*. 4t j, 
•h it COMMISSION OF THE EUROPEAN COMMUNITIES 
*** 
i 
Bnissels, 26.07 1996 
COM(96) 346 final 
KKWRT MWM THM COMMISSION 
IV m COUNCIL, im EWOPfcAN IttftUAMfcN T 
AND THE ECONOMIC AND SOCIAL COMMITTEE 
SECOND ANNUAL REPORT 
ON PROGRESS IN IMPLEMENTING 
V *,V -Ï j 
THE ACTION PLAN FOR THE INTRODUCTION OF 
"^.«fef f 1 ADVANCED TELEVISION SERVICES IN EUROPE 

2 
JOINT INTRODUCTION 4 
JOINT EXECUTIVE SUMMARY « 5 
SECTION A : BROADCASTING : 9 
1. MANAGEMENT OF THE ACTION PLAN 9 
1.1 Call 95/1 9 
1.2. Call 95/3 12 
1.3. Evaluation methodology ; 13 
1.4 Building on the excellent foundation set down in earlier years 13 
2. IMPACT 16 
2.1. How 16:9 broadcasting triggers sales of 16:9 TV sets \6 
2.2. The strategic importance of 16:9 TV sets to the consumer 
electronics industry 17 
3. PROSPECTS FOR 1996 AND 1997 19 
3.1. The issue of critical mass 19 
APPENDIX 21 
SECTION B : PRODUCTION 23 
INTRODUCTION 23 
The Action Plan, a Community instrument for the audiovisual sector 23 
The 16:9 market 23 
The Action Plan, an integral part of the Community audiovisual policy 23 
Scope of the Action Plan 24 
3 
CHAPTER 1 - 16:9 ACTION PLAN 1993-95 25 
1.1 Overall results expressed in ecu andhours: 25 
1.2 Proposals (production and remastering projects) received under the 
Action Plan.. 25 
1.3 The professionals involved mv 27 
1.3.1 General analysis 27 
1.3.2 Independent producers .....29 
1.3.3 Broadcasters 29 
1.3.4 The 16:9 European map 30 
CHAPTER 2 - RESULTS OF THE ACTION PLAN ....31 
2.1 New productions 31 
2.1.1 Types of 16:9 programmes 31 
2.1.2 Programmes analysed by format 34 
2.2 Remastering 35 
2.3 Professional equipment 36 
CONCLUSIONS 38 
Expanding the audiovisual catalogues 38 
A partnership for a dynamic 16:9 market 38 
The programmes industry invests in the future at European level 38 
GENERAL CONCLUSIONS .........39 
International competition and innovation 39 
Integration of the new technologies into the European audiovisual 
industry 39 
ANNEX 1 40 
ANNEX 2 41 
JOINT INTRODUCTION 
The Aclion Plan for the Introduction of Advanced Television Services in Europe was established by 
the Council Decision of 22 July 1993 (O.J. No. L 196/4R, S.R.93) with the objective of ensuring the 
accelerated development of Uic market for advanced television services in Europe using the wide-
screen 16:9 format 
The approach is based on stimulating tlic 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 could fall into place. This is a condition for achieving the 
accelerated development of the market for 16:9 services. In the light of this approach, the Action Plan 
lays down two indicative targets to be achieved during its life: 
(i) Ma critical mass of advanced television services in the 16:9 format; 
(ii) a sufficient and increasing volume of programming in the 16:9 format and with high technical 
quality both in picture and sound and of such a nature as to facilitate an optimum audience rating, 
such programming to be broadcast in the above mentioned services". 
To achieve these targets, Community funds of 228 MECUs were foreseen for the period mid-993 until 
mid-1997. 
The Action Plan Decision requires the presentation of a report annually to the Council, the Ruropeon 
Parliament and the Rconomic and Social Committee on (he activities of the preceding year. This 
Communication presents the Report for 1995. 
The Second Annual Réport focuses on the activities carried out during 1995 and the results to date in 
achieving the objectives of the Plan. Section A deals with the Broadcasting part (objective (i) above) 
and Section B deals with the Programme Production part (objective (u) above). Activities up to the 
end of 1994 were reported on in a previous report (COM (95) 263 final, 16.7.95). 
This Report appears at a time of intense speculation regarding the future of broadcasting, faced with 
the prospect of new, non-broadcast media such as video-on-demand and the Internet. There iralso a 
revolution underway in broadcasting itself: pay-TV operators are poised to launch digital television 
services on cable and satellite. Preparations are underway for the launch of digital terrestrial 
television. The transition to digital television has a key role in ensuring that broadcasting remains 
attractive in the face of new competition. The introduction of digital television is however not the only 
important transition underway which will shape the future. 
The Report covers the other important transition in broadcasting: changing the screen fonnat from the 
ukl 1930s film formal in iho proportions 4:3 to the globally-agreed 16:9 wide-screen fonnat. This is a 
difficult task, but an important one because of the commercial, creative and technical possibilities it 
opens both for the industry players and the public. 
The transition to wide-screen is complementary with the transition from analogs tu digital 
technology. In several ways, it's much harder than introducing digital TV, which can be just a decoder 
box plugged into an existing TV set. Introducing wide-screen means changing the architecture of the 
TV set itself. 
This Report shows how the Aclion Plan for the Introduction of Advanced Television Services has 
triggered the tïrst stage in the transition from the old screen fonnat to the 16:9 wide-screen. It 
describes die progress sinco last year's report and the future prospects of this important programme; 
and how wide-screen Is already contributing to the future of broadcasting today. 

Second Annual Report on Progress in Implementing 
the Action Plan for the Introduction of 
Advanced Television Services in Europe 
JOINT EXECUTIVE SUMMARY 
The most important barrier to the introduction of wide-screen TV has been 
the structural separation of consumer electronics and broadcasting. The so 
called 'chicken and egg' syndrome meant that broadcasters would not introduce 
wide-screen until TV receivers were generally available while manufacturers 
would not commit to mass-producing receivers until there was broadcasting. The 
. Action Plan's first task was to address this by offering a financial contribution 
towards the extra costs of broadcasters and programme producers so that 
manufacturers could market wide-screen TVs with confidence. 
Please turn to Appendix - page 21, "Frequently Asked Questions" for further 
detail on the rationale behind the Action Plan. 
See Figures 1A & IB in annex 1 for details of the flat rate Community 
contributions available to broadcasters and producers. 
Broadcasters and manufacturers are working together... 
Here the news is 100% positive: thirty nine broadcasters in thirteen Member 
States are now transmitting in wide-screen. The Action Plan has supported them 
with funding equivalent to over 50,000 hours of 16:9 broadcasting from budget 
line B3-2014, between its start in July 1993 and December 1995. Thanks to 
these Community resources, the Action Plan has broken the vicious circle and 
enabled wide-screen TV sets to be put on the market. The wide-screen television 
market has started. Consumers are responding enthusiastically; the installed base 
of 16:9 TV sets has risen to around 500,000. This report demonstrates the truth 
behind the Action Plan's principle assumption: once there is broadcasting, wide-
screen TV sets will sell. One fact is very striking: the close correlation 
between the volume of broadcasting supported by the Action Plan and sales 
of 16:9 sets. For visual proof, see Figure 4 on page 16. 
Increased sales of wide-screen sets are the only optimistic feature of an otherwise 
stagnant television market in 1995. It may not be exaggerating to say that wide-
screen is the strategic product that will provide a future for the TV manufacturing 
industry in Europe. Strong sales of wide-screen television full justify the 
decision to separate the change in the screen format from the other major change, 
the shift from analogue to digital broadcasting. Manufacturers will not produce 
integrated digital television receivers for a number of years because of the scale 
of manufacturing investments required. Digital TV will therefore begin as a 
separate market for decoder boxes attached to existing sets. As a screen format, 
16:9 is anyway technology-neutral and this is one of its great advantages for the 
consumer. • 
The Action Plan anyway leaves the choice of technology to the broadcaster. The 
majority of broadcasters have so far chosen to offer wide-screen to their existing 
audiences using the analogue D2-MAC or PAL Plus systems, given that the 
transition to digital broadcasting will take up to twenty years to complete. Other 
broadcasters are willing to build a new audience from zero in order to benefit 
from digital technologies. The Action Plan funded its first wide-screen digital 
service in 1995. It is expected that 1996 will see further digital services 
introduced, with a significant wide-screen element. 
...and there are plenty of European programmes in 16:9 
The programme production part of the Action Plan ensures that programme 
producers are linked to the 16:9 dynamic of the broadcasters and manufacturers. 
In less than three years, the Action Plan has supported nearly 20,000 hours of 
16:9 programming from budget line B3-2013. It has contributed around 95 
MECU towards wide-screen production and remastering from budget line B3-
2013, in order to ensure that there is an increasing supply of high quality 
European programmes available to broadcasters and their audiences. Almost 
90% of all the funding has been invested in new programmes. This has 
boosted both the quantity and the quality of 16:9 programmes available to 
broadcasters. 
The Action Plan is helping European producers to constitute a catalogue of long-
shelf life 16:9 programmes whose value will outlast the life-span o*f the Action 
Plan itself. Existing and future 16:9 broadcast services will be able to draw from 
this catalogue of long-life, "stock" programmes far into the future. Confirming 
this trend, major fiction and documentary series in most Member States are now 
planned from the outset in 16:9. These two programme genres are particularly 
suited to the 16:9 aesthetic and showed the strongest growth among different 
genres of programmes funded in 1995. The Action Plan has therefore positioned 
16:9 as the format for prestige long-shelf life productions. 
By assisting programme producers to migrate to 16:9, the Action Plan is ensuring 
that they participate in the next indispensable step in the evolution of television 
and that they have one fixed point in the maelstrom of new technologies which 
they must navigate in the coming years. The Action Plan is therefore a key 
element in the European Union's audiovisual policy and should be supported 
through to its conclusion so that producers in late starting markets enjoy the full 
benefits of participation. 
Milestones in 1995 
1995 saw a number of important milestones passed half-way through the Action 
Plan's four year life. 
The special funding regime for late starting markets started, drawing on the 
reserve of 68 MECU set aside for them in the Council Decision. Broadcasters 
and producers in Greece, Italy, Denmark, Sweden, Ireland and Austria were 
thereby enabled to start wide-screen transmissions and programme making. 
Broadcasters and producers in these Member States benefit from a higher level of 
funding commensurate with their greater difficulties in introducing 16:9 - 80% of 
the flat rates. 
Normally broadcasters in these Member States are unable to introduce 
innovations like 16:9 wide-screen until years after they have been launched 
in the leading markets. It's remarkable how well the Action Plan has 
worked in the late starting markets, ensuring their participation very soon after 
wide-screen started. The decision to reserve 68 MECU for the late starting 
markets was a wise one - and this report shows that it has been justified. Wide-
screen broadcasting has started in these Member States - but it's still in its 
infancy. Achieving an impact on the market will take several years: the public 
must have time to buy sets. It is therefore important to maintain support for 
the Action Plan in 1997, by allocating the balance of funding permissible 
under the Council Decision. This is also important for the continuing 
confidence of the market actors - producers, broadcasters and manufacturers - in 
the European Union's commitment to the introduction of the 16:9 format. 
During 1995, the Action Plan committed almost all of the funding available for 
the early markets. These include the driver markets for the whole Union, notably 
France and Germany, where 16:9 must succeed. The major dividend of this 
investment was undoubtedly the successful mass market launch of the PAL Plus 
system in Germany. PAL Plus is the wide-screen broadcasting system chosen by 
a majority of broadcasters so far. Just 3.2 MECU remained on the Action Plan's 
broadcasting budget at the end of 1995 for the early markets funded at 50% of 
the flat rates. 
Future prospects for wide-screen and the Action Plan 
The Commission considers that the Action Plan has successfully completed its 
initial task - breaking the chicken and egg syndrome - in almost all Member 
States. This is gratifying but the Commission also has concerns: the Action 
Plan's prospects of achieving its indicative target of a critical mass of wide-
screen services in Member States' markets by June 30 1997 are much less 
certain. Achieving critical mass is important in order to secure the 
sustainability of the market. However, only France, Germany and Belgium 
showed signs of achieving a critical mass of services by the end of 1995. 
8 
The problem is one of resources, rather than any fundamental difficulty with the 
Action Plan itself, or the market, which has welcomed wide-screen positively, as 
shown in this report. 
Considering the future, it will be important to ensure that the benefits of 
16:9 are well-integrated into the digital environment. The Commission 
believes it would be desiraole to forge the closest possible link between digital 
broadcasting and wide-screen TV for their mutual benefit. Wide-screerfenhances 
the consumer attractiveness of digital TV, with other propositions apart from 
"more channels". Shortage of radio spectrum anyway limits the number of 
channels of terrestrial digital TV. Wide-screen also opens the way to the future 
introduction of digital high definition television which uses the 16:9 aspect ratio. 
Some broadcasters and programme producers would like to offer their viewers 
the high impact and realism of HDTV on big screens - the ultimate evolution of 
Home Cinema - rather than just more channels. 
In mid-1995, the Action Plan was half-way through its four year life, which ends 
on June 30 1997. The Commission felt that it would be appropriate to assess 
how far it was likely to achieve the objectives set out in the Council Decision, a 
critical mass of services and an increasing supply of wide-screen programmes. 
As a first step, the Commission requested an independent evaluation of the 
Action Plan by external consultants. This study will consider progress 
towards the objectives and prospects for the future. The analysis will help the 
Commission to assess the desirability of a sequel to the Action Plan and the 
scope of such a measure in the event that it should be justified. There will also 
be further consultations with the market actors and others, notably in the context 
of a conference to be held later this year. 
Budget lines 
B3-2014 - Broadcasting, managed by DG XIII 
B3-2013 - Programme production and remastering, managed by DG X 
SECTION A : BROADCASTING 
1. MANAGEMENT or TUE ACTION PLAN 
1.1 Call 95/1 
funding for "late starting markets" 
This was a joint call' with the programme production part of the programme. The 
most important new element which distinguished this Call from preceding ones was 
the availability of funding from the reserve of 68 MECU established in the Council 
Decision for "late starting markets".2 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%. 
This reserve was intended by the Council to ensure the Community dimension by 
enabling the less developed markets to have access to the Action Plan. Without these 
favourable terms, it was feared that broadcasters in the larger Member States, or those 
with better developed markets, would consume the entire Action Plan. The role of the 
larger or better developed Member States is important since they are the driver 
markets for new consumer electronics products. This reserve is significant because 
it ensures that the other Member States will benefit from progress in the larger or 
better developed Member States. Specifically, it helps ensure that the Action Plan's 
"spread and balance" criteria for the equitable community-wide distribution of funding 
will be met over the life of the Plan. 
Response 
Once again broadcasters responded strongly, requesting funding equivalent to 65,000 
hours of broadcasting, of which 14,000 hours were offered by broadcasters in 80% 
markets. Total budgetary resources were comparable to 1994, equivalent to around 
20,000 hours of broadcasting; note that the 80% funding possibility has the effect of 
reducing the number of hours of broadcasting that can be funded since each hour 
costs the Action Plan more. 
The main features of the response were as follows: 
- 22 broadcasters funded from earlier calls re-applied; 
- a further 10 new entrants in 50% markets applied; 
- 10 proposals were received from new entrants in 80% markets. 
O.J. No. C 26, 1.2.1995, p.4. 
Art. 2.5, 93/424/EEC, Council Decision of 22 July 1993 on an Action Plan for the Introduction of Advanced 
Television Services in Europe. O.J. L 196, 5.8.1993, p.48. 
10 
Results of Call 95/1 broadcasting 
Figures la and lb show the final allocation of hours of funding following Call 95/1, 
with new entrants in italics. Broadcasters in Ireland and Sweden were enabled to 
start 16:9 transmissions in those Member State. This raised the number of Member 
State participating in the Action Plan to ten. 
ACriON PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 95/1 
Figure la: 50% markets 
Code" Requested 
hours 
1. FRANCE 
France total 
2. GERMANY 
Germany total 
3. NETHERLANDS 
Netherlands total 
4. SPAIN 
Spain total 
5. PORTUGAL 
Portugal total 
6. BELGIUM 
Belgium total 
7. UK 
UK total 
Total zone 50% Broadcaster 
Canal + 
MCM 
France Super 
Cinécinémas 
Paris Première 
Arte 
Première 
ARD 
BRF 
ZDF 
3Sat 
MDR 
FAB 
SWF 
TV Plus 
RTVE 
TV3 Catalan 
RTVA Canal Sur 
EUSKAL 
TVG Galicia 
TVI 
RTBF 
Canal+TVCF PAL 
BRTN 1 
BRTN 2 
Channel 4 
S4C 
Total zone 50% F2 
F5 
F4 
F3 
F6 
F1 
G5 
G1 
G2 
G7 
G8 
G4 
G3 
G6 
N1 
E3 
E5 
E2 
E1 
E4 
P1 
B4 
B3 
B1 
B2 
U1 
U2 3.376 
3.984 
6.022 
2.912 
1.460 
251 
18.005 
900 
500 
300 
800 
960 
400 
5.150 
100 
9.110 
2.025 
2.025 
575 
427 
695 
200 
240 
2.137 
400 
400 
700 
2.880 
415 
260 
4.255 
100 
1.014 
1.114 Allocated 
hours 
37.046 1.400 
1.200 
2.700 
900 
400 
250 
6.850 
700 
500 
300 
800 
960 
400 
400 
100 
4.160 
1.000 
1.000 
250 
300 
200 
200 
250 
1.200 
200 
200 
700 
950 
415 
260 
2.325 
400 
400 
800 
16.535 
Figure 1 b: 80% markets 
Code Requested Allocated 
hours hours 
8. GREECE 
Greece total 
9. SWEDEN 
Sweden total 
10. IRELAND 
Ireland total 
Total zone 80% Broadcaster 
EPT Hellenic TV 
ERT-3 
TVS 
TV 1000 
RTE 
Total zone 80% "ŒRT 
GR2 
GR4 
S1 
IR1 ~"2W 
250 
3.276 
4.876 
5.104 
5.104 
263 
263 
13.062 "200" 
250 
250 
700 
1.300 
1.300 
250 
250 
2.250 
Grand Total=32 PROJECTS (80%+50%) 50.108 18.785 
The main elements underlying this allocation were as follows: 
- The Commission and the Member State Committee agreed a funding period of one 
year from 1 January 1996. 
- On the recommendation of the independent, external technical evaluators, four 
projects received were not funded because they did not meet the project quality 
criteria set out in the annex of the Council Decision. 
- The 22 broadcasters funded under earlier calls were awarded the same as they had 
received in 1994 on a pro rota basis. 
- The ten new entrants in 50% markets received the number of hours they had 
requested for the funding period 
- The ten new entrants in 80% markets also received the number of hours they had 
requested for the funding period 
The Commission and the Committee agreed that it was important to maintain 
continuity of funding in the 50% "driver markets", particularly the need to support 
the mass market launch of the PAL-Plus wide-screen TV system in Germany at the 
Berlin IFA show in August. This would offer the best possibility for the 16:9 market 
to become established in those countries, given that 16:9 would not be sustainable in 
80% countries without success in the "driver markets". Relatively low demand for 
broadcast hours in the 80% markets reflected the difficulty broadcasters in those 
countries faced in launching 16:9. A simple division of the available budget between 
50%o and 80% would not therefore have reflected market development. 
12 
1.2. Call 95/3 
After 18 July, a further 4 MECU became available.3 A further Call was therefore 
organised in order to allocate these funds4. The Commission felt that the 
additional call could provide an opportunity to increase the participation of 
broadcasters in 80% markets. Several projects that had not been funded in Call 
95/1 were resubmitted with improvements,' following discussions between 
broadcasters and the Commisssion. The Austrian and Danish public broadcasters 
submitted proposals for the first time. 
Response 
- 20 broadcasters applied including 6 that had already been funded following 
Call 95/1. 
Results of Call 95/3 broadcasting 
Figure 2 shows the final allocation of funding pursuant to Call 95/3. 16:9 
broadcasting in Austria and Denmark could start, following successful 
applications by broadcasters in those countries. Note that Danmarks Radio will 
transmit in 16:9 using the digital satellite norm specified by the Digital Video 
Broadcasting Group, the first digital wide-screen service in Europe. 
Figure 2 
ACTION PLAN 16:9 BROADCAST SERVICES FINAL ALLOCATION 95/3 
1. Netherlands Veronica 
2.United Kingdom Granada Code 
N1 
R1 
Total 50% 
3. Italy Teienuovo 11 
Synthesia 12 
Videolina 13 
4.Austria Orf AT1 
5. Denmark Danmarks Radio D1 
Total 80 % 
Grand total Requested 
hours 
2500 
150 
2650 
1760 
1160 
1850 
360 
430 
5560 
8210 Allocated 
hours 
400 
150 
550 
300 
200 
200 
360 
400 
1460 
2010 
New entrants in italics 
The main consideration behind the distribution is as follows: 
- broadcasters who had already been funded under Call 95/1 received no funding 
from Call 95/3. 
3 The European Parliament had blocked this sum pending receipt of the 1994 Annual Report. 
4 O.J. No C 212, 17.8.1995, p.28. 
13 
Since the 4 MECU was part of the same 1995 budget, it seemed reasonable to 
give priority to those who had not been funded under Call 95/1, especially new 
entrants. 
1.3. Evaluation methodology 
Note that the evaluation procedure for both calls was unchanged from 1994. An 
independent external consultancy assisted with the technical evaluation of 
projects. Their tasks were first to establish elegibility 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 Building on the excellent foundation set down in earlier years 
Two maps illustrate graphically how Calls 95/1 and 95/3 have successfully built 
on earlier activity. Figure 3A was published in last year's annual report3; it 
shows that 22 broadcasters in eight Member States were transmitting in 16:9 
format. Figure 3B is an updated version which includes broadcasters funded in 
1995. A total of 39 broadcasters are now transmitting 16:9 services in thirteen 
Member States. 
5 Figure 2, P. 12, COM (95) 263 final/2, Brussels 22.06.1995. 
Action Plan Broadcasting 
30-12-94 
i I National 
O Regional 
O Pan European 
Channel 4 
France 
Supervision 
Canal+ 
Cine Cinema 
MCM 
RTVE 
TVI 
RTVA Granada 
Premiere 
ZDF 
• 3-Sat 
"~ MDR 
l BRF 
ARD 
Figure 3A 
Action Plan Broadcasting 30-12-95 
National 
Regional 
( ) Pan European 
France 
Supervision 
Canal+ 
Cine Cinema 
MCM 
Paris 
Première 
RTVE 
TVI 
RTVA 
Figure 3B Channel 4 Veronica 
Videolina Syntesia Teienuovo Danmarks 
Radio 
TV1000 
FAB 
Premiere 
ERT3 
TVS 
DTP-Tawn - DG XIII ERT X 
^ 
16 
2. IMPACT 
2.1. How 16:9 broadcasting triggers sales of 16:9 TV sets 
The initial challenge was to break the "chicken and egg" syndrome which had 
prevented 16:9 from reaching the market originally: broadcasters would not transmit 
without receivers being on the market and manufacturers would not commit to mass 
production without broadcasting. The preceding section has described the 
enthusiastic uptake of 16:9 by broadcasters in thirteen Member States so this 
difficulty is largely solved, although it would be desirable to have more services in 
certain markets. 
Figure 4 : Comparative Evolution from 1992 - 1996 between Sales of TV 16:9 and 
the number of hours for Programmes Broadcast in 16:9 in Europe. 
2 
to 
O 
•a 
.s 
n 
C/3 Comparative Evolution from 1992 -1996 between Sales of TV 16/9 and 
the no. of hours for Programmes Broadcast in 16/9 in Europe 
250,0 j 
200,0 -
150,0 4-
| 100,0 I 
50,0 -r 30000 
25000 
4- 20000 
t-ea-f. 
o 
s % 
fa [2D Sales 
-•- Hours 
4-15000 S 
4- 10000 -g 
s 
o - 5000 
f & 
Source : Thomson Multimedia 
Figure 4 shows the comparative evolution from 1992-96 of TV sales and hours of 
broadcasting supported by the Action Plan. The correlation between cumulative 
sales of wide-screen TV sets and broadcasting is very close, particularly in France 
and Germany where 16:9 first started. This demonstrates that the Action Plan is 
having the intended effect. Germany and France are motor markets for the whole of 
Europe and started earlier than others. They matured quickly, rapidly developing a 
range of services to stimulate consumer demand. The Action Plan seems to be well 
on the way towards meeting its indicative target in those markets, together with 
Belgium, of catalysing a critical mass of services. Achieving critical mass is 
important if the market is to become self-sustaining, as foreseen in the Council 
Decision. 
17 
The progress of the German market largely justifies the considerable resources 
committed in 1994 and 1995. German sales of wide-screen sets tripled to 75,000 
units and this growth is directly attributable to the Action Plan. German 
broadcasters made a heavy collective commitment to 16:9 at the Berlin IFA show, 
with extensive transmissions from the IFA itself, underwritten by Action Plan 
funding. Manufacturers showed an extensive range of receivers at all price levels 
and screen sizes, demonstrating their commitment to the product.-. German 
consumers had ten different brands of receiver to choose from following the IFA. 
The 1994 annual report argued that favourable development of the German market 
would be a precondition for the success of the 16:9 format in Europe.6 Two reasons 
were given: first because of the importance of the German market in general; and 
more specifically, because the successful German launch of PAL-Plus would be a 
prerequisite for 16:9 to succeed in most other countries, since PAL-Plus is the 
system selected by the majority of Action Plan broadcasters for 16:9 transmission. 
Other markets are either far from achieving a critical mass of services or started 
later; the lag between the allocation of funding, broadcasting of the subsidised hours 
and television sales means that market impact will come in 1996 and 1997, 
particularly in the late starting markets funded at 80%. Annex 2 contains graphics 
comparable to figure 4 for ten Member States individually. 
Note that the comparatively low sales of 16:9 receivers in the UK market reflect the 
BBC's decision to link wide-screen to its project for digital terrestrial broadcasting. 
Transmissions cannot start before the end of 1997, until the digital terrestrial 
transmission system becomes operational, after the expiry of the Action Plan. 
2.2. The strategic importance of 16:9 TV sets to the consumer electronics 
industry 
The following section demonstrates the importance of wide-screen for the consumer 
electronics industry. 
6 COM (95) 263 final 16.06.95 p27, section 3.3 
18 
Figure 5 below shows unit sales of all colour TV receivers in the EU. The volume of sales was at best 
stagnant and actually contracting in most markets. 
Figure 5 
Total Colour Television set sales 1994 and 1995 7 
(Thousands 
of units) 
1995 
1994 
Trend 
(in %) Austria 
492,0 
524,0 
-6,1V. Benelux 
1 350,0 
1 395,0 
-3,2% Denmark 
320,0 
316,0 
1,3% Finland 
" 
' France 
3 575,0 
3 650,0 
-2,1% Germany 
5 450,0 
5 529,0 
-1,4% Greece 
400,0 
400,0 
0,0% Italy 
3 010,0 
3 012,0 
-0,1% Portugal 
540,0 
510,0 
5,9% Spain 
1860,0 
1 836,0 
1,3% Sweden 
430,0 
460,0 
-6,5% U.K. 
3 545,0 
3 563,0 
-0,5% EU15 
20 972,0 
21 195,0 
-1,1% 
Source: EACEM 
One important reason for stagnation is that there has been no strong reason for consumers to replace 
their television sets. The products are very reliable and have a long life and there have been no 
fundamental changes to the appearance of TV pictures received at home since the introduction of 
colour thirty years ago. Even the introduction of digital TV could just mean more channels of 4:3 TV, 
of no better quality than today's pictures if broadcasters prefer to have more channels rather than 
changing the presentation, by introducing wide-screen and/or introducing studio quality pictures to the 
home. 
New products and innovation are the life-blood of consumer electronics. They restore value in the eyes 
of the consumer and refresh manufacturers' profit margins since consumers know that the cost of 
consumer electronics products falls over time. Compared with the effect that compact disc has had on 
the music business, the inertia of the TV receiver is very marked. 16:9 is the biggest change to the 
television receiver since colour and is just the kind of incentive that the consumer needs to restore 
interest in a product that is still largely manufactured in Europe. It is contributing to the stabilisation 
of employment in an industry where the number of jobs has declined by 40% since 1982.8 
Increased sales of 16:9 receivers were the only positive feature of the television market last year. 
Figure 6 below shows 1995 sales of 16:9 TV sets in Europe, with a 64% increase in sales across the 
EU 15 compared with 1994. The 275% increase in German sales - to a very respectable volume of 
75,000 units - is particularly impressive, as is progress in neighbouring Benelux. Despite the strikes at 
the end of last year, French sales grew by 55% in the final four months of 1995 compared with the 
same period in 1994, according to SIMAVELEC.9 
7 Figures for 1995 are provisional 
8 Source: EACEM. Based on industry statistics for 1994. 
9 Summary of the press conference given by Mr Serge Amiard, the President of SIMAVELEC on 13.02.96, P.4 
19 
Figure 6 
Sales of 16:9 wide-screen TV sets 1994 and 1995 10 
(Thousands 
of units) 
1995 
1994 
Trend 
(in %) Austria 
4,0 
0,7 
471,4V. Benelux 
30,0 
10,0 
200,0% Denmark 
10,0 
7,0 
42,9% Finland France 
85,0 
85,0 
0,0% Germany 
75,0 
20,0 
275,0% Greece Italy 
6,3 
3.0 
110,0% Portugal 
1,0 
1.0 
0,0% Spain 
4,5 
4,0 
12,5% Sweden 
0,5 
1.0 
•50,0% U.K. 
4,2 
3.0 
40,0 EU15 
220.5 
134,7 
63,7% 
Source: EACEM 
3. PROSPECTS FOR 1996 AND 1997 
Following the two 1995 calls, the Action Plan is supporting broadcasting in thirteen Member 
States. Some 16:9 services from neighbouring countries are available in Luxemburg; only 
Finland lacks any 16:9 broadcasting. After only two years of Action Plan operations, the speed 
with which the 39 broadcasters have launched 16:9 services is a testimonial to the Action Plan's 
success in accelerating the development of the services market. 
In particular, late starting markets have made rapid progress, with a strong demand for 
broadcasting in the first year of 80% funding. Only 3 MECU of broadcast funding remained for 
future allocation in the early starting markets following the 1995 calls; the remaining Action Plan 
funding is reserved for the late starting markets. The 1996 broadcasting budget was reduced by 
50%. It is therefore of critical importance that adequate budget is made available in 1997 so that 
the late starting markets can benefit fully from the favourable terms set out in the Council 
Decision. 
3.1. The issue of critical mass 
The Council Decision sets the indicative target of a critical mass of 16:9 broadcast services as an 
indicative target for the broadcasting side of the Action Plan. The Council took the view that the 
accelerated development of the services market would be crucial in order to meet the overall 
objective of contributing to the market penetration of 16:9 receiver equipment. This approach was 
fully supported by the European Parliament. 
However, the extent to which a critical mass of services has been reached is much harder to assess 
than the acceleration of the services market. Broadcasting markets are fragmented by language 
and tradition in Europe, even if national frontiers are a diminishing barrier. There may need to be 
a critical mass of services in each Member State for the Action Plan to achieve its indicative 
target. 
10 Figures for 1995 are provisional 
20 
By this criterion, the Action Plan has a difficult task to achieve before its end on June 30th 1997. 
France and Germany are the most likely candidates to achieve critical mass, possibly also 
Belgium. Other markets are still in "break out" mode, with one service, like Portugal or Sweden. 
The majority of Action Plan services were still less'than one year old in 1995. 
In order to help assess the critical mass issue, the Commission has engaged a consultancy firm 
which will report in mid-1996. This is expected to be a major input into the Commission's 
reflections on whether there should be an extension of the Action Plan or what other policy 
measures should replace it in order to consolidate the success of 16:9 in Europe. 
* * * 
21 
APPENDIX 
Backgrounder on wide-screen 16:9 
- Frequently Asked Questions -
Why wide-screen? 
The wide-screen screen format in the proportions 16 to 9 (16:9) is the only globally agreed parameter for 
the future of television. It's more ergonomie than the current 1930s movie format used by TV, the squarer 
4:3 format. Wide-screen brings TV into line with cinema which has used wide-screen since the 1950s. It 
works with both analogue and digital pictures and is therefore "future proof; it protects consumer 
investments in the display, the most expensive part of the TV. The successful introduction of 16:9 is a 
requirement for the future introduction of digital high definition television. Wide-screen is simultaneously 
an important feature of the deepening relationship between film and TV - it brings the movie aesthetic into 
TV - and an important element which the audiovisual industries contribute to the broader convergence of 
audiovisual, telecommunications and computing. 
The problem 
Changing the screen format is much harder than just plugging another box for satellite or digital TV into an 
ordinary TV. 16:9 is a fundamental alteration to the core of the system; the architecture of the TV receiver 
itself changes. This requires real co-ordination between manufacturers and broadcasters if consumers are 
going to be offered wide-screen in a synchronised manner. And wide-screen TV could not be introduced 
into Europe because of the "chicken & egg" problem. Broadcasters would not start to transmit wide-screen 
until wide-screen TV sets were on the market; manufacturers refused to launch them until transmissions 
had begun. The market was blocked, even though all market research evidence showed that consumer 
interest in wide-screen 16:9 was considerable. 
Why invest public money? 
What economists call "Market Failure" means wide-screen would not otherwise reach the public. 
Consumer electronics manufacturing now requires European scale at minimum. Broadcasting still has a 
national structure for regulatory and linguistic reasons. The introduction of colour in the sixties was the 
last major innovation - when both manufacturing and broadcasting had a national structure - and this was 
successful: colour TVs and services appeared at the same time. The current asymmetry between the 
structures of the two industries causes practical difficulties because the "market forces" and investment 
timing requirements are different. In any case, a laisser faire approach based exclusively on "market 
forces" is inappropriate in the broadcasting sector, because public broadcasters still account for such 
a high percentage of audience ratings. 
22 
The need 
Public broadcasters have long pioneered the introduction of new technologies like colour, stereo and 
teletext. However, they all have financial difficulties which have made it very hard for them to undertake 
the significant investments necessary to transmit 16:9, even though they all know 16:9 is the future of TV. 
The Action Plan has so far helped 17 public broadcasting channels to launch wide-screen services, helping 
them to sustain their traditional role as pioneers into the 1990s. Commercial broadcasters - funded by 
advertising or pay TV subscription revenues - have a short term perspective: wide-screen hits their 
financial "bottom line" and pay-back on the investment takes a long time. Action Plan funding combats 
short termism by weakening the accountants' case against 16:9. 
The solution 
The Action Plan breaks the "chicken and egg" problem by offering an hourly community contribution 
towards broadcasters' extra costs through budget line B3-2014 - and those of producers through 
another budget line B3-2013. Note that funding programming in wide-screen is not enough on its own: the 
programmes must be transmitted in 16:9 to trigger consumer interest in the new format The Action Plan's 
tough quality control criteria stress the need for attractive wide-screen services capable of winning high 
audiences; in this way the impact of the Community funding is maximised. 
Î3 
SECTION B : PRODUCTION 
INTRODUCTION 
The Action Plan, a Community instrument for the audiovisual sector 
The aim of the Action Plan, a four-year Community instrument (July 1993- July 1997), 
is 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 modernize and prepare for the future in a 
coherent, clear and synchronized manner: when tlie time comes it must be ready for a 
fully digital content. 
Advanced television services are now broadcasting in tlie 16:9 fonnat, 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 analog world to the digital world. The second is 
commercial and aesthetic: this panoramic format gives higher image quality and brings 
television in line with the cinema. 
The structural effect sought by the Action Plan is 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 takes 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 deploys its efforts in two 
directions by simultaneously stimulating supply and demand for 16:9 programmes in a 
coordinated and decisive manner at Community level. Thus the 16:9 Action Plan offers 
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. 
The 16:9 market 
In addition to broadcasting services, see section A, part 2, p. 16 -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 modernization, 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 has the effect of streamlining the industry in general. 
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. 
24 
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, is thus an 
integral part of the Union's audiovisual policy. Its purposes are to strengthen the 
structural capacity of the audiovisual programmes industry and to develop its 
European dimension. 
The methodology of die Action Plan is based on these considerations. The 
programmes section of the Action Plan joins with the producers themselves and the 
economic actors who invest in the 16:9 in cofmancing 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. 
Scope of the Action Plan 
Calls for proposals1 ' invite European producers to apply for aid for new productions 
and/or remastering. Eligibility criteria are 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 exceeds budgetary availabilities, priority criteria are 
applied to select the production projects. No place is given to qualitative 
assessments of the programmes' contents and priority is given to: 
long-life ("stock") programmes; 
projects submitted by independent producers; 
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 is to be remastered, priority goes to programmes of 
European origin. 
H A first combined services/programmes call will be followed by two calls for the 
programmes section during the following twelve months - Annex 5 to the Council Decision. 
25 
CHAPTER 1 - 16:9 ACTION PLAN 1993-95 
This chapter outlines activities pursued under the Action Plan in 1995 and the 
development of the Community programme; this is a particularly useful analysis 
after two and a half years' operation. 
1.1. Overall results expressed in ecu and hours: 
Year 
Call 
Million ecu 
Hours 1993 
1/93 
11.6 
2 936 1994 
1/94 
19.4 
4 555 1994 
2/94 
33 
5 648 1995 
1/95 
18.1 
4 099 1995 
2/95 
12.5 
2 551 
Five calls for proposals have been organized since the Action Plan was drawn up: 
one in 1993, two in 1994 and two in 1995. 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. 
In all, ECU 94.6 million was allocated to European producers between July 1993 
and 31 December 1995 to produce or remaster programmes in the 16:9 format. 
The ECU 94.6 million cofinanced 19 789 hours of programmes in 16:9: 
ECU 84.4 million cofinanced 12 367 hours of new programmes in 16:9; and 
ECU 10.2 million cofinanced 7 422 hours of remastering. 
1.2. Proposals (production and remastering projects) received under the 
Action Plan 
Stable number of proposals received 
The number of proposals received was relatively constant at 1 000 or so for each 
call. 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 for production aid. 
| Call 
Proposals 
received 1/93 
944 1/94 
732 2/94 
1.113 1/95 
970 2/95 
1.116 
26 
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 
10J35 
The tenders 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. 
Increase in the number of tenderers using the Action Plan 
Over the first two years of its implementation, the total number of tenderers 
increased threefold. At the end of 1994, following three calls, this total stabilized at 
an average of 200 producers per call. 
Call 
Number of 
producers 1/93 
80 1/94 
148 2/94 
243 1/95 
184 2/95 
190 
27 
1.3 The professionals involved 
The two main categories of producers who benefited from tlie 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. 
Year 
Call 
ECU 
Broadcasters 
Producers 
HOURS 
Broadcasters 
Producers 1993 
1/93 
56% 
44% 
63% 
37% • 1994 
1/94 
62% 
38% 
78% 
22% 2/94 
50% 
50% 
55% 
45% 1995 
1/95 
55% 
45% 
73% 
27% 2/95 
56% 
44% 
73% 
27% 
1.3,1 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 1995, 55% of the funds were allocated to 
broadcasters and 45% to independent producers, while broadcasters account 
for 68% of the hours and independent producers 32%. In these percentages, it 
must be noted that broadcasters' hours consist mainly of remasterings, 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 of50% 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. 
28 
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 to 67% (ECU 19.4 million compared with 
ECU 11.6 million for the first call) and thus made it possible for 68 new 
independent producers to enter tlie 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 number on the 16:9 market. A total 
of 220 producers (95 more than for the previous call) made 45% programme 
hours, the highest percentage of all the calls. Broadcasters and independent 
producers shared budgetary funds evenly. That call was the first to prove by 
its results that there was a genuine pioneer market for European 16:9 services. 
1995 - 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. The 16:9 market must in time cover all 
the European Union, including markets with smaller potential either because 
of their reduced language area or the structural weakness of their audiovisual 
industry. 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".12 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% 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 high programme requirements of broadcasters. The very strong demand 
for hours received under this call (16 392 hours, or 60% up on the previous 
Twelfth recital. 
29 
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. 
13.2 Independent producers _ 
The variety of producers reflects that of the European audiovisual world. 
Some 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. 
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 
on the cinema. 16:9 centring and image quality are 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 and the European Union's self-imposed 
task of safeguarding the cultural riches and diversity which are Europe's 
hallmark is being carried out. 
1.3.3 Broadcasters 
An average of thirty 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 enjoy 
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. 
30 
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. 
1.3.4 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 rjigital and 
thus play the quality card. 
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 are 
organized 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 be made general. That emphasizes their real 
complementarity in the audiovisual field. By its pioneer work, the Action Plan 
has awakened the European programmes industry to the need for a massive 
coordinated effort for a genuine renewal. 16:9 services are a sphere where the 
only successful action is European. 
31 
CHAPTER 2 - RESULTS OF THE ACTION PLAN 
2.1 New productions 
2.1.1 Types of 16:9 programmes 
(expressed in hours for each call for proposals) 
Programme 
Fiction 
Docu­
mentary 
Cartoons etc. 
Cultural 
events 
Sport 
Studio 
TOTAL 1/93 
165 
193 
0 
230 
613 
466 
1667 % 
10 
11 
0 
14 
37 
28 
100 1/94 
201 
464 
23 
312 
471 
1019 
2490 % 
8 
19 
1 
13 
19 
40 
100 2/94 
320 
845 
19 
402 
1001 
821 
3408 % 
9 
25 
1 
12 
29 
24 
100 1/95 
391 
650 
12 
500 
446 
729 
2728 % 
14 
24 
0 
19 
16 
27 
100 2/95 
256 
496 
46 
297 
265 
714 
2074 % 
13 
24 
0 
15 
13. 
35 
100 
Between 1993 and 1995, the Action Plan cofinanced the production of 12 367 hours 
of new 16:9 programmes, about half of which consisted of long-life programmes 
(fiction, documentaries, cultural events), 23% sport and 30 live broadcasts. 
The different categories developed in various ways: 
Significant progress of the documentary: 2 648 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, thus 
more than doubling its share of the total hours of programmes. 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). 
32 
It should be noted that on the world market the documentary is in full 
expansion,13 and that among European broadcasters the 16:9 channels are 
those which broadcast the most documentaries.14 
Steady progress of fiction programmes: I 333 hours produced 
Fiction programmes have reinforced their position and at the last call 
accounted for 13% of the total hours of new productions cofinanced by the 
Action Plan, as against 10% for the first call. The hourly production costs cf 
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. Some fiction programmes supported by the Action Plan enjoy 
wide popular success in their countries of origin and, increasingly in the 
European Union. Two examples: 
The weekly broadcasting of Tatort is a real event in Germany. Each Sunday, 
this televised series, broadcast by ARD, the first public German channel, 
reaches 25% to 35% of the audience; 8 to 9 million spectators are true to it. 
This series is now broadcast on other European channels. 16:9 production 
attracts directors from the cinema and thus enables television technicians (for 
example, cameramen, photographic directors) to film as for the cinema. In 
France, the Maigret series is very popular; fiction programmes such as La 
rivière Espérance or Vallée du Roi reach large audiences when they are 
broadcast. 
Maintenance of the proportion of cultural programmes: 1 741 hours were produced 
Cultural events (operas, concerts, ballets, live shows, circus) tend to account 
for around 15% at each call. 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 specialize in this type of production 
and who maintain very close links with various broadcasters with whom they 
plan and make their broadcasts of events. 
13 in Industry survey, "TV WORLD", September 1995, page 10. 
14 in "Broadcasting & Cable International", October 1995, page 50. 
Documentary output (%) on European Channels 1993-1994. 
(November 1994), Channel Four (UK) 10.18%, ARD(D) 6.92%, ZDF (D) 7%. 
33 
Importance and maintenance of the proportion of studio programmes: 3 749 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 itsj^ublic and 
the advertisers - the key to the success of the channel: creating the channel's 
image and establishing its identity. 
Large but declining proportion devoted to sport: 2 796 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. But this should 
not be interpreted as a decline in sport in programme requirements. 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 are faithfully followed by a public that 
is ordinarily is 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: 100 hours produced 
1 % of programmes at each call were cartoons. 
In general, broadcasters preferably produce programmes with a very short life and 
independent producers catalogue works: 
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. 
34 
2.1.2 Programmes analysed by format 
(results expressed in hours per call for proposals) 
Format 
Super 16 
35 mm 
625 video 
1250 
video 
TOTAL 1/93 
197 
74 
698 
698 
1667 % 
12 
4 
42 
42 
100 1/94 
259 
60 
1756 
415 
2490 % 
10 
3 
70 
17 
100 2/94 % 
393 
134 
2034 
847 
3408 11 
4 
60 
25 
100 1/95 
365 
83 
2092 
188 
2728 % 
13 
3 
77 
7 
100 2/95 
293 
21 
1284 
476 
2074 % 
14 
1 
62 
23 
100 
Four formats received Community subsidies. Two of them were film media, 
namely the 35 mm (the cinema film format) and the super 16 used mainly for 
television. 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 the 35 mm: 372 hours produced 
Compared with other formats, use of the 35 mm rarely exceeded the 3% mark. 
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. 
The super 16 mm made progress: 1 507 hours produced 
From 12% at the first call, it has now reached 14%. 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 of the 625 video: 7 864 hours produced 
This format very clearly dominated 16:9 services. The 625 video is emerging 
as that used by most broadcasters: in 1995, 80% of the 625 video hours were 
produced by broadcasters. 20% of the 625 video hours were lighter 
programmes produced by independent producers who produce series. 
35 
Drop in High-Definition (1250 video): 2 624 hours produced 
From 42% in 1993 to 23% at the end of 1995, the HD experienced a sharp 
drop in the total number of hours supported by the Action Plan. 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 where coverage of an 
event calls for several cameras because the video enables the image to be 
monitored rapidly. 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. 
2.2 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 is made on digital media and it thus enjoys the technical 
advantages of those media. Remastering is a way to make European film catalogues 
durable. 
36 
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 7 422 hours programmes. 
ECU million 
Call 
New 
productions 
Remastering 1/93 
10.2 
1.4 % 
88 
12 1/94 
16.7 
2.7 % 
86 
14 2/94 
30 
> 
3 .% 
91 
9 1/95 
15.7 
2.4 % 
87 
13 2/95 
io 
0.7 % 
94 
6 
Hours 
Call 
New 
productions 
Remastering 1/93 
1667 
1269 % 
57 
43 1/94 
2490 
2065 % 
55 
45 2/94 
3408 
2240 % 
60 
40 1/95 
2728 
1371 % 
67 
33 2/95 
2074 
477 % 1 
81 
" 
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 10.7% 
at 31 December 1995. 
2.3 Professional equipment 
Broadcasting equipment is still largely dominated by the 4:3 format, and few 
broadcasting channels are completely equipped with 16:9. Little by little, 
professionals are changing their equipment from 4:3 to 16:9. They begin by 
purchasing new cameras: 50% of professional cameras sold are cameras which are 
switchable from 4:3 to 16:9. Moreover, this trend pushes prices down and thus 
encourages further purchases. At the end of 1995, the penetration rate of 16:9 
cameras of the European market was 10 to 15%, with a top rate of 30% in the most 
advanced countries. 
37 
625 video equipment is now spread throughout the European Union. '5 
Studio 
OB-van 
St/OB camera 
ENG camera 
| Editing F 
4 
12 
90 
15 
10 D 
15 
2 
85 
? UK 
4 
1 
30 > 
5 
5 E 
0 
9 
11 
7 
5 NL 
7 
7 
75 
10 
12 B 
6 
4 
40 
? 
5 GR 
3 
0 
21 
13 
0 IRL 
3 
0 
8 
6 
4 
15 in 16:9 equipment, Widerview Conference, Brussels, 6.12.1995. 
38 
CONCLUSIONS 
Expanding the audiovisual catalogues 
In two and a half years, tlie Action Plan cofinanced 19 789 programme hours for a 
total of ECU 94.6 million. This volume of hours can be broken down into 7 
422 hours of remastering and 12 367 hours of new productions. Among the new 
productions, there were 2 648 hours of documentaries, 1 333 hours of fiction 
programmes and 1 741 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 equipped with them. 1995 was the year the Action Plan used the budgetary 
reserve for that purpose. The generation of an adequate supply of programmes and 
tlie creation of a programme catalogue takes time: independent producers need time 
to adjust. The Action Plan is monitoring this trend and supports those producers 
during this transitional stage. The Action Plan which is improving its programme 
data base is finalizing the preparation of the European 16:9 catalogue, which will be 
available on WWW via the European Commission's Europa server. 
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 two and a half 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 68% hours and independent producers 32%. For the most part, broadcasters 
engage in remastering and produce very short programmes which establish their 
channel's identity. This identity attracts an audience which will then become loyal to 
other types of programmes. 
The programmes industry invests in the future at European level 
The Action Plan made the programmes industry durably aware of the need for a 
massive, coordinated effort to renew and upgrade professional equipment and 
practices. That is also where the impact of the Action Plan lies: it made European 
producers aware henceforth that they should invest in the future at European level. If 
the soundness of the Action Plan were to be questioned, the entire sector would see 
it as a disavowal of the action taken so far, including its underlying principles. Too 
small a budget would slow down to the point of stopping the introduction of 16:9 
services on late developing markets and would compromise current production. 
39 
GENERAL CONCLUSIONS 
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: modernize 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. 
Integration of the 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 
generalized 16:9 services on a European scale. For the moment, the critical mass of 
16:9 services has not yet been reached. 
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.16 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. Because it is 
neutral in terms of standards, the 16:9 format leads to projects at European level in 
the field of the new technologies. 
16 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. 
ANNEX 1 
Figure 1A 
Broadcasting Costs 
Flat rate 
(ecus per hour) 
6 000 First 50 hours 
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 3 000 
broadcasting in 16:9 and in 625 lines 
Programmes remastered from existing material, suitable for 5 000 
broadcasting in 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 1to20 12 000 
_^ 21st 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 • 
kd 
ANNEX 2 
Comparative Evolution between Sales of TV 16/9 and the no, 
of hours for Programmes Broadcast in 16/9 in Austria 
90,0 
80,0 --
70,0 
1 60,0 
«3 50,0 
| 40,0 
| 30,0 
£ 20,0 
1 10,0 
w 0,0 12000 
-10000 
16/9 Programmes starting in 1996 \ sooo 
6000 
0 
-* !-0 0,7 @ Sales 
-•- Hours 
50 
4000 1 
2000 « 
0 o M3 
1992 1993 1994 1995 1996 
forecast 
Comparative Evolution between Sales of TV 16/9 and the no. 
of hours for Programmes Broadcast in 16/9 in Denmark 
90,0 j 
80,0 --
70,0 --
I 60,0 -
«g 50,0 -
| 40,0 
| 30,0 
I 20,0 
8 10,0 
S 0,0 16/9 Programmes starting in 1996 
10 
0 
^—E£3—j. SH WJtt 12000 
10000 
8000 
6000 
0 
1992 1993 1994 1995 1996 
forecast S Sales 
-^ Hours 
bo 
4000 1 
! 
2000 *? 
o 
LtV 
Comparative Evolution between Sales of TV 16/9 and the no* 
of hours for Programmes Broadcast in 16/9 in the UJL 
90,0 T 
80,0 --
70,0 
I 60,0 -
I 50,0 --
I 40,0 
30,0 
20,0 
10,0 
0,0 o 
•a 
.5 
CO 
1992 1993 1994 
Comparative Evolution between Sales of TV 16/9 and the no. 
of hours for Programmes Broadcast in 16/9 in France 
j 12000 
•10000 
-8000 
•6000 
-4000 
-2000 
0 
1992 1993 1994 1995 1996 
forecast 60 
T3 CQ 
o 
o 
Irt 
Comparative Evolution between Sales of TV 16/9 and the no* 
of hours for Programmes Broadcast in 16/9 in Germany 
1992 1993 1994 1995 1996 
forecast 12000 
-10000 
-8000 
4-6000 | @ Sales 
-•-Hours 
-4000 | 
is 
2000 © 
o 
-53 
Comparative Evolution between Sales of TV 16/9 and the no* 
of hours for Programmes Broadcast in 16/9 in Greece 
90,0 
80,0 
70,0 
| 60,0 -f 16/9 Programmes starting in 1995 
| 50,0 
| 40,0 
3 30,0 
I 20,0 
a 
73 
CO 10,0 
0,0 
1992 1993 1994 1995 1996 0 12000 
10000 
8000 
60-
6000 -3 
4000 g 
4-2000 .o 
3 O 
X B Sales 
-«- Hours 
forecast 
i/y 
Comparative Evolution between Sales of TV 16/9 and the no. 
of hours for Programmes Broadcast in 16/9 in Italy 
90,0 y 
80,0 
70,0 
| 60,0 
3 50,0 C»4 
O 
t3 
O 
13 
CO 40,0 
30,0 
20,0 
10,0 
0,0 12000 
10000 
- - 16/9 Programmes starting in 1996 -J- 8000 
6000 
5 3 6,3 
„J~_-JJ5J38~»~J rtaysn ) saSales 
-•-Hours 
oO 
4000 | 
+ 2000 ? 
& 
1992 1993 1994 1995 1996 
forecast 
Comparative Evolution between Sales of TV 16/9 and the no. 
of hours for Programmes Broadcast in 16/9 in Portugal 
90,0 
80,0 
70,0 + 
I 60,0 
<S 50,0 --
w 
v> 
P 
O 
•8 
.£ 
CO 
1> 
13 
CO 40,0 
30,0 
20,0 
10,0 
0,0 12000 
-10000 
16/9 Programmes starting in 1996 - - 8000 SSales 
-•- Hours 
6000 i 
4000 | 
4-2000 °" 
S 
1992 1993 1994 1995 1996 
forecast 
n£ 
Comparative Evolution between Sales of TV 16/9 and the no. 
of hours for Programmes Broadcast in 16/9 in Spain 
90,0 T 
80,0 --
70,0 --
I 60,0 --
1 50,0-
| 40,0 -
J 30,0 
I 20,0.» 
8 10,0 -
S 0,0 
1992 1993 1994 1995 T 12000 
-10000 
-8000 
-6000 
1996 
forecast 60 
4-4000 1 
JO. 
S 
Comparative Evolution between Sales of TV 16/9 and the no. 
of hours for Programmes Broadcast in 16/9 in Sweden 
90,0 
80,0 
70,0 
| 60,0 -|- 16/9 Programmes starting in 1995 
| 50,0 
| 40,0 
I 30,0 
I 20,0 
* 10,0 
13 
CO 0,0 12000 
10000 
8000 S Sales 
-•-Hours 
6000 I 
3 
u 
4000 g 
43-
4-2000 « 
0 
1992 1993 1994 1995 1996 
forecast & 
ISSN 0254-1475 
COM(96) 346 final 
DOCUMENTS 
EN 16 15 
Catalogue number : CB-CO-96-345-EN-C 
ISBN 92-78-06632-X 
Office for Official Publications of the European Communities 
L-29S5 Luxembourg