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COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 13.07.1998 
COM(1998) 441 final 
REPORT FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND 
THE ECONOMIC AND SOCIAL COMMITTEE 
FINAL ANNUAL REPORT 
ON PROGRESS IN IMPLEMENTING 
THE ACTION PLAN FOR THE INTRODUCTION OF 
ADVANCED TELEVISION SERVICES IN EUROPE 

Joint Introduction 5 
JOINT EXECUTIVE SUMMARY 7 
SECTION A: BROADCASTING 11 
1. Management of the action plan 11 
1.1. Call 96/1 11 
1.2. Call 97/1 15 
1.3. Evaluation methodology 19 
1.4. How Calls 96/1 and 97/1 build on earlier activity 19 
2. Market impact 22 
2.1. Sales of 16:9 TV sets 22 
2.2. The start of digital television services and 16:9 - First phase 23 
3. Future prospects for 16:9 25 
3.1. Second phase of digital TV and 16:9 25 
3.2. Digital Versatile Disk 26 
3.3. World Cup Football in 16:9 27 
3.4. International comparisons 27 
3.5. The Action Plan bows out 28 
SECTION B: PROGRAMME PRODUCTION 31 
4. Introduction 31 
4.1. The Action Plan, a Community instrument for the audiovisual sector 31 
4.2. The 16:9 market 31 
4.3. The Action Plan, an integral part of the Community audiovisual policy 32 
4.4. Scope of the Action Plan 32 
5. 16:9 Action Plan 1993-97 33 
5.1. Overall results expressed in Ecu and hours: 33 
5.2. Proposals (production and remastering projects) received under the Action Plan 34 
5.3. The professionals involved 35 
6. Results of the Action Plan 40 
6.1. New productions 40 
6.2. Remastering 44 
7. Conclusions - programme production 45 
7.1. Expanding the audiovisual catalogues 45 
7.2. A partnership for a dynamic 16:9 market 46 
7.3. The programmes industry invests in the future at European level 46 
7.4. International competition and innovation 46 
7.5. Integration of new technologies into the European audiovisual industry 46 
JOINT INTRODUCTION 
The Action Plan for the Introduction of Advanced Television Services in Europe was 
established by the Council Decision of 22 July 19931 with the objective of ensuring the 
accelerated development of the market for advanced television services in Europe using 
the wide-screen 16:9 format. 
The approach is based on stimulating the broadcasting and programme production 
elements in the value chain so that all the different actors and elements in the television 
services chain necessary to deliver 16:9 services to the home can fall into place. This is a 
condition for achieving the accelerated development of the market for 16:9 services. 
Community funds of up to 228 MECU were foreseen for the period mid-1993 until mid-
1997 in order to contribute towards the additional costs of introducing the 16:9 format. 
Broadcasters and Programme Producers were entitled to apply for this funding through 
calls for proposal. 
The Action Plan Decision requires the presentation of a report annually to the Council, 
the European Parliament and the Economic and Social Committee on the activities of the 
preceding year.2 This Communication presents the Report for 1996 and 1997. 
This Annual Report therefore focuses on the activities carried out during 1996 and 1997 
and the results to date in achieving the objectives of the Plan. Section A deals with the 
Broadcasting part (budget line B3-2014 - managed by DG XIII) and Section B deals with 
the Programme Production part (budget line B3-2013 - managed by DG X). Activities 
up to the end of 1995 were covered in previous reports.3 
This is the final Annual Report on the activities of this four year Action Plan. The 
Commission will publish an evaluation report in 1999, following the conclusion of the 
Action Plan's implementation in December 1998. This will assess the Action Plan's 
impact on the market and upon the sectors concerned. 
1 93/424/EEC, O.J. No. L 196/48, 5.8.93 
2 Ibid., Art. 6. 
3 COM (95) 263 final, 16.06.95; COM (96) 346 final, 26.07.96 
M-5_ Q 
Final Annual Report 
on Progress in Implementing the Action Plan for 
the Introduction of Advanced Television Services in Europe 
JOINT EXECUTIVE SUMMARY 
Broadcasting 
Impact 
During the last two years of the Action Plan's active life, the 16:9 set market grew 
strongly. Sales of 16:9 sets quadrupled from 220,000 in 1995 to an estimated 800,000 in 
1997. The installed base of 16:9 sets had reached around 2 million units by the end of 
1997. The 16:9 format is best established in the markets which started transmitting 16:9 
early: France, Germany, Belgium, Netherlands. 
Digital television services started in Europe during 1996, including 16:9 transmissions. 
Since the first wave of digital television services are mostly pay TV bouquets, services 
are delivered via decoders connected to existing TV sets. Without an installed base of 
16:9 sets, pay TV operators would therefore have had little reason to include 16:9 
transmissions. However, in those Member States where broadcasters have taken the 
opportunity to build an installed base of 16:9 sets ready for the start of digital services, 
the Action Plan has ensured that the market will provide digital 16:9 services. The 
overlap between the profile of pay TV subscribers and purchasers of 16:9 sets suggests 
that market convergence between digital TV and 16:9 is being achieved. The 16:9 format 
is set to surf the crest of the digital wave. 
Output 
The broadcasting part of the Action Plan supported 36 broadcasters, contributing towards 
the transmission of 9,900 hours of broadcasting through Call 96/1 and Call 97/1. Sharply 
reduced budgets meant that this total was much lower than in 1995 when the Action Plan 
supported nearly 21,000 hours. The lion's share of Action Plan hours (66%) was 
allocated to the so called "late starting markets" , those without national 16:9 services on 
1.1.95. The Commission reserved what little funding could be allocated in the 50% 
category to broadcasters in Member States where the 16:9 market was still blocked, 
either because there were too few 16:9 services, or because broadcasters were waiting to 
start digital services before transmitting in 16:9. 
By its close, the Action Plan had involved broadcasters in all Member States. Finland had 
been the last Member State without 16:9 services4, but the first Finnish broadcaster 
started transmitting in 16:9 following Call 96/1, joined by others after Call 97/1. These 
last two calls for proposal also enabled further new services to be funded in Italy, United 
Kingdom, Netherlands, Belgium, Portugal. 
Programme Production 
The production part of the Action Plan funded 5,633 hours of 16:9 programmes through 
Call 96/1 and Call 97/1. About 80% of these hours were new productions and 20% were 
remasterings of existing programmes into the 16:9 format. The steady decrease in the 
number of hours allocated to remastering (For instance in 1994 remastering accounted for 
40% of the total allocated hours of programmes) implies that a majority of the 50% and 
80% countries have been focusing on new productions as opposed to remastered 
programmes, which have been typically used by broadcasters just starting to transmit in 
16:9 for the first time. The transition from remastering of existing programmes to 
producing new programmes in 16:9 is a very positive indication of the success and 
permanence of the 16:9 format with producers and broadcasters. 
Luxemburg has no national broadcaster transmitting 16:9, but other countries' 16:9 services are 
available via terrestrial, cable and satellite. 
The significant increase in 1996 and 1997 in both the number of proposals received and 
the number of applicants also showed the high level of awareness achieved by the Action 
Plan among European independent producers and broadcasters. Producers responded to 
Calls 96/1 and 97/1 by applying for a total of approximately 46,000 hours of 
programmes, while the equivalent total number of hours applied for in the five previous 
calls from 1993 up to and including 1995 was 43,000. These figures show that the Action 
Plan has awakened the European programmes industry to the need for renewal and to the 
necessity to prepare for digital markets which will demand an ever increasing quantity of 
16:9 programmes. 
It is also very important to stress that the last two calls financed more than 3,000 hours of 
stock programmes, giving a major boost to European audiovisual catalogues, which are 
the primary business asset of the programme production industry. 
SECTION A: BROADCASTING 
1. MANAGEMENT OF THE ACTION PLAN 
During the period covered by this report, there were two joint calls covering both 
broadcasting and programme production, Call 96/1 and Call 97/1. The following sections 
will review the broadcasting part of these two calls. 
As with Calls 95/1 and 95/3, broadcasters in Member States without any 16:9 services, or 
with limited 16:9 coverage, could benefit from funding at a higher rate - 80% of the 
hourly flat-rates - rather than 50%. The Council Decision reserved 68 MECU for these 
"late starting markets" for allocation after 1.1.95. The hourly flat-rates paid by the 
broadcasting part of the Action Plan were unchanged.5 
1.1. Call 96/1 
Response 
In response to the call for proposals published in February 1996,6 broadcasters 
requested funding equivalent to 55,500 hours of broadcasting, equivalent to nearly 
90 MECU of funding. Demand was divided much more equally between 
broadcasters in the "late starting markets" (43%) and those in the driver markets 
(57%) than in 1995. Budgetary resources available for the call were however less 
than half what was available to earlier calls, when it had been possible to fund up to 
21,000 hours of transmissions. It should also be noted that the 80% funding 
possibility reduced the number of hours of broadcasting that could be funded; each 
hour cost the Action Plan more. 
The main features of the call were as follows: 
42 proposals were received, of which two were ruled ineligible for the 
broadcasting call, following consultations with the independent external 
evaluators. 
5 Either 50% or 80% of the rates set out in para 4 of the annex to the Council Decision: 6000 ECU per 
hour for the first fifty hours and 2500 per hour for each subsequent hour. See Annex A below. 
6 OJNo. C 26, 1.2.96, p.4 
AO - 11 
One of these proposals was subsequently reassigned to the programme 
production call; another was ruled ineligible for evaluation because it 
contained none of the information requested in the call for proposals. 
23 broadcasters funded by earlier calls re-applied. 
exactly half the proposals were from 80% countries. 
the average number of hours requested per project was 1611 hours. 
Results of Call 96/1 
Tables la, lb and lc show the final allocation of funding following Call 96/1, with 
new entrants in italics. 
Table la 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 96/1 
50% funding 
Broadcaster 
1. FRANCE Multivision 
France total 
2. GERMANY NDR 
Germany total 
3. NETHERLANDS NOS 
Netherlands total 
4. SPAIN Telemadrid 
Television Valenciana 
Spain total 
5. UK BskyB 
UK total 
Total zone 50% Code 
FR5 
A2 
N1 
E2 
E3 
R2 Requested hours 
2.340 
2.340 
150 
150 
804 
804 
208 
276 
484 
400 
400 
4.178 Allocated hours 
150 
150 
100 
100 
400 
400 
100 
100 
200 
400 
400 
1.250 
12 
Table lb 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 96/1 
80% funding 
6. GREECE 
Greece total 
7. SWEDEN 
Sweden total 
8. ITALY 
Italy total 
9. IRELAND 
Ireland total 
10. AUSTRIA 
Austria total 
11. FINLAND 
Finland total Broadcaster 
ERT 
ERT3 
Channel Seven X 
Nethold Hellas - Filmnet 
TV 1000 
Syntesia 
Telenuovo 
Videolina 
Nueva Antenna Tre 
Rete7 
Telemontecario 
Telepadova 
Teleregione 
Videomusic 
RTE 
ORF 
TV Tampere 
Total zone 80% Code 
G2 
G3 
G1 
G4 
S1 
IT4 
IT5 
IT9 
IT1 
IT3 
IT6 
IT7 
IT8 
IT2 
AU1 
F1 Requested hours 
400 
810 
2.375 
1.374 
4.959 
3.168 
3.168 
900 
1.620 
1.360 
1.400 
2.702 
1.500 
250 
120 
1.000 
10.852 
500 
500 
430 
430 
170 
170 
20.079 Allocated hours 
200 
200 
300 
500 
1.200 
500 
500 
50 
100 
50 
200 
200 
500 
200 
120 
500 
1.920 
365 
365 
400 
400 
170 
170 
4.555 
13 
Table le 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 96/1 
Total allocation 
Requested hours Allocated 
hours 
Grand total=24 Projects (80 % + 50 %) 24.257 5.805 
The main elements underlying this allocation were as follows: 
The Commission and the Member State Committee agreed a funding period 
of two years; 
A reduced budget meant that only new entrants were funded under the 50% 
funding regime and the majority of successful proposers received far less than 
they had requested; 
That broadcasters in the 80% countries must be well-served (83% of total 
funding awarded). 
The reduced budget meant that it was no longer possible to maintain continuity of 
funding for a number of excellent broadcasting projects which had been funded 
under preceding calls. The Commission would have preferred to phase out funding 
more gradually, but there was no room for manoeuvre so the final allocation 
involved difficult decisions. However, the Commission had clearly signalled to the 
Member State Committee in 1995 that there would be very little funding left for 
projects in the 50% countries. 
Apart from funding the three small Italian regional broadcasters funded earlier under 
Call 95/3 again, Call 96/1 funded six more Italian broadcasters for the first time. TV 
Internazionale and Videomusic - subsequently renamed TMC 1 and TMC 2 - are 
national channels controlled by the Cecchi Gori group. The regional channels - such 
as Nuova Antenna Tre - are much larger than the first group funded by call 95/3. 
14 
Based on experience elsewhere, it would have been reasonable to expect the public 
broadcaster RAI to initiate 16:9 broadcasting in Italy. However, the first 16:9 
transmissions in Italy were made by small regional broadcasters. The Action Plan 
had supported these projects through Call 95/3 because the Commission felt that a 
start needed to be made in Italy, even if it was symbolic, and geared to promoting 
16:9 towards other broadcasters as much as towards the regional audiences covered. 
Certain Italian members of the European Parliament had also expressed concern 
about Italy's lack of participation in the Action Plan.7 The entry of two national 
channels and some important regional broadcasters through call 96/1 vindicated the 
approach adopted under Call 95/3. 
Wide-screen transmissions in Finland also started following Call 96/1, since TV 
Tampere, a regional station, had applied successfully. 
1.2. Call 97/1 
Response 
This was the last call under this Action Plan. In response to the call for proposals 
published in October 19968, broadcasters requested funding equivalent to 69,247 
hours of broadcasting, equivalent to 120 MECU of funding. 
The main features of the call were as follows: 
67 proposals were received; three projects were reallocated to the programme 
production part of the call; 
31 broadcasters funded by earlier calls re-applied; 
Italian broadcasters submitted 32 proposals; 
the average number of hours requested per project was 1305 hours. 
7 Parliamentary Question No. 2649/95 by Mrs Marin; No. 2724/95 by Messrs. Podesta, Azzolini, 
Ligabue, Caligaris and Boniperti; 2736/95 by Mr Tatarella and 2754/95 by Mr Dell'Alba 
8 OJNo.C 288, 1.10.96, p. 46 
15 
Results 
Tables 2a, 2b and 2c show the final allocation of funding following Call 97/1, with 
new entrants in italics. 
Table 2a 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 97/1 
50% funding 
Broadcaster 
1. SPAIN Euskal Telebista 
RTVE 
TV3 de Catalunya 
TV de Galicia 
Spain total 
2. PORTUGAL RTP 
Portugal total 
3. UK BBC 
UK total 
4. NETHERLANDS NOS 
Netherlands total 
5. BELGIUM VTM 
Belgium total 
Total Zone 50 % Code 
E1 
E2 
E4 
E3 
P1 
R2 
N1 
B4 Requested hours 
300 
1500 
495 
400 
2695 
500 
500 
431 
431 
1000 
1000 
148,5 
148,5 
4.774,5 Allocated hours 
230 
300 
230 
230 
990 
450 
450 
400 
400 
110 
110 
36 
36 
1.986 
16 
Table 2b 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 97/1 
80% funding 
Broadcaster 
6. FINLAND MTV 
TV-Tampere 
YLE 
Finland total 
7. GREECE Nethold Hellas - Filmnet 
Greece total 
8. IRELAND RTE 
Ireland total 
9. ITALY Antenna Tre Veneto 
Nuova Antenna Tre 
Telepiu - Omega 
RAI 
Telenorba 
Italy total 
Total Zone 80 % Code 
F2 
F1 
F4 
G3 
11 
IT 23 
IT1 
IT 20 
IT 12 
IT 22 Requested hours 
300 
190 
70 
560 
968 
968 
300 
300 
1100 
700 
4138 
1200 
1746 
8884 
10.712 Allocated hours 
300 
130 
70 
500 
150 
150 
170 
170 
250 
150 
300 
350 
250 
1300 
2.120 
Table 2c 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 97/1 
Total allocation 
Requested hours Allocated hours 
Grand total=18 Projects (80 % +50 %) 15486,5 4.106 
The main elements underlying this allocation were as follows: 
a funding period of two years agreed by the Commission and the Member 
States; 
17 
an extremely limited budget of 7.8 MECU, down from 12.5 MECU in 1996; 
a final opportunity to ensure a good spread and balance of community funding 
across Member States, in line with market possibilities; 
in particular, opportunities to extend the number of services in Italy, Spain, 
Portugal and Finland; 
and to initiate digital 16:9 services in certain countries. 
In the 80% bloc, the roll-out of 16:9 in Italy and Finland were the most obvious 
highlights. 
The Finnish regional television station TV Tampere had already been successful in 
Call 96/1. The start of its 16:9 service generated considerable press interest. As in 
Italy, this was instrumental in attracting the interest of the main national channels, 
the public broadcaster YLE and its commercial competitor MTV. YLE is 
transmitting digital 16:9 programmes by satellite initially; terrestrial broadcasts will 
start as receiver equipment becomes available. 
Of the 32 Italian projects submitted, the restricted budget forced the Commission to 
focus only on those likely to achieve maximum market impact. The digital satellite 
services proposed by RAI and the pay TV operator Telepiu were clearly important. 
At the time of the allocation, the Commission believed these would achieve less 
impact on the TV set market than either analogue terrestrial or digital terrestrial 
services. However, co-location of a number of Italian broadcasters on to a so called 
common digital platform will create synergies, a bouquet effect that will carry more 
credibility than individual channels 16:9 transmissions. These should benefit the 
16:9 market. RAI's transmissions will be free-to-air 16:9 digital simulcasts of 
programmes in its main national services. The range of terrestrial 16:9 services is 
enhanced by the inclusion of two more important regional broadcasters, Telenorba 
and Antenna Tre Veneto. 
In the 50% bloc, RTVE's proposal for a terrestrial 16:9 service offered the 
possibility of much greater market impact than its earlier satellite service. The 
absence of 16:9 from RTVE's terrestrial services had limited the progress that 
regional broadcasters could make on their own. In concluding this contract, the 
Commission placed very high priority on promotion, which had been a major 
weakness of the satellite service. 
The selection of two projects showed up the limitations of a dogmatic approach to 
the distinction between 50% and 80% countries. Although individual broadcasters in 
Portugal and the United Kingdom had been successful in early calls - before 80% 
funding became possible on 1.1.959 - other broadcasters had not followed. Call 97/1 
was therefore a final opportunity to stimulate these "late starting" markets in the 
See Art 2.5, Council Decision 93/424/EEC of 22 July 1993 on an Action Plan for the Introduction of 
Television Services in Europe 
18 
50% category, in the interests of achieving "spread and balance" per the Council 
Decision. 
RTP, the Portuguese public broadcaster, submitted a high quality project of strategic 
importance. Theirs is only the second 16:9 service available in Portugal. The 
Commission believed it was important to provide further impetus in this market, 
again placing high priority on promotion. 
The BBC plans to transmit digital satellite and terrestrial services starting in 
summer 1998. It intends to transmit 30% of prime time in 16:9 within one year of 
starting digital transmissions. The BBC will be investing heavily in promotion; 
Action Plan funding will reinforce this activity. 
1.3. Evaluation methodology 
Evaluation procedures for both calls were unchanged from earlier years. An 
independent external consultancy assisted with the technical evaluation of projects. 
Their tasks were first to establish eligibility of proposals against the "project quality 
criteria" set out in the Council Decision; second to provide a ranking of the projects 
with particular emphasis on the likely attractiveness of the services to audiences; 
third, to identify omissions and weaknesses in the proposals so that the Commission 
could address these in contractual negotiations. 
The technical evaluations supplied important inputs into the Commission proposal 
for both calls. However, the "spread and balance" criteria were applied by the 
Commission exclusively before formulating its proposal to the Committee. The 
Technical Evaluators' Summary Reports were made available to the Member State 
Committee. 
1.4. How Calls 96/1 and 97/1 build on earlier activity 
As in earlier reports, the following series of maps show in graphic form how 16:9 
services have rolled out in Europe since the beginning of the Action Plan. The series 
has been updated to take into account the calls 96/1 and 97/1. The format has been 
changed so that each map shows the results of calls for proposal year by year, rather 
than being cumulative. The high number of broadcasters supported by the Action 
Plan over four years means that it is no longer feasible to display them all on one 
map. Once all Call 97/1 broadcasters have started transmissions, the Action Plan 
will have helped 63 broadcasters in all fifteen Member States to transmit in the 16:9 
format. 
19 
Figure 1 
Action Plan Broadcasting Call 93 
I I National 
|| || Regional 
SB Pan 
European 
France 
SnpCTviiion 
Figure 2 
Action Plan Broadcasting Call 94/1 
1 I National 
Regional 
Pan 
European 
RTVA TVS 
20 
Figure 3 
Figure 4 
21 
Figure 5 
Action Plan Broadcasting Call 97/1 
I I National 
II II Regional 
RTE 
TV da Gats 
El/BtHlTalBOm 
mvE 
TV3 de GBIbfe 
HTP TVTBmpeB 
MTV3 
YLE 
[Nstnod Btaa 
Flmnat 
2. MARKET IMPACT 
2.1. Sales of 16:9 TV sets 
The 1995 report demonstrated a close correlation between cumulative sales of 16:9 
sets and the number of 16:9 hours broadcast10. The report also showed that the core 
16:9 markets were the ones that had started earliest, namely France, Germany and 
the Benelux countries, the so called "pioneer" markets. 
Table 3 shows that these countries are still the main 16:9 markets in Europe and 
that the installed base is at least 1.7 million. These figures are conservative. Other 
estimates of the European installed base of 16:9 TV sets are as high as 2.4 million.11 
Preliminary forecasts suggest that annual European sales will reach at least 3.5 
million in 2000. 
10 See COM (96) 346 final, figure 4, p. 16 in particular. 
11 Advanced Television Markets, October 1997. Strategy Analytics estimate 2.2m. These European 
estimates probably include non-EU markets such as the 150,000 16:9 sets sold in Switzerland. SBS 
began PAL Plus 16:9 tranmissions at the same time as German broadcasters. Extensive German 
satellite broadcasting has helped stimulate the Swiss 16:9 market. 
22 
Outside the "pioneer" markets, EACEM estimates for 1997 predict a doubling of 
sales in most of the "late starting" markets, albeit from very low volumes. In the 
UK, manufacturers revised their 1997 sales estimates upwards sharply, to 70,000, 
following the BBC's announcement that it would be transmitting digital television 
in 16:9 format. 
Table 3 
Source: EACEM 
2.2. The start of digital television services and 16:9 - First phase 
In December 1997, there were already over 200 digital television services in 
Europe. The population of digital decoder boxes had reached two million 
units, according to broadcasters' best estimates, of which 1.75 million were 
rented units. 
23 OVERVIEW OFq6i9j.]aiSSE^^B^^BBEES£ia93l 
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On 17 April 1996, Canal Plus became the first broadcaster in Europe to 
launch digital television services. France accounted for around half the 
European installed base of digital decoders in December 1997, shared 
between three competing service bouquets, Canal Satellite Numérique, TPS 
and ABSat. French digital bouquets have included 16:9 digital transmissions 
from the outset. One of the French service providers has established that 25% 
of its subscriber base is watching digital television on a 16:9 TV set. 
This link demonstrates the important overlap between the consumer profile 
for pay TV subscribers and the profile of "early adopter" buyers of 16:9 TV 
sets. The link between pay TV and 16:9 is not confined to France. In an 
Action Plan proposal submitted several years ago, a pay TV operator 
elsewhere cited market research showing that its subscribers tended to be 
"early adopters" of all new technology products, and were pioneer computer 
users at home and Internet subscribers. 
Notwithstanding the strong support of public broadcasters for the 16:9 format, 
the Commission is pleased about this link between pay TV and 16:9. During 
the early stages of the Action Plan, the Commission had been concerned that 
pay TV broadcasters' smaller audience made them a less cost-effective way of 
promoting 16:9 than free-to-air broadcasters with much larger audiences. 
However, supporting pay TV appears to have offered a highly targeted way of 
promoting 16:9. The Action Plan has enabled pay TV operators in a number 
of countries both to test the commercial attractiveness of the 16:9 format in 
their established analogue services and to help create an installed base of 16:9 
sets within their subscriber bases for subsequent digital services. 
These early results from the French digital market also provide some support 
for the Action Plan's whole philosophy: build up an installed base of 16:9 TV 
sets ahead of the start of digital services and independently of the broadcast 
standard. French broadcasters used the now obsolete D2-MAC standard to 
transmit 16:9 during the opening phase of the Action Plan.12 French 16:9 TV 
set buyers have also been able to take advantage of the large number of hours 
of analogue "letterbox" transmission in 4:3 on the terrestrial channels. 16:9 
sets can expand these transmissions to fill the 16:9 screen. The availability of 
16:9 sets therefore converted "letterbox" 4:3 transmissions into a 
supplementary means of promoting the uptake of 16:9.13 
12 The consumer investment in D2-MAC was never high because pay TV and cable TV operators rented 
most of the decoder boxes, with a view to swapping them for digital ones when digital services were 
launched. 
13 Note that PAL and SECAM letterbox transmissions were never elegible for Action Plan funding 
because they do not meet the quality requirements set out under Art 5.1 paragraph (iv) of the Action 
Plan's Implementation Procedures set out in the Technical Annex of the Decision. 
24 
Given that it was always known that Pay TV operators would initiate the first 
wave of digital television services,14 using cable and satellite transmission, it 
was important that there were already 16:9 sets in people's homes. Pay TV is 
by definition a business based on adding decoder boxes to existing television 
sets.15 Without 16:9 sets already in the market, it is doubtful that most pay TV 
operators would have added to the complexity and risk of launching digital 
TV by including 16:9 transmission. 
Evidence from the early days of the digital TV market therefore suggests the 
Action Plan has played an important role in ensuring that there are 16:9 sets in 
European homes, ready to take advantage of this first wave of digital 
television, launched by pay TV operators. These services are characterised by 
plenty of feature films, ideal programming for the 16:9 format. Moreover, the 
16:9 format has also been able to benefit from some of the massive resources 
devoted to promoting digital television and subsidising decoder boxes. 
3. FUTURE PROSPECTS FOR 16:9 
3.1. Second phase of digital TV and 16:9 
If the first phase of digital television has been led by pay TV operators using 
cable and satellite transmission, the next phase will be characterised by free-
to-air terrestrial transmission in 1998. The UK and Nordic countries are 
leading the way. 
The UK market is particularly important for the development of 16:9 because 
it is the last of the three big driver markets to start. France, Germany and the 
UK are the largest, the richest and the most dynamic consumer electronics 
markets. To succeed in Europe, any new consumer electronics product must 
be well-established in all three markets. 
Despite the analogue 16:9 services offered by Channel 4, S4C and Granada, 
most UK broadcasters believed that the perceived disadvantages of earlier 
16:9 analogue TV transmission systems outweighed the advantage of 
stimulating the 16:9 TV set market before the availability of digital TV.16 
They preferred to wait for the launch of UK digital services in 1998. This 
decision prevented the 16:9 TV set market from starting earlier. 
14 The DVB specifications for digital cable and satellite transmissions were available before the more 
complex terrestrial digital TV system was defined. 
15 Pay TV broadcasters' decoder boxes usually contain both the necessary technologies for conditional 
access and descrambling, together with the electronics for receiving digital or analogue broadcasts. 
16 Most UK broadcasters believe that the PAL Plus transmission system is unsuitable for use in the UK 
because it produces a "letterbox" picture on 4:3 sets. UK audiences are unaccustomed to "letterbox", 
unlike most audiences in continental Europe. 
25 
However, the BBC's announcement in 1997 that it would achieve 30% 16:9 
content within one year of starting digital services had an immediate effect. 
Sales of 16:9 TV sets took off and 1997 total sales may reach 70,000 sets. 
Clearly the BBC's 16:9 transmissions will be of strategic importance for the 
development of 16:9 in the UK. Other UK broadcasters have made a so far 
unquantified commitment to the 16:9 format. 
As the UK is one of the three large driver markets for consumer electronics in 
Europe, broadcasters were able to convince manufacturers to make available 
all-digital integrated 16:9 TV sets. These are scheduled to appear during 1998 
as digital services start up. These digital sets will also be available in 
Scandinavian markets. Clearly, without a viable installed base of 16:9 sets in 
the market already, it is essential to have 16:9 digital sets available from day 1 
of digital services. 
The Commission will be considering the link between 16:9 and the digital 
television in greater detail in its final evaluation of the Action Plan, scheduled 
to appear in 1999, after the end of the Action Plan's implementation.17 Among 
other things, this will need to examine in greater detail the various different 
ways of introducing 16:9 television pursued by broadcasters. 
Meanwhile, it should be noted that transmitting 16:9 using digital terrestrial 
also includes a significant element of subsidy because Member State 
governments are making available free of charge to terrestrial broadcasters 
additional radio spectrum for digital TV services. Terrestrial radio spectrum is 
a valuable resource. The additional capacity is being made available on a 
temporary basis, in order to accelerate the migration from analogue to digital 
and recover analogue radio spectrum. 
3.2. Digital Versatile Disk 
Although "letterbox" versions of films have been available on VHS cassettes 
for several years, picture quality leaves a lot to be desired once these pictures 
have been expanded to fill a 16:9 screen. The European launch of the Digital 
Versatile Disk in Spring 1997 will bring be an additional stimulant for 16:9. 
Many video publishers will include a 4:3 version of a film on one side of the 
disk and a 16:9 version on the other. The Action Plan has arguably played a 
role here, because there would not be much point in including the 16:9 version 
unless there were 16:9 sets in consumers' homes. 
The availability of DVD means that consumers will have the possibility of 
acquiring a high quality digital medium for building their own collections of 
film and TV programmes in 16:9. 
17 No further funding will be distributed following Call 97/1, contracts signed in 1997 do not conclude 
until the end of 1998. 
26 
3.3. World Cup Football in 16:9 
Through Commission Decisions taken in April and July 199718, the 
Commission allocated a total of 1.4 MECU to TVRS, the consortium of 
French broadcasters that is undertaking programme production on behalf of 
FIFA.19 The funding is a community contribution towards the extra costs of a 
parallel production effort in 16:9 so that 16:9 pictures are available for 
European broadcasters.20 
The Commission and the Member State Advisory Committee were favourable 
to this project when it was proposed by EACEM, the manufacturers' 
association. The World Cup football tournament has always stimulated sales 
of new consumer electronics products therefore manufacturers stated they 
were willing to invest substantial sums in promoting sales of 16:9 TV sets for 
the World Cup. 
Broadcasters in six Member States21 have already agreed to carry the coverage 
and it is expected that others will sign up by the time the World Cup starts. 
3.4. International comparisons 
The Japanese market is strong, with sales of 5.5m 16:9 sets in 1996 and over 
6m estimated in 1997, over 50% of all TV sets sold.22 As noted in the 1994 
report, TV manufacturers control most of the retail outlets in Japan.23 They 
have been able to withdraw 4:3 sets progressively, ahead of the development 
of 16:9 broadcasting. Some sets can downconvert NHK's analogue HDTV 
transmissions. Since many video games are now in "letterbox" format, this 
has also helped. Moreover DVD has already been launched in Japan. 
18 Decision E/97/456 - C(97)906 - 1.04.97 and E/97/1216 - C(97)2065 - 1.07.97 
19 Financing this activity from the programme production part of the Action Plan was not possible. In the 
1997 budget commentary for the B3-2013 budget line covering programme production, the budgetary 
authority states "This appropriation is intended to cover the production in and conversion to 16/9 
format of programmes intended to be reused (long stock programmes) to the exclusion of programmes 
intended in principle to be broadcast only once, such as news bulletins, sports broadcasts or televised 
serials..." (OJ No. L44 14 February 1997 p.802). The European Parliament's Committee on Culture, 
Youth, Education and the Media had earlier expressed concern that B3-2013 was supporting sports 
production on a cultural budget line. 
20 It is possible to integrate 16:9 and 4:3 production but broadcasters outside Europe were concerned that 
this might affect the quality of the 4:3 coverage and would not permit 4:3 and 16:9 coverage to be 
combined. The 16:9 coverage will however be shown in Brazil and Canada, according to EACEM. 
21 Denmark, France, Greece, Italy, Spain, UK. 
22 Source: Advanced Television Markets newsletter ibid. 
23 COM (95) 263 final, 16.06.1995, P.26 para 3.2 
27 
In the USA, manufacturers and broadcasters are preparing to launch digital 
high definition television services towards the end of 1998. 24 The United 
States will effectively join the 16:9 community. This development will 
increase the availability of 16:9 programming and also reduce the production 
costs of the big screen technologies necessary for HDTV. Without big screens 
to achieve its full realism and impact, HDTV offers little or no advantages 
over 16:9 in standard definition, on ordinary size TV screens (<100 cms 
diagonal). As a large, monolingual market, the USA is better suited to 
pioneering the introduction of HDTV services than Europe's smaller, 
fragmented broadcasting markets since it will achieve economies of scale 
earlier in respect of new, big screen technologies. 
3.5. The Action Plan bows out 
The Commission has not proposed a sequel to this Action Plan. This is a mark 
of faith in the commercial prospects of wide-screen. Now that wide-screen 
exists in the home, it is no longer just an interesting technical possibility; it is 
part of the market, and not just in Europe, but also in Japan and soon in the 
USA. 
The interim evaluation report25 carried out by independent consultants during 
1995/6, together with a conference organised by the Commission in 
September 199626, both recommended an extension of the Action Plan in 
order to achieve the "critical mass" of 16:9 services stated in the Council 
Decision. However, critical mass was only an indicative target, not an end in 
itself; nor was it defined. The objective was to "Contribute to market 
penetration by receiver equipment". With an installed base of around 2m 16:9 
TV sets forecast for 1997, the Commission felt that the market had made 
important progress since the interim evaluation and the conference. 
Now that wide-screen exists in the market, the powerful market forces behind 
digital television will be able to sustain it more effectively than any public 
subsidy scheme. Indeed, broadcasters who plan to transmit 16:9 terrestrial 
digital services will have benefited from a much more valuable subsidy than 
the Action Plan ever offered: free spectrum. 
24 HDTV uses the 16:9 wide-screen format, but has a higher bit-rate in order to produce quality pictures 
on big screens, thereby adding to impact and realism. 
25 Review of Action Plan for Advanced Television Services, December 1996, Final Report, Coopers & 
Lybrand and Convergent Decisions Group. 
26 Reshaping Television for the Information Society, Brussels, 26 September 1996. 
28 
An extended action plan would therefore no longer play the role of the 
catalyst for take-up of the new format. A further period of public funding 
would have risked creating a dependency culture by attracting "subsidy 
hunters" who might discredit wide-screen commercially. Taking into account 
the difficult budgetary constraints faced by the EU, and increased risk of 
market distortion posed by continuing subsidies in a growing market, an 
extension would not have been sufficiently cost-effective and would have 
carried higher risks. The role of the catalyst will end after Call 97/1 Action 
Plan broadcasting contracts terminate in December 1998. 
Convergence and the competition from new, interactive services will in future 
force broadcasters to change the experience of watching television more 
fundamentally than they have done over the past thirty years. The television 
now has to compete with the personal computer; several US computer 
manufacturers are already planning to launch computers with 16:9 monitors 
for reception of digital TV and DVD viewing. Convergence will therefore 
accelerate penetration of the wide-screen format not just in television but in 
the new services environment too. 
29 
SECTION B: PROGRAMME PRODUCTION 
4. INTRODUCTION 
4.1. The Action Plan, a Community instrument for the audiovisual sector 
The aim of the Action Plan, a four-year Community programme (July 1993-
July 1997), was to act as a catalyst for the development of the market in advanced 
television services. The encouragement for the development of a European 
dimension on this market will spur the television audiovisual industry to modernise 
and prepare for the future in a coherent, clear and synchronised manner.. 
Advanced television services are now broadcasting in the 16:9 format, on which a 
consensus has been reached in Europe. The 16:9 format has two major advantages. 
The first is technical: it is neutral in relation to the various transmission standards 
and thus encourages the transition from the analogue world to the digital world. The 
second is commercial and aesthetic: this panoramic format gives superior image 
quality and brings television in line with the cinema. 
The structural effect sought by the Action Plan was to develop a critical mass of 
advanced television services in order to make them generally available at European 
level. For that purpose, the strategy adopted by the Action Plan took into account 
the interests of all those involved in the audiovisual chain. As the main actors in 
broadcasting are the programme distributors and producers, the Action Plan 
deployed its efforts in two directions by simultaneously stimulating supply and 
demand for 16:9 programmes in a co-ordinated and decisive manner at Community 
level. Thus the 16:9 Action Plan offered European broadcasters and producers 
supplementary funds to cover the additional costs generated by the 16:9. 
Considerable investment in terms of both finance and equipment is needed to 
broadcast and produce 16:9 material. 
4.2. The 16:9 market 
In addition to broadcasting services, the 16:9 market includes general public and 
professional equipment linked to the use of this format. The launching of 
16:9 broadcasting services at European level encourages investment and drives 
modernisation, which is necessary for the competitiveness of the audiovisual 
industry, the professional equipment of the broadcasters, and of production, rental 
and equipment firms. The Action Plan had the effect of streamlining the industry in 
general. 
'So - 31 
4.3. The Action Plan, an integral part of the Community audiovisual policy 
By participating in the emergence of a critical mass of 16:9 services in conjunction 
with the economic actors, the European programmes industry can be clearly oriented 
towards the future. Producing in 16:9 guarantees technical quality. The systematic 
encouragement of European production to use production equipment compatible 
with the 16:9 format is a strategic commitment at European level to the durability of 
programme catalogues. 
Programme catalogues are the basis of any strategy. They are the source of the 
industry's revenue. They are a business asset. Catalogues consist of material with a 
long shelf-life which can be rebroadcast and exploited on markets other than their 
own. The Action Plan, which is geared to the programmes industry, has been thus an 
integral part of the Union's audiovisual policy. Its purposes have been to strengthen 
the structural capacity of the audiovisual programmes industry and to develop its 
European dimension. 
The methodology of the Action Plan was based on these considerations. The 
programmes section of the Action Plan joined with the producers themselves and the 
economic actors who invest in the 16:9 in cofinancing the additional cost either of 
producing new 16:9 programmes or of remastering material available in other 
formats to make them compatible with the 16:9 format. 50% or 80% of the 
additional cost is cofinanced on the basis of flat-rate hourly scales. 
4.4. Scope of the Action Plan 
Calls for proposals invited European producers to apply for aid for new productions 
and/or remastering. Eligibility criteria were as follows: 
producers must be established in one of the Member States of the European 
Union; 
producers must show that a 16:9 broadcaster established in the European 
Union undertakes to broadcast the programme covered by the application; 
producers must certify that co-financing of the additional costs comes from 
economic sources other than the Action Plan. 
If the aggregate aid applied for exceeded budgetary availability, priority criteria 
were applied to select the production projects. No place was given to qualitative 
assessments of the programmes' contents and priority was given to: 
long-life ("stock") programmes; 
projects submitted by independent producers; 
32 
projects from Member States with small production capacity or with a 
restricted language area; 
projects for which the additional sources of financing come exclusively from 
economic operators. 
Where existing material was to be remastered, priority went to programmes of 
European origin. 
5. 16:9 ACTION PLAN 1993-97 
This chapter outlines activities pursued under the Action Plan in 1996 and the first 
half of 1997, and the development of the Community programme; this is a 
particularly useful analysis after four years of operation. 
5.1. Overall results expressed in Ecu and hours: 
Year 
Call 
Million Ecu 
[Hours i'^i^j 1993 
1/93 
11,6 
%2.936 1994 
1/94 
19,4 
'4:555; 
£feî 1994 
2/94 
33 
5.64a. 1995 
1/95 
18,1 
ÏX099* 1995 
2/95 
12,5 
.'2C55fc|r 1996 
1/96 
12,1 
.6:066', 1997 
1/97 
9,5 
.2.567 
Seven calls for proposals have been organised since the Action Plan started: one in 
1993, two in 1994, two in 1995, one in 1996 and one in 1997. The budget for each 
call was different. At first there was an upward trend until the second call in 1994 
and then a downward trend until the second call in 1995. The budget for the 1996 
call was just slightly larger while 1997 budget was again lower. 
In all, ECU 116.2 million was allocated to European producers between July 1993 
and 30 June 1997 to produce Or remaster programmes in the 16:9 format. 
33 
The ECU 116.2 million cofinanced 25 422 hours of programmes in 16:9: 
ECU 105.2 million cofinanced 16 856 hours of new programmes in 16:9; and 
ECU 11 million cofinanced 8 565 hours of remastering. 
5.2. Proposals (production and remastering projects) received under the 
Action Plan 
Number of proposals received 
The number of proposals received was relatively constant at 1 000 or so for each call 
with a significant upward trend as from 2/95. The smallest number of applications 
received (732) after the 1/94 call can be explained by the fact that the first call under 
the Action Plan (1/93) had benefited from the launch of the programme and most of 
the production projects in preparation were attracted en masse. It was necessary to 
wait for call 2/94 for producers to submit numerous new applications. The 1996 and 
1997 calls received the largest number of application since the beginning of the 
Action Plan with, respectively, (-1350 and 1580 proposals. 
Call 
Proposals 
received 1/93 
944 1/94 
732 2/94 
1.113 1/95 
970 2/95 
1.116 1/96 
1.350 1/97 
1.580 
Increase in the number of programme hours submitted under the Action Plan 
Since the start of the implementation of the Action Plan, the programme hours 
corresponding to aid applications received under the Action Plan rose significantly, 
as is shown by the following table: 
Call 
Hours received 1/93 
7.500 1/94 
8.000 2/94 
10.356 1/95 
16.392 2/95 
10.735 1/96 
22.350 1/97 
24.012 
The proposals submitted after each of the first two calls (1993 and early 1994) 
totalled 8 000 programme hours. At the end of 1994, the total was 10 300 hours. A 
new peak was passed early 1995 when applications from producers totalled 
16 400 programme hours. For 1995 as a whole, demand reached 27 127 hours as 
against 18 356 hours in 1994. Call 1/96 and 1/97 had a massive response with 
respectively 22 350 and 24 012 proposals submitted. 
34 
Substantial increase in the number of proposals using the Action Plan 
Over the first two years of its implementation, the total number of proposals 
increased threefold. At the end of 1994, following three calls, this total stabilised at 
an average of 200 producers per call. The total number of proposals increased then 
dramatically in the last two calls, reaching the remarkable total of 421 in call 1/97. 
The main reasons of this important increase have probably been the fact that the 
Action Plan was at this point well known and also that it was known by the 
interested parties that the Plan was coming to an end. 
Call 
Number of 
producers 1/93 
80 1/94 
148 2/94 
243 1/95 
184 2/95 
190 1/96 
385 1/97 
421 
5.3. The professionals involved 
The two categories of producers who benefited from the Action Plan are the 
independent producers and broadcasters. The following table shows the breakdown 
of budgetary funds between them and their respective share in the production of new 
16:9 programmes. 
35 
5.3.1. General analysis 
Since the start of the implementation of the programme, Community funds 
have been shared out evenly between independent broadcasters and producers: 
on average, between 1993 and 1997, 55% of the funds were allocated to 
broadcasters and 45% to independent producers, while broadcasters account 
for about 69% of the hours and independent producers 31%. In these 
percentages, it must be noted that broadcasters' hours consist mainly of 
remastering, studio productions and sports programmes, for which the hourly 
scales on which the Community grant is calculated are much lower than for 
other categories of programmes. Independent producers, for the most part, 
make long-life programmes for which the scale is much higher. 
The above table and graph show the development of the various stages of the 
implementation of the Action Plan, which are as follows: 
1993-1994 - Launch of the first 16:9 services cofinanced at the rate of 50% of 
the additional costs: 
At the time of the first call for proposals (1/93), broadcasters received 56% of 
the budgetary funds and produced 63% programme hours. The pioneer 
markets were ready to start up, and this first call coincided with the launch of 
the first 16:9 services for which broadcasters urgently needed 16:9 
programmes. Although there were only a few of them (60), independent 
producers submitted programmes under the Action Plan that were ambitious 
in terms of hours, a fact which explains how they provided 37% of 
programme hours. 
Call 1/94 saw a strengthening in the new 16:9 services. 16:9 broadcasters 
intensified their efforts to reinforce the identity of their channel and thus 
needed a very large quantity of programmes in order to immediately fill the 
programming schedules. That call was dominated by broadcasters, who 
produced 78% of programme hours in order to achieve a breakthrough of their 
16:9 services. The budget rose by 67% (ECU 19.4 million compared with 
ECU 11.6 million for the first call) and thus made possible that a total of 128 
producers (68 more than the previous call) to enter the 16:9 market. 
End 1994 - Arrival of a large number of independent producers on the 
European 16:9 market 
Call 2/94, which was allocated the largest budget of all the calls for proposals, 
marked a turning-point in the implementation of the Action Plan. On that 
occasion independent producers arrived in numbers on the 16:9 market. A 
total of 220 producers (92 more than for the previous call) made 45% 
programme hours, the highest percentage of all the calls. Broadcasters and 
independent producers shared the budget evenly. That call was the first to 
prove by its results that there was a genuine pioneer market for European 16:9 
services. 
36 
1995/96 - Launch of 16:9 services on late developing markets cofinanced at 
the rate of 80% of the additional costs 
Because of the variable rate of economic and technological development in 
broadcasting in the various Member States and the absence of projects from 
some of them, the Action Plan was unable to cover the whole of Europe in a 
homogeneous manner from the outset. But the 16:9 market had in time to 
cover all the European Union markets. The Council Decision consequently 
made provision for a budgetary reserve, available on 1 January 1995, for 
"markets not being fully served in the early stages of the implementation of 
the action plan".27 The rate of assistance for these markets was higher than 
for pioneer markets: Community funds covered a maximum of 80% of the 
additional costs for production and remastering. 
Call 1/95 was the first call for proposals to apply the 80% rule. The countries 
which benefited from it were, in principle Italy, Denmark, Greece, Ireland, 
Luxembourg, Sweden, Austria and Finland. Call 1/95 enabled producers on 
these markets to launch the 16:9 format. 
On the whole, funds allocated to this call were evenly distributed between 
broadcasters and producers. Broadcasters produced 73% of the programme 
hours. The number of 16:9 broadcasters increased from 20 to 42 during 1995. 
The launch of the services of a second wave of broadcasters was a decisive 
factor in the need of programmes by the broadcasters. The very strong 
demand for hours received under this call (16 392 hours, or 60% up on the 
previous call) confirmed the very high programme requirements of the new 
services on the new markets. 
In the case of call 2/95, 56% Community support was allocated to 
broadcasters. The distribution of hours was similar to that of the previous call: 
73% new programme hours were produced by broadcasters and 27% by 
independent producers. 
Finally, as far as call 1/96 was concerned, financial support was very evenly 
distributed : 52 % of the financial support was allocated to broadcaster and 
48% to independent producers. On the other hand, the break-down of 
production hours shows a predominance of the broadcaster (72 %) on the 
independent producers (28 %). This result is in line with those of the previous 
calls. 
27 Twelfth recital. 
37 
1997 - The last call 
Call 1/97 received the highest number of applications ever (1580) with a total 
request of about 75 Mecu. 55% of the available funds (9.5 Mecu) were 
distributed to broadcasters and 45 % to independent producers. This result 
was in line with the average of the previous calls. As far as hours allocation in 
call 1/97 is concerned, it has to be pointed-out the predominance of 
broadcasters with a share of 76% of the total hours. 
5.3.2. Independent producers 
The variety of producers reflects that of the European audiovisual world. The 
big names in the production world appeared regularly, as did some younger 
producers who are interested in the 16:9 format. Since the entry into force of 
the Action Plan, a nucleus of pioneer producers producing 16:9 programmes 
has been formed. Over a quarter of the hours of new productions relating to 
the 1/95 call came from producers who responded to all the calls since the 
beginning. The percentage of producers who are loyal to the Action Plan is 
constantly increasing: 11% for the 1/94 call, 15% for the 2/94 call and up to 
35 % for the 1/97 Call. These producers who are resolutely committed to the 
16:9 format primarily produce documentaries and fiction programmes. 
In its action to support the durability of European audiovisual catalogues, the 
Action Plan is an efficient tool of the Union's audiovisual policy. Audiovisual 
catalogues are the business asset of the European programmes industry, and 
particularly of the independent producers who are the spearhead of European 
audiovisual creation. Although European producers lack financing capacity, 
works produced must have a long life in order to ensure income and develop 
their activities. 
While the 16:9 format is a decisive substantive argument for the durability of 
the audiovisual heritage, it is also an essential formal argument for 
audiovisual creators and professionals generally. 16:9 format aligns television 
and cinema. 16:9 image quality is a decisive aesthetic contribution to fiction 
programmes, documentaries and other cultural programmes which illustrate 
the European heritage (painting, architecture, music, dance, history). Europe's 
cultural heritage which is enhanced by the audiovisual media is thus enriched.. 
38 
5.3.3. Broadcasters 
An average of forty or so broadcasters took part in the programmes section. 
They responded to calls under the Action Plan in their dual capacity as 
broadcaster and producer. As they set up their own 16:9 services, they 
enjoyed support from the Action Plan not only through the production aid 
which it provides but also through the clear political signal of commitment to 
a European future which the Plan's very existence sends to the industry as a 
whole. 
Little by little broadcasters are fitting their studios out in such a way that they 
can produce a range of in-house material that accounts for a significant part of 
their programmes and audience. Moreover, the identity of the channel is 
closely linked to this type of production. 
5.3.4. The 16:9 European map 
Independent producers and broadcasters work increasingly with the Action 
Plan to implement the new 16:9 technologies which are already digital and 
thus counting on quality. 
The 16:9 map is European. 16:9 broadcasters have come to support each 
other, launching their services together and forging new ties of solidarity in an 
environment which still remains essentially 4:3. For example, the Pal+ group 
of broadcasters launched the 16:9 format in Germany in 1995; certain 
activities such as coverage of major events, like the Olympic Games and the 
next Football World Cup in France, are organised at European level. 
Broadcasters and producers increasingly act as real partners to prepare the 
present and the future, that is to say, to create a suitable programme supply 
which will enable 16:9 services to continue. That emphasises their real 
complementarity in the audiovisual field. By its pioneering work, the Action 
Plan has awakened the European programmes industry to the need for a 
massive co-ordinated effort for a genuine renewal. 16:9 services are an area 
where the only successful action is European. 
39 
6. RESULTS OF THE ACTION PLAN 
6.1. New productions 
6.1.1. Types of 16:9 programmes 
(expressed in hours for each call for proposals) 
Between 1993 and 1997, the Action Plan cofinanced the production of 16 
856 hours of new 16:9 programmes, about half of which consisted of long-life 
programmes (fiction, documentaries, cultural events), 20% sports and 29% 
live broadcasts. 
The different categories developed in various ways: 
Significant progress of the documentary: 4 001 hours produced 
The documentary has progressed steadily and significantly: it rose from 11% 
of the hours of new productions in 1993 to 24% hours in the last call of 1995 
and reached a peak of 35% in 1996, thus more than tripling its share of the 
total hours of programmes. Within call 1/97, 20% of the total hours of new 
productions have been documentaries, confirming, substantially, the progress 
made in the previous calls. This breakthrough by the documentary shows that 
the 16:9 format is particularly suited to documentaries with a creative content. 
This result fits in with the objectives pursued by the European audiovisual 
policy in its concern to encourage the creation of audiovisual catalogues. 
Documentaries offer significant long-term added value; professionals put their 
life span at twenty years. They can be exploited on markets other than their 
own (dubbing is easy) and can be transposed to other modes (CD-ROM, 
multimedia, video cassettes). 
40 Year 1993 1994 1994 1995 1995 1996 1997 
Call 1/93 1/94 2/94 1/95 2/95 1/96 1/97 
Hours % Hours % Hours % Hours % Hours % Hours % Hours % 
Fiction 165 10 201 8 320 9 391 14 256 13 403 17 487,7 19 
Documentary '193 11.. <"A64^>& 845:^25 650, . 24 496.. 24. 840 ^35 . 5I3;4 i c20 
Cartoon 0 0 23 1 19 *" ' 1 12 " 0 "* " 46 *""" 0 * 30 * I ' 0 *' 0 
Cultural Event ^230.> "14 ,~,,.312.- , . 13 ; ''?A402|j JI'Al £f 500 ,"19 *_y 29?> hlS ^ *3MU|g|g 'fyj&fffijjj&l 
Sport 613 37 471 19 1001 29 446 16 265 13 444 18 205,4 8 
LiveRecording Xr' ,466 '. 28 ;$> 1019 <%40 *". 821' T 24 ~ S ,729 27 '. . 714 ~ '1 35 1^010'4 4.4%$ '• *' »^Jtf&936 
Total 1667 100 2490 100 3408 100 2728 100 2074 100 2425 100 2567 100 
It should be noted that on the world market the documentary is in full 
expansion and that among European broadcasters the 16:9 channels are those 
which broadcast the most documentaries. 
Progress of fiction programmes: 2 223 hours produced 
Fiction programmes have significantly reinforced their position and at the last 
two calls accounted respectively for 17% and 19% of the total hours of new 
productions cofinanced by the Action Plan, as against 10% for the first call. 
The hourly production costs of fiction programmes are the highest and the 
development process is the longest. 
Fiction programmes in 16:9 form a prestigious part of European audiovisual 
catalogues. 
Maintenance of the proportion of cultural programmes: 2 515 hours were 
produced 
Cultural events (operas, concerts, ballets, live shows, circus) tend to account 
for around 15% at each call (17% at call 1/97). The use of the 16:9 format 
goes hand in hand with the aesthetic and cultural quality of these broadcasts. 
In 1995, three quarters of the cultural events were filmed by broadcasters. One 
quarter was produced by independent producers who specialise in this type of 
production and who maintain very close links with various broadcasters with 
whom they plan and make their broadcasts of events. From 1995 up to 1997, 
independent producers have further intensified the production of cultural 
events. 
Decline in 1996 and prompt recovery in 1997 of the proportion of studio 
programmes: 5 043 hours produced 
Studio programmes are a very important part of the programming 
requirements of broadcasters at every stage of progress in 16:9 services. 
Studio programmes (games, chat shows and the like) have many functions: 
immediately filling programming grids, securing the ratings and its public and 
the advertisers - the key to the success of the channel: creating the channel's 
image and establishing its identity. Within the 1996 call, nevertheless, studio 
programmes accounted for 15 % only of the hours produced. This significant 
decline had its reason in the progress made by long-life types of programmes 
such as documentary and fiction. On the other hand, in 1997 the percentage 
of studio programmes grew up dramatically reaching a share of 37% of the 
total hours of new productions. 
41 
Large but significantly declining proportion devoted to sport: 3 445 hours 
produced 
The number of hours devoted to sport has been falling steadily since 1993: 
37% of the total volume of hours in 1993, 13% at the last call of 1995. In 
1996 there has been an important recovery (18% ; 444 hours produced) 
mainly due to the Atlanta Olympic Games . The downward trend was 
confirmed in 1997 with only a 8% share devoted to sport programmes. Sport 
is one of the strongest attractions in the programming of a television channel 
and retransmissions are extremely important in terms of market shares. 
Moreover, major events like the Olympic Games or the Football World Cup, 
are faithfully followed by a public that is normally much less interested in 
televised sport. It is also an occasion clearly identified by professionals for 
renewing a large part of the television sets. 
Cartoons are almost non-existent: 130 hours produced 
About 1% of programmes at each call were cartoons. No cartoons productions 
were funded within call 1/97. 
The preferences of broadcasters and producers were as follows: 
- 70% of the programmes produced by broadcasters were short-life 
programmes - live studio shows or sports programmes. The remaining 30% 
can be broken down into cultural programmes, documentaries and fiction; 
- 85% of the programmes produced by independent producers were 
documentaries and fiction - catalogue works. The remainder of the 
independent production consisted of broadcasts of cultural events. 
6.1.2. Programmes analysed by format 
(results expressed in hours per call for proposals) 
Year 
Call 1993 
1/93 1994 
1/94 
Hours Hours % 1994 
2/94 1995 
1/95 1995 
2/95 
Hours % Hours Hours % 1996 
1/96 
Hours 1997 
1/97 
Hours 
197 12 259 10 
Video 625 698 42 
Video 1250^, 
TOTAL 393 12 
"~*2034" *~60" 
3408 100 365 
209V ""77 293 14 
"**JM""*I284 " " 62 
2074 100 460 19 
1746 72 
2424 100 359 14 
2182 85 
2567 lOOfl 
42 
Four formats received Community subsidies. Two of them were film formats, 
namely the 35 mm and the super 16. The two others were video formats: the 
625-line format for the conventional television video and the high-definition 
1250-line format. Through these four categories, the Action Plan thus covered 
all aspects of television production. 
Ceiling on 35 mm: 461 hours produced 
Compared with other formats, use of the 35 mm rarely exceeded the 3% mark. 
In the last call (1/97) this format has been used for only 1% of the 
programmes. It is infrequently used in European television production 
because it is very expensive, but it retains pride of place in certain fiction 
programmes or certain prestige documentaries. In 1995, 90% hours in 35 mm 
were produced by independent producers and 10% by broadcasters. 
Super 16 made progress: 2 324 hours produced 
From 12% at the first call, the super 16 format has reached 19% in 1996 and 
14 % in 1997. This format is the link between cinema and television and is 
emerging as the standard format for the European film intended for television. 
In 1995, 54% hours in super 16 mm were produced by independent producers, 
a more balanced figure than that for the 35 mm format. The 46% produced by 
broadcasters were mainly documentaries and fiction. 
Domination by 625 video: 11 780 hours produced 
This format, as expected, dominated 16:9 services. Video 625 is used by most 
broadcasters: in 1995, 80% of the video 625 hours were produced by 
broadcasters. 20% of the 625 video hours were lighter programmes produced 
by independent producers who produce series. 
Drop in High-Definition (1250 video): 2 779 hours produced 
From 42% in 1993 to 23% at the end of 1995 and down to just 6% in 1996, 
the HD experienced a sharp drop in the total number of hours supported by 
the Action Plan and practically disappeared in call 1/97. The 1250 video is the 
preferred medium for broadcasting high-profile sports events (Olympic 
Games, world championships), cultural events and documentaries with a 
creative content. HD is used for programmes which have à catalogue value. 
Moreover, the aesthetic quality (realistic picture, faithful colour reproduction) 
of the high-definition technique coupled with retransmission in 16:9 format is 
the reason why prestige events are broadcast in this format. 
Broadcasters devoted more time to medium-length documentaries, while 
independent producers preferred to make ambitious long-length series on 
cultural matters such as music or the arts in general. That explains how in 
1995 60% of the HD video hours were used by independent producers. 
43 
6.2. Remastering 
Remastering is a technique whereby programmes existing on one master are 
transferred to another master compatible with 16:9 broadcasting; it is used mainly 
for cinema films. On the launch of the 16:9 services, remastering of films has two 
advantages. It enables programming schedules to be filled immediately much more 
cheaply than with new productions, and it can be done very rapidly if the original is 
of good quality. 
When 16:9 services were being launched, broadcasters' investments tended to be 
spread over many areas. While channels equipped themselves with studios and 
ordered works from independent producers, two categories of programmes which 
are extremely popular with the public made it possible to fill the programming 
schedules immediately without going through the television studios - remastered 
films and sports retransmissions. 
As the 16:9 market develops, the European 16:9 catalogue grows and the volume of 
16:9 programmes available increases. Circulation of these programmes to the 
various 16:9 services in the European Union increases supply. Accordingly demand 
for remastering is falling slightly. 
Most remastering was made on digital media and it thus enjoyed all the associated 
technical advantages . Remastering is a way to make European film catalogues 
durable. 
Development in remastering since the beginning of the Action Plan 
Since the beginning of the implementation of the Action Plan, remastering has 
accounted for an aggregate 8 565 hours programmes. 
ECU million 
Call 1/93 
MECU % 1/94 
MECU % 2/94 
MECU % 1/95 2/95 
MECU % MECU % 1/96 
MECU % 1/97 
MECU % 
New 
productions 
Remastering 10,2 88 16,7 86 
1 .«lî -r— % " 30 91 15,7 87 
^2,4&«1'3 11,8 94 
%7 '6 11,6 96 
t\,Af*W*t*A 04 9,1 96 
/0,*Jf4 
»i,«<mfi •^ 
44 
Hours 
Call 
New 
productions 
Remastering 1/93 
Hours % 
1667 57 
^1269^43P* 1/94 
Hours % 
2490 55 
S20&S8J4S: 2/94 
Hours % 
3408 60 
^2240^401 1/95 
Hours % 
2728 67 
rK:137M33 2/95 
Hours % 
2074 81 
1* **** ***< '* 1/96 
Hours % 
2423 79 
"#5;.;;'é43*f2t 1/97 
Hour % 
s 
2074 96 
The budget for remastering followed the general budget trend of the calls for 
proposals and the percentage of the total budget allocated to remastering was 10.8%) 
at 31 December 1995. 
The steady evolution of remasterisations towards a less significant position in the 
allocated number of hours implicates that a majority of the 50% and 80% countries 
are now focusing on new productions as opposed to remasterisation which are 
typically preferred by starting markets. 
7. CONCLUSIONS - PROGRAMME PRODUCTION 
7.1. Expanding the audiovisual catalogues 
In four years, the Action Plan cofinanced 25 422 programme hours for an allocated 
total of ECU 116.2 million. This volume of hours can be broken down into 
8 565 hours of remastering and 16 856 hours of new productions. Among the new 
productions, there were 4 001 hours of documentaries, 2 223 hours of fiction 
programmes and 2 515 hours of cultural events. These stock works are a major 
contribution to European audiovisual catalogues, the business asset of the 
programmes industry as a whole. Thus independent producers stepped up their role 
in the creation of these catalogues. For them the 16:9 format is a substantive and 
formal argument in favour of quality production. 
In order to make 16:9 services general throughout Europe, less mature markets must 
be encouraged to start. 1995 was the year the Action Plan started, as foreseen by the 
Council decision, to use the budgetary reserve for that purpose. The generation of an 
adequate supply of programmes and the creation of a programme catalogue takes 
time and independent producers needed time to adjust. The Action Plan has been 
monitoring this trend and supported those producers during this transitional stage. 
The Action Plan is improving its programme data base by finalising the preparation 
of the European 16:9 catalogue, which will be available via the European 
Commission's Europa server in http://europa.eu.inf/A16_9/. 
45 
7.2. A partnership for a dynamic 16:9 market 
Through the dynamics of the Action Plan, broadcasters and producers act as true 
partners in the supply of 16:9 services, proceeding from their complementarity to 
create a viable supply of material which will make 16:9 services generally available 
at European level. After four years of implementation of the programme, the 
budgetary funds of the Action Plan were evenly distributed among them: 55% were 
allocated to broadcasters and 45% to producers. Broadcasters were responsible for 
about 69% hours and independent producers 31%. For the most part, broadcasters 
requested remasterisation and produced very programmes which establish their 
channel's identity. This identity attracts an audience which will then become loyal to 
other types of programmes. 
7.3. The programmes industry invests in the future at European level 
The Action Plan made the programmes industry aware of the need for a massive, 
coordinated effort to renew and upgrade professional equipment and practices. The 
Action Plan succeeded in transforming wide-screen from an interesting technical 
possibility into a market phenomenon 
7.4. International competition and innovation 
The European audiovisual industry faces international competition. In addition, 
there is the challenge of technological innovation which will enable it to remain 
competitive. Thus the audiovisual industry must constantly prepare its future. The 
ongoing digital revolution is boosting efficiency, though it is causing a review of 
conventional broadcasting modes. A first result is the multiplicity of channels. 
The industry must take up a dual challenge: modernise and consolidate. It is 
imperative that an effort be made to adjust to the future in a coordinated manner in 
order to achieve the European dimension essential to ensure that the European 
audiovisual industry holds its own in world competition. 
7.5. Integration of new technologies into the European audiovisual industry 
This is the real context of the Action Plan's objective - the emergence of a critical 
mass of advanced television services. The audiovisual industry must pass a 
threshold beyond which there will be an autonomous impetus resulting in 
generalised 16:9 services on a European scale. By the end of its implementation, the 
Action Plan will have funded over 25 000 hours of new or remastered programmes, 
giving a fundamental support to the 16/9 market in approaching a critical mass. 
46 
The 16:9 format is the format of the future. That was confirmed in terms of 
European rules and regulations by the October 1995 Directive on transmission 
standards.28 Professionals who commit themselves to the 16:9 format thus commit 
themselves to rethink the long-term future of their profession, their audiovisual 
catalogues and television. 
The 16:9 format is part of a broader challenge - the integration of new technologies 
into the European audiovisual industry which it helps to encourage. Already, digital 
television is not spoken of in terms of the future but of the present. In fact, digital 
broadcasting is gaining ground every day. Moreover, the 16:9 format is now 
considered by all broadcasters to be one of the important factors in identifying 
digital broadcasting as the "Television of the Future". 
*** 
28 Directive 95/47/EC of the European Parliament and of the Council of 24 October 1995 on the use of 
standards for the transmission of television signals. OJ L 281, 23.11.1995. 
47 
ANNEX 1 
Figure 1A 
Broadcasting Costs 
Flat rate 
(ecus per hour) 
First 50 hours 6 000 
From the 50 first hours 2 500 
Figure IB 
Revised Programme Making Costs 
Programme Type Flat rate 
(ecus per hour) 
Programmes remastered from existing material, suitable for broadcasting in 3 000 
16:9 and in 625 lines 
Programmes remastered from existing material, suitable for broadcasting in 5 000 
16:9 and in 1 250 lines 
Super 16 mm 12 000 
16/9 625-line video production 
a) stock programmes 12 000 
b) flow programmes hours 1 to 20 12 000 
21 st and following hours 6 000 
35 mm production 30 000 
HD-video production (1250 lines) 
a) stock programmes 60 000 
b) flow programmes hours 1 to 20 20 000 
21st and following hours 10 000 
48 



ISSN 0254-1475 
COM(98) 441 final 
DOCUMENTS 
EN 08 10 15 
Catalogue number : CB-CO-98-453-EN-C 
ISBN 92-78-38111-X 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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