight increased the proportion of their transmission time allocated to European works and two reduced it over the reference period. To this should be added the new channel TEMPO, which devotes over 50% of its broadcasting schedule to European works. The general trend, in terms of number of channels of all types, in the scheduling of European works was upward overall over the reference period.

Spain

* The channels TVE 1, TVE 1/ La 2, Telecinco and Antena 3, together representing an audience share of 76.8% in 1999 and 76.2% in 2000, broadcast an average of 52.94% and 58.50% European works in 1999 and 2000 respectively, representing an average 5.56 point increase over the reference period.

* For 1999, of a total of 40 channels mentioned in the report, 28 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, and 12 were below it. These were the terrestrial channel Telecinco (45.40%) and the following satellite channels: TCM (20%), AXN (22.5%), Alucine (37.45%), Fox kids (38.70%), Cinemania (30.9%), Disney Channel (18.61%), Nichelodeon (2.10%), Calle 13 (10.6%), Gran Via (25.55%), Gran Via 2 (25.85%) and Gran Via 3 (35.33%). The compliance rate, in terms of number of channels of all types, was 70%. For 2000, of a total of 45 channels mentioned in the report, 35 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, while 10 were below it. The ten concerned were the satellite channels TCM (30.66%), AXN (27.70%), Alucine (32.04%), Fox kids (44.90%), Cinemania (37.70%), Disney Channel (24.53%), Nichelodeon (19.80%), Calle 13 (16.89%), Gran Via (40.06%) and Studio Universal (9.13%). The compliance rate, in terms of number of channels of all types, was 78%. The report indicated the reasons for the cases of non-compliance. With the exception of Telecinco, which rectified the situation in 2000, these were digital satellite channels concentrating mainly on special-interest programmes. Spanish legislation has established two transitional provisions for this type of channel: the possibility of reserving 40% of air time for European works in the first year of broadcasting, and the counting of pay channels offered to subscribers in one inseparable bundle as one channel. One measure envisaged by the competent authorities is to issue a formal request to the operators concerned to rectify the situation. The Commission notes the progress achieved by most of these channels over the reference period, in accordance with the principle of progressive improvement.

* Of the 40 channels for which full data are available for the reference period, 24 increased the proportion of their transmission time allocated to European works, two showed no change (maintaining the 100% maximum) and 14 showed a reduction. Mention should be made of the five new entrants to the market, four of which devote the majority of their broadcasting schedule to European works. In terms of the number of channels of all types, scheduling of European works showed a general upward trend over the reference period.

France

* The channels TF1, France 2, France 3, M6 et Canal +, together representing an audience share of 91.8% in 1999 and 89.1% in 2000, broadcast an average of 67.42% and 69% European works in 1999 and 2000 respectively, representing an average 1.58 point increase over the reference period.

* For 1999, of a total of 54 channels mentioned in the report, 34 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, while for 10 no data were available. The ten channels failing to meet the target were: AB1 (25%), Action (20%), Cinéfaz (24%), Cinéstar 1 (45%), Cinéstar 2 (43%), Cinétoile (48%), Histoire (40%), Kiosque (32%), Mangas (33%) and 13ème Rue (17%). The compliance rate, in terms of number of channels of all types, was 63%. For 2000, of a total of 59 channels mentioned in the report, 42 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. No data were available for 5 channels. The 12 (cable) channels which failed to meet the target were: AB1 (30%), Action (23%), Mangas (34%), CinéCinema 1 2 3 (48%), Canal Jimmy (43%), Cinéfaz (45%), Cinéstar 2 (49%), Multivision (44%), Odyssée (46%), Polar (43%), RFM TV (43%) and 13ème Rue (34%). The compliance rate, in terms of number of channels of all types, was 71%. The report indicated the reasons for the cases of non-compliance: dedicated (cinema) and/or recent nature of the channel, type of operation (pay-per-view). The Commission observes that measures had been taken or were envisaged by the competent authority for all cases of non-compliance: formal demand for the broadcasters to comply, penalty procedures including financial penalties.

* Of the 42 channels for which full data were available for the reference period, 29 increased the proportion of their transmission time allocated to European works, two showed no change and 11 a reduction. Again, account should be taken of the new entrants to the market: four of these five new channels gave over a majority of their broadcasting schedule to European works. In terms of number of channels of all types, there was a general upward trend in the scheduling of European works over the reference period.

Ireland

* The channels RTE 1, Network 2 and TV3 which together accounted for an audience share of 54.4% in 1999 and 2000, broadcast an average of 54.17% and 55.33% European works in 1999 and 2000 respectively, representing an average increase of 1.17 points over the reference period.

* Over the reference period, of a total of four channels mentioned in the report, three exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. Only TV 3 was -- very slightly -- below this limit (49.5% in 1999, 49% in 2000). The compliance rate, in terms of number of channels, was 75%. The reasons for the case of non-compliance were not given in the report and no corrective measures taken or envisaged were mentioned. However, the Commission observes that the operator concerned was very close to the majority proportion of transmission time over the whole of the reference period and that Ireland is in the specific situation of a country with low audiovisual production capacity and/or restricted language area. In view of the requirement for progressive improvement, efforts to increase this proportion should be pursued.

* Of the four channels mentioned in the report, two increased the proportion of their transmission time allocated to European works and the other two reduced it. The general trend, in terms of number of channels, was therefore stable over the reference period.

Italy

* The channels Rai Uno, Rai Due, Rai Tre, Canale 5, Italia Uno and Retequattro, which together accounted for an audience share of 90.2% in 1999 and 90.7% in 2000, broadcast an average of 65.90% and 65.98% European works in 1999 and 2000 respectively, representing a very slight increase (0.09 points) over the reference period.

* For 1999, of a total of 38 channels covered by Article 4 of the Directive [29], 16 exceeded the majority proportion of transmission time laid down in that Article. No figures were available for nine channels. 13 failed to meet the majority proportion of transmission time . These were the terrestrial channels Italia Uno (41.25%), Tele + Nero (34.77%), Tele + Bianco (38.67%), TMC/ La 7 (43.86%) and the satellite channels Coming Soon Television (8.5%), Disney Channel (20%), Cineclassics (47%), Stream verde (0%), Tele + Grigio (48.82%), Tele + 16/9 (46.13%), Tele + Nero (34.77%), Palco (45.91%) and Tele + Bianco (38.67%). The compliance rate, in terms of number of channels of all types, was 42%. For 2000, of a total of 43 channels covered by Article 4 of the Directive [30], 21 exceeded the majority proportion of transmission time laid down in that Article. No figures were available for nine channels. 13 channels failed to meet the majority proportion of transmission time . These were the terrestrial channels Italia Uno (39.66%), Tele + Nero (38.87%), Tele + Bianco (41.77%), and the following satellite channels: Coming Soon Television (8.5%), Disney Channel (28%), Fox Kids (36%), Duel (12%), Comedy Life (25%), Stream verde (0%), Tele + 16/9 (41.18%), Tele + Nero (38.87%), Palco (42.74%), Tele + Bianco (41.77%). The compliance rate, in terms of number of channels of all types, was 49%. The reasons for cases of non-compliance were given in the report. For the terrestrial channels, for example, it was pointed out in the case of Italia Uno and TMC/la 7 that the group's channels taken together [31] do in fact meet the majority proportion of transmission time laid down in Article 4 of the Directive. In the case of Tele + Nero and Tele + Bianco, which are transmitted both terrestrially and by satellite, the report states that the same method is used, but that these channels nevertheless failed to meet the minimum proportion of transmission time . No particular measure has been taken or is envisaged to rectify the situation, particularly with regard to the terrestrial broadcasters. The reasons for non-compliance in the case of the remainder of the satellite channels were also specified in the report [32]. These were the special-interest and/or recent nature of the channel, channels which were subsidiaries of non-EU companies and essentially broadcast their own catalogue material, or the programming method (near-video-on-demand). The Commission observes that the compliance rate, in terms of number of channels of all types, over the reference period was relatively low but increasing. In the case of Italia Uno [33], TMC/ la "7" [34], Tele + Nero, Tele + Bianco and the satellite channels, the Commission would point out that the majority proportion of transmission time laid down in Article 4.1 applies each year with a view in particular to ensuring equal competition for all the television programmes of broadcasters falling within the jurisdiction of the Member State concerned [35].

[29] No account was taken of channels broadcasting exclusively "news, sports events, teleshopping" or those broadcasting exclusively in a language which was not an official language of one or more Member States of the European Union, which accounted for a total of 22 channels.

[30] No account was taken of channels broadcasting exclusively "news, sports events, teleshopping" or those broadcasting exclusively in a language which was not an official language of one or more Member States of the European Union, which accounted for a total of 22 channels.

[31] The report explains that, under Italian law supplemented by a decision by the competent authority (Autorita per le Garanzzie nelle Commnicazioni), where several channels belong to or are controlled by a single operator, the quota is determined on the basis of the channels' overall schedules, with a minimum of 20% for each.

[32] The data, obtained on the basis of self-certification by the broadcasters, and the reasons put forward, are currently being assessed.

[33] This channel had an audience share of over 11%.

[34] As from 2000, TMC/La 7 did in fact meet the minimum quota (57.83%).

[35] Cf. second paragraph of Article 4.3 of the Directive and point 2.2 of the suggested guidelines for the monitoring of the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, dated 11 June 1999.

* Of the 28 channels for which data for the reference period were available, 20 increased the proportion of their transmission time allocated to European works, one channel remained at zero, and seven registered a reduction. The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

Luxembourg [36]

[36] The Commission would point out that channels RTL TVi and Club RTL are those identical broadcast by CLT S.A. in Luxembourg. They are therefore included in the reports of both countries. The same applies to Liberty TV, which is included in both the Belgian and Luxembourg reports.

* RTL Télé Lëtzebuerg, which represented an audience share of 58.6% [37] in 1999-2000, broadcast 100% European works in 1999 and 2000, the situation therefore showing no change over the reference period.

[37] This refers to the prime time audience share (the rate drops to 14.3% for the day overall).

* For 1999, of a total of ten channels mentioned in the report, seven exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, representing a compliance rate of 70% in terms of number of channels. The three channels failing to meet this proportion of transmission time were: RTL 9 (40.50%), RTL Tvi (49.10%) and RTL 5 (46%). For 2000, of a total of 11 channels mentioned in the report, ten exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, only RTL 4 showing a slight shortfall (49%). The compliance rate, in terms of number of channels, was 91%. The reasons for the cases of non-compliance were given in the report: thematic focus (RTL 5 in 1999), economic restructuring (RTL 9). The report also emphasised that the pairs of channels (RTL 4 together with RTL 5 and Tvi Club together with Club RTL) met the minimum proportion of transmission time overall for the period 1999-2000. No particular measure has been adopted or is envisaged by the competent authorities. The Commission would point out that the proportion of transmission time defined in Article 4.1 of the "Television without Frontiers" Directive applies to each of the television programmes of broadcasters falling within the jurisdiction of the Member State concerned [38] for each year under consideration. It also observes that, in accordance with the principle of progressive improvement, there was a clear improvement over the reference period resulting in a positive situation in 2000 (only one operator was slightly below the minimum proportion of transmission time ).

[38] Cf. second paragraph of Article 4.3 of the Directive and point 2.2 of the suggested guidelines for the monitoring of the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, dated 11 June 1999.

* Of the eight channels for which full data were available for the reference period, three increased the proportion of their transmission time allocated to European works, three were stable (two at 100%) and two showed a decrease. The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was upward overall.

Netherlands

* The channels Ned 1, Ned 2/ TV 2, Ned 3, Veronica and SBS 6, which together accounted for an audience share of 53.1% in 1999 and 52.7% in 2000 broadcast an average of 68% and 67.6% of European works in 1999 and 2000 respectively, representing a slight drop (0.4 points) over the reference period.

For 1999, of a total of 18 channels mentioned in the report, 11 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, and no data were available in the case of one channel. The six which failed to meet the proportion of transmission time were: SBS 6 (46%), Film 1 (44%), Net 5 (40%), Veronica (49%), Canal + 1 (24%), Canal + 2 (17%). The compliance rate, in terms of number of channels, was 61%.

For 2000, of a total of 21 channels mentioned in the report, 14 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, and no data were available in the case of one channel. The seven channels failing to meet the proportion of transmission time were: Net 5 (49%), Veronica (45%), Canal + 1 (23%), Canal + 2 (26%), Film 1 (49%), Innergy (39%), FilmTime (17%). The compliance rate, in terms of number of channels of all types, was 67%.

The reasons for the cases of non-compliance were specified in the report: special interest and/or recent nature of the channel, insufficient European works available (lifestyle channel, temporary derogation). The Commission welcomes the adoption by the Dutch Media Authority of guidelines to facilitate controls, which entered into force on 1 January 2002.

* Of the 16 channels for which full data were available for the reference period, nine increased the proportion of their transmission time allocated to European works, two showed no change and five registered a reduction. There were three new market entrants, who varied in the proportion of European works in their broadcasting schedule (ranging from 17% to 76%). The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

Portugal

* The channels RTP 1, RTP 2, SIC and TVI, which together accounted for an audience share of 94.4% in 1999 and 92.9% in 2000, broadcast an average of 48.7% and 49.5% European works in 1999 and 2000 respectively, representing an average 0.8 point increase over the reference period.

* For 1999, of a total of seven channels mentioned in the report [39], five exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. The two channels which failed to meet the proportion of transmission time were: SIC (44.8%), TVI (30.5%). The compliance rate, in terms of number of channels, was 71%. For 2000, of a total of nine channels mentioned in the report [40], seven exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. The two channels which failed to meet the proportion of transmission time were the same as for 1999, i.e. SIC (34.8%) and TVI (36.5%). The compliance rate, in terms of number of channels, was 78%. The reasons for the two cases of non-compliance were given in the report. The competent authorities acknowledged that SIC had not met the objective but observed that the proportions achieved were close to the minimum proportion of transmission time , and that the proportion for the groups channels taken together was around 70%. In the case of TVI, the most recent operator to penetrate the Portuguese market, they pointed out that there had been steady progress and referred to the specific characteristics of the Portuguese market (production, advertising, etc.). As far as measures were concerned, the report stated that the competent authorities had drawn the attention of the operators concerned, in particular TVI, to the situation in the course of regular dialogue but did not intend to take action in view of the considerable progress made. The Commission observes that Portugal is in the specific situation of a country with low audiovisual production capacity and/or restricted language area and that, in overall terms, considerable progress has been made compared with the previous reference period [41]. It also observes, however, that there has been a sharp deterioration over the current reference period in the proportion scheduled by SIC, which has a dominant audience share on the Portuguese market (over 44%). In this regard, it would point out that the proportion of transmission time laid down in Article 4.1 applies each year to all the television programmes of broadcasters within the jurisdiction of the Member State concerned, with a view, in particular, to ensuring equal competition [42].

[39] The report included the sports channel Sport TV Portugal.

[40] Cf. note above.

[41] The channels with the largest audience share broadcast 43.4% European works for the period 1997-1998. These figures showed a clear improvement in 1999 and 2000, with 48.7% and 49.5% respectively.

[42] Cf. second paragraph of Article 4.3 of the Directive and point 2.2 of the suggested guidelines for the monitoring of the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, dated 11 June 1999.

* Of the seven channels for which full data were available for the reference period, three increased the proportion of their transmission time allocated to European works, while four reduced it. However, two new special-interest channels devoting the essential part of their broadcasting schedule to European works entered the Portuguese market in 2000 (levels ranging from 77.1% to 98.2%). The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

Finland

* The channels TV 1, TV 2, MTV 3 and Nelonen, which together accounted for an audience share of 95% in 1999 and 94.2% in 2000, broadcast an average of 66.25% and 69.5% European works in 1999 and 2000 respectively, representing an average 3.25 point increase over the reference period.

* Over the reference period, all four channels referred to in the report exceeded the majority proportion of transmission time laid down in Article 4 of the Directive (proportions varying between 52% and 86% in 1999 and 53% and 85% in 2000). The compliance rate, in terms of number of channels, was 100%.

* Of the four channels referred to in the report, three increased the proportion of their transmission time allocated to European works and one showed a very slight reduction (1%). The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

Sweden

* The channels SVT 1, SVT 2 and TV 4, which together accounted for an audience share [43] of 74.2% in 1999 and 71.9% in 2000, broadcast an average of 73.83% and 74.45% of European works in 1999 and 2000 respectively, representing an average 0.62 point increase over the reference period.

[43] This did not include TV 3 AB (audience share of 10.8% in 1999 and 11.4% in 2000) and TV 5 AB/Kanal 5 (audience share of 5.9% in 1999 and 6.1% in 2000) because of the absence of data for 1999 (began digital transmission in 2000). In 2000, the average level for the five channels: SVT 1, SVT 2, TV4, TV 3 AB, TV 5 AB/ Kanal 5 was 51.97% (European works broadcast).

* For 1999, of the 21 channels referred to in the report [44], 12 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. The nine which failed to meet this proportion of transmission time were: TV 1000 (26%), Cinema (25%), « 6 » (42%), Canal + (23%), Canal + Gul (25%), Canal + Bla (20%), Kiosk (12%), CineCinemas (5.75%) and NollEttan Television (47%). The compliance rate, in terms of number of channels of all types, was 57%. For 2000, of a total of 26 channels mentioned in the report [45], 15 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive, and for one channel no data was supplied. The ten channels failing to meet the proportion of transmission time were: TV 3 AB (17%), TV5 AB (19.5%), TV 1000 (24%), Cinema (23%), Z TV (19%), Canal + (32%), Canal + Gul (36%), Canal + Bla (36%), Kiosk (14.1%) and CineCinemas (23%). Of particular note is that channels "6" (50%) and NollEttan Television (100%) are now meeting the majority proportion of transmission time laid down in Article 4 of the Directive. The compliance rate, in terms of number of channels of all types, was 58%. The reasons for the cases of non-compliance were given in the report and comprised the recency of the channel, the special-interest nature (film) of some channels and/ their operating method (pay TV), the shortage of good quality European films or the competitive price of USA productions compared with Swedish and European productions. The Commission acknowledges that measures have been taken or are envisaged for the cases of non-compliance (request for increased buying of European programmes and seeking out European films of good quality). In the case of channels TV 3 AB and TV 5 AB/ Kanal 5, which have a large audience share, the Commission would point out in respect of 1999 that there is an obligation to provide the data on application of Article 4 of the Directive, irrespective of the means of transmission of the channels concerned (analogue and/or digital).

[44] The following must be considered exempt: SVT 24, ViaSat Sport, DTU TV, TV Butiken.

[45] The following must be considered exempt: SVT 24, ViaSat Sport, DTU TV, TV Butiken.

* Of the 20 channels for which complete data were available for the reference period, 12 increased the proportion of their transmission time allocated to European works, five showed no change and three a reduction. The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was therefore upward overall.

United Kingdom

* The channels BBC 1, BBC 2, ITV, Channel 4 and Channel 5, which together accounted for a market share of 86.1% in 1999 and 83.5% in 2000, broadcast an average of 64% and 68.8% European works in 1999 and 2000 respectively, representing an average 4.8 point increase over the reference period.

For 1999, of a total of 97 channels covered by Article 4 of the Directive [46], 53 exceeded the majority proportion of transmission time laid down in that Article [47]. The compliance rate for channels of all types was 55%. The following 44 channels failed to meet the proportion of transmission time : 3+ Denmark (18%), Adult Channel (48%), Animal Planet (40%), Bravo (18%), Disney Channel UK (4 channels: 27%), Fox Kids UK (27%), Fox Kids Scandinavia (20%), Front Row [48] (35%), God Channel (35%), History Channel (26%), Inspiration network (30%), Kanal 5 (22%), Living (37%), National Geographic (9%), Nichelodeon (29%), Nichelodeon Nordic (8%), Paramount Comedy Channel (23%), Play Boy TV (15%), Revival Channel (16%), Sci-Fi Channel (11%), Sky Cinema (13%), Sky Movie Max (7%), Sky One (46%), Sky Premier (8%), Studio Universal (46%), TCC Nordic (27%), Television X (33%), Turner Cartoon Network (28%), Carton Network (Dutch Language) (22%), Carton Network (Italian Language) (20%), Carton Network (Spanish Language) (12%), Carton Network (Nordic) (15%), TNT Classical Movies (11%), TCM (40%), TCM (Spanish language) (40%), TCM (French language) (40%), Trouble (20%), TV3 Denmark (22%), TV3 Norway (15%), TV3 Sweden (22%), VT4 (15%). For 2000, of a total of 116 channels concerned by Article 4 of the Directive [49], 62 exceeded the majority proportion of transmission time laid down in Article 4 of the Directive. No data were available for two channels. The compliance rate for channels of all types was 53%. The following 52 channels failed to meet the proportion of transmission time : 3+ Denmark (10%), Biography Channel (5%), Bravo (15%), Channel Health (35%), Discovery Health (44%), Discovery Kids (48%), Disney Channel UK (4 channels: 31%), Film Four (44%), Fox Kids UK (38%), Fox Kids Scandinavia (36%), Front Row (with the Barker Channel) (48%), Front Row (without the Barker Channel) (37%), God Channel (36%), History Channel (21%), Inspiration network (40%), Kanal 5 (20%), Living (31%), National Geographic (16%), Nichelodeon (20%), Nichelodeon Nordic (11%), Paramount Comedy Channel (24%), Play Boy TV (18%), Private Blue (49%), Revival Channel (31%), Sci-Fi Channel (11%), Sky Cinema (17%), Sky Movie Max (4%), Sky One (34%), Sky Premier (9%), Sky Travel Channel (43%), Studio Universal (47%), Television X (44%), Turner Cartoon Network (36%), Cartoon Network (Boomerang) (21%), Cartoon Network (Dutch Language) (26%), Cartoon Network (French Language) (21%), Carton Network (Italian Language) (22%), Carton Network (Spanish Language) (21%), Carton Network (Nordic) (20%), TCM (41%), TCM (Spanish language) (40%), TCM (French language) (41%), Trouble (24%), TV3 Denmark (16%), TV3 Norway (8%), TV3 Sweden (12%), V+ Norway (13%), VT4 (16%), ZTV (46%). The reasons for the cases of non-compliance were given in the report. These were the special-interest or recent nature of the channel, the difficulty in finding European programmes or in finding them at competitive prices, subsidiaries of companies based in non-member countries broadcasting programmes mostly from their own stock. The Commission would point out that the proportion of transmission time laid down in Article 4.1 applies each year to each of the television programmes of broadcasters within the jurisdiction of the Member State concerned [50].

[46] This does not include those exempted (51 channels) or which were non-operational over the period concerned.

[47] The report included the following six news and sports events channels: BBC News 24, Sky News, Sky Sports 1, Sky Sports 2, Sky Sports 3, Sky Sports extra.

[48] Without the Barker Channel.

[49] This does not include the exempted channels (51 channels) or those which were non-operational over the period concerned.

[50] Cf. second paragraph of Article 4.3 of the Directive and point 2.2 of the suggested guidelines for the monitoring of the implementation of Articles 4 and 5 of the "Television without Frontiers" Directive, dated 11 June 1999.

* Of the 96 channels for which complete data were available for the reference period, 45 increased the proportion of their transmission time allocated to European works, nine showed no change and 38 showed a reduction. The general trend, in terms of number of channels of all types, in the scheduling of European works over the reference period, was upward overall.

General considerations

(i) Monitoring and control method

The Member States' reports refer to monitoring and control methods varying in form (actual records, monitoring of daily programmes, collection of data from broadcasters, survey, sampling, simple estimation in some cases, etc.) and sometimes differing according to the means of transmission (e.g. monitoring of daily programmes for terrestrial channels and survey for cable).

On this point, there was generally more monitoring and control of terrestrial and cable channels than of satellite channels, which in many cases were not mentioned in the reports received.

In this regard, the Commission would point out that the obligation under Article 4.3 of the "Television without Frontiers" Directive applies to each of the television programmes falling within the jurisdiction of the Member State concerned, irrespective of the means of transmission (terrestrial, satellite, cable - analogue and/or digital). A full list of all the channels covered by Article 4 of the Directive must therefore be provided.

(ii) Reasons for the cases of non-compliance (failure to meet majority proportion)

The majority of the Member States with channels under their jurisdiction which failed to meet the majority proportion of transmission time laid down in Article 4 of the Directive gave the following reasons.

a) - Grouping of channels belonging to the same broadcaster. Member States' reports often pointed out that the channels concerned, if taken together, met or exceeded the minimum proportion of transmission time laid down by the Directive.

This situation, which fails to guarantee equal competition between the various TV broadcasters and isolates the scheduling of European works on one or more specific channels, can in some cases lead to artificial aggregation of the results of "small" channels (in terms of audience share) or special-interest channels with those of a "major" general interest channel.

b) - Special-interest nature of the channels' programmes and progress achieved. In many cases, the special interest theme does not enable the minimum proportion of transmission time to be met (very specific niche market).

c) - Recency of the channel. Nevertheless, many of the new entrants broadcast a large proportion of European works in their first years of operation in order to penetrate the market concerned.

d) - Subsidiaries of non-EU companies. Such channels tend to make systematic use of their own catalogue material and rarely show European works.

In practice, these reasons are often combined in Member States' reports. The channels in question are often the same in the various Member States concerned.

(iii) Measures envisaged or adopted to remedy cases of non-compliance

Various types of measure are reported: ongoing dialogue, subjecting the channels concerned to surveillance, formal notices and proceedings against broadcasters.

There are, however, cases in which no measures have been taken or envisaged. In this regard, the Commission would point out the need for the Member States concerned to ensure increased control and monitoring of these channels and to ensure, where practicable and by appropriate means, that the television broadcasters concerned achieve the proportion of transmission time s laid down by Article 4 of the Directive, in accordance with the principle of progressive improvement.

1.2 Works by independent producers

1.2.1 Assessment at Community level

As a preliminary remark, with regard to methodology, certain Member States did not always provide comprehensive information, particularly in the case of the cable and/or satellite channels (sometimes omitted from national reports). In addition, complete data were not provided for some channels on the relative proportion of recent European works broadcast.

In this regard, the Commission would point out that the obligation under Article 4.3 applies to each of the television programmes falling within the jurisdiction of the Member State concerned. It is therefore the responsibility of those countries to provide a list of all the channels covered by Article 5 of the Directive and to supply full data on them.

The first conclusion concerns average transmission time (minimum of 10%) or, depending on the choice made by the Member State when transposing the Directive, the average programming budget (minimum 10%) reserved for European works by independent producers [51] (cf. indicator 1 [52]):

[51] Within the meaning of recital 31 of the Directive, which provides that (non-exhaustive criteria): "(...) Member States, in defining the notion of "independent producer", should take appropriate account of criteria such as the ownership of the production company, the amount of programmes supplied to the same broadcaster and the ownership of secondary rights".

[52] Article 3.1 of the Directive gives the Member States the option of requiring broadcasters under their jurisdiction to comply with more detailed or stricter rules. In practice, most Member States made use of this option.

- the average proportion of works by independent producers broadcast by all European channels in all Member States, was 37.51% in 1999 and 40.47% in 2000, representing a 2.95 point increase over the reference period [53];

[53] In the specific case of Italy, the particularly high figures reflect the average degree to which the objectives in terms of investment in European works created by independent producers were met (alternative 2 under Article 5 of the Directive) rather than the average transmission time of this type of work.

- the average proportion reserved for this type of work varied, depending on the Member State concerned [54], between 21.17% and 59% in 1999 and 20.94% and 59.26% in 2000;

[54] The figures for Italy were not included, as they reflected an investment obligation rather than a transmission obligation.

- The general trend, in terms in terms of number of channels showed an increase over the reference period in nine Member States, was stable in two Member States and dropped in four Member States. The overall trend was therefore positive.

The second conclusion concerns the total number of channels of all types achieving or exceeding the minimum 10% (compliance rate) of European works by independent producers (cf. indicator 2):

- the average compliance rate for all European channels in all Member States was 85.02% in 1999 and 84.81% in 2000, representing a very slight drop of 0.21 points over the reference period;

- the average compliance rate by Member State ranged from 48% to 100% in 1999 and from 58% to 100% in 2000;

- the average compliance rate in terms of number of channels, rose in six Member States, was stable in four and fell in five; the general overall trend was therefore positive over the reference period.

The third conclusion concerns the general trend, in terms of number of channels of all types, in the proportion of transmission time allocated to works by independent producers (cf. indicator 3):

- the national reports revealed an upward trend in 12 Member States, no change in one Member State and a downward trend in two Member States; the overall development was therefore positive over the reference period.

The fourth conclusion refers to the average share ("adequate proportion" [55]) allocated to recent European works by independent producers, i.e. works broadcast within five years of their production (cf. indicator 4):

[55] 8 Cf. the terms of the final sentence of Article 5 of the Directive: "[this proportion] must be achieved by earmarking an adequate proportion for recent works, that is to say works transmitted within five years of their production."

- the average share, for all European channels in all Member States, allocated to recent works was 53.80% in 1999 and 55.71% in 2000, representing a 1.91 point increase over the reference period;

- the average share allocated to this type of work varied, according to Member State [56], between 13.48% and 81.4% in 1999 and 12.34% and 80.25% in 2000;

[56] N.B.: the figures for Portugal do not reflect the actual proportion of recent European works in all European works by independent producers (theoretical level).

- The general trend, in terms in terms of number of channels of all types, was upward in eight Member States, stable in one and downward in six; the overall trend over the reference period remained positive.

- The fifth conclusion applies to the general trend, in terms in terms of number of channels of all types, in the relative proportion of recent European works by independent producers (cf. indicator 5).

- The national reports showed an upward trend in 14 Member States, with no change in one Member State; the overall trend was therefore generally positive.

In conclusion, these positive results overall -- most of the indicators showing an increase over the reference period -- suggest that the objectives of the "Television without Frontiers" Directive are being achieved.

The table below gives a summary of the implementation of Article 5 of the Directive for the Community overall over the period concerned.

>TABLE>

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1.2.2 Assessment at Member State level

Austria

1. Independent production

* The average proportion reserved for European works by independent producers for all channels was 40.63% in 1999 and 47.30% in 2000, representing a 6.67 point increase over the reference period.

* Over the entire reference period, the compliance rate, in terms of number of channels, was 100%. The four channels referred to in the report exceeded the minimum of 10% allocation to works by independent producers (percentages ranging from 19.3% to 81.2% in 1999, and from 13.7% to 97.91% in 2000).

* The general trend, in terms of number of channels, was upward. With the exception of ORF1 (19.3% in 1999 to 13.7% in 2000), all channels increased their allocation to works by independent producers over the reference period. A new channel on the market, ATV Privatfernseh, devoted most of its output to works by independent producers.

2. Proportion of recent works in independent production

* The average relative proportion of recent works for all channels was 46.07% in 1999 and 58.37% in 2000, representing an increase of 12.30 points. This type of work now represents the majority output.

* The general trend, in terms of number of channels, is rising. The four channels referred to in the report increased their proportion over the reference period. In 2000, all channels exceeded 50% (percentages ranging from 31.1% to 54.7% in 1999 and from 52.55% to 67.1% in 2000).

Belgium [57]

[57] Because two separate reports were sent, the channels of the French Community and those of the Flemish Community have been assessed separately.

French Community

1. Independent production

* The average allocation to European works by independent producers for all channels was 33.84% in 1999 and 28.22% in 2000, representing a drop of 5.62 points. Most of this drop was attributable to channel RTBF 2 (44.9% in 1999, 25% in 2000).

* Over the entire reference period, the compliance rate, in terms of number of channels, was 62.5%. Of a total of eight channels [58], five exceeded the minimum 10% allocation to works by independent producers (percentages ranging from 15.7% to 44.9% in 1999 and from 21.2% to 41.7% in 2000). The report gave no information on Liberty TV and two further Canal + channels.

[58] HSE, which is exclusively a teleshopping channel, and Canal Z, which specialises exclusively in economic and financial news, were not included.

* The general trend, in terms of number of channels, was downward over the reference period. Of a total of five channels for which full data were available, two increased their allocation to works by independent producers (Club et Canal +), while three showed a decreased (RTBF 1, RTBF 2, RTL Tvi).

2. Proportion of recent works in independent production

* The average relative proportion of recent works for all channels was 58.93% in 1999 and 57.17% in 2000, representing a 1.77 point drop over the reference period. No data were provided for five channels: RTBF 1, RTBF 2, Liberty TV and the two further Canal + channels mentioned in the report.

* There was an overall downward trend, in terms of number of channels, in the proportion allocated to recent works. Of a total of three channels mentioned in the report, one showed an increase and two a decrease. However, two channels exceeded 50% (proportions ranging from 16.6% to 93.7% in 1999 and from 13% to 94.8% in 2000.

Flemish Community

1. Independent production

* The average allocation to European works by independent producers for all channels was 55.44% in 1999 and 56% in 2000, representing a 0.56 point increase.

* For 1999, the compliance rate, in terms of number of channels, was 89%. Of a total of nine channels mentioned in the report, eight exceeded the minimum 10% allocation to works by independent producers (percentages ranging from 16% à 100%). Only Liberty TV.com, which bases its output on special-interest programmes, did not broadcast European works by independent producers.

* For 2000, the compliance rate, in terms of number of channels, was 70%. Of a total of ten channels mentioned in the report, seven exceeded the minimum of 10% (percentages ranging from 16% to 100%). No data were supplied for two channels. Only Liberty TV.com broadcast no European works by independent producers.

* There was an overall upward trend in terms of number of channels. Of a total of eight channels for which full data were available for the reference period, five increased their allocation to European works by independent producers and three remained stable.

2. Proportion of recent works in independent production

* The average relative proportion of recent European works by independent producers for all channels of all types was 78.67% in 1999 and 80.75% in 2000, representing a 2.08 point increase.

* There was an overall upward trend, in terms of number of channels, in the proportion allocated to recent works. Of a total of eight channels for which full data were available, four showed an increase, three were stable (two at very high levels) and one showed a (minor) decrease.

German-speaking Community: no report was received from the competent authorities.

Germany

1. Independent production

* The average allocation to European works by independent producers for all channels was 46.30% in 1999 and 46.72% in 2000, representing a 0.42 point increase.

* For 1999, of a total of 23 channels [59], 17 exceeded the minimum of 10% laid down in Article 5 of the Directive. No data were provided in respect of two channels. The following four channels failed to meet this proportion: 13th Street (4%), Studio Universal (2%), VIVA (2%), VIVA 2 (0%). The compliance rate, in terms of number of channels of all types, was 74% in 1999. For 2000, 17 channels exceeded the minimum 10% proportion. No data were supplied for two channels. The following five channels failed to meet the minimum proportion: 13th Street (6%), Phoenix (7.53%), Studio Universal (5%), VIVA (3%), VIVA 2 ( 0%). The compliance rate, in terms of number of channels of all types, was 71% in 2000.

[59] In contrast to the previous report (period 1997-1998), Deustche Welle TV was not covered in the document received for the whole of the reference period.

* The general trend, in terms of number of channels, was upward overall. Of a total of 21 channels for which full data were available, 10 increased the proportion allocated to works by independent producers, six remained stable (including three at 100%) and five showed a slight reduction.

2. Proportion of recent works in independent production

* The average relative proportion of recent works for all channels was 60.27% in 1999 and 64.37% in 2000, representing a 4.11 point increase over the reference period.

* The general trend, in terms of number of channels, in the proportion allocated to recent works, was upward overall. Of a total of 21 channels for which full data were available, ten showed an increase, six were stable and five were decreasing.

Denmark

1. Independent production

* The average allocation to European works by independent producers for all channels was 40.20% in 1999 and 58.86% in 2000, representing an 18.66 point increase.

* Over the entire reference period, the compliance rate, in terms of number of channels, was 100%. All the channels mentioned in the report exceeded the minimum of 10% allocation to works by independent producers (percentages ranging from 12% to 87% in 1999 and from 14% to 99% in 2000).

* There was an overall upward trend in terms of number of channels. Over the reference period, three channels increased their allocation to works by independent producers, one remained stable and the other showed a slight reduction. There were also two new entrants to the market, both with very high proportions (over 80%).

2. Proportion of recent works in independent production

* The average relative proportion of recent European works by independent producers for all channels was 81.4% in 1999 and 75.43% in 2000, representing a 5.97 point drop. With the exception of a new market entrant (TV BIC+) in 2000, all channels exceeded 50% (with proportions ranging from 63% to 100% in 1999 and from 70% to 100% in 2000).

* The general trend, in terms of number of channels, in the allocation to recent works, was upward overall. Of a total of five channels for which full data were available, two showed an increase, one was stable (at 100%) and two showed a decline. There were two new entrants to the market in 2000 (with percentages ranging from 25% to 93%).

Greece

1. Independent production

* The average allocation to European works by independent producers for all channels was 21.17% in 1999 and 20.94% in 2000, representing a drop of 0.23 points. This slight decline was attributable, in the main, to Star channel (46% in 1999, 12% in 2000).

* In 1999, of a total of 11 channels, 10 exceeded the minimum of 10% laid down in Article 5 of the Directive. Only Seven TV (Nea Radiofoniki Kai Tileoptiki Ltd.) failed to do so (5.51%). No data were provided for Alter channel. In 2000, of a total of 12 channels, 11 exceeded the minimum of 10%. No figures were provided for Alter channel. The compliance rate, in terms of number of channels of all types, was 91% in 1999 and 92% in 2000 (proportions allocated by individual channels ranging from 5.51% to 46% in 1999 and from 12% to 35.8% in 2000).

* There was an overall upward trend in terms of number of channels. Of a total of ten channels for which full data were available, four had increased their allocation to works by independent producers, three were stable and two (Star and Net) showed a reduction. Added to this was a new channel, Tempo (56% in 2000).

2. Proportion of recent works in independent production

* The average relative proportion of recent European works by independent producers for all channels was 45.54% in 1999 and 40.15% in 2000, representing a drop of 5.40 points. ERT 3 and Sky's allocation to this type of work was relatively low in 1999 (below 10%). No figures were provided for Alter channel for the entire reference period.

* There was an overall upward trend in terms of number of channels. Of a total of ten channels for which full data were available, five showed an increase and five a decrease. Added to this, however, was the new channel, Tempo, which entered the market in 2000 (44.7% recent works in 2000).

Spain

1. Independent production

* The average allocation to European works by independent producers for all channels was 36.44% in 1999 and 40.20% in 2000, representing a 3.76 point increase.

* For 1999, the compliance rate, in terms of number of channels, was 95%. Of a total of 40 channels, only two had an allocation to works by independent producers below 10%: AXN (7.90%) and Nichelodeon (0%). For 2000, with the number of channels increasing (five additional channels), the compliance rate was 96%. Of a total of 45 channels, two were below the minimum proportion: AXN (7.5%) and Studio Universal (9.13%).

* There was an overall upward trend in terms of number of channels. Of a total of 40 channels for which full data were available, 22 increased their percentage allocation to works by independent producers, two were stable (one at 100%) and 16 showed a reduction. This trend was reinforced by the arrival of five new channels on the market.

2. Proportion of recent works in independent production

* The average relative proportion of recent European works by independent producers for all channels was 20.80% in 1999 and 24.82% in 2000, representing a 4.02 point increase over the reference period. The following series of channels had a relatively low rate (below 10%): TCM, AXN, Cine Paraiso (1999 only), Alucine, Hispavision, Nostalgia, Cinemania (1999 only), Disney Channel (1999 only), Nichelodeon, Calle 13, Studio Universal (1999 only), Cine 600, Cine Classic Espana, Canal 33, Telemadrid.

* There was an overall upward trend in terms of the number of channels of all types. Of a total of 40 channels for which full data were available for the reference period, 26 showed an increase, one was stable, 12 showed a reduction and one remained at zero. Four out of the five new entrants on the market in 2000 reinforced this trend (with percentages ranging from 25.70% to 47.2%).

France

1. Independent production

* The average allocation to European works by independent producers [60] for all channels of all types was 59% in 1999 and 59.26% in 2000, representing an increase of 0.26 points.

[60] In the case of the terrestrial channels, this means the percentage of independent production calculated on the basis of the company's turnover.

* In 1999, of a total of 54 channels, 44 exceeded the minimum 10% proportion. No data were provided for ten channels. All channels for which data were provided exceeded the minimum proportion. In 2000, of a total of 59 channels, 54 exceeded the proportion. No data were given for four channels. Only Forum Planète (0%) showed no European works by independent producers (50% in 1999). The compliance rate, in terms of number of channels, was 81% in 1999 and 92% in 2000, representing a considerable increase seen in the context of the arrival of four new channels over the reference period.

* There was an overall upward trend in terms of number of channels. Of a total of 41 channels for which full data were available, 18 increased their allocation to works by independent producers, six were stable (four at 100%) and 17 showed a reduction. Added to this, four of the five new entrants to the market devoted a significant allocation to this type of work (percentages ranging from 25% to 100%).

2. Proportion of recent works in independent production

* The average relative proportion of recent European works by independent producers, for all channels of all types, was 60.70% in 1999 and 59.73% in 2000, representing a slight drop of 0.98 points over the reference period.

* Three channels allocated less than 10% to recent European works by independent producers: Cinétoile in 1999 (1%), Forum Planète (7%) and Ciné Cinéma (0%) in 2000.

* There was a general upward trend in terms of number of channels. Of a total of 36 channels for which full data were available for the reference period, 17 showed an increase, 9 were stable (seven at 100%) and 10 showed a reduction. Four of the five new entrants on the market broadcast this type of work (percentages ranging from 41% to 64% for 2000).

Ireland

1. Independent production

* The average allocation by all channels to European works by independent producers was stable at 29% over the reference period.

* All four channels exceeded the minimum proportion of 10% laid down in Article 5 of the Directive (percentages ranging from 15% to 65% in 1999 and from 18% to 60% in 2000). The compliance rate, in terms of number of channels, was therefore 100% for the whole of the reference period.

* There was an overall upward trend in terms of number of channels. Of a total of four channels mentioned in the report, two increased their allocation to works by independent producers, one was stable and the other showed a reduction.

2. Proportion of recent works in independent production

* The average relative proportion of recent European works was stable at 100% over the reference period.

* The general trend, in terms of number of channels, was stable over the reference period. Recent European works accounted for the entire output of all four channels.

Italy

1. Independent production

* The average allocation to European works by independent producers [61] for all channels was 68.05% in 1999 and 63.85% in 2000, representing a 4.20 point drop over the reference period.

[61] The report makes a distinction between terrestrial and satellite channels. In the case of the former, the report explains that under Article 2(3) of Law No 122/98 transposing the "Television without Frontiers" Directive, national television broadcasters have to broadcast a minimum of 10% (20% for RAI) of European works by independent producers, and that under Article 2(5) of this Law, that they must invest, through purchase or production, not less than 10% (20% for RAI) of their net annual advertising revenue in European works, including those created by independent producers. The data on European works by independent producers were supplied directly by the national broadcasters on the basis of self-certification, as were the data on investment obligations. In the case of the satellite channels, the report explains that they have no obligation under national legislation to allocate 10% of their broadcasting time to European works by independent producers, but did have to allocate at least 10% of their net advertising revenue to the production or purchase of European audiovisual programmes, including those by independent producers.

* For 1999, the compliance rate, in terms of number of channels, was 79%. Of a total of 38 channels, only one (Stream Verde) made no allocation to works by independent producers. No data were supplied for eight channels. In 2000, the compliance rate was 70%. Of a total of 43 channels, only two (Stream Verde, Fox Kids) made no allocation to works by independent producers. No figures were supplied for 11 channels.

* The general trend [62], in terms of number of channels, was upward overall. Of a total of 29 channels for which full data were available, 11 increased their allocation to works by independent producers, 10 were stable and 8 showed a decrease.

[62] This should be seen in perspective, in that the figure of "100%" quoted in the report indicates that the broadcasters invested amounts in excess of their advertising revenue in the acquisition or production of European works, in accordance with Italian legislation. The channels with no advertising revenue have no investment obligation (provision not applicable).

2. Proportion of recent works [63]

[63] N.B.: the figures forwarded by the Italian authorities were calculated, in accordance with Article 2 of Law 122/98, in relation to European works overall, whether or not by independent producers. It is therefore not possible to determine the actual proportion allocated to works by independent producers within the meaning of the final sentence of Article 5 of the "Television without Frontiers" Directive.

* The average relative proportion of recent European works (overall figure, proportion of works by independent producers within the meaning of Article 5 of the Directive not specified [64]) for all channels was 58.45% in 1999 and 61.81% in 2000, representing a 3.36 point increase over the reference period.

[64] Cf. note above.

* The following channels had a relatively low proportion (below 10%) of recent European works: Coming Soon TV, CineCinema 1 (1999 only), CineCinemas 2 (1999), CineClassics (1999), Stream Verde.

* The general trend, in terms of number of channels of all types, was upward overall. Of a total of 25 channels for which full data were available over the reference period, 20 showed an increase, two were stable and two showed a decline.

Luxembourg

1. Independent production

* The average allocation to European works by independent producers for all channels was 29.93% in 1999 and 28.68% in 2000, representing a 1.25 point drop.

* In 1999, of a total of ten channels, seven exceeded the minimum proportion of 10% laid down in Article 5 of the Directive. No data were supplied for two channels. Nordliicht TV was alone in broadcasting no works of this type. The compliance rate, in terms of number of channels, was 70%. In 2000, of a total of 11 channels, 7 exceeded the minimum proportion of 10% laid down in Article 5 of the Directive. No figures were supplied for two channels. The two channels broadcasting no European works by independent producers were Liberty TV and Nordliicht TV. The compliance rate, in terms of number of channels, was 64% in 2000.

* The general trend, in terms of number of channels, was downward overall. Of a total of eight channels for which full data were available, three increased their percentage allocation to works by independent producers, one was stable (but at zero) and four showed a reduction.

2. Proportion of recent works in independent production

* The average relative proportion of recent European works by independent producers for all channels was 13.48% in 1999 and 12.34% in 2000, representing a very slight decline of 1.34 points over the reference period. No data were supplied for three channels over the reference period.

* Recent European works accounted for a proportion below 10% for the following channels: RTL Télé Lëtzebuerg (almost 10% in 2000), RTL9, Club RTL, Liberty TV, Nordliicht TV.

* The general trend, in terms of number of channels, was upward overall. Of a total of seven channels for which full data were available over the reference period, four showed an increase, two a decrease and one remained at zero.

Netherlands

1. Independent production

* The average allocation to European works by independent producers for all channels remained stable at 52% over the entire reference period.

* In 1999, of a total of 18 channels, 15 exceeded the minimum proportion of 10% laid down in Article 5 of the Directive. No data were supplied for three channels [65]. The compliance rate, in terms of number of channels, was 83%. In 2000, of a total of 21 channels, 18 exceeded this proportion, and no data were supplied for two [66]. Only Net 5 failed to reach the minimum level of 10% in 2000 (7.6%). The compliance rate, in terms of number of channels, was 86%.

[65] Owing to the difficulty in determining the origin of certain musical works such as video clips.

[66] Owing to the difficulty in determining the origin of certain musical works such as video clips.

* There was an overall upward trend in terms of number of channels of all types. Of a total of 15 channels for which full data were available, five increased their allocation to works by independent producers, two were stable (at 50% and 85%) and eight showed a reduction. There were also three new entrants to the market, whose allocation to European works by independent producers varied between 25% and 100%.

2. Proportion of recent works in independent production

* The average relative proportion of recent European works for all channels of all types was 80% in 1999 and 78% in 2000, representing a 2 point drop over the reference period.

* The general trend, in terms of number of channels, was upward overall. Of a total of 17 channels for which full data were available for the reference period, six showed an increase, five were stable (including four with a level of or approaching 100%) and six showed a decline. There were also three new entrants to the market devoting a considerable proportion of their output to recent works (percentages ranging from 30% to 99%).

Portugal

1. Independent production

* The average allocation to European works by independent producers for all channels was 24.96% in 1999 and 31.13% in 2000, representing a 6.18 point increase over the reference period.

* In 1999, of a total of seven channels, six exceeded the minimum proportion of 10% laid down in Article 5 of the Directive. In 2000, of a total of nine channels, eight exceeded this threshold. The compliance rate, in terms of number of channels, was 86%. Sport TV was alone in failing to meet the minimum proportion in 1999 (5.5%) and 2000 (3.9%). The compliance rate, in terms of number of channels of all types, was 86% in 1999 and 89% in 2000.

* The general trend, in terms of number of channels, was downward overall. Of a total of seven channels for which full data were available, two increased the proportion of their allocation to works by independent producers and five registered a reduction. In addition, there were two new channels on the market which made a considerable allocation to independent production (ranging from 38% to 58% in 2000).

2. Proportion of recent works in independent production

* The report states that Portuguese legislation provides for a stricter system than that laid down by Article 5 of the Directive and reproduces the figures quoted for transmission of works by independent producers. Under Portuguese TV legislation, broadcasters must allocate at least a tenth of their air time to European works by independent producers (first condition) which have been produced within the last five years (second condition). [67]

[67] In this regard, the report's figures are strictly identical to those of point 1 (independent production).

* These two conditions should theoretically mean that all European works by independent producers referred to in point 1 are recent within the meaning of Article 5 of the Directive. In practice, however, it is still essential to determine the proportion actually allocated [68] to recent works by independent producers.

[68] In order to evaluate the "adequate proportion" in the terms of the final sentence of Article 5 of the Directive.

Finland

1. Independent production

* The average allocation to European works by independent producers for all channels was 23% in 1999 and 29% in 2000, representing a 6 point increase over the reference period.

* Over the reference period as a whole, all four channels referred to in the report exceeded the minimum proportion of 10% laid down in Article 5 of the Directive (percentages ranging from 17% to 32% in 1999 and from 23% to 38% in 2000).

* The general trend, in terms of number of channels, was upward overall. Three channels increased their allocation to works by independent producers and one decreased it very slightly.

2. Proportion of recent works in independent production

* The average relative proportion of recent European works was 80% in 1999 and 80.25% in 2000, representing a 0.25 point increase over the reference period.

* The general trend, in terms of number of channels, was stable. Of a total of four channels, one showed an increase, two were stable (at 100%) and one fell slightly, though still representing a majority proportion.

Sweden

1. Independent production

* The average allocation to European works by independent producers for all channels was 27.94% in 1999 and 34.63% in 2000, representing an increase of 6.7 points.

* In 1999, of a total of 21 channels, ten exceeded the minimum proportion of 10% laid down in Article 5 of the Directive. No data were supplied for nine channels. The channels "6" [69] and NollEttan Television made no allocation to works of this type. CineCinemas channel allocated less than 10% (5.75%). The compliance rate, in terms of number of channels, was 48% in 1999. In 2000, of a total of 26 channels, 15 exceeded this threshold. No data were supplied for ten channels. NollEttan Television was the only channel not to broadcast European works by independent producers. The compliance rate, in terms of number of channels, was 58% in 1999.

[69] However, this channel reached 50% in 2000.

* The general trend, in terms of number of channels, was stable overall. Of a total of 11 channels for which full data were available, two increased their allocation to works by independent producers, two were stable and seven showed a decrease. However, this reduction must be seen in relative terms, as five new channels appeared on the market which varied in the extent of their allocation to independent productions (proportions ranging from 17% to 100% in 2000).

2. Proportion of recent works in independent production

* The average relative proportion given over to recent European works was 53.97% in 1999 and 65.40% in 2000, representing an 11.43 point increase over the reference period. The proportion was particularly low in the case of the following channels: TV 4 (2% in 1999) [70], "6" (0% in 1999 and 2000), Cine Cinemas (0% in 1999), NollEttan Television (0% in 1999).

[70] However, this channel reached 78.15% in 2000.

* The general trend, in terms of number of channels, was upward overall [71]. Of a total of ten channels for which full data were available over the reference period, two showed an increase, three were stable (including two at 100%) and five showed a decrease. In addition, however, four of the five new channels focused their efforts to a large extent on recent works (rates ranging from 85% to 100% in 2000).

[71] This is a highly relative assessment in that no information was supplied for a large number of channels (9 channels in 1999 and 12 in 2000).

United Kingdom

1. Independent production

* The average allocation to European works by independent producers for all channels of all types was 28.41% in 1999 and 30.96% in 2000, representing an increase of 2.55 points.

* In 1999, of a total of 97 channels concerned by Article 5 of the Directive [72], 73 exceeded the minimum proportion of 10% laid down in that Article. The 24 channels which failed to reach this proportion were: BBC News 24, Bravo, Disney Channel UK (Disney Channel, Disney Channel +1, Playhouse Disney, Toon Disney), Front Row (including Barker Channel), Front Row (excluding Barker Channel), GSB Men + Motors/Breeze, National geographic, Nickelodeon Nordic, Play UK, Rapture, Reality TV, SC4C2, Sci-Fi Channel, Sky Movie Max, Sky News, Sky One, Sky Premier, TCC Nordic, TNT Classical Movies, TV3 Norway, UK Arena.

[72] This did not include the exempted channels (51 channels) or those which were not operational over the period concerned.

* In 2000, of a total of 116 channels concerned by Article 5 of the Directive [73], 86 exceeded this proportion. The 28 channels which failed to achieve the minimum were: 3 + Denmark, BBC News 24, Biography Channel, Dating Channel, Bravo, Disney Channel UK (Disney Channel, Disney Channel +1, Playhouse Disney, Toon Disney), Film Four (9%), Front Row (including Barker Channel), Front Row (excluding Barker Channel), GSB Men + Motors/Breeze, History Channel, National Geographic, Nickelodeon Nordic, Reality TV, SC4C2, Sci-Fi Channel, Sky Movie Max, Sky News, Sky One, Sky Premier, TV3 Denmark, TV3 Norway, TV3 Sweden, UK Drama, V+ Norway.

[73] This did not include the exempted channels (51 channels) or those which were not operational over the period concerned.

The compliance rate, in terms of number of channels of all types, was 75.26% in 1999 and 74.1% in 2000.

* The general trend, in terms of number of channels, was upward overall. Of a total of 93 channels for which full data were available, 47 increased their allocation to works by independent producers, 9 were stable and 37 showed a decrease. Added to this positive trend were the new market entrants, who allocated a variable proportion to this type of work.

2. Proportion of recent works in independent production

* The average relative proportion given over to recent European works by independent producers for all channels was 22.41% in 1999 and 25.17% in 2000, representing a 2.76 point increase over the reference period.

* The proportional allocation to recent European works by independent producers by the following channels was particularly low: 3 + Denmark, BBC News 24, Biography Channel, Dating Channel, Bravo, Disney Channel UK (Disney Channel, Disney Channel +1, Playhouse Disney, Toon Disney), Front Row (including Barker Channel), Front Row (excluding Barker Channel), GSB Men + Motors/Breeze, History Channel, National Geographic, Nickelodeon Nordic, Reality TV, SC4C2, Sci-Fi Channel, Sky Movie Max, Sky News, Sky One, Sky Premier, TV3 Denmark, TV3 Norway, TV3 Sweden, UK Drama, V+ Norway.

* The general trend, in terms of number of channels, was upward overall. Of a total of 92 channels for which full data were available for the reference period, 44 showed an increase, 14 were stable and 34 in decline. Added to this positive trend were the new market entrants, who varied in the proportion they allocated to recent works.

1.3 General conclusion

For the reference period (1999-2