it * COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 30.06.1995 
COM(95) 149 final 
95/0156 (CNS) 
COMMUNICATION FROM THE COMMISSION 
to the European Parliament and the Council 
concerning a multi-annual Community programme 
to stimulate the development of a European multimedia content industry 
and to encourage the use of multimedia content in the emerging information society 
(INFO2000) 
Proposal for a 
COUNCIL DECISION 
adopting a multi-annual Community programme 
to stimulate the development of a European multimedia content industry 
and to encourage the use of multimedia content in the emerging information society 
(INFO2000) 
If (presented by the Commission) 

COMMUNICATION FROM THE COMMISSION 
to the European Parliament and the Council 
concerning a multi-annual Community programme 
to stimulate the development of a European multimedia content industry 
and to encourage the use of multimedia content in the emerging information society 
(INFO2000) 
1* 

TABLE OF CONTENT 
0. Definitions , 1 £ 
1.INFO2000: The political context 2 
2. The nature of the content industry and market 4 
2.1. The changing business environment 4 
2.2. The strategic importance of the content industry 5 
2.3. Europe's competitive position 7 
3. The way forward 8 
3.1. Objectives and actions 8 
3.2. Addressing obstacles to growth 9 
3.3. Participants 11 
3.4. Selection of projects.. 12 
4. Concluding remarks , 12 
ANNEX 1 : SUMMARY OF INFO2000 ACTIONS 
ANNEX 2: LIST OF ACRONYMS/ABBREVIATION S 
1*> 

0. DEFINITIONS 
WHAT DO WE MEAN BY CONTENT ? 
Content is defined in this communication as data, text, sound, images or multimedia 
combinations thereof, represented in analogue or digital format on a variety of carriers 
such as paper, microfilm, magnetic or optical storage. 
WHAT DO WE MEAN BY THE CONTENT INDUSTRY? 
The content industry is involved in three main activities: 
• creation 
• development 
• packaging and distribution of content-based products and services 
The different segments of the industry are: 
• print publishing (newspapers, books, magazines, corporate publishing) 
• electronic publishing (on-line databases, videotex services, audiotex services, fax-
and CD-based services, video games) 
• the audiovisual industry (television, video, radio, audio and cinema). 
The content industry is the single most important sector, both in terms of market value 
and employment, within the information industry at large, which includes the 
telecommunications equipment and services, computer systems and services, consumer 
electronics and office equipment industries. 
WHAT IS THIS COMMUNICATION ABOUT? 
The focus of this communication is on the transition from print to electronic publishing 
and on the interactive multimedia information services that are rapidly emerging. 
This communication does not address those specific questions relating to the 
audiovisual industry, which are the subject of specific policy measures (Action plan for 
the introduction of advanced television services in Europe, MEDIA programmes and 
'Television without frontiers' Council Directive). INFO2000 complements other 
Community programmes under the Fourth Framework Programme (especially IT, 
ACTS and TELEMATICS) and those addressing the cultural (RAPHAËL), SME 
(Integrated Programme in favour of SMEs and the Craft sector) and education and 
training (SOCRATES, LEONARDO) domains. 
1c 
1. INFO2000: THE POLITICAL CONTEXT 
The content industry — one of the key dimensions of the information society 
The vision of a global networked economy and information society in which 
information and communication technologies and services play a crucial role in 
transforming all aspects of economic and social life is now at the heart of the global 
political agenda. 
Content, in all its forms, is the vital raw material of the information society. This 
communication therefore deals with a key dimension of the European information 
society: the future development of the content industry in Europe. 
The need for political action at European level to support Europe's transition to the 
information society has been widely recognised: 
• in the White Paper "Growth, competitiveness, employment: the challenges and 
ways forward into the 21st century" 
• in the Bangemann report "Europe and the global information society -
Recommendations to the European Council" 
• at the Corfu and Essen Summits 
• in the Commission's Action Plan "Europe's Way to the Information Society" 
• at the successful Brussels G7 Conference devoted to the information society. 
The content industry is a crucial sector for the European economy and society, for at 
least three reasons: 
1. It is important in terms of employment. It provides knowledge-intensive 
employment to over 2 million employees in Europe, realising a yearly turnover 
estimated at ECU 150 billion in 1994. The growth in this market is considerably 
above average growth rates and is set to remain so for years ahead. 
2. Information services are key to improving the competitiveness of the European 
economy as information increasingly becomes a major factor in determining the 
efficiency and productivity of enterprises and administrations worldwide. 
3. Information services are important carriers of Europe's cultural identity and 
linguistic diversity. The free flow of information supports the proper functioning 
of our democracies and, of course, the further development of the single market. 
The content industry's role will become even more vital in the future because the 
expanding information infrastructure will fuel the demand for high quality, easily 
accessible and usable information services and will increase the opportunities for 
knowledge-intensive employment. 
I 
The key issue is whether the European content industries will succeed in exploiting the 
opportunities created by the emerging information highways. 
Although basically strong and healthy, the European content industry faces some 
comparative disadvantages: 
• Telecommunication costs in Europe are higher than in other parts of the world 
• The European multimedia market lags behind the US by 3-5 years and remains 
fragmented through linguistic and cultural differences 
• Trading of multimedia rights and access to and exploitation of Europe's public 
sector information are more complex than elsewhere in the world. 
• Many content providers are nationally or regionally oriented, while the single 
market does not yet fully function in this domain. 
Therefore, action is needed at the European level to mitigate these drawbacks. Europe 
must act quickly and vigorously to ensure favourable conditions for the development 
of its content industry and to foster its global competitiveness. 
An integrated and co-ordinated approach at the European level 
Important steps are already being undertaken by the Union to create the preconditions 
for a thriving content industry: 
• The liberalisation of telecommunications networks and services by 1 January 
1998 will facilitate the distribution of content and drive distribution costs down. 
• A clear and stable regulatory framework, particularly in relation to intellectual 
property rights and privacy protection, will ensure protection of rights and people. 
• Research and Technological Development (RTD) on applications of public 
interest is being supported in the Fourth Framework Programme. 
To complement these actions, INFO2000 aims at stimulating the emerging multimedia 
content industry (a large part of which comprises small and often new enterprises) to 
recognise and exploit the new business opportunities that will be created. Its focus is 
on the transition from print to electronic publishing and on the interactive multimedia 
information services that are emerging. 
The actions of INFO2000 take a dual approach: firstly, building on the basic strengths 
of Europe's content industry, and secondly addressing some of the weaknesses of the 
content industry and market in Europe. 
To ensure that the actions fit into the global context, specific attention will be given to 
linking them to the recent Group of Seven (7 most industrialised nations - G7) 
3 
initiatives and to the relevant activities of international organisations such as the 
Organisation for Economic Co-operation and Development (OECD), the World Trade 
Organisation (WTO), World Intellectual Property Organisation (WIPO) and the 
Council of Europe. 
2. THE NATURE OF THE CONTENT INDUSTRY AND MARKET 
2.1. THE CHANGING BUSINESS ENVIRONMENT 
Structural changes are taking place in the information industry with unprecedented 
speed: 
• the rapid progress in the development of information and communication 
technologies (ICT) 
• the continuing improvement in the performance and the reduction in prices of these 
technologies 
• the development and increased availability of new applications 
• the blurring of boundaries between historically distinct sectors of the content 
industry (like print publishing, electronic publishing, audiovisual) as content is 
increasingly produced in digital form. 
These structural changes are having the following effects: 
• New players are entering the market New players, often from other parts of 
the information value-chain like distribution (telecom operators) or end-user access 
(computer, consumer electronics or software companies), are entering what used to 
be the exclusive domain of the content providers 
• High capacity distribution channels Broadband technology (high capacity 
'pipelines' and ultra fast switches) and compression techniques (ability to 'squeeze' 
information in digital form) are turning previously scarce delivery channels into a 
commodity, soon to be in plentiful supply 
• Increased international competition Globalisation of electronic publishing 
market, coupled with deregulation, is increasing international competition in, up till 
now, mainly national or regional content markets 
• It is more difficult to protect intellectual property rights Protection of 
intellectual property rights - the main instrument to ensure fair rewards for those 
who create new content - is no longer self evident 
• More choice and more independence for the user Interactivity made possible 
1 
by producing or converting content into digital form (which can then be processed 
by a computer) and market segmentation increase the choice for the user and give 
him/her the ability to manipulate directly the information services that are offered. 
The many take-overs, mergers, joint ventures and strategic alliances taking place, 
particularly in Europe and in the US, between the different communications and media-
related businesses, are a clear proof of the changing environment the content industry 
will be facing in the years to come. 
2.2. THE STRATEGIC IMPORTANCE OF THE CONTENT INDUSTRY 
The importance of the content industry now and in the future can be illustrated by the 
scope and size of its employment, sales, value creation, and trade position. 
Scope 
Content-related activities cover a whole chain whereby value is added during the 
various steps in the process from source material to end-user. Creators,-developers and 
packagers of the 'raw material' fuel the chain. Distributors provide the on- and off-line 
delivery mechanisms allowing end-user access by a variety of terminal devices and 
networks. The table on the next page illustrates this. 
In addition, information is every business's second business. Different parts of the 
information value-chain can be found in other industrial sectors, since most economic 
or commercial activities involve the handling of information. 
Employment and sales 
The content industry is a big generator of revenue and jobs. Estimates of the content 
industry in the European Union suggest a 1994 turnover of around 150 BECU, 
employing over 2 million people. Content-related activities have historically generated 
growth rates in turnover and employment well above average for the overall EU 
economy. 
The economic importance of the content industry within the EU can also be illustrated 
by comparing it with the 1994 sales and employment levels of some related sectors: 
telecommunications (133 BECU; 1.2 million full-time employees), information 
technology (113 BECU; 0.96 million full-time employees) and consumer electronics 
(43 BECU; 0.32 million full-time employees). Estimates for the US 1994 multimedia 
market at large value the content industry at US$ 255 Billion, as against the 
telecommunications sector at US$ 160 Billion and the information technology sector at 
US$ 151 Billion. 
If the revenue and employment associated with information activities in other industry 
sectors are included in this analysis, content becomes an even more significant activity. 
f 
THE INFORMATION VALUE CHAIN 
Shaded areas indicate the focus of INFO2000 
ACTIVITY SOURCE 
CREATION CONTENT 
DEVELOPMENT PACKAGING DISTRIBUTION END-USER 
ACCESS EFFECTS OF USE 
ACTORS 
eg. Industry 
Commerce 
Administration 
Services 
Education and training 
Consumers 
Citizens 
OBJECTS 
eg. Images 
Text 
Graphics 
Music 
Sound 
Code 
Statistics Magnetic media 
Optical media 
Cable networks 
Telephone networks 
Mobile networks 
Satellite networks 
Paper Game consoles 
Set-top boxes 
PCs 
TVs 
Fax 
Mobile terminals Growth 
Compe titiven ess 
Employment 
Better lifestyle 
Better public service 
Better education 
VALUE 
ADDED 
SHARE 
TREND -48% 
UP -38% 
DOWN -14% 
CONSTANT N.A. 
UP 
& 
Value creation 
Content accounts for a major share of the total value added generated in the 
information value chain. Some private strategic studies estimate that at present the 
share of content in the total value added is around 48%. Distribution activities and 
end-user equipment generate some 38% and 14% respectively of total value added. 
Due to increased competition and capacity in the distribution sector and wider 
availability of distribution channels and delivery platforms, the relative share of content 
in the information value chain is expected to grow even further. Recent market trends 
and various studies support this expectation. 
Trade position 
The trading position of the European content industry is variable and contrasts with the 
trading position of the IT and consumer electronics sector: 
• The audiovisual sector, although strong in some areas such as music, has a 
negative and deteriorating trade balance overall, estimated at -3.1 BECU with the 
US for 1994. The problems of the audiovisual sector have a marked structural 
component, which is receiving growing attention and is the subject of a separate 
communication.1 
• The computer and office equipment ard consumer electronics sectors have 
significant and growing negative trade balances, evolving from -8.8 BECU in 1983 
to-26 BECU in 1993. 
• The traditional European publishing indu^i y has a positive and improving trade 
balance with the rest of the world, growing from 1.2 BECU in 1983 to 2.1 BECU 
in 1993. The strong trading position in publishing has to be built upon, especially as 
print publishing in its present form will be among the key sectors affected by the 
move towards electronic publishing. 
• An active policy as proposed in the INFO2000 programme is all the more important 
because many indicators show that, within specific segments of the emerging 
electronic publishing markets, Europe's position is weakening. 
2.3. EUROPE'S COMPETITIVE POSITION ]] 
The European Union's content sector possesses many strengths: 
• overall market size and population 
• the presence of world-ranking information and media conglomerates 
• a long-established publishing tradition 
COM(94)523 of 8 February 1995 'Audiovisual Policy. Stimulating dynamic growth in the European 
programme industry (MEDIA2 1996-2000)' 
7-
• a rich content base 
• large established markets in key industrial sectors 
• a rich cultural and linguistic diversity. 
But, as said before (page 3), it also suffers from important weaknesses: 
• more fragmented markets along cultural, linguistic and national lines 
• more expensive telecommunication services, particularly transnational 
• more difficult access to and exploitation of public sector information 
• substantially lower demand for advanced information services 
• most content providers are nationally or regionally oriented. 
Considering Europe's competitive position in terms of electronic publishing and 
infrastructure in the global context, it is vital that the position of European content 
providers be strengthened. Action must be focused on: 
• stimulating the necessary structural adjustments of the industry 
• mobilising demand, particularly at the European level 
• exploiting the full potential of the single market. 
THE EU AND THE US COMPARED 
Revenues In 1994 revenues of the US electronic information sector were more than 
two and a half times the revenues of EU-based companies. 
Equipment The US is considerably ahead in terms of the penetration of information 
technology equipment such as cable TV, personal computers (PCs) and modems (for 
linking PCs to telecommunications networks). 
Tariffs High tariffs for the use of infrastructure inevitably have a negative impact 
on the use and development of multimedia content. Tariffs for high capacity infrastructure 
in the EU are on average 10 times higher than for equivalent capacity over equivalent 
distances in North America. 
Telephone use The number of telephone calls per person per year in the EU is just over a 
quarter of those in the US, even though a similar number of people have phones. 
3. THE WAY FORWARD 
3.1A OBJECTIVES 
The proposed actions serve three long-term strategic objectives (see box below). 
These objectives aim at maintaining, extending and exploiting Europe's strength in 
content whilst narrowing the gap with our competitors. They are designed to 
encourage an integrated development across the European Union. 
£ 
OBJECTIVES 
facilitating the development of the European content industry 
optimising the contribution of new information services to growth, 
competitiveness and employment in Europe 
maximising the contribution of advanced information services to the 
professional, social and cultural development of the citizens of Europe. 
3.1B ACTIONS 
In working towards the objectives of INFO2000, the weaknesses indicated above will 
be tackled in an integrated and co-ordinated manner, along three action lines (see box 
below). These actions aim at accelerating market uptake of multimedia products and 
services; at unleashing the economic and cultural potential of public sector-information; 
and at strengthening the international and pan-European dimension of the emerging 
European multimedia content industry. They are described in detail in Annex 1 to the 
Council Decision establishing INFO2000 and summarised in Annex 1 to this 
Communication. 
ACTION LINES 
stimulating demand and raising awareness 
exploiting Europe's public sector information 
triggering European multimedia potential 
3.2. ADDRESSING OBSTACLES TO GROWTH 
The European content industry is faced with a number of obstacles to growth that 
prevent it from quickly realising the critical mass necessary to compete on equal terms 
in the newly emerging multimedia markets. 
These obstacles need to be addressed by actions both at national and European level if 
Europe is to expand its content industries, to exploit its richness of content and to face 
international competition. It are these remaining barriers that will be addressed by the 
proposed action lines as indicated below. 
Stimulating demand and raising awareness 
The variety of Europe's cultural and linguistic traditions makes economies of scope 
and scale (economies made through being able to address a large single market with 
°\ 
customised products) difficult to achieve and constrain product development. In 
addition, many surveys point to a limited awareness of content available to users across 
Europe. The aim here is to create new markets and to encourage clusters of pan-
European users. 
Awareness-raising initiatives (action 1.1) are needed to develop further the 
opportunities, as are actions to favour the development of pan-European user groups 
(action 1.2). In addition, a common approach to information service interoperability 
(action 4.2) will help to open up market potential. 
Exploiting Europe's public sector information 
The public sector holds a dominant position in some segments of the European content 
market. 
The actions proposed involve unleashing the economic and cultural potential of 
Europe's public sector information by developing relevant EU policies (action 2.1), by 
linking directories of European public sector information (action 2.2) and by making 
use of content resources in the public sector (action 2.3). 
Triggering European multimedia potential 
The provision of attractive European multimedia content is still in its infancy. For this 
market to take off the content must be attractive to the user, i.e. easy to access, well 
presented and with adequate transaction and payment mechanisms. Solutions for 
electronic advertising, electronic markets and digital revenue collection mechanisms 
need to be identified, evaluated and encouraged at the European level. 
Three areas of specific importance to Europe to stimulate the development of 
attractive multimedia content are the exploitation of Europe's cultural heritage, 
business services for SMEs, and geographic information (action 3.1). Also actions 
aimed at making use of content resources in the public sector (action 2.3) will further 
contribute to providing an attractive pan-European multimedia content package. 
Encouraging small multimedia producers 
Although large enterprises play an important role in the content industries, the great 
majority of actors are small and medium sized enterprises (SMEs). 
Most of the actions foreseen seek to encourage SMEs to overcome some of the 
problems of the emerging multimedia market. However, the actions aiming at 
catalysing high quality European multimedia content (action 3.1) and at facilitating 
trading in multimedia rights (action 3.2) are particularly relevant. 
Initiating European multimedia trading systems 
The licensing and re-use of content is constrained by a lack of uniformity of approach 
between media types, in different regions and in different markets. New digital 
10 
technology is only slowly being deployed to expand information trading markets. 
Action is needed to ensure that multimedia trading systems can work across national 
and sectoral borders and to encourage intellectual property owners to trade multimedia 
rights. The actions foreseen aim at favouring a practical approach to this trading of 
multimedia intellectual property rights (action 3.2). 
Promoting new business practices 
The newly emerging multimedia markets are often transnational in nature and require 
new business approaches cutting across what used to be distinct business sectors. 
New alliances and multidisciplinary teams will be increasingly required. For many 
actors in the content industry this means that new forms of creativity will have to be 
explored, new skills acquired, and new ways of conducting business implemented. 
The changes and adjustments need to take place rapidly and be supported by 
developing and exchanging best business practice to encourage entrepreneurship 
(action 3.3) and by encouraging skills development (action 4.3). 
3.3. PARTICIPANTS 
Participants will be drawn from both users and suppliers in primarily content-related 
activities in the information value chain. They will include those involved in: 
source material creation of images, text, graphics, music, sound 
content development for databases, electronic book titles, CD-ROM/CD-I 
titles, game titles, and interactive TV programmes 
content packaging, producing information services such as on-line databases, 
videotex-, audiotex- and fax-based services, books, newspapers, magazines, 
interactive TV services, electronic books, CD-ROM/CD-I information and 
infotainment products, etc. 
content distribution, exploiting delivery channels such as optical and magnetic 
media, cable, satellite, and telephone networks, mobile networks, and paper 
end-users such as large and small businesses, public sector administrations, 
professionals, researchers, the education and training sector, consumers 
and citizens. Particular attention will also be given to those end-users 
who will see their roles evolving into suppliers of information services, 
as part of the move towards electronic markets and communities. 
Those involved in end-user equipment, communications software and hardware and 
production tools will be invited to participate on the basis of the specific contributions 
that they can make to the programme. 
V 
Although large corporations will be important players in the global information market, 
they are not the main target for the programme actions. The emerging multimedia 
market potentially creates a broad range of opportunities for small and new enterprises. 
It is particularly this population and its inherent growth potential, in terms of both jobs 
and revenue, that INFO2000 is targeting. 
Distinctions between roles in the content industry are, however, blurring. An 
increasingly wide range of actors from an ever broader group of sectors is becoming 
involved in exchanging and trading content over electronic networks. It is important 
that this whole range of experience be included in the programme if obstacles to 
growth are to be properly identified and appropriate action taken. 
3.4. SELECTION OF PROJECTS 
The main vehicle for the implementation of the INFO2000 programme will consist of 
Calls for Proposals as described in Annex III to the Council Decision. 
4. CONCLUDING REMARKS 
The role of the private sector Building the information society and its 
constituent elements (networks, basic services, applications, content) is first and 
foremost the responsibility of the private sector. Its role is crucial because its 
protagonists are accustomed to risk-taking, have extensive experience in exploring and 
developing new markets and are a valuable source of capital. 
The role of the public sector Nevertheless, the public sector role is essential in 
supporting the emergence of the information society at global, European, national and 
regional levels. Firstly, by developing a vision that responds to the many social, societal 
and cultural challenges. Secondly, by creating the appropriate regulatory conditions 
through the liberalisation of telecommunications networks and services and a clear and 
stable regulatory framework, particularly in relation to intellectual property rights and 
privacy protection. And thirdly by catalysing the changes needed to adapt to the new 
situation. 
The actions proposed above aim at encouraging the transformation from print to 
electronic publishing in Europe and at stimulating the emergence of interactive 
multimedia information services. 
The programme is based on extensive consultations with market actors, including user 
groups, and with representatives of the Member States. It seeks to ensure the greatest 
possible involvement of all relevant actors in the information value chain. 
During the programme, the development of the European multimedia content market 
will be regularly monitored. Particular attention will be given to the competitive 
position of the multimedia content industry and its contribution to employment, social 
development and cultural diversity. 
iz 
ANNEX 1: SUMMARY OF INFO2000 ACTIONS 
# 
1 
1.1 
1.2 TITLE DESCRIPTION JUSTIFICATION 
Stimulating demand 
and raising awareness 
Creating new markets by 
raising awareness at the 
European level with 
specific user groups 
Encouraging clusters of 
pan-European users Call for proposals for participating 
organisations (30-50) to: 
- Facilitate access to European wide 
repositories and catalogues 
- Demonstrate access to the European 
information highways 
- Support awareness campaigns and 
user training 
- Studies to analyse current situation 
- Start-up incentives for creation and 
functioning of clusters of pan-
European users 
- Stimuli for co-operation and 
exchange of experience Awareness and promotion are an important dimension of information 
society policy actions. Activities will: 
- Add a European dimension to national/regional activities 
- Support know-how/experience exchange 
- Facilitate co-operation in joint projects to achieve economies of scale and 
European-wide coverage 
- Build on previous experience and co-operation with other networks 
- Lack of a well-articulated and organised demand-side at European level 
because of dispersion of users 
- Common European user problems for instance in relation to quality 
assurance or liability questions need addressing 
- European user groups are lacking in the multimedia content sector 
^ 
# 
2 
2.1 
2.2 
2.3 TITLE DESCRIPTION JUSTIFICATION 
Exploiting Europe's 
public sector 
information 
Developing policies to access 
and exploit European public 
sector information 
Linking directories of 
European public sector 
information 
Making use of content 
resources in the public 
sector (particularly in the 
cultural area) - Studies to prepare a Green paper on access 
policies 
Call for proposals for: 
- Pilot projects that interconnect existing national 
and regional directories of public sector 
information 
- Pilot projects for collaborative production of new 
directories of public sector information 
Call for proposals for: 
- pilot projects for the networking of inventories to 
exploit the digital content resources in the public 
sector 
- pilot projects that integrate digital inventories 
with intellectual property trading systems - Co-ordination of access conditions for individuals and 
businesses across the Union 
- Co-ordination of conditions for re-use of content for businesses 
across the Union 
- Provision of equal opportunities for all individuals and 
businesses to access public sector information in the EU 
- Demonstration of practical solutions to make European public 
sector information easily accessible to users in the EU 
- Co-ordination and EU-wide co-operation 
- Strengthening the European content sector by providing easier 
access to and transparency of content resources across Member 
States 
- Strengthening Europe's cultural identity 
- Stimulating co-operation and experience exchange at European 
level 
^ 
# 
3 
3.1 
3.2 
3.3 TITLE DESCRIPTION JUSTIFICATION 
Triggering European 
multimedia potential 
Catalysing high quality 
European multimedia 
content 
Trading multimedia 
intellectual property rights 
Developing and exchanging 
best business practice Call for proposals to support the initial and 
precommercial phases of pan-European 
multimedia content development in the domains 
of: 
- European cultural heritage 
- Business services for SMEs 
- Geographic Information 
- Call for proposals to support pilot projects 
that lay the foundations for trading multimedia 
rights across sectors (text, sound, images) and 
across borders electronically 
- Studies to determine how different existing 
trading systems for intellectual property rights 
can work together 
- Development of practical tools that help SMEs 
in trading EPRs 
- Support to descriptions of best business 
practice, e.g. studies, manuals 
- Support to diffusion of best business practice, 
e.g. workshops, seminars - Multimedia content developers (mainly SMEs and new companies) 
have difficulty in exploiting the single market 
- Partner finding, acquisition of rights, multilinguicity, multicultural 
aspects, etc. are particularly problematic 
- Management of rights presently dispersed by sector and by country 
- A new approach is necessary for multimedia trading on a pan-European 
scale 
- Critical mass is a vital element in creating a true European multimedia 
market 
- Normal business rules of sectors in the content industry do not apply to 
multimedia 
- Common development of best practice and experience exchange 
stimulate development of multimedia content industry 
^ 
# 
4 
4.1 
4.2 
4.3 TITLE DESCRIPTION JUSTIFICATION 
Support actions 
Observing and 
analysing the 
multimedia content 
market 
Spreading the use of 
multimedia content 
standards 
Encouraging 
skills development 
at European level Support to: 
- scenario development 
- quality assurance actions 
- market monitoring 
- strategic studies in specific areas 
- concertation meetings with relevant players 
(suppliers, users, administrations) to identify key 
issues affecting the multimedia content industry 
- Support to actions that raise awareness of 
multimedia content standards 
- Support will be given to consensus building 
(workshops, etc.) 
- Support to develop pilot courses for multimedia 
developers 
- Full implementation in Community education and 
training programmes (LEONARDO and 
SOCRATES) - Multimedia content industry largely composed of SMEs 
- Global and international markets rapidly changing 
- SMEs lack resources for such critical activities 
- Programme actions need to remain rooted in reality 
- Lack of interoperability and standardisation are obstacles to 
development of the multimedia content market 
- Adequate skills a key element for high quality multimedia 
titles 
- Interdisciplinary approach necessary (text, sound, video, 
stills, animation) 
- European dimension (mutilinguicity, multicultural) needs to 
be incorporated at the design stage 
^ 
ANNEX 2: List of Acronyms/Abbreviations 
ACTS RTD in the field of Advanced Communication Technologies and 
Services 
BECU Billion ECU 
CD Compact Disk 
CD-I Compact Disk Interactive 
CD-ROM Compact Disk Read Only Memory 
G7 Group of Seven Most Industrialised Nations 
ICT Information and Communication Technology 
IMPACT Information Market Policy Actions 
IT Technological Development in the field of Information 
Technologies 
LEONARDO Vocational training programme 
MECU Million ECU 
MEDIA II Audiovisual Policy: Stimulating dynamic growth in the European 
programme industry 
OECD Organisation for Economic Co-operation and Development 
PC Personal Computer 
RAPHAEL Community action programme in the field of cultural heritage 
RTD Research and Technological Development 
SME Small or Medium Sized Enterprise 
SOCRATES Community education programme 
TELEMATICS RTD in the field of Telematics Applications 
WIPO World Intellectual Property Organisation 
WTO World Trade Organisation 
(r 

Proposal for a 
COUNCIL DECISION 
adopting a multi-annual Community programme 
to stimulate the development of a European multimedia content industry 
and to encourage the use of multimedia content in the emerging information society 
(INFO2000) 
(presented by the Commission) 
I? 

Proposal for a Council Decision adopting a multi-annual Community 
programme to stimulate the development of a European multimedia content 
industry and to encourage the use of multimedia content in the emerging 
information society (INFO2000) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 130 paragraph 3 thereof, 
Having regard to the proposal from the Commission , 
Having regard to the opinion of the European Parliament , 
Having regard to the opinion of the Economic and Social Committee , 
Whereas the European content industry can make a significant contribution to the 
stimulation of growth, to the strengthening of competitiveness and to the development 
of employment in the Community, as indicated in the White Paper on "Growth, 
competitiveness, employment - The challenges and ways forward into the 21st 
century" , 
Whereas the European Council at Brussels on 10-11 December 1993 decided, on the 
basis of that White Paper, to implement an action plan, consisting of concrete measures 
at both Union and Member States level, notably with respect to information 
infrastructures and new applications, for which new content is required; 
Whereas the European Council at Corfu on 24-25 June 1994 took note of the 
Recommendations of the High Level Group on the information society as presented in 
the report "Europe and the global information society" ; and underlined that the 
Community and Member States have an important role to play in bringing about the 
information society by giving political impetus, by creating a clear and stable 
regulatory and legal framework and by setting an example in areas which come under 
OJN°. 
OJN°. 
OJN°. 
'Growth, competitiveness, employment - The challenges and ways forward into the 21st century1 
COM(93)700 final of 5.12.1993, Chapter 5A "The information society'. 
'Europe and the global information society - Recommendations to the European Council', Brussels, 
26 May 1994. 
tf 
their aegis; 
Whereas the Commission's action plan " Europe's Way to the Information Society - An 
Action Plan" recognises the importance of content and stipulates that the 
Commission will propose ways to stimulate the creation of favourable conditions for 
content providers to adapt their skills and products to the new multimedia environment 
and to stimulate increased usage of new information services; 
Whereas the Council on 28 September 1994 underlined the particular urgency of the 
need to enhance the global competitiveness of the European content industry, taking 
account of the cultural diversity and of the impact of these products on society; 
Whereas the European Council at Essen on 9-10 December 1994 underlined the 
importance of content in bringing about the information society; 
Whereas the Council Resolution on Culture and Multimedia 8 on 3-4 April 1995 
underlined the importance of multimedia for facilitating the development of the content 
industry and improving access of citizens to cultural heritage, as well as the catalysing 
role of Member States and the Union in the creation, production and distribution of 
high quality cultural multimedia programmes; 
Whereas the three long-term strategic objectives of the Union's content policy shall be 
to facilitate the development of the European content industry; to optimise the 
contribution of new information services to growth, competitiveness and employment 
in Europe; and to maximise the contribution of advanced information services to. the 
professional, social and cultural development of the citizens of Europe; 
Whereas there are numerous barriers to the development of a European multimedia 
content industry and market, which are hindering the transition towards an information 
society; 
Whereas the Community needs to build on the strong competitive position it has in 
some content sectors and whereas its competitive position needs to be strengthened in 
other content sectors; 
6 COM(94)347 final of 19 July 1994 ' Europe's Way to the Information Society - An Action Plan'. 
7 Conclusions of the 1787th Council meeting 9561/94 (Press 197), 28 September 1994. 
8 Audiovisual/Culture Council session nr 1841 of 3-4 April 1995, Council document 6072/95 of 24 
March 1995 
20 
Whereas the needs of users of information services, particularly in small and medium-
sized enterprises and in the less favoured regions of the Community, merit special 
attention; 
Whereas provision should be made for measures to encourage the participation of 
small and medium-sized enterprises (SMEs) in this programme; 
Whereas the different rates of development in the provision and use of information 
services in the Member States deserve special consideration, having regard to the 
internal cohesion of the Community and the risks associated with a two-tier 
information society; 
Whereas policy actions under this programme aiming at strengthening the position of 
the European content industry will be complementary to other content actions, 
particularly those related to the audiovisual sector , 
Whereas any content policy actions must be complementary to other ongoing national 
and Community initiatives, as outlined notably in the Commission's action plan 
"Europe's Way to the Information Society - An Action Plan", and shall be performed in 
synergy with the Commission's education , training 11, RTD 12 and SME ^ 
policies and initiatives; 
Whereas progress of this programme should be continuously and systematically 
monitored with a view to adapting it, where appropriate, to developments in the 
multimedia content market; whereas in due course there should be an independent 
evaluation of the progress of the programme so as to provide the background 
information needed in order to determine the objectives for subsequent content policy 
actions; whereas at the end of this programme there shall be a final evaluation of 
results obtained compared with the objectives set out in this Decision; 
Council Decision 93/424/EEC of 22 July 1993 on an action plan for the introduction of advanced 
television services in Europe; COM(94)523 of 8 February 1995 *Politique Audio-visuelle. Créer 
un environnement favorable à l'essor des entreprises de l'industrie européenne des programmes 
(MEDIA2 1996-2000)'; Council Directive 89/552/EEC of 3 October 1989 'Television without 
frontiers' (OJN° L 298, 17.10.1989, p. 15). 
10 COM(93) 708 final of 3 February 1994. 
11 Council Decision of 6 December 1994 (OJ N° L 340, 29.12.1994, p.8). 
Fourth Framework Programme of the European Community activities in the field of research and 
technological development and demonstration (1994 to 1998), adopted by the Decision N° 
1110/94/EC of the European Parliament and of the Council of 26 April 1994 (OJ N° L 126, 
18.5.1994, p.l). 
13 COM(94) 207 final of 3 June 1994 
% 
Whereas the actions in this programme will not in any way prejudice the competition 
rules of the Community; 
Whereas it may be appropriate to engage in international co-operation activities with 
international organisations and third countries for the purpose of implementing this 
programme; 
Whereas it is necessary to fix the duration of the programme; 
HAS ADOPTED THIS DECISION : 
Article 1 
A programme is hereby adopted with the following objectives: 
• Stimulate demand for, and use of, multimedia content, 
• Create favourable conditions for the development of the European multimedia 
content industry, 
• Contribute to the professional, social and cultural development of the citizens of 
Europe. 
Article 2 
« 
In order to attain the objectives referred to in Article 1, the following actions shall be 
undertaken under the guidance of the Commission, in accordance with the action lines 
in Annex I and the detailed implementation arrangements set out in Annex III: 
• stimulating demand and raising awareness, 
• exploiting Europe's public sector information, 
• triggering European multimedia potential, 
• support actions. 
Article 3 
The programme shall cover a period of four years from 1 January 1996 to 31 
December 1999. 
<& 
Article 4 
1. The Commission shall be responsible for the implementation of the programme. 
2. The procedure laid down in Article 5 shall apply to: 
the work programme, 
the breakdown of the budgetary expenditure, 
the content of calls for proposals, 
the measures for programme evaluation, 
any departure from the rules set out in Annex III, 
participation in any project by legal entities from third countries and 
international organisations. 
Article 5 
1. The Commission shall be assisted by a committee of an advisory nature composed 
of the representatives of the Member States and chaired by the representative of the 
Commission. 
2. The Commission representative shall submit to the committee a draft of measures to 
be taken. The committee shall deliver its opinion on the draft within a time limit 
which the chairman may lay down according to the urgency of the matter 
concerned, if necessary by taking a vote. 
3. The opinion shall be recorded in the minutes; in addition, each Member State shall 
have the right to ask to have its position recorded in the minutes. 
4. The Commission shall take the utmost account of the opinion delivered by the 
committee. It shall inform the committee of the manner in which its opinion has 
been taken into account. 
Article 6 
At the mid-term and at the end of the programme, the Commission shall submit to the 
European Parliament, the Council, the Economic and Social Committee and the 
Committee of the Regions, once the committee referred to in Article 5 has examined it, 
P 
an evaluation report drawn up by independent experts on the results obtained in 
implementing the action Unes referred to in Article 2. The Commission may present, on 
the basis of those results, proposals for adjusting the orientation of the programme. 
Article 7 
Participation in this programme may be open, normally without financial support by the 
Community, to legal entities established in third countries and to international 
organisations, where such participation contributes effectively to the implementation of 
the programme and taking into account the principle of mutual benefit. 
Article 8 
This Decision is addressed to the Member States. 
Done at Brussels, For the Council 
The President 
M 
ANNEXI 
ACTION LINES FOR INFO2000 
ACTION LINE 1: Stimulating demand and raising awareness 
Lack of awareness of the potential of the new multimedia information products and 
services is an important factor constraining demand. This action line contributes to 
redressing that situation by adding a European dimension to awareness and user-group 
activities taking place at the national or regional level. Specific attention will be given 
to favouring demand development in less-favoured and peripheral regions of the 
Union. 
1.1. Creating new markets by raising awareness at the European level with 
specific user groups 
Under the IMPACT programme a network of organisations in the Member States has 
been created that have a responsibility for conducting awareness and information 
campaigns in relation to new information services. In different Member States this role 
is performed by different organisations like chambers of commerce, professional 
organisations or public bodies. By working in a European network these organisations 
are able to add a European dimension to their activities. 
Under INFO2000 this successful formula will be continued and extended. The 
involvement of the Community in the network as a catalyst and a co-ordinator adds 
value to the individual activities and puts these activities in a clear European context. 
Apart from financial support for specific activities with a European dimension the 
Commission will encourage the exchange of know-how and experience, the use of 
common communication and information facilities, and co-operation between the 
various organisations in joint projects. 
The organisations in the network will perform the following tasks: 
• provide access to information collections and catalogues across the European 
Union; 
• demonstrate and facilitate access to the European information highways; 
• advise users on the possible sources for satisfying their multimedia content 
needs, both nationally and internationally; 
• organise co-ordinated European awareness campaigns at the national or 
regional level; 
• stimulate the training of users. 
The main target groups for the actions will be small and medium-sized companies and 
libraries. The actual selection of specific target groups will be left to the national and 
<?r 
regional organisations concerned, since they are closest to the target groups. 
Following a call for proposals a total of 30 to 50 organisations will be selected to 
participate in the network. Selection criteria will include knowledge of the local 
information market, affinity with the target groups foreseen and readiness to work in a 
European network. Actions which aim to stimulate women's interests in new 
information services are encouraged. 
The network will co-operate with other relevant national organisations. It will liaise 
closely with other EU supported bodies and networks that have a complementary 
mission, such as the Information Society Project Office (ISPO), the European 
Information Centres (EICs), the Business Co-operation Network (BC-NET), the 
Value Relay Centres and the University Enterprise Training Partnerships (UETPs). 
Organisations from these networks could be selected in the call for proposals. Efforts 
will be made to avoid parallel or overlapping networks. Synergy and spin-offs will be 
sought with other awareness activities performed under the 4th Framework research 
programme such as the Advanced Communication Technologies and Services and 
Telematics applications programmes. 
1.2. Encouraging clusters of pan-European users 
A flourishing demand side is important for the development of a healthy market for 
advanced information products and services such as multimedia. In view of the rapid 
changes taking place in the information market, regular dialogue between suppliers and 
users can smooth the transition process. In general the supply side tends to be better 
organised than the user side, both at the national and at the European level. In two of 
the three sectors that compose the multimedia industry - information technology and 
telecommunications - the user side is increasingly organising itself both at the national 
and at the European level. 
In the third sector of the multimedia industry - the content industry - the demand side 
is much less organised and is fragmented. Historically, the relationship between the 
content providers and the users has been indirect, i.e. through intermediaries. 
However, under the influence of the new communication networks this situation is 
changing. The need to develop direct relations between suppliers and users is 
increasingly being felt in the content sector also. At the national level, professional 
organisations and industry sector organisations are beginning to address the issue. 
However, for a successful development of the European multimedia content market it 
is important that groupings of users also emerge at the European level. 
The actions foreseen under INFO2000 aim to stimulate this process by providing 
incentives for co-operation and exchange of experience between national user groups, 
thereby encouraging the emergence of European groupings. Specific measures will be 
tailored to address key user problems, for example quality assurance and questions of 
liability. The network of awareness organisations will be used to analyse the situation 
in individual Member States and will play a catalytic role in bringing about pan-
European user groups. 
<?G 
ACTION LINE 2: Exploiting Europe's public sector information 
Europe's public sector information is a hidden resource to be exploited. The public 
sector collects and produces vast amounts of information, much of which is of interest 
to individuals and businesses, and which can be the raw material for value-added 
information services produced by the private sector content industry. Official statistical 
services either at regional, national or European level are an example. 
Three sets of actions will be particularly helpful in supporting this public sector role 
and in exploiting its potential at European level: 
• developing policies to access and exploit public sector information, 
• linking directories of European public sector information, 
• making use of content resources in the public sector. 
Particular attention will be given to improving access from the peripheral regions of the 
Union. 
2.1. Developing policies to access and exploit European public sector 
information 
In the Member States, rules for access to public sector information are very different 
or in some cases do not exist at all. As the transition to the information society 
progresses, this situation could become a barrier to full participation by individuals and 
businesses across Europe and may become the cause of unevenly distributed 
opportunities. Therefore, initiatives need to be taken at the European level to develop 
policies which facilitate access to and exploitation of public sector held information, in 
particular as regards information resources of European interest. 
The Commission will produce, in close collaboration with Member States and market 
actors, a Green Paper analysing the situation in the different Member States, the 
relative position of the EU in a global context and the various possibilities for 
convergence of national approaches. To lay the foundations for this Green Paper, 
studies comparing national situations will be undertaken and exchanges of national 
experience will be encouraged. 
2.2. Linking directories of European public sector information 
In a number of Member States practical initiatives are being taken to improve access to 
public sector information. In the European information society it must be ensured that 
the relevant public sector information becomes more easily accessible to all European 
individuals and businesses that may have an interest in such information. 
The Commission will support initiatives to produce directories of European public 
sector information to a common format, so that they can be interlinked and easily 
accessed from any point in Europe. 
Following a call for proposals, pilot projects for the production of information 
directories that incorporate the above characteristics will be supported. These pilot 
projects may address the transnational interconnection of existing national or regional 
information directories as well as the collaborative production of new directories. Pilot 
projects based on public/private partnerships and applying multilingual solutions will be 
particularly encouraged. 
2.3. Making use of content resources in the public sector 
Europe is blessed with a rich stock of what might be called "information collections" 
under public sector control, for instance in museums, libraries, copyright and patent 
deposit systems, educational and training bodies, historical archives and architectural 
and industrial objects. These information collections need to be exploited if Europe is 
to build on these cultural and economic assets commercially and if Europe is to realise 
the potential of advanced technologies in support of public sector services. They are 
central to the Union's strength in the global information society and their commercial 
and strategic potential has already been underlined by a series of deals transferring 
control over some of them to private companies, not all of which have been European. 
Most of these information collections are still in analogue form but they are 
increasingly being digitised. The INFO2000 programme aims at mobilising these digital 
collections for exploitation by the private sector. 
To this end the Commission will support the creation of European inventories of 
digital information collections and stimulate their interconnection across the EU. This 
involves defining a common standard format for such inventories as well as integrating 
them with intellectual property rights trading systems. Support for the creation of 
inventories and their integration with intellectual property rights trading systems will be 
provided on the basis of calls for proposals. Related standards and specifications will 
be developed through studies and through task groups composed of the actors 
involved. 
ACTION LINE 3: Triggering European multimedia potential 
The transition from "scribe to screen" is rapidly and fundamentally changing the 
structure of the content industry and the roles of the different players within it. 
Internationalisation and multimedia are key words in this respect. Content itself and 
new ways of creating, packaging, distributing and marketing it are increasingly 
becoming the key drivers behind these changes. 
Coping with these changes and exploiting the opportunities that emerge is primarily the 
responsibility of the industries concerned. However, apart from a limited number of 
large corporations that operate on a global scale, the present day content sector in 
Europe is mainly made up of small and medium size companies. These have difficulty 
in dealing with a rapidly developing international multimedia market and the speed 
with which the changes take place. In addition the initial cost of producing high quality 
multimedia titles is high and the European market fragmented through cultural and 
linguistic barriers. The critical mass needed to recoup initial investments is therefore 
much more difficult to reach. 
M 
This puts European multimedia publishers, traditionally used to operating in a national 
or regional setting, at a disadvantage compared with their competitors from other parts 
of the world. Exploitation of the single market potential will become vital for global 
competitiveness. 
This action Une aims at mitigating these comparative disadvantages for European 
producers in the emerging multimedia market by: 
catalysing high quality European multimedia content 
favouring a practical approach to trading multimedia rights 
• developing and exchanging best business practice 
3.1 Catalysing high quality European multimedia content 
The production of high quality European multimedia content will be stimulated in three 
strategic areas: economic exploitation of Europe's cultural heritage, business services 
for SMEs, and geographic information. Under the IMPACT programme pilot actions 
in these areas have illustrated the problems connected with a pan-European approach 
and have laid the foundations for further actions under INFO2000. 
Multilingual interactive multimedia products can build on the wealth of available 
European content, while overcoming language barriers and other limitations of national 
and regional markets. Apart from the economic benefits, strong European business 
activity in this area is Ukely to contribute to the safeguarding of cultural identity and 
linguistic diversity. It will also increase the pubUc's understanding of European cultural 
diversity across the Member States and regions. 
In the areas indicated above - European cultural heritage, business services for SMEs 
and geographic information - calls for proposals will be launched to provide support to 
the initial and pre-commercial phases of pan-European multimedia content 
developments. The support given should help the companies concerned overcome the 
specific barriers with respect to multilingual and multicultural (re)use of content and to 
trans-national co-operation. These initial phases would include product definition, 
partner identification, cross-licensing negotiation, planning of co-operative distribution 
etc. up to and including the production of a prototype. 
Support will be given to projects that demonstrate the feasibility of a trans-European 
multilingual and multicultural approach, contain a risk element, exert a strong catalytic 
effect on the market and imply substantial user involvement. Special add-on incentives 
can be provided to encourage participation by small and medium sized companies and 
organisations from less favoured and peripheral regions. 
The calls for proposals will be co-ordinated closely with the Community programmes 
RAPHAEL and the Integrated Programme in favour of SMEs and the craft sector, as 
well as with the sectoral policy actions in the areas of Trade, Tourism and Social 
Economics. 
tf 
3.2. Trading multimedia intellectual property rights 
Historically, the management of rights is organised by sector (text, sound, image, video 
etc.) and by country. With the dawning of the multimedia age this situation is 
increasingly becoming a barrier to the development of multimedia content markets, as 
the time and effort that has to be spent on identifying and acquiring the different rights 
increases steeply with the number of data types involved and the number of countries 
where right holders are located. Small companies and new media start-ups suffer most 
from the present system as they may wish to re-use existing material. 
The development of pan-European multimedia content often requires input from 
various Member States. Effective and efficient mechanisms for trading multimedia 
rights at the European level are therefore essential for the development of the 
European multimedia content industry. 
A call for proposals wiU be launched inviting proposals for pilot projects that lay the 
foundations for cross-border trading of multimedia rights electronically. In addition, 
studies will be launched to determine how different intellectual property rights trading 
systems for multimedia in Europe can work together. As an aid to small and medium 
sized companies practical tools will be developed on best practices to acquire, exploit 
and protect multimedia rights. The actions will build on the relevant research and 
technological development activities under the Fourth Framework Programme. 
Although the difficulty of reaching consensus should not be underestimated, in the 
longer term, harmonisation and rationalisation of legal requirements may be necessary. 
3.3. Developing and exchanging best practice 
Actions will be supported that aim at developing and exchanging best business practice 
in the multimedia content industry at the European level. Such actions will include 
descriptions of business processes and models relevant to the content industry, such as 
procedures for intellectual property acquisition and content asset valuation and 
management, and exchange of experiences with multimedia consumer panels to test 
and evaluate multimedia products and services. 
These activities will be implemented by means of a combination of studies, workshops, 
seminars and publications. The relevant organisations in the European content industry 
will be closely involved. 
4. Support actions 
The programme support actions aim at amplifying the effects of the core actions of the 
programme by addressing a number of horizontal issues relevant for the programme as 
a whole. 
3d 
4.1. Observing and analysing the multimedia content market 
At regular intervals senior experts from the content industry, from user communities 
and from Member States will be convened to monitor, analyse and discuss the impact 
of multimedia on the content industry and on the different actors in the information 
value chain. When organising these meetings modern multimedia information and 
communication facihties will be used where possible. 
The composition of the meetings will reflect the various segments of content creation, 
distribution and use within the European Union, as well as the many regulatory aspects 
(e.g. personal data protection) affecting the content dimension. They will thus serve as 
a focus for discussion, exchange of experience and co-operation between the various 
sectors of the content industry, between European and national policy makers, and 
between the supply and user sides of the content market. 
The meetings will focus on: 
• long-term scenarios, updated whenever justified by major international 
developments in markets, technologies, industries and poUcies 
• key issues of common interest to market actors from different sectors and from 
different Member States, such as legal aspects and quality assurance 
• obstacles to market development and recommendations to the industries, 
administrations and users to overcome them 
• the execution of INFO2000, making recommendations on orientations and 
priorities. 
Studies will be carried out to monitor changes in the European and global content 
markets and provide in-depth analysis of key issues. 
4. 2. Spreading the use of multimedia content standards 
Standards for the structuring and presentation of information, and standards for 
content encoding, including terminology, are essential in order to facilitate the 
exchange of documents and publications, and to enable the exploitation, access, 
maintenance and re-use of content. 
The work started in this domain under the IMPACT programme will be continued and 
extended. Actions will be supported that raise awareness of and stimulate the use of 
existing content standards through workshops and electronic fora and by publishing 
reports on paper and electronically. 
4.3. Encouraging skills development at European level 
In order to stimulate skills development, the relevant European associations will be 
encouraged to develop and implement measures to equip the European content 
providers with the necessary skills to enter the age of multimedia and interactivity. 
Actions to be supported will normally be based on a three-staged approach: 
V 
• identification of the most urgent training needs 
• development of pilot courses to test the effectiveness and efficiency of the 
proposed actions 
• launching of the activities in the relevant parts of the content 
industry and in the educational and training systems. 
The first two steps could be supported under INFO2000. The third step would fall 
within the remit of programmes Uke SOCRATES and LEONARDO, thus achieving 
important multipUer effects. 
The content industry will be extensively consulted in order to identify urgent needs and 
key areas. Representatives of universities and vocational training establishments will be 
closely associated with these initiatives. The role of the Community will mainly consist 
of stimulating, co-ordinating and enabling this process. 
32 
ANNEX H 
INDICATIVE BREAKDOWN OF EXPENDITURE 
1. Stimulating demand and raising awareness 30-40% 
2. Exploiting Europe's pubUc sector information 18-23% 
3. Triggering European multimedia potential 33-45% 
4. Support actions 7-12% 
Total 100 % 
This breakdown does not exclude the fact that a project could relate to several 
activities. 
33 
ANNEX m 
THE MEANS FOR IMPLEMENTING INFO2000 
1. The Commission will implement the programme in accordance with the technical 
content specified in Annex I. 
2. The programme will be executed through indirect action and wherever possible on 
a shared-cost basis. The Community's financial contribution for shared-cost 
projects shall normally not exceed 50% of the cost of the project, with 
progressively lower participation the nearer the project is to the market place. 
Special add-on incentives can be provided to encourage participation by SMEs 
and less favoured regions. 
3. The selection of shared-cost projects will normally be based on the usual 
procedure of calls for proposals published in the Official Journal of the European 
Communities. The content of the calls for proposals will be defined in close 
consultation with the relevant experts and according to the procedure referred to 
in Article 5 of the Decision. The main criterion for supporting projects through 
calls for proposals will be their potential contribution to achieving the objectives 
of the programme. Implementation procedures will accommodate the interests of 
all kinds of market operators and facilitate their participation in the programme. 
4. The Commission may also implement a more flexible funding scheme than the call 
for proposals in order to provide incentives for the creation of partnerships, in 
particular involving SMEs and organisations in less favoured regions, or for other 
exploratory activities in different segments of the multimedia content market. This 
scheme might be operated on a permanent basis. 
5. The Commission will make provision for considering in exceptional cases 
unsolicited project proposals which involve a particularly promising and significant 
multimedia market development, a highly innovative approach or an exceptional 
technology or methodology, and which cannot be submitted within the normal call 
for proposals procedure. The objective of avoiding market distortion will be 
maintained. 
6. The detailed arrangements for the procedures referred to under points 4 and 5 will 
be implemented through the consultative committee procedure (type I) and in 
accordance with the Commission's financial regulations. They will be published in 
the Official Journal of the European Communities. 
7. Projects fully financed by the Commission within the framework of study and 
services contracts will be implemented through calls for tenders in accordance 
with the Commission's Financial Regulations. Transparency will be achieved by 
publishing the work programme and circulating it to trade associations and other 
interested bodies. 
8. For the implementation of the programme the Commission will also undertake 
preparatory, accompanying and support activities designed to achieve the general 
objectives of the programme and the specific aims of each action line. This 
includes activities such as: studies and consultancy in support of this programme; 
preliminary actions in preparation of future activities; measures aimed at 
facilitating participation in the programme as well as facilitating access to the 
results produced under the programme; publications and activities for the 
dissemination, promotion and exploitation of results; analysis of possible socio­
economic consequences associated with the programme; and support activities 
such as observation and analysis of the multimedia content market, spreading the 
use of multimedia content standards, and encouraging skills development at 
European level. 
9. Participation in this programme by international organisations may be financed, in 
exceptional cases, on the same basis as that of legal entities established in the 
Community. 
55~ 

FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
INFO2000, a multi-annual Community programme to stimulate the development of a 
European multimedia content industry and to encourage the use of multimedia content 
in the emerging information society 
2. BUDGET HEADING INVOLVED 
ItemB5-723 
3. LEGAL BASIS 
Article 130 of the EU Treaty and Council Decision /95 of . . 1995. 
4. DESCRIPTION OF OPERATION 
4.1. General objectives of operation 
Three long-term strategic objectives underpin the INFO2000 programme: to facilitate 
the development of the European content industry; to optimise the contribution of new 
information services to growth, competitiveness and employment in Europe; and to 
maximise the contribution of advanced information services to the professional, social 
and cultural development of the citizens of Europe. 
These objectives aim at maintaining, extending and exploiting Europe's strength in 
content whilst narrowing the gap with our competitors. They encourage an integrated 
development across the European Union and so reduce the risks that different rates of 
progress might lead to a two-tier economy and a society composed of two segments: 
the information rich and the information poor. 
4.2 Duration 
The programme will be carried out over the period 01.01.1996 - 31.12.1999. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1. Non-compulsory expenditure 
5.2. Differentiated appropriations 
5.3. Type of revenue involved 
Revenues provided by contributions of third parties towards activities under action line 
1.1 will, where applicable, be re-used pursuant to Article 27.2 of the Financial 
regulations of 21 December 1977 as last modified by Regulation 610/90 of 13 March 
1990. 
3Q> 
6. TYPE OF EXPENDITURE 
6.1.100% subsidy 
Projects fully financed by the Community will be implemented through calls for tenders 
in accordance with the Commission's Financial Regulations. Full financing will apply 
generally to activities such as studies, workshops and seminars under action lines 2.1 
and 3.2, and to the programme support actions under action line 4. Transparency will 
be achieved by publishing the work programme and circulation of it to trade 
associations and other interested bodies. 
6.2. Subsidy for joint financing with other sources in the public and private 
sector 
The selection of shared-cost projects will normally be based on the usual procedure of 
calls for proposals published in the Official Journal of the European Communities. This 
type of financing will apply to most of the activities defined under action lines 1, 2 and 
3 and in particular to the financing of pilot projects. The content of the calls for 
proposals will be defined in close consultation with the relevant experts and the 
programme committee referred to in the Council Decision. The main criterion for 
supporting projects through calls for proposals will be their potential contribution to 
achieving the objectives of the programme. The Community's financial contribution for 
shared-cost projects shall normally not exceed 50% of the cost of the project, with 
progressively lower participation the nearer the project is to the market place. Special 
add-on incentives will be provided to encourage participation by SMEs and less 
favoured regions. 
6.3. Interest subsidy Not applicable 
6.4. Other Not applicable 
6.5. Should the operation prove an economic success, is there provision for all or 
part of the Community contribution to be reimbursed? No 
6.6. Will the proposed operation cause any change in the level of revenue? If so, 
what sort of change and what type of revenue is involved? No 
7. FINANCIAL IMPACT ON APPROPRIATIONS FOR OPERATIONS 
(PART B OF THE BUDGET) 
7.1. Method of calculating total cost of operation 
The amount of appropriations needed to finance the Community's contribution to the 
execution of the INFO2000 programme takes into account financial parameters 
derived from past experience and the nature of the actions proposed for realising the 
specific objectives defined under point 9.1. These unit costs and activity levels have 
been considered in determining the amounts indicated in the following table. 
<#-
7.2. Breakdown of costs 
The breakdown of commitment appropriations by action line in MECU (current prices) 
is indicated by the foUowing table: 
ACTION LINE 
Stimulating demand and raising 
awareness 
Exploiting Europe's public sector 
information 
Triggering European multimedia 
potential 
Programme support actions 
TOTAL 1996 
7 
2 
8 
2 
19 1997 
9 
4 
10 
2 
25 1998 
10 
8 
5 
2 
25 1999 
11 
8 
10 
2 
31 TOTAL 
37 
22 
33 
8 
100 
The above breakdown takes account of the nature, volume and unit costs of the 
individual activities defined in detail in Annex I of the Council Decision. 
7.3. Indicative schedule of commitment and payment appropriations 
The total amount for the programme is estimated at 100 MECU (current prices) over 
the period 01.01.1996-31.12.1999 and is scheduled as follows: 
SITUATION 
END 94 
/ BUDGET 
95 
/ PDB 
1996 
19 IP 
1997 
25 IP 
1998 
25 IP 
1999 
31 IP 
2000 
-TOTAL 
100 
8. ANTI-FRAUD MEASURES PLANNED 
Overall monitoring will be performed by a committee composed of delegates of 
Member States. Specific monitoring criteria and procedures taking into account the 
nature of the action lines will be developed at the start of the programme and applied 
periodically during the programme implementation phase. Officials of the Commission, 
where necessary assisted by independent experts, will verify the proper implementation 
of the projects and studies prior to payment, taking into account contractual 
obligations and principles of good management. There will be administrative control by 
administrative services of DG XIII and by DGs XIX and XX. Audit by the Court of 
Auditors in accordance with the Treaty will apply. At the mid-term and at the end of 
the programme, an evaluation report will be drawn up by independent experts on the 
results obtained in implementing the action lines referred to in Article 2 of the Council 
Decision. 
3? 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1. Specific objectives and target population 
Specific objectives 
To achieve the general objectives defined under 4.1., the INFO2000 programme will 
stimulate demand for, and use of, multimedia content and create favourable conditions 
for the development of the European multimedia content industry, by: 
• stimulating demand and raising awareness 
• exploiting Europe's public sector information 
• triggering European multimedia potential. 
The specific objectives are to accelerate market uptake of multimedia products and 
services by mobiUsing the users; to unleash the economic and cultural potential of 
public sector information; and to strengthen the international and pan-European 
dimension of the emerging European multimedia content industry. 
Target population 
Participants will be drawn from both users and suppliers in primarily content-related 
activities in the information value chain. Those involved in end-user equipment, 
communications software and hardware and production tools will be invited to 
participate on the basis of the specific contributions that they can make to the 
programme. 
9.2. Grounds for the operation 
Subsidiarity 
The proposals take account of the principle of subsidiarity between the Community 
and Member States and between public and private sector roles, as outlined in the 
Commission's action plan "Europe's Way to the Information Society" (COM(94)347 of 
19.7.94). In line with article 3B of the Maastricht Treaty, the programme's activity is 
only directed at those areas where there is added value at European level. 
To ensure that the actions fit into the global context, specific attention will be given to 
linking them to the recent G7 initiatives and to the relevant activities of international 
organisations such as the OECD, the WTO, WIPO and the Council of Europe. 
Synergy between the national and European content policy initiatives will be favoured. 
Apart from financial support for specific activities with a European dimension, the 
Commission will encourage the exchange of know-how and experience, the use of 
common communication and information facilities and co-operation between the 
various organisations in joint projects. Together, the proposed actions favour the 
further consolidation of the functioning of the single market. They provide for 
economies of scale in particular through experience exchange, joint pilot projects and 
demonstrators, and stimulation of pan-European information service provision in 
3<? 
support of a wide range of Community policies. They aim at favouring an integrated 
development across the European Union, by reducing the risks of different speed 
developments leading to a two-tier economy and a society composed of two segments: 
the information rich and the information poor. 
Intervention modes 
The costs of interventions will be kept as low as possible through recourse to 
competitive mechanisms in the form of calls for tenders and calls for proposals. The 
Commission's contribution to shared-cost actions will normally not exceed 50%. 
DupUcation of work will be avoided and synergy with ongoing work at national and 
international level will be favoured by wide consultation on the work programme. 
Common facilities will be used to the largest extent possible for supporting the range 
of envisaged actions. The choice of intervention modes takes due account of the mid­
term evaluation of the IMPACT2 programme, the orientations laid down in the 
Bangemann report and the Commission's action plan COM(94) 347, as well as of the 
results of various consultations with industry, users and Member States representatives 
in the preparation of the current programme proposal. 
Spin-off and multiplier effects 
Spin-off effects of content-related actions are likely as content provision contributes to 
the attainment of critical mass for delivery networks. The amount intended to finance 
pilot projects will be used, in particular, to attract possible additional sources of 
funding from the partners concerned, thereby having a multiplier effect on the 
development of the European multimedia content market. 
Factors of uncertainty 
The main factors of uncertainty which could affect the specific results of the 
programme are inherent technology push/demand pull uncertainties and the speed and 
shape of regulatory and legal reforms. 
9.3. Monitoring and evaluation of the operation 
At the mid-term and before the end of the programme, an evaluation report will be 
drawn up by independent experts on the results obtained in implementing the action 
lines referred to in Article 2 of the Council Decision. The evaluation shall take account 
of the 1995 base position as described in the "Study on assessing the present situation 
of the market for electronic information services for professional purposes in the EEA" 
(MSSTUDY), and of its evolution to be assessed by study updates. 
In addition to the measurement of the evolution of the base position and the impact of 
the programme actions on this evolution, for each of the activities mentioned in Annex 
I of the Council Decision a limited number of activity performance indicators will be 
monitored. The most important performance indicators include the following: 
For action line 1, stimulating demand and raising awareness: effectiveness and 
efficiency of national awareness organisations; scope, quality and volume of awareness 
and training activity; and degree and quality of experience exchange and co-operation. 
For action line 2, exploiting Europe's public sector information: catalysing effect of 
pilots in terms of degree of standardisation of national services and resources, 
networking among inventories, integration of inventories with intellectual property 
rights trading systems and share of public/private joint projects. 
For action Une 3, triggering European multimedia potential: catalysing effect of pilots 
in terms of number of companies involved, share of SME and Less Favoured Region 
participation, trans-national/cross-sectoral co-operation, public/private sector co­
operation and facilitation of cross-border intellectual property rights trading. 
9.4. Coherence with financial programming 
The operation is included in the financial programming of DG XIII for the years 
concerned. 
The objectives of the proposed operation correspond to broader objectives defined in 
DG XTTTs financial programming and to the objectives relating to the development of 
the European information society as mentioned in the Commission's action plan 
COM(94)347 final of 19 July 1994 "Europe's Way to the Information Society -An 
Action Plan". 
t/ 
10. ADMINISTRATIVE EXPENDITURE 
10.1. Additional Commission staff 
Beyond the staff levels associated with the IMPACT2 programme it is estimated that 
an additional aUocation of 3 A, IB and 2 C posts is required, without prejudice from 
where they will be derived from. 
10.2. Amount of staff and administrative expenditure involved 
The following annual amounts of administrative expenditure are foreseen: 
10.2.1. Seconded national experts 
A-1520 Total expenditure: ECU 210,000 
Three national civil servants, each responsible for five Member States, will need to be 
seconded to co-ordinate content poUcy actions between the EU and national levels. In 
addition, three national civil servants, each responsible for a set of neighbouring 
programmes, will need to be seconded to co-ordinate INFO2000 with other relevant 
complementary programmes. 
10.2.2. Meetings of experts 
A-250 Total expenditure: ECU 324,000 
In order to support the working of the expert meetings (4 meetings), and the project 
activities (5 calls with 1 meeting), the network of national awareness organisations (3 
meetings), and the user groups (10 groups with 1.5 meetings), a total envelope of 27 
meetings with an average cost of 12,000 ECU is requested. 
10.2.3. Committee meetings 
A-2510 Total expenditure: ECU 120,000 
The INFO2000 Programme Committee referred to in the Council Decision will hold on 
average 6 meetings/year at an average cost of 20,000 ECU 
10.2.4. Missions 
A-130 Total expenditure: ECU 240,000 
The total mission costs for Commission staff and seconded national experts are 
estimated at 240,000 ECU. 
The actual allocation of the necessary administrative resources will follow from the 
relevant Commission decision on this question, taking into account the staff posts and 
supplementary amounts which will have been approved by the Budgetary Authority. 
%? 

INFORMATION PLAN 
0. RESPONSIBLE SERVICE 
DGXin-E 
1. SUBJECT 
INFO2000, a multi-annual Community programme to stimulate the development of a 
European multimedia content industry and to encourage the use of multimedia content 
in the emerging information society 
Code number: 21132.3 
2. NATURE AND LEGAL BASIS 
Communication from the Commission to the European Parliament and the Council 
concerning a multi-annual Community programme to stimulate the development of a 
European multimedia content industry and to encourage the use of multimedia content 
in the emerging information society and proposal for a Council Decision adopting a 
multi-annual Community programme to stimulate the development of a European 
multimedia content industry and to encourage the use of multimedia content in the 
emerging information society (INFO2000). 
Article 130 of the EU Treaty 
3. TIMETABLE 
It is desirable that the European Parliament, the Council, the Economic and Social 
Committee and the Committee of the Regions take account of the Communication and 
the proposal for a Council Decision with the relevant annexes in the second quarter of 
1995. 
4. INCIDENCE AND PROBABLE REACTIONS 
ON THE INITIATIVE MENTIONED UNDER POINT 1 
A) Council, European Pariiament, the Economic and Social Committee, the Committee 
of the Regions: + 
B) General Public: + 
C) Specific Publics: + Programme participants will be drawn from the electronic 
content value chain particularly in such sectors as content creation, development and 
packaging, and end-user access. 
D) Opinion leaders: + 
E) Political decision makers: + 
<43 
5. REFERENCE TO AVAILABLE OPINION SURVEYS 
No 
6. OPPORTUNITY OF AN INFORMATION PLAN 
YES LIMITED 
Press release YES on adoption of the Communication by the Commission 
Press conference YES on adoption of the Communication by the Commission 
Publication in the O J YES on adoption of the programme by the Council 
7. DGs CONCERNED 
No 
8. VISAS 
a) INFORMATION b) DG X c) SPP 
CORRESPONDENT 
DGXÏÏI 
Date: Date: Date: 
Name: Name: Name: 
</«/ 
RELATIONSHIPS OF INFO2000 WITH OTHER EU PROGRAMMES 
PROGRAMME CHARACTERISTICS 
IN Ft)2(KM) INFO2000 is a Community programme to encourage Europe's content providers to develop new multimedia products and services and to stimulate user demand for these products and services 
ENFO2000 aims at creating favourable conditions for the development of the European multimedia content industry, complementing other important policy actions announced in the Commission's 
action plan COM(95)347 final " Europe's Way to the Information Society " such as liberalisation of telecommunications and provision of a clear and stable regulatory framework. INFO2000 will 
focus on the transition from print to electronic publishing and on the interactive multimedia services that are currently emerging. Three lines of action are devised to tackle market bottlenecks and to 
meet the needs of both users and producers in this market area: - actions to stimulate demand and raise awareness, - actions to exploit Europe's public sector information, and actions to trigger 
European multimedia potential. ____ 
INFO2000 RELATIONSHIPS 
IT AND ACTS IT and ACTS cover infrastructure-oriented research and technological development programmes in the field of information technologies (addressing software technologies, technologies for IT 
components and subsystems and multimedia technologies) and advanced communication technologies (addressing the technological base for interactive digital multimedia services, photonics, high­
speed networking, mobility and personal communications, intelligent networks and service engineering, and quality, security and safety of communications services and systems). In contrast, 
INFO2000 is content-oriented and concentrates on the use of both existing and future technologies and narrows the gap between research and market. In particular contrast to the ACTS programme, 
INFO2000 is delivery channel neutral and aims at stimulating multimedia content for both network-based and off-line solutions. In short, IT and ACTS stimulate the required research for 
providing better 'boxes and pipes' or information infrastructures of the future, while INFO2000 is concerned with content production, distribution and access over current and future 
technology boxes and pipes, enabled by previous research efforts. INFO2000 will thus be building on the results of the IT and ACTS programmes as and when they emerge. 
TELEMATICS Tlie specific programme Telematic Applications of Common Interest, which is applied research-, network- and application-oriented, is focusing on applications in the public sector. INFO2000 is 
delivery channel neutral, is about creating favourable conditions for the development of the private sector content industry. In short, Telematics stimulates applied research for a limited 
number of public sector application domains such as healthcare, education, transport and libraries, thereby setting an example in areas which come under government aegis, while 
measures proposed by INFO2000 focus on creating favourable conditions for the development of the private sector European multimedia content industry and of the multimedia content 
market, where information products and services are traded for a price. 
MEDIA II MEDIA II addresses tlie specific needs of the audiovisual segment, which is one sector of the content industry. The content industry at large is composed of those enterprises involved in content 
creation, development, packaging and distribution. It comprises, on tlie one hand, the different segments of print publishing (newspapers, books, magazines, corporate publishing) and electronic 
publishing (on-line databases, videotex services, audiotex services, fax- and CD-based services, videogames) and, on the other, the audiovisual industry (television, video, radio, audio and cinema). 
INFO2000 will contribute to tlie establishment of a comprehensive European content policy, addressing print publishing and electronic publishing segments in complement to content policy 
measures proposed by the Commission for the audiovisual segment. Tlie focus of INFO2000 is on the transition from print to electronic publishing and on the interactive multimedia information 
services that are rapidly emerging. In short, both programmes address different content segments and propose actions adapted to each segment's specific needs over the programme 
period. In the longer term, due to convergence of technologies, operators and markets, programme actions are likely to converge. 
RAPHAEL Firstly, RAPHAEL is an instrument of EU cultural policy, while INFO2000 is basically an instrument of EU information society policy. Secondly, RAPHAEL is a vertical programme addressing 
specifically the cultural heritage sector, while MFO2000 is essentially a horizontal programme addressing more generic questions in relation to the information society. Thirdly, RAPHAEL covers a 
wide range of sector-specific policy actions relevant for the EU cultural heritage sector, while INFO2000 proposes a limited number of actions focusing on common structural problems of a range 
of sectors. Common ground between both programmes emerges in tlie areas of interplay between multimedia use for making cultural assets more visible, accessible and affordable as part of cultural 
policy (RAPHAEL) and exploitation of cultural assets for multimedia content industry development purposes (INFO2000). In short, INFO2000 and RAPHAËL are different in terms of overall 
policy domain, sectoral coverage and range of proposed actions. Both programmes address, however, in a complementary way, limited common ground, related to the exploitation of 
European cultural heritage through multimedia. 
SOCRATES 
AND 
LEONARDO The SOCRATES and LEONARDO programmes establish general Community frames for education and training policy actions for the educational systems and for a wide range of economic sectors, 
while LNFO2000 concentrates on the specif c needs of the multimedia content industry, by setting up pilots to be extended under the SOCRATES and LEONARDO programmes. INFO2000, 
SOCRATES and LEONARDO are therefore complementary as on the one hand LNFO2000 pilot actions can be extended favouring large-scale use of adequate multimedia content in education and 
vocational training contexts and on the other hand SOCRATES and LEONARDO schemes can be used for the purposes of skills development within the multimedia content industry. LEONARDO 
addresses predominantly supply-sector needs, while INFO2000, in addition to skills-development actions aimed at the supply side of the multimedia content industry, also proposes awareness and 
training actions aimed at the demand side. In short, INFO2000 stimulates pilot and experimental actions, while SOCRATES/LEONARDO provide the frames for large-scale application. 
The purpose of the Integrated Programme in favour of SMEs and tlie Craft sector is, in the context of the White Paper, to initiate in a concerted maimer measures facilitating reciprocal consultation | 
between Member States and, where necessary, co-ordination between Member States with a view to improving the business environment by simplifying administrative procedures, promoting 
support measures for enterprises and identification of ways in which the Community can contribute to the development of enterprises. DNFO2000 addresses the multimedia content industry which is, 
apart from a limited number of international and global players, composed of mainly SMEs. The INFO2000 programme aims at stimulating this sector and its users. In short, the Integrated 
A' Li!Si*ilnJ [ile and IN F O 2 0 0 () _ar e f u lly com pi ementary in improving the competitiveness of SMEs in Europe. SMEs AND 
CRAFT 
SECTOR 
ISSN 0254-1475 
COM(95) 149 final 
DOCUMENTS 
EN 15 
Catalogue number : CB-CO-95-170-EN-C 
ISBN 92-77-88129-1 
Office for Official Publications of the European Communities 
L-2985 Luxembourg