No C 332/174 Official Journal of the European Communities 31. 12. 90 
Opinion on the Commission Communication to the Council accompanied by two proposals 
for Council Decisions relating to an action programme to promote the development of the 
European audiovisual industry—'MEDIA' 1991-1995 (*) 
(90/C 332/47) 
On 17 July 1990 the Council decided to consult the Economic and Social Committee, under 
Articles 235 and 128 of the Treaty establishing the European Community, on the Commission 
Communication to the Council accompanied by two proposals for Council Decisions relating 
to an action programme to promote the development of the European audiovisual industry 
—'MEDIA' 1991-1995. 
The Section for Industry, Commerce, Crafts and Services, which was responsible for preparing 
the Committee's work on the subject, adopted its Opinion on 5 September 1990. 
At its 279th plenary session (meeting of 20 September 1990) the Economic and Social 
Committee adopted the following Opinion unanimously. 
1. Introduction to the situation of the European 
audiovisual market 
1.1. The particular structure of the European 
audiovisual sector makes it extremely vulnerable in 
competition with the large, non-European producers 
which dominate the world market. 
The resulting imbalance between supply and demand 
can and will have a damaging effect, not only economi­
cally, but also socially and culturally. 
The Committee therefore backs the call in the Directive 
on television without frontiers for everything possible 
to be done to ensure that in the long term more than 
half the necessary output can be provided from within 
the European Community. 
1.2. The Committee therefore endorses the Com­
mission's view that the planned action programme for 
the development of the European audiovisual industry, 
MEDIA 1991-1995, with total funding of 250 million 
ECU, represents a Community policy which will assist 
creative people in the cultural field in competing against 
the dominant non-European firms, without however 
contravening the principles of a democratic competition 
policy. 
A pilot programme carried out by the Commission over 
the last three years has paved the way for the MEDIA 
action programme. 
1.3. At present 90% of European audiovisual prod­
ucts never leave their country of origin. The following 
should also be noted. 
— With its present structure and lack of coordination, 
the European industry, as it exists today, has no 
chance on the world market. 
— American companies control 60% of film distri­
bution in Europe. 
(») JO No C 127, 23. 5. 1990, p. 13. — 40% of European video cassette distribution net­
works are in the hands of non-European companies. 
— In 1988 Europe bought over $700 million worth of 
feature films from the United States for television 
alone. 
— Out of 11 000 hours of animated cartoon pro­
grammes broadcast in Europe in 1989, only 350 
hours were of domestic origin. 60% came from 
Japan, the bulk of the rest from the USA. 
— In Japan and the United States Europe accounts for 
barely 2 % of cinema and television programmes. 
2. Objectives of the MEDIA action programme 
1991-1995 
2.1. Although it is not planning to intervene directly 
in support of audiovisual production, which is to 
remain the responsibility of the professionals in the 
sector, the Commission is suggesting a package of prac­
tical measures as incentives to audiovisual cooperation 
across the Community frontiers. 
2.2. These measures will focus on training, prepro-
duction, multilingualism of programmes, use of nex 
technologies, distribution and commercial promotion, 
the creation of a 'second market' and easier access to 
venture capital. 
2.3. The main lines of the action programme, which 
according to the commission's estimates should receive 
an overall budget of 250 million ECU for the years 
1991-1995, are as follows: 
— The audiovisual industry has a large number of 
small and medium-sized companies. These indepen­
dent producers must be offered incentives to set up 
co-production, co-financing and commercial pro­
motion facilities tailored to the requirements of both 
the European and the international markets. 
31. 12. 90 Official Journal of the European Communities No C 332/175 
— Similarly, the establishment of networks of distribu­
tors must offset the lack of 'multinational' struc­
tures for circulating films throughout the Com­
munity and beyond its borders. These networks 
must offer incentives to overcome the language bar­
rier, the major obstacle to european and worldwide 
distribution. Such incentives will be vital to the 
productions of minority-language countries. 
The creation of a second market to boost the profi­
tability of cross-frontier broadcasting is an essential 
addition to promoting independent production and 
distribution. Only Europe-wide cooperation net­
works will help to solve the awkward problems 
involved in exploiting archive material. 
— The European audiovisual sector must take full 
advantage of new production and broadcasting/ 
distribution techniques. In this fast-changing world, 
the aim should be to grasp the opportunities offered 
by technological advances to encourage the expan­
sion of the European audiovisual market. But the 
cost of technological innovation and its use in pro­
grammes is such that resources will have to be 
pooled in cross-frontier operating facilities. 
— Generally speaking, and in addition to the setting-
up of company networks, capital must be made 
available by means of new forms of investment-
pooling and risk-sharing, both within the industry 
and on a Community scale. 
— Where appropriate, the Community will be able to 
participate in selected audiovisual EUREKA pro­
jects. 
— Joint ventures will be developed to promote cooper­
ation with the audiovisual industries in Central and 
Eastern Europe. 
2.4. The Commission also proposes improving the 
economic and commercial training of cinema and tele­
vision professionals to enable them to acquire the mana­
gerial skills needed to lead the audiovisual industry. 
2.5. With the pilot phase, under which individual 
Community measures were tested under the heading 
MEDIA 1992, now completed and welcomed by the 
professional groups directly affected, the Committee 
feels that a five year action programme backed up by 
appropriate financial and human resources is the right 
way forward. 2.6. The Committee is also aware of the need to help 
the European electrical industry to be internationally 
competitive in the fields of reception and transmission 
technology, and in the market for receivers, by encour­
aging increased programme production. 
3. The Committee's preliminary general comments 
3.1. In line with its existing policy on the Community 
media, expressed in a series of Opinions (*), the Com­
mittee welcomes in principle the new Commission com­
munication, which for legal reasons has been divided 
into two proposals for Council Decisions. 
In view of the programe's importance however the 
Committee feels that the funds earmarked for it are 
insufficient and should be increased. 
3.2. Although endorsing the proposals in principle, 
the Economic and Social Committee has a number of 
suggestions which it feels should be incorporated into 
the action programme, in order to improve the quality, 
and thus the efficiency, of the planned programmes and 
to facilitate implementation. 
3.3. The Economic and Social Committee stresses 
that measures, such as EFDO (European Film Distri­
bution Office), which have proved particularly success­
ful in the course of the pilot phase of the action pro­
gramme and which are therefore receiving specific 
Community support as essential components of the 
audiovisual media programme, are matters of priority. 
3.4. The Committee is pleased to note that certain 
preparatory measures, (in particular EFDO, 
EURO-AIM (European Association for an Independent 
Producers' Market) and CARTOON (European Ani­
mated Film Association), are notable for the fact that 
they promote networks for cooperation between small 
and medium-sized firms. 
(*) In its basic Opinions on television without frontiers (OJ No 
C 303, 25. 11. 1985, p. 13 — Rapporteurs: Mr Broicher, Mr 
Pronk and Mr Ramaekers, OJ No C 232, 31. 8. 1987, p. 29 
— Rapporteurs: Mr Broicher and Mr Ramaekers, OJ No C 
159,26. 6. 1989, p. 67 — Supplementary Opinion — Rappor­
teur: Mr Broicher), in its Opinion on film production (OJ 
No C 303, 25. 11. 1985, p. 19 — Rapporteur: Mr Broicher), 
on high definition television (OJ No C 159, 26. 8. 1989, 
p. 34 (HDTV) — Rapporteur: Mr Poeton, OJ No C 189, 
28. 7. 1986, p. 4 (MAC/packets) — Rapporteur: Mr Noord-
wal) and in its Opinions on cultural policy (OJ No C 175, 
4.7. 1988 — Rapporteur: Mr Burnel, OJ No C 62/12, 
12. 3. 1990 (supplementary Opinion) — Rapporteur: Mrs 
Rangoni-Machiavelli). 
No C 332/176 Official Journal of the European Communities 31. 12. 90 
3.5. It should also be pointed out that part of the 
planned funding of individual measures such as 
EURO-AIM and CARTOON is earmarked for the 
further training of participants, particularly employees. 
3.6. Although the action programme concentrates on 
strengthening and improving the competitiveness of the 
industry, and that of small firms in particular, the 
Committee feels that cultural, social and consumer 
considerations and the impact on viewers should not 
be neglected. 
3.7. The Economic and Social Committee would 
therefore like to reiterate the main points of this import­
ant platform to demonstrate its significance for Euro­
pean policy in all areas. 
3.7.1. The Community's audiovisual market is not 
only a quantifiable economic good; it also has import­
ant implications for the democratic, economic, social, 
cultural and consumer policy development of the Com­
munity. 
It is therefore of particular importance that economic, 
social and cultural groups be appropriately involved in 
the audiovisual sector. 
3.7.2. The structure of the media in the Member 
States, and the Member States' responsibilities in this 
area must not be affected. 
The licensing of radio and television companies must 
remain the responsibility of national authorities. 
Appropriate technical measures must be taken to ensure 
that programme makers are able to show their pro­
grammes in all Community countries and that citizens 
of all Member States can receive them. 
European television set manufacturers must, via coordi­
nated technology-based and competition-orientated 
production policies, help ensure that the new breadth 
of choice can be exploited. 
3.7.3. In relation to people media policy has a variety 
of effects, responsibilities and democratic, social and 
cultural duties. We are talking not only of a constantly 
expanding market with turnover measured in thousands 
of millions and hundreds of thousands of employees, 
but more importantly about the maintenance and pro­
motion of Europe's historical identity. 
It is Europe's many cultures and societies, its many-
facetted characteristics, its tradition and history which 
are the source of its inimitable cultural diversity. This 
cultural landscape needs to be encouraged and helped to 
survive, even within a constantly expanding audiovisual 
market. 3.7.4. Different kinds of programme makers with 
varying legal status, i.e. both public and private sector 
suppliers, can coexist in democratic and socially respon­
sible ways, thereby laying the foundation for cultural 
pluralism. However, it must be ensured that all such 
entities of whatever kind respect the principle of free 
expression of opinion for all social groups. 
3.7.5. All available means must be used to combat 
the development of monopoly-type structures in the 
record, cassette and film distribution business which 
would hinder or even prevent free trade in these media 
articles. 
3.7.6. In a free democratic society the media must 
operate on this basis, thereby guaranteeing the objective 
of economic, social, cultural and consumer trends. 
The audiovisual media which nowadays have access to 
virtually every family in Europe must, in the light of 
this social responsibility, meet particular standards of 
quality. 
3.7.7. A free society must ensure that the media do 
not turn against the very democracy which guarantees 
their existence and their freedom. 
The social groups must therefore exercise democratic 
participation in and responsibility for the media. 
3.7.8. All intellectual and cultural contributors to 
the media need special protection. The existing EC law 
on the protection of copyright and related rights is 
inadequate. It must therefore be improved and extended 
to incorporate guarantees of the continuation of tra­
ditional copyright practice. 
4. General comments on the action programme 
4.1. It is unclear from the Commission's document 
how the proposed programme, with its allocation of 
235 million ECU, is to be managed from a financial 
point of view. Although direct grants towards the cost 
of producing individual films are ruled out, the Com­
mission should set out more accurate information so 
as to clarify which of the twelve individual measures 
provide for non-refundable grants, repayable loans, 
grants tied to the success of productions or advances 
on income from productions, guarantees or interest-
rate subsidies. This is the only way to ensure that the 
EC does not become involved in competing schemes to 
provide subsidies as a third level of aid for film pro­
duction alongside the Member States and subordinate 
national bodies. 
31. 12. 90 Official Journal of the European Communities No C 332/177 
4.2. The 15 million ECU earmarked for further 
vocational training should not be used solely to promote 
business management and commercial training for 'sec­
toral representatives'; it should also be used to promote 
vocational training for others, and in particular techni­
cal training for workers involved in the production of 
programmes and the broadcasting and film-projection 
sectors. The funding should therefore be considerably 
increased. In view of the fact that the Committee al­
ready called for the introduction of a specific training 
programme in its Opinion of 26 April 1989 on high-
definition TV—no such programme having been pro­
vided for in the Commission's draft action programme 
on this subject—the Committee proposal for a Council 
Decision on the basis of Article 128 of the EC Treaty. 
The Committee would, however, emplasize that every­
one working in this sector—irrespective of the level and 
field concerned—be entitled to receive the necessary 
further technical training and that the labour-market 
partners be involved in the formulation and implemen­
tation of the further training measures. The training 
programme should also extend to journalists, media 
professionals and authors. 
4.3. The Committee welcomes the fact that Com­
mission measures to promote new technologies and to 
implement the MEDIA programme take account of co-
productions involving participants from non-Member 
States. A similar approach was adopted vis-a-vis the 
EUREKA audiovisual programme. Just as the European 
cultural area is more than a potential television and 
cinema audience of 336 million people (including the 
GDR), so the Community should not deprive itself of 
the opportunity of cooperating with the European Free 
Trade Association (EFTA) and Eastern European 
countries. 
The Committee has repeatedly referred to the fact that 
excessive restrictions on the participation of non-Com­
munity partners prevent the Community programme 
industry from securing a better position on the world 
market. 
4.4. Article 7 of the Council Decisions provides for 
advisory Committees comprising representatives of the 
Member States. The Committee insists that, when both 
programmes are being implemented, account should be 
taken of the specialist knowledge of the representatives 
of producers, distributors, workers and consumers. 
In order to ensure the rapid and smooth implementation 
of the action programme, the Commission should 
decide on the choice of individual projects and their 
funding once the advisory Committee has approved the 
action programme in principle. 
4.5. The Economic and Social Committee notes with 
satisfaction that the Commission has in Article 8 of 
both draft Decisions taken account of the Committee's 
earlier recommendation that the ESC be involved in 
assessing the programme. 5. Specific comments on Annex I 
Measures and indicative breakdown of costs (ECU 
million) 
5.1. Distribution on video cassette and television 
broadcasting (point 1.2) 
The Committee welcomes the plan to set up networks 
of existing 'mediatheques', (public and private-sector 
record, tape and film libraries) but would point out 
that the problem of the law on the protection of copy­
right and related rights has not been solved. In this 
context the Committee would refer to its Opinion on 
the television without frontiers Directive in which it 
invited the Commission to submit an appropriate draft 
Directive. 
5.2. Support for multilingualism in television pro­
grammes (point 1.3) 
The BABEL programme should concentrate on develop­
ing the making of programmes in several languages 
simultaneously. 
The measures for perfecting the skill of 'journalists 
and other audiovisual professionals' should also extend 
authors of screenplays, with a view to moving towards 
the stated goal of simultaneous broadcasting through­
out the European television network. 
5.3. Restructuring of the animated cartoon industry 
(point 2.2) 
The opening up of Eastern Europe should also be taken 
into account in this part of the MEDIA 92 programme. 
Support is needed for bringing Eastern European tech­
nology into line with western standards which would 
enable production capacity (including western Eu­
rope's) to be used more efficiently. This should also 
be linked into proposal 2 (vocational training in the 
audiovisual sector). 
5.4. Promotion of the use of new European technol­
ogies in the production of programmes (point 2.3) 
Particular attention should be paid to meeting the 
medium-term objectives of encouraging small firms and 
independent programme producers, and to the amount 
of the funds to be used. 
The Economic and Social Committee would refer back 
to its comment under point 2.6 above and to its earlier 
Opinion on HDTV, and it stresses the importance of 
No C 332/178 Official Journal of the European Communities 31. 12. 90 
Community participation in audiovisual EUREKA and 
the recent foundation of the 'Vision 1250' EEIG (Euro­
pean Economic Interest Grouping) as a basis for 
strengthening the competitiveness of Community firms. 
5.5. Contribution to the establishment of a 'second 
market', particularly by using archive material 
(point 2.4) 
All projects relating to the establishment of a second 
market should take account of copyright rules which 
remain to be drawn up. 
5.6. Other measures (point 4) 
MEDIA 92 should pay more specific attention to the 
development of potential in Community countries and 
regions with smaller audiovisual capacity of linguistic 
minorities. 
6. Specific comments on the proposal for a Council 
Decision concerning the implementation of a Com­
munity vocational training measure in the audio­
visual sector 
6.1. In this context reference should be made to 
Article 128 of the EEC Treaty which makes provision 
for 'vocational training' in the broader sense. This 
means that MEDIA 92's training measures should not 
concentrate disproportionately on the 'new managers'. 
As has been repeatedly stated in the comments on 
Done at Brussels, 20 September 1990. proposal 1 concerning the promotion of the develop­
ment of the European audiovisual industry, basic and 
further training for other professional groups should 
also be considered. 
6.2. Special emphasis should be given to vocational 
training designed to promote a pan-European perspec­
tive on issues and problems, as opposed to too narrow 
a national view. Thought could be given, for example, 
to seminars for documentary film makers whose pro­
ductions could then be more effectively and widely 
distributed in Europe. 
6.3. One of the principles underpinning basic and 
further training measures must be to ensure that they 
can be to small firms. The modest human and financial 
resources of these firms will otherwise often mean that 
training, so important for the audiovisual industry, is 
neglected. In pratical terms, small entrepreneurs must 
be given not only the necessary knowhow but also the 
opportunity to train employees for specific tasks and 
to enter into joint training schemes with other small 
firms. 
7. Entry into force of the action programme 
The Committee stresses the need for the two proposals 
for decisions to be adopted promptly so as to avoid 
any hiatus between the pilot phase and the main phase 
1991-1995. 
Such an interruption would have serious consequences 
for the development of actions initiated during the pilot 
phase. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE