Report from the Commission to the Council, the European Parliament and the Economic and Social Committee - Final annual report on progress in implementing the action plan for the introduction of advanced television services in Europe
Date: 1998-07-13
Institutions: European Commission
Subjects: action programme, audiovisual communications policy, audiovisual production, electronics industry, high-definition television

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.07.1998 
COM(1998) 441 final 

REPORT FROM THE COMMISSION 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND 
THE ECONOMIC AND SOCIAL COMMITTEE 

FINAL ANNUAL REPORT 
ON PROGRESS IN IMPLEMENTING 

THE ACTION PLAN FOR THE INTRODUCTION OF 
ADVANCED TELEVISION SERVICES IN EUROPE 

Joint  Introduction 

JOINT  EXECUTIVE  SUMMARY 

SECTION  A:  BROADCASTING 

1.  Management of the action plan 

1.1.  Call 96/1 
1.2.  Call 97/1 
1.3.  Evaluation methodology 
1.4.  How Calls 96/1 and 97/1 build on earlier activity 

2.  Market impact 

2.1.  Sales of 16:9 TV sets 
2.2.  The start of digital television  services and 16:9 - First phase 

3. 

Future prospects for  16:9 

3.1.  Second phase of digital TV and 16:9 
3.2.  Digital Versatile Disk 
3.3.  World Cup Football  in 16:9 
International comparisons 
3.4. 
3.5.  The Action Plan bows out 

SECTION  B:  PROGRAMME  PRODUCTION 

4. 

Introduction 

4.1.  The Action Plan, a Community instrument for the audiovisual sector 
4.2.  The 16:9 market 
4.3.  The Action Plan, an integral part of the Community audiovisual policy 
4.4.  Scope of the Action  Plan 

5. 

16:9 Action Plan 1993-97 

5.1.  Overall results expressed in Ecu and hours: 
5.2.  Proposals (production and remastering projects) received under the Action  Plan 
5.3.  The professionals  involved 

6.  Results of the Action Plan 

6.1.  New productions 
6.2.  Remastering 

7.  Conclusions - programme  production 
7.1.  Expanding the audiovisual catalogues 
7.2.  A partnership for a dynamic  16:9 market 
7.3.  The programmes industry invests in the future  at European  level 
7.4. 
7.5. 

International competition and innovation 
Integration of new technologies  into the European audiovisual  industry 

5 

7 

11 

11 
11 
15 
19 
19 

22 
22 
23 

25 
25 
26 
27 
27 
28 

31 

31 
31 
31 
32 
32 

33 
33 
34 
35 

40 
40 
44 

45 
45 
46 
46 
46 
46 

JOINT INTRODUCTION 

The  Action  Plan  for  the  Introduction  of  Advanced  Television  Services  in  Europe  was 
established  by  the  Council  Decision  of 22 July  19931  with the  objective  of ensuring  the 
accelerated  development  of the  market  for  advanced  television  services  in  Europe  using 
the wide-screen  16:9 format. 

The  approach  is  based  on  stimulating  the  broadcasting  and  programme  production 
elements  in the value  chain  so that  all  the  different  actors and  elements  in the  television 
services chain necessary to deliver  16:9 services to the home can fall  into place.  This is a 
condition  for  achieving  the  accelerated  development  of  the  market  for  16:9  services. 
Community  funds  of  up to 228 MECU were foreseen  for the period mid-1993 until mid-
1997  in  order  to  contribute  towards  the  additional  costs  of  introducing  the  16:9  format. 
Broadcasters  and  Programme  Producers  were  entitled  to  apply  for  this  funding  through 
calls for proposal. 

The  Action  Plan  Decision  requires  the presentation  of  a report  annually  to  the  Council, 
the European Parliament  and the Economic and Social Committee on the activities of the 
preceding year.2  This Communication presents the Report for  1996 and  1997. 

This Annual  Report therefore  focuses  on the activities carried  out during  1996 and  1997 
and the results  to  date  in  achieving  the objectives  of the  Plan.  Section  A  deals with  the 
Broadcasting part (budget line B3-2014 - managed by DG XIII) and Section B deals with 
the  Programme  Production  part  (budget  line  B3-2013  - managed  by  DG  X).  Activities 
up to the end of  1995 were covered in previous reports.3 

This  is  the  final  Annual  Report  on  the  activities  of  this  four  year  Action  Plan.  The 
Commission  will  publish  an  evaluation  report  in  1999,  following  the  conclusion  of  the 
Action  Plan's  implementation  in  December  1998.  This  will  assess  the  Action  Plan's 
impact on the market and upon the sectors concerned. 

1 

2 

93/424/EEC, O.J. No. L  196/48, 5.8.93 

Ibid., Art. 6. 

3  COM  (95) 263  final,  16.06.95; COM  (96) 346 final,  26.07.96 

M - 5_  Q 

Final Annual Report 

on Progress in Implementing the Action Plan for 

the Introduction of Advanced Television Services in Europe 

JOINT EXECUTIVE  SUMMARY 

Broadcasting 

Impact 

During  the  last  two  years  of  the  Action  Plan's  active  life,  the  16:9  set  market  grew 
strongly.  Sales of  16:9 sets quadrupled from 220,000  in  1995 to an estimated  800,000  in 
1997.  The  installed  base  of  16:9  sets  had  reached  around  2  million  units  by  the  end  of 
1997. The  16:9 format  is best  established  in the markets  which  started  transmitting  16:9 
early: France, Germany, Belgium, Netherlands. 

Digital  television  services  started  in  Europe  during  1996,  including  16:9  transmissions. 
Since  the  first  wave  of  digital  television  services  are  mostly  pay  TV  bouquets,  services 
are  delivered  via  decoders  connected  to  existing  TV  sets.  Without  an  installed  base  of 
16:9  sets,  pay  TV  operators  would  therefore  have  had  little  reason  to  include  16:9 
transmissions.  However,  in  those  Member  States  where  broadcasters  have  taken  the 
opportunity  to  build  an  installed  base  of  16:9  sets  ready  for  the  start  of  digital  services, 
the  Action  Plan  has  ensured  that  the  market  will  provide  digital  16:9  services.  The 
overlap  between  the profile  of pay  TV  subscribers  and  purchasers  of  16:9  sets  suggests 
that market convergence between digital TV and  16:9 is being achieved. The  16:9  format 
is set to surf the crest of the digital wave. 

Output 

The broadcasting part of the Action Plan supported  36 broadcasters, contributing  towards 
the transmission of 9,900 hours of  broadcasting through Call 96/1 and Call 97/1.  Sharply 
reduced budgets meant that this  total was much lower than in  1995 when the Action Plan 
supported  nearly  21,000  hours.  The  lion's  share  of  Action  Plan  hours  (66%)  was 
allocated  to the so called "late starting markets" , those without national  16:9 services on 
1.1.95.  The  Commission  reserved  what  little  funding  could  be  allocated  in  the  50% 
category  to  broadcasters  in  Member  States  where  the  16:9  market  was  still  blocked, 
either because there were too  few  16:9 services, or because broadcasters  were waiting  to 
start digital services before transmitting in 16:9. 

By its close, the Action Plan had involved broadcasters in all Member States. Finland had 
been  the  last  Member  State  without  16:9  services4,  but  the  first  Finnish  broadcaster 
started  transmitting  in  16:9  following  Call  96/1, joined  by  others  after  Call  97/1. These 
last two calls for proposal  also enabled  further  new services to be funded  in Italy, United 
Kingdom, Netherlands, Belgium, Portugal. 

Programme  Production 

The production  part of the Action  Plan  funded  5,633 hours of  16:9 programmes  through 
Call  96/1  and Call 97/1. About  80% of these hours were new productions  and 20% were 
remasterings  of  existing  programmes  into  the  16:9  format.  The  steady  decrease  in  the 
number of hours allocated to remastering (For instance in  1994 remastering accounted  for 
40%  of the  total  allocated  hours  of programmes)  implies that  a majority  of the  50% and 
80%  countries  have  been  focusing  on  new  productions  as  opposed  to  remastered 
programmes, which have been typically  used by  broadcasters just  starting to transmit  in 
16:9  for  the  first  time.  The  transition  from  remastering  of  existing  programmes  to 
producing  new  programmes  in  16:9  is  a  very  positive  indication  of  the  success  and 
permanence of the  16:9 format  with producers and broadcasters. 

Luxemburg  has  no  national  broadcaster  transmitting  16:9,  but  other  countries'  16:9  services  are 
available via terrestrial, cable and satellite. 

The significant  increase in 1996 and 1997 in both the number of  proposals received and 
the number of applicants also showed the high level of awareness achieved by the Action 
Plan among European independent producers and broadcasters. Producers responded to 
Calls  96/1  and  97/1  by  applying  for  a  total  of  approximately  46,000  hours  of 
programmes, while the equivalent total number of hours applied for in the five previous 
calls from 1993 up to and including 1995 was 43,000. These figures show that the Action 
Plan has awakened the European programmes industry to the need for renewal and to the 
necessity to prepare for digital markets which will demand an ever increasing quantity of 
16:9 programmes. 

It is also very important to stress that the last two calls financed more than 3,000 hours of 
stock programmes, giving a major  boost to European audiovisual catalogues, which are 
the primary business asset of the programme production industry. 

SECTION A: BROADCASTING 

1. 

M A N A G E M E NT  OF  T HE  A C T I ON  P L AN 

During  the  period  covered  by  this  report,  there  were  two  joint  calls  covering  both 
broadcasting and programme production,  Call 96/1 and Call 97/1. The following  sections 
will review the broadcasting part of these two calls. 

As with Calls 95/1 and 95/3, broadcasters in Member  States without any  16:9 services, or 
with  limited  16:9  coverage,  could  benefit  from  funding  at  a  higher  rate  -  80%  of  the 
hourly  flat-rates  - rather  than  50%. The  Council  Decision  reserved  68  MECU  for  these 
"late  starting  markets"  for  allocation  after  1.1.95.  The  hourly  flat-rates  paid  by  the 
broadcasting part of the Action Plan were unchanged.5 

1.1.  Call 96/1 

Response 

In  response  to  the  call  for  proposals  published  in  February  1996,6  broadcasters 
requested  funding  equivalent  to  55,500  hours  of  broadcasting,  equivalent  to  nearly 
90  MECU  of  funding.  Demand  was  divided  much  more  equally  between 
broadcasters  in  the  "late  starting  markets"  (43%)  and  those  in  the  driver  markets 
(57%)  than  in  1995. Budgetary  resources  available  for  the  call  were  however  less 
than half what was available to earlier calls, when it had been possible to fund  up to 
21,000  hours  of  transmissions.  It  should  also  be  noted  that  the  80%  funding 
possibility  reduced the number  of hours of broadcasting that could  be funded;  each 
hour cost the Action Plan more. 

The main features  of the call were as follows: 

42  proposals  were  received,  of  which  two  were  ruled  ineligible  for  the 
broadcasting  call,  following  consultations  with  the  independent  external 
evaluators. 

5 

Either 50% or 80% of  the rates set out in  para 4 of the annex to the Council  Decision: 6000 ECU  per 
hour for the first fifty hours and 2500 per hour for each subsequent hour.  See Annex A below. 

6  OJNo.  C 26,  1.2.96, p.4 

AO  -  11 

One  of  these  proposals  was  subsequently  reassigned  to  the  programme 
production  call;  another  was  ruled  ineligible  for  evaluation  because  it 
contained none of the information  requested  in the call for proposals. 

23 broadcasters funded  by earlier calls re-applied. 

exactly half the proposals were from  80% countries. 

the average number of hours requested per project  was  1611 hours. 

Results of Call 96/1 

Tables  la,  lb  and  lc  show the final  allocation  of  funding  following  Call  96/1, with 
new entrants in italics. 

Table  la 

ACTION  PLAN  16:9  BROADCAST  SERVICES  FINAL  ALLOCATION  96/1 
50%  funding 

Code 

Requested  hours 

Allocated  hours 

Broadcaster 

1.  FRANCE 

Multivision 

FR5 

France  total 

2. GERMANY 

NDR 

Germany  total 

3. NETHERLANDS 

NOS 

Netherlands  total 

4. SPAIN 

Telemadrid 

Television Valenciana 

Spain  total 

5. UK 

UK  total 

BskyB 

A2 

N1 

E2 

E3 

R2 

2.340 

2.340 

150 

150 

804 

804 

208 

276 

484 

400 

400 

150 

150 

100 

100 

400 

400 

100 

100 

200 

400 

400 

Total  zone 50% 

4.178 

1.250 

12 

Table lb 

ACTION  PLAN  16:9  BROADCAST  SERVICES  FINAL  ALLOCATION  96/1 
80% funding 

Code 

Requested hours 

Allocated  hours 

Broadcaster 

6.  GREECE 

ERT 

ERT3 

Channel Seven X 

Nethold  Hellas  -  Filmnet 

Greece total 

7. SWEDEN 

Sweden total 

8. ITALY 

Italy  total 

9.  IRELAND 

Ireland total 

TV 1000 

Syntesia 

Telenuovo 

Videolina 

Nueva Antenna Tre 

Rete7 

Telemontecario 

Telepadova 

Teleregione 

Videomusic 

RTE 

G2 

G3 

G1 

G4 

S1 

IT4 
IT5 
IT9 
IT1 
IT3 
IT6 
IT7 
IT8 
IT2 

10.  AUSTRIA 

ORF 

AU1 

Austria total 

11.  FINLAND 

Finland total 

Total zone 80% 

TV Tampere 

F1 

400 
810 
2.375 

1.374 

4.959 

3.168 
3.168 

900 

1.620 

1.360 
1.400 
2.702 

1.500 
250 
120 

1.000 

200 

200 

300 

500 

1.200 

500 

500 

50 

100 

50 

200 

200 

500 

200 

120 

500 

10.852 

1.920 

500 

500 

430 

430 

170 

170 

365 

365 

400 

400 

170 

170 

20.079 

4.555 

13 

Table le 

ACTION  PLAN  16:9  BROADCAST  SERVICES  FINAL  ALLOCATION  96/1 
Total allocation 

Grand total=24 Projects (80 % + 50 %) 

24.257 

5.805 

Requested hours 

Allocated 
hours 

The main elements underlying this allocation were as follows: 

The Commission  and the Member  State  Committee  agreed  a funding  period 
of two years; 

A reduced budget meant that only new entrants  were funded  under the 50% 
funding regime and the majority of successful  proposers received far less than 
they had requested; 

That  broadcasters  in the  80% countries  must  be well-served  (83% of  total 
funding awarded). 

The reduced budget meant that it was no longer possible to maintain continuity of 
funding  for  a  number  of  excellent  broadcasting  projects  which  had  been  funded 
under preceding calls. The Commission would have preferred  to phase out  funding 
more  gradually,  but  there  was  no  room  for  manoeuvre  so  the  final  allocation 
involved difficult  decisions. However, the Commission had clearly  signalled to the 
Member  State  Committee  in  1995 that  there  would  be  very  little  funding  left  for 
projects in the 50% countries. 

Apart from funding the three small Italian regional broadcasters funded  earlier under 
Call 95/3 again, Call 96/1 funded six more Italian broadcasters for the first time. TV 
Internazionale  and Videomusic  - subsequently  renamed  TMC  1 and  TMC  2  - are 
national channels controlled by the Cecchi Gori group. The regional channels - such 
as Nuova Antenna Tre - are much larger than the first group funded by call 95/3. 

14 

Based  on experience  elsewhere, it would  have been reasonable to  expect  the  public 
broadcaster  RAI  to  initiate  16:9  broadcasting  in  Italy.  However,  the  first  16:9 
transmissions  in  Italy  were  made  by  small  regional  broadcasters.  The  Action  Plan 
had  supported  these  projects  through  Call  95/3  because  the  Commission  felt  that  a 
start  needed  to  be made  in  Italy,  even  if  it was  symbolic,  and  geared  to  promoting 
16:9 towards other broadcasters  as much as towards the regional  audiences  covered. 
Certain  Italian  members  of  the  European  Parliament  had  also  expressed  concern 
about  Italy's  lack  of  participation  in  the  Action  Plan.7  The  entry  of 
two  national 
channels and  some important  regional  broadcasters through  call  96/1  vindicated  the 
approach adopted under Call 95/3. 

Wide-screen  transmissions  in  Finland  also  started  following  Call  96/1,  since  TV 
Tampere, a regional station, had applied  successfully. 

1.2.  Call 97/1 

Response 

This  was  the  last  call  under  this  Action  Plan.  In  response  to  the  call  for  proposals 
published  in  October  19968,  broadcasters  requested  funding  equivalent  to  69,247 
hours of broadcasting, equivalent to  120 MECU of  funding. 

The main features  of the call were as follows: 

67 proposals were received; three projects  were reallocated  to the  programme 
production part of the call; 

31 broadcasters funded  by earlier calls re-applied; 

Italian broadcasters submitted  32 proposals; 

the average number of hours requested per project was  1305 hours. 

7 

Parliamentary  Question  No.  2649/95  by  Mrs  Marin;  No.  2724/95  by  Messrs.  Podesta,  Azzolini, 
Ligabue, Caligaris and Boniperti; 2736/95 by Mr Tatarella and 2754/95 by Mr Dell'Alba 

8  OJNo.C  288,  1.10.96, p. 46 

15 

Results 

Tables 2a, 2b and 2c show the final  allocation of funding  following  Call 97/1,  with 
new entrants in italics. 

Table 2a 

ACTION  PLAN  16:9  BROADCAST  SERVICES  FINAL  ALLOCATION  97/1 
50%  funding 

Broadcaster 

Code 

Requested hours 

Allocated  hours 

300 
1500 

495 

400 
2695 

500 
500 

431 
431 

1000 
1000 

148,5 
148,5 

230 
300 
230 
230 
990 

450 
450 

400 
400 

110 
110 

36 
36 

4.774,5 

1.986 

Euskal Telebista 
RTVE 

TV3 de Catalunya 
TV de Galicia 

RTP 

BBC 

NOS 

VTM 

1. SPAIN 

Spain total 

2. PORTUGAL 
Portugal total 

3. UK 
UK total 

4. NETHERLANDS 

Netherlands  total 

5. BELGIUM 

Belgium total 

Total Zone 50 % 

E1 
E2 
E4 
E3 

P1 

R2 

N1 

B4 

16 

Table 2b 

ACTION  PLAN  16:9  BROADCAST  SERVICES  FINAL  ALLOCATION  97/1 
80%  funding 

Code 

Requested  hours 

Allocated  hours 

Broadcaster 

MTV 
TV-Tampere 
YLE 

F2 
F1 
F4 

Nethold Hellas - Filmnet 

G3 

RTE 

11 

Antenna Tre  Veneto 
Nuova Antenna Tre 
Telepiu - Omega 
RAI 
Telenorba 

IT 23 
IT1 
IT 20 
IT 12 
IT 22 

300 
190 
70 
560 

968 
968 

300 
300 

1100 
700 
4138 
1200 
1746 
8884 

300 
130 
70 
500 

150 
150 

170 
170 

250 
150 
300 
350 
250 
1300 

10.712 

2.120 

6. FINLAND 

Finland total 

7. GREECE 
Greece total 

8. IRELAND 
Ireland total 

9. ITALY 

Italy total 

Total Zone 80 % 

Table 2c 

ACTION  PLAN  16:9  BROADCAST  SERVICES  FINAL  ALLOCATION  97/1 
Total  allocation 

Requested hours 

Allocated  hours 

Grand total=18 Projects (80 % +50 %) 

15486,5 

4.106 

The main elements underlying this allocation were as follows: 

a  funding  period  of  two  years  agreed  by  the  Commission  and  the  Member 
States; 

17 

an extremely limited budget of 7.8 MECU, down from  12.5 MECU in 1996; 

a final  opportunity to ensure a good spread and balance of community  funding 
across Member States, in line with market possibilities; 

in  particular,  opportunities  to  extend  the  number  of  services  in  Italy,  Spain, 
Portugal and Finland; 

and to initiate digital  16:9 services in certain countries. 

In  the  80% bloc,  the  roll-out  of  16:9  in  Italy  and  Finland  were  the  most  obvious 
highlights. 

The  Finnish  regional  television  station  TV  Tampere  had  already  been  successful  in 
Call  96/1. The  start  of  its  16:9  service  generated  considerable  press  interest.  As  in 
Italy,  this  was  instrumental  in  attracting  the  interest  of the  main  national  channels, 
the  public  broadcaster  YLE  and  its  commercial  competitor  MTV.  YLE  is 
transmitting  digital  16:9 programmes by satellite initially; terrestrial  broadcasts  will 
start as receiver equipment becomes available. 

Of the 32 Italian projects  submitted, the restricted  budget forced  the Commission  to 
focus  only  on those  likely to achieve maximum  market  impact. The digital  satellite 
services proposed  by RAI and the pay TV  operator  Telepiu  were clearly  important. 
At  the  time  of  the  allocation,  the  Commission  believed  these  would  achieve  less 
impact  on  the  TV  set  market  than  either  analogue  terrestrial  or  digital  terrestrial 
services. However,  co-location  of a number of Italian  broadcasters  on to a so called 
common digital platform  will create synergies, a bouquet effect  that will carry more 
credibility  than  individual  channels  16:9  transmissions.  These  should  benefit  the 
16:9  market.  RAI's  transmissions  will  be  free-to-air  16:9  digital  simulcasts  of 
programmes  in  its  main  national  services.  The  range  of  terrestrial  16:9  services  is 
enhanced  by the  inclusion  of two  more  important  regional  broadcasters,  Telenorba 
and Antenna Tre Veneto. 

In  the  50%  bloc,  RTVE's  proposal  for  a  terrestrial  16:9  service  offered  the 
possibility  of  much  greater  market  impact  than  its  earlier  satellite  service.  The 
absence  of  16:9  from  RTVE's  terrestrial  services  had  limited  the  progress  that 
regional  broadcasters  could  make  on  their  own.  In  concluding  this  contract,  the 
Commission  placed  very  high  priority  on  promotion,  which  had  been  a  major 
weakness of the satellite service. 

The  selection  of two  projects  showed  up the  limitations  of  a dogmatic  approach  to 
the distinction between 50% and 80% countries. Although individual broadcasters in 
Portugal  and  the  United  Kingdom  had  been  successful  in  early  calls  - before  80% 
funding  became possible on  1.1.959 - other broadcasters had not followed.  Call  97/1 
was  therefore  a  final  opportunity  to  stimulate  these  "late  starting"  markets  in  the 

See Art 2.5,  Council  Decision  93/424/EEC of 22 July  1993 on  an Action  Plan  for  the Introduction  of 
Television  Services  in Europe 

18 

50%  category,  in  the  interests  of  achieving  "spread  and  balance"  per  the  Council 
Decision. 

RTP, the Portuguese public broadcaster, submitted a high quality project  of strategic 
importance.  Theirs  is  only  the  second  16:9  service  available  in  Portugal.  The 
Commission  believed  it  was  important  to  provide  further  impetus  in  this  market, 
again placing high priority on promotion. 

The  BBC  plans  to  transmit  digital  satellite  and  terrestrial 
services  starting  in 
summer  1998. It  intends  to  transmit  30% of prime  time  in  16:9  within  one  year  of 
starting  digital  transmissions.  The  BBC  will  be  investing  heavily  in  promotion; 
Action Plan funding  will reinforce this activity. 

1.3.  Evaluation  methodology 

Evaluation  procedures  for  both  calls  were  unchanged  from  earlier  years.  An 
independent  external  consultancy  assisted  with  the  technical  evaluation  of  projects. 
Their tasks were first  to establish eligibility  of proposals against the  "project  quality 
criteria" set out in the Council Decision; second to provide  a ranking  of the  projects 
with  particular  emphasis  on  the  likely  attractiveness  of  the  services  to  audiences; 
third, to identify  omissions and weaknesses  in the proposals so that the  Commission 
could address these in contractual negotiations. 

The  technical  evaluations  supplied  important  inputs  into  the  Commission  proposal 
for  both  calls.  However,  the  "spread  and  balance"  criteria  were  applied  by  the 
Commission  exclusively  before  formulating  its  proposal  to  the  Committee.  The 
Technical  Evaluators'  Summary  Reports  were  made  available  to  the  Member  State 
Committee. 

1.4.  How Calls 96/1 and 97/1 build on earlier activity 

As  in  earlier  reports, the  following  series  of  maps  show  in  graphic  form  how  16:9 
services have rolled out in Europe since the beginning of the Action Plan. The series 
has been updated to take into account the calls 96/1  and  97/1.  The format  has  been 
changed  so that each map shows the results of calls for proposal year by year, rather 
than  being  cumulative.  The  high  number  of  broadcasters  supported  by  the  Action 
Plan  over  four  years  means  that  it  is no  longer  feasible  to  display  them  all  on  one 
map.  Once  all  Call  97/1  broadcasters  have  started  transmissions,  the  Action  Plan 
will have helped 63 broadcasters in all fifteen  Member  States to transmit  in the  16:9 
format. 

19 

Figure 1 

Action Plan Broadcasting Call 93 

I 

I National 

||  Regional 

|| 
SB Pan 

European 

France 
SnpCTviiion 

Figure 2 

Action Plan Broadcasting Call 94/1 

1 

I  National 

Regional 

Pan 
European 

RTVA 

TVS 

20 

Figure 3 

Figure 4 

21 

Figure 5 

Action Plan Broadcasting Call 97/1 

I 

II 

I National 

II  Regional 

RTE 

TV da G a ts 

El/BtHlTalBOm 

mvE 

TV3 de GBIbfe 

HTP 

TVTBmpeB 

MTV3 

YLE 

[Nstnod Btaa 
Flmnat 

2.  MARKET IMPACT 

2.1.  Sales of 16:9 TV sets 

The  1995 report demonstrated a close correlation between cumulative sales of 16:9 
sets and the number of 16:9 hours broadcast10.  The report also showed that the core 
16:9 markets were the ones that had started earliest, namely France, Germany and 
the Benelux countries, the so called "pioneer" markets. 

Table  3  shows that these countries  are still the main  16:9 markets  in  Europe and 
that the installed base is at least  1.7 million.  These figures  are conservative. Other 
estimates of the European installed base of  16:9 TV sets are as high as 2.4 million.11 
Preliminary  forecasts  suggest  that  annual  European  sales  will  reach  at  least  3.5 
million in 2000. 

10  See COM (96) 346 final, figure 4, p. 16 in particular. 

11  Advanced  Television  Markets,  October  1997.  Strategy  Analytics  estimate  2.2m.  These  European 
estimates probably  include non-EU markets such  as the  150,000  16:9 sets sold  in  Switzerland. SBS 
began  PAL  Plus  16:9  tranmissions  at  the  same  time  as  German  broadcasters.  Extensive  German 
satellite broadcasting has helped stimulate the Swiss 16:9 market. 

22 

Outside  the "pioneer"  markets,  EACEM  estimates  for 1997  predict  a doubling of 
sales  in most  of the  "late  starting" markets,  albeit  from  very  low volumes.  In the 
UK,  manufacturers  revised  their  1997 sales  estimates  upwards  sharply,  to 70,000, 
following  the BBC's  announcement  that it would  be transmitting  digital  television 
in  16:9  format. 

Table 3 

OVERVIEW  O F q 6 i 9 j . ] a i S S E ^ ^ B ^ ^ B B E E S £ i a 9 3l 

' 

r '* i '"  i 

i  w ^ ' f i i r^ 

(unit sales  1 9 ^ ; ^ j ^ n fl 

Country 

Austria 

Benelux 

Denmark 

Finland *\" 

France?  ^ 

*-Y^j§9% 

®f®HI 
111111 
pg^3iH 

- *  , «-•/""!a® 

1  * 

v 

^Vi'SlS&tSS 

J-^-^"'sSB 

•B3fl 
IMIIll 

" — ^ ^^ 

•BlgO^I 

•BBEQ9 

iMtejffi 
I11H1 
^piMf 

1MMM 

__~g— 

^PH^^^^P^y 

^BI^K^lSl 

^^MHHH^llilllll 

Germany 
Greecev 
Ireland 
Italy 
Portugal; 

:  : 

Spain 

Sweden 

UK 

Total 

jl^fJll 
\':t;i?P^M 

B l l li 

IlilliiilsfflHgfi 

HBH 

—prfogfi] 
• • §1 

HHHHBH 

••^63001 

HSHHwmSHM^Si 

i^—a—MWBWB^HwaiiwBBa«jgi»jKjr^a 

• KB 
•m 

HRBHi 

s * -x^SIl 

iiHiiSI 
JHBBJ 
Eliiil 
I l I Bi 
IfflHi 
WMWM 

.'"" .'.'20J1 
'7-111 
290001 

BBttfilSS 

PKI 

B M B1 
gpggso^ 
HP 

^ ^® 

HE35S! 

BB?l6Bff^8m^M 
Ssaaaooi 
M Ul 
jSHH 

Ki&fStf  *.iS_a*WS>»J 

3E3ISQ 
• ^ s sn 
1IIS1I1 
P?8oT61P 

Source: EACEM 

2.2.  The start of digital television  services and 16:9 - First  phase 

In  December  1997, there  were  already  over  200 digital  television  services in 
Europe.  The population  of digital  decoder  boxes  had reached  two  million 
units,  according  to broadcasters'  best  estimates,  of which  1.75 million  were 
rented units. 

23 

On  17  April  1996,  Canal  Plus  became  the  first  broadcaster  in  Europe  to 
launch  digital  television  services.  France  accounted  for  around  half  the 
European  installed  base  of  digital  decoders  in  December  1997,  shared 
between  three  competing  service  bouquets,  Canal  Satellite  Numérique,  TPS 
and  ABSat.  French  digital  bouquets  have  included  16:9  digital  transmissions 
from  the outset. One of the French  service providers  has established  that 25% 
of  its subscriber base is watching digital television on a  16:9 TV set. 

This  link  demonstrates  the  important  overlap  between  the  consumer  profile 
for  pay  TV  subscribers  and  the  profile  of  "early  adopter"  buyers  of  16:9 TV 
sets.  The  link  between  pay  TV  and  16:9  is  not  confined  to  France.  In  an 
Action  Plan  proposal  submitted  several  years  ago,  a  pay  TV  operator 
elsewhere  cited  market  research  showing  that  its  subscribers  tended  to  be 
"early  adopters" of  all  new  technology  products,  and  were  pioneer  computer 
users at home and Internet  subscribers. 

Notwithstanding  the strong support of public broadcasters  for  the  16:9  format, 
the  Commission  is pleased  about  this  link  between  pay  TV  and  16:9.  During 
the early  stages  of the  Action  Plan, the  Commission  had  been  concerned  that 
pay TV broadcasters'  smaller audience made them a less cost-effective  way of 
promoting  16:9  than  free-to-air  broadcasters  with  much  larger  audiences. 
However, supporting pay TV appears to have offered  a highly targeted  way of 
promoting  16:9. The  Action  Plan  has  enabled  pay  TV  operators  in  a  number 
of  countries  both  to  test  the  commercial  attractiveness  of  the  16:9  format  in 
their established  analogue services and to help create an installed  base of  16:9 
sets within their subscriber bases for subsequent digital services. 

These  early  results  from  the  French  digital  market  also provide  some  support 
for the Action Plan's whole philosophy: build up an installed base of  16:9 TV 
sets  ahead  of  the  start  of  digital  services  and  independently  of  the  broadcast 
standard.  French  broadcasters  used  the  now  obsolete  D2-MAC  standard  to 
transmit  16:9 during  the  opening  phase  of the  Action  Plan.12  French  16:9 TV 
set buyers have also been able to take advantage  of the  large  number  of hours 
of  analogue  "letterbox"  transmission  in  4:3  on  the  terrestrial  channels.  16:9 
sets can expand  these transmissions  to fill  the  16:9 screen.  The  availability  of 
16:9  sets 
into  a 
supplementary  means of  promoting the uptake of  16:9.13 

therefore  converted  "letterbox"  4:3 

transmissions 

12  The consumer  investment  in D2-MAC was never high  because  pay TV  and cable TV  operators  rented 
most  of the  decoder  boxes, with  a view  to  swapping  them  for  digital  ones  when  digital  services  were 
launched. 

13  Note  that  PAL  and  SECAM  letterbox  transmissions  were  never  elegible  for  Action  Plan  funding 
because  they  do not  meet  the quality  requirements  set  out  under  Art  5.1  paragraph  (iv) of  the  Action 
Plan's  Implementation  Procedures set out in the Technical  Annex of the Decision. 

24 

Given that it was always known that Pay TV operators would  initiate the  first 
wave  of digital  television  services,14  using  cable  and  satellite  transmission,  it 
was important  that there were already  16:9 sets in people's  homes. Pay TV  is 
by  definition  a business  based  on adding  decoder  boxes to existing  television 
sets.15 Without  16:9 sets already in the market, it is doubtful  that most pay TV 
operators  would  have  added  to  the  complexity  and  risk  of  launching  digital 
TV by including  16:9 transmission. 

Evidence  from  the  early  days  of the  digital  TV  market  therefore  suggests  the 
Action Plan has played an important role in ensuring that there are  16:9 sets in 
European  homes,  ready  to  take  advantage  of  this  first  wave  of  digital 
television,  launched  by pay TV operators. These  services are characterised  by 
plenty  of feature  films,  ideal programming  for the  16:9 format.  Moreover, the 
16:9 format  has also been  able to benefit  from  some of the massive  resources 
devoted to promoting digital television and subsidising decoder boxes. 

3. 

FUTURE PROSPECTS FOR  16:9 

3.1.  Second  phase of digital TV and 16:9 

If the first  phase  of digital  television  has been  led  by pay TV  operators  using 
cable  and  satellite  transmission,  the  next  phase  will  be  characterised  by  free-
to-air  terrestrial  transmission  in  1998.  The  UK  and  Nordic  countries  are 
leading the way. 

The UK market is particularly  important  for the development  of  16:9 because 
it is the  last of the three big  driver  markets  to  start.  France,  Germany  and  the 
UK  are  the  largest,  the  richest  and  the  most  dynamic  consumer  electronics 
markets.  To succeed  in Europe, any  new consumer  electronics  product  must 
be well-established  in all three markets. 

Despite  the  analogue  16:9  services  offered  by  Channel  4,  S4C  and  Granada, 
most  UK  broadcasters  believed  that  the  perceived  disadvantages  of  earlier 
16:9  analogue  TV  transmission  systems  outweighed  the  advantage  of 
stimulating  the  16:9  TV  set  market  before  the  availability  of  digital  TV.16 
They  preferred  to  wait  for  the  launch  of  UK  digital  services  in  1998.  This 
decision prevented the  16:9 TV set market from  starting  earlier. 

14  The  DVB  specifications  for  digital  cable  and  satellite  transmissions  were  available  before  the  more 

complex  terrestrial  digital  TV system  was  defined. 

15  Pay  TV  broadcasters'  decoder  boxes  usually  contain  both  the  necessary  technologies  for  conditional 
access  and  descrambling, together  with  the electronics  for  receiving  digital  or analogue  broadcasts. 

16  Most  UK  broadcasters  believe  that  the  PAL  Plus  transmission  system  is unsuitable  for  use  in  the  UK 
because  it  produces  a "letterbox"  picture  on  4:3  sets.  UK  audiences  are  unaccustomed  to  "letterbox", 
unlike  most audiences  in continental  Europe. 

25 

However,  the  BBC's  announcement  in  1997 that  it  would  achieve  30%  16:9 
content  within  one  year  of  starting  digital  services  had  an  immediate  effect. 
Sales  of  16:9  TV  sets  took  off  and  1997  total  sales  may  reach  70,000  sets. 
Clearly  the  BBC's  16:9 transmissions  will  be  of  strategic  importance  for  the 
development  of  16:9  in the  UK.  Other  UK  broadcasters  have  made  a  so  far 
unquantified  commitment to the  16:9  format. 

As the UK is one of the three large driver markets for  consumer  electronics  in 
Europe,  broadcasters  were  able to convince  manufacturers  to make  available 
all-digital integrated  16:9 TV sets.  These are scheduled to appear during  1998 
as  digital  services  start  up.  These  digital  sets  will  also  be  available  in 
Scandinavian markets. Clearly, without  a viable  installed  base  of  16:9 sets  in 
the market already, it is essential to have  16:9 digital  sets available from  day 1 
of digital services. 

The  Commission  will  be  considering  the  link  between  16:9  and  the  digital 
television  in greater detail in its final  evaluation  of the Action Plan,  scheduled 
to appear in  1999, after the end of the Action Plan's  implementation.17  Among 
other  things,  this  will  need  to  examine  in  greater  detail  the  various  different 
ways of introducing  16:9 television pursued by broadcasters. 

Meanwhile,  it  should  be  noted  that  transmitting  16:9  using  digital  terrestrial 
also  includes  a  significant  element  of  subsidy  because  Member  State 
governments  are  making  available  free  of  charge  to  terrestrial  broadcasters 
additional  radio spectrum for digital TV services. Terrestrial radio  spectrum  is 
a  valuable  resource.  The  additional  capacity  is  being  made  available  on  a 
temporary  basis, in order to accelerate  the  migration  from  analogue  to  digital 
and recover analogue radio  spectrum. 

3.2.  Digital Versatile Disk 

Although  "letterbox" versions  of films  have been  available  on VHS  cassettes 
for  several years, picture  quality  leaves a lot to be desired  once these pictures 
have been  expanded  to fill  a  16:9 screen. The European  launch  of the  Digital 
Versatile  Disk  in  Spring  1997 will  bring  be  an  additional  stimulant  for  16:9. 
Many  video publishers will  include  a 4:3  version  of a film  on one  side  of the 
disk  and  a  16:9 version  on the  other.  The  Action  Plan  has  arguably  played  a 
role here, because there would not be much point in including the  16:9 version 
unless there were  16:9 sets in consumers' homes. 

The  availability  of  DVD  means  that  consumers  will  have  the  possibility  of 
acquiring  a high  quality  digital  medium  for  building  their  own  collections  of 
film and TV programmes in 16:9. 

17  No  further  funding  will  be  distributed  following  Call  97/1, contracts  signed  in  1997  do  not  conclude 

until the end of  1998. 

26 

3.3.  World Cup Football in 16:9 

in  April  and  July  199718,  the 
Through  Commission  Decisions  taken 
Commission  allocated  a  total  of  1.4  MECU  to  TVRS,  the  consortium  of 
French  broadcasters  that  is  undertaking  programme  production  on  behalf  of 
FIFA.19  The funding  is a community  contribution towards the extra costs of a 
parallel  production  effort  in  16:9  so  that  16:9  pictures  are  available  for 
European broadcasters.20 

The Commission  and the Member  State Advisory  Committee were  favourable 
to  this  project  when  it  was  proposed  by  EACEM,  the  manufacturers' 
association.  The  World  Cup  football  tournament  has  always  stimulated  sales 
of  new  consumer  electronics  products  therefore  manufacturers  stated  they 
were willing to invest  substantial  sums in promoting  sales of  16:9 TV  sets  for 
the World Cup. 

Broadcasters in six Member States21 have already agreed to carry the coverage 
and it is expected that others will sign up by the time the World Cup starts. 

3.4. 

International  comparisons 

The Japanese  market  is strong, with  sales  of  5.5m  16:9 sets  in  1996 and  over 
6m  estimated  in  1997, over  50% of  all  TV  sets  sold.22  As  noted  in  the  1994 
report,  TV  manufacturers  control  most  of  the  retail  outlets  in  Japan.23  They 
have been  able to  withdraw  4:3  sets progressively,  ahead  of the  development 
of  16:9  broadcasting.  Some  sets  can  downconvert  NHK's  analogue  HDTV 
transmissions.  Since  many  video  games  are  now  in  "letterbox"  format,  this 
has also helped. Moreover DVD has already been launched  in Japan. 

18  Decision  E/97/456 - C(97)906 -  1.04.97 and E/97/1216 - C(97)2065  - 1.07.97 

19  Financing this activity from  the programme production  part of the Action  Plan was not possible. In the 
1997 budget commentary  for the  B3-2013 budget  line covering  programme  production,  the  budgetary 
in  and  conversion  to  16/9 
authority  states  "This  appropriation  is  intended  to  cover  the  production 
format  of programmes  intended  to be reused (long stock  programmes) to the exclusion  of  programmes 
intended  in principle  to be  broadcast  only  once, such  as news  bulletins,  sports  broadcasts  or  televised 
serials..." (OJ No.  L44  14 February  1997 p.802).  The  European  Parliament's  Committee  on  Culture, 
Youth,  Education  and  the  Media  had  earlier  expressed  concern  that  B3-2013  was  supporting  sports 
production  on a cultural budget  line. 

20 

It is possible to  integrate  16:9 and 4:3 production  but broadcasters  outside  Europe were concerned  that 
this  might  affect  the  quality  of  the  4:3  coverage  and  would  not  permit  4:3  and  16:9  coverage  to  be 
combined. The  16:9 coverage will however be shown  in Brazil and Canada, according to EACEM. 

21  Denmark,  France, Greece, Italy, Spain, UK. 

22  Source: Advanced  Television  Markets newsletter ibid. 

23  COM (95) 263 final,  16.06.1995, P.26 para 3.2 

27 

In  the  USA,  manufacturers  and  broadcasters  are  preparing  to  launch  digital 
high  definition  television  services  towards  the  end  of  1998.  24  The  United 
States  will  effectively  join  the  16:9  community.  This  development  will 
increase the availability  of  16:9  programming  and also reduce the  production 
costs of the big screen technologies necessary  for HDTV. Without big screens 
to  achieve  its  full  realism  and  impact,  HDTV  offers  little  or  no  advantages 
over  16:9  in  standard  definition,  on  ordinary  size  TV  screens  (<100  cms 
diagonal).  As  a  large,  monolingual  market,  the  USA  is  better  suited  to 
pioneering  the  introduction  of  HDTV  services  than  Europe's  smaller, 
fragmented  broadcasting  markets  since  it  will  achieve  economies  of  scale 
earlier in respect of new, big screen technologies. 

3.5.  The Action Plan bows out 

The Commission has not proposed a sequel to this Action Plan. This is a mark 
of  faith  in  the  commercial  prospects  of  wide-screen.  Now  that  wide-screen 
exists in the home, it is no longer just  an interesting  technical  possibility;  it is 
part  of  the  market,  and  not just  in  Europe,  but  also  in  Japan  and  soon  in  the 
USA. 

The interim  evaluation  report25  carried  out  by  independent  consultants  during 
in 
1995/6,  together  with  a  conference  organised  by  the  Commission 
September  199626,  both  recommended  an  extension  of  the  Action  Plan  in 
order  to  achieve  the  "critical  mass"  of  16:9  services  stated  in  the  Council 
Decision.  However,  critical  mass was only  an  indicative  target,  not  an end  in 
itself;  nor  was  it  defined.  The  objective  was  to  "Contribute  to  market 
penetration by receiver equipment".  With an installed base of around 2m  16:9 
TV  sets  forecast  for  1997,  the  Commission  felt  that  the  market  had  made 
important progress since the interim evaluation and the  conference. 

Now that wide-screen  exists in the market, the powerful  market  forces  behind 
digital  television  will  be  able  to  sustain  it  more  effectively  than  any  public 
terrestrial 
subsidy  scheme.  Indeed,  broadcasters  who  plan  to  transmit  16:9 
digital  services  will  have  benefited  from  a much  more  valuable  subsidy  than 
the Action Plan ever offered:  free  spectrum. 

24  HDTV  uses the  16:9 wide-screen  format,  but has a higher  bit-rate  in order to produce  quality  pictures 

on big screens, thereby adding to impact and realism. 

25  Review  of Action  Plan for  Advanced  Television Services,  December  1996,  Final  Report,  Coopers  & 

Lybrand  and Convergent  Decisions Group. 

26  Reshaping  Television for  the Information Society, Brussels, 26 September  1996. 

28 

An  extended  action  plan  would  therefore  no  longer  play  the  role  of  the 
catalyst  for  take-up  of  the  new  format.  A  further  period  of  public  funding 
would  have  risked  creating  a  dependency  culture  by  attracting  "subsidy 
hunters" who might  discredit  wide-screen  commercially.  Taking  into  account 
the  difficult  budgetary  constraints  faced  by  the  EU,  and  increased  risk  of 
market  distortion  posed  by  continuing  subsidies  in  a  growing  market,  an 
extension  would  not  have  been  sufficiently  cost-effective  and  would  have 
carried  higher  risks.  The  role  of  the  catalyst  will  end  after  Call  97/1  Action 
Plan broadcasting contracts terminate in December  1998. 

Convergence  and the competition  from  new, interactive  services will  in  future 
force  broadcasters  to  change  the  experience  of  watching  television  more 
fundamentally  than  they  have  done  over  the  past  thirty  years.  The  television 
now  has  to  compete  with  the  personal  computer;  several  US  computer 
manufacturers  are  already  planning  to  launch  computers  with  16:9  monitors 
for  reception  of  digital  TV  and  DVD  viewing.  Convergence  will  therefore 
accelerate  penetration  of  the  wide-screen  format  not just  in  television  but  in 
the new services environment too. 

29 

SECTION B: PROGRAMME  PRODUCTION 

4. 

INTRODUCTION 

4.1.  The Action Plan, a Community  instrument for the audiovisual  sector 

The  aim  of  the  Action  Plan,  a  four-year  Community  programme  (July  1993-
July  1997), was to  act  as  a catalyst  for  the  development  of  the  market  in  advanced 
television  services.  The  encouragement  for  the  development  of  a  European 
dimension  on this market  will  spur the television  audiovisual  industry  to  modernise 
and prepare for the future  in a coherent, clear and synchronised  manner.. 

Advanced  television  services  are  now  broadcasting  in  the  16:9 format,  on  which  a 
consensus  has been  reached  in Europe. The  16:9 format  has two  major  advantages. 
The  first  is technical:  it  is  neutral  in  relation  to  the  various  transmission  standards 
and thus encourages the transition from  the analogue world to the digital  world. The 
second  is  commercial  and  aesthetic:  this  panoramic  format  gives  superior  image 
quality and brings television in line with the cinema. 

The  structural  effect  sought  by  the  Action  Plan  was  to  develop  a  critical  mass  of 
advanced  television  services  in order to make them  generally  available  at  European 
level.  For  that  purpose,  the  strategy  adopted  by  the  Action  Plan  took  into  account 
the  interests  of  all  those  involved  in  the  audiovisual  chain.  As  the  main  actors  in 
broadcasting  are  the  programme  distributors  and  producers,  the  Action  Plan 
deployed  its  efforts  in  two  directions  by  simultaneously  stimulating  supply  and 
demand  for  16:9 programmes  in a co-ordinated  and  decisive  manner  at  Community 
level.  Thus  the  16:9  Action  Plan  offered  European  broadcasters  and  producers 
to  cover  the  additional  costs  generated  by  the  16:9. 
supplementary  funds 
Considerable  investment  in  terms  of  both  finance  and  equipment  is  needed  to 
broadcast and produce  16:9 material. 

4.2.  The 16:9 market 

In  addition  to  broadcasting  services,  the  16:9  market  includes  general  public  and 
professional  equipment  linked  to  the  use  of  this  format.  The  launching  of 
16:9 broadcasting  services  at  European  level  encourages  investment  and  drives 
modernisation,  which  is  necessary  for  the  competitiveness  of  the  audiovisual 
industry,  the  professional  equipment  of  the  broadcasters,  and  of  production,  rental 
and equipment  firms.  The Action  Plan had the effect  of streamlining  the  industry  in 
general. 

'So -  31 

4.3.  The Action Plan, an integral part of the Community  audiovisual  policy 

By participating  in the emergence  of a critical  mass  of  16:9 services  in  conjunction 
with the economic actors, the European programmes industry can be clearly  oriented 
towards  the  future.  Producing  in  16:9  guarantees  technical  quality.  The  systematic 
encouragement  of  European  production  to  use  production  equipment  compatible 
with the  16:9 format  is a strategic commitment  at European  level to the durability  of 
programme catalogues. 

Programme  catalogues  are  the  basis  of  any  strategy.  They  are  the  source  of  the 
industry's  revenue.  They  are a business  asset.  Catalogues  consist  of  material  with  a 
long  shelf-life  which  can  be  rebroadcast  and  exploited  on  markets  other  than  their 
own. The Action Plan, which is geared to the programmes industry, has been thus an 
integral  part of the Union's  audiovisual  policy. Its purposes  have been  to  strengthen 
the  structural  capacity  of  the  audiovisual  programmes  industry  and  to  develop  its 
European  dimension. 

The  methodology  of  the  Action  Plan  was  based  on  these  considerations.  The 
programmes section of the Action Plan joined with the producers themselves and the 
economic  actors  who  invest  in the  16:9 in  cofinancing  the  additional  cost  either  of 
producing  new  16:9  programmes  or  of  remastering  material  available  in  other 
formats  to  make  them  compatible  with  the  16:9 format.  50% or  80% of  the 
additional cost is cofinanced  on the basis of flat-rate  hourly scales. 

4.4.  Scope of the Action Plan 

Calls for proposals invited  European producers to apply for  aid for  new  productions 
and/or remastering. Eligibility criteria were as follows: 

producers  must  be  established  in  one  of  the  Member  States  of  the  European 
Union; 

producers  must  show  that  a  16:9  broadcaster  established  in  the  European 
Union undertakes to broadcast the programme covered by the application; 

producers  must  certify  that  co-financing  of  the  additional  costs  comes  from 
economic sources other than the Action Plan. 

If  the  aggregate  aid  applied  for  exceeded  budgetary  availability,  priority  criteria 
were  applied  to  select  the  production  projects.  No  place  was  given  to  qualitative 
assessments of the programmes' contents and priority was given to: 

long-life  ("stock")  programmes; 

projects submitted by independent producers; 

32 

projects  from  Member  States  with  small  production  capacity  or  with  a 
restricted language area; 

projects  for  which the  additional  sources  of  financing  come  exclusively  from 
economic operators. 

Where  existing  material  was  to  be  remastered,  priority  went  to  programmes  of 
European origin. 

5. 

16:9 ACTION PLAN 1993-97 

This  chapter  outlines  activities  pursued  under  the  Action  Plan  in  1996  and  the  first 
half  of  1997,  and  the  development  of  the  Community  programme;  this  is  a 
particularly useful  analysis after  four  years of operation. 

5.1.  Overall results expressed in Ecu and hours: 

Year 

Call 

1993 

1994 

1994 

1995 

1995 

1996 

1997 

1/93 

1/94 

2/94 

1/95 

2/95 

1/96 

1/97 

Million  Ecu 

11,6 

19,4 

33 

18,1 

12,5 

12,1 

9,5 

[Hours 

i'^i^j 

%2.936 

'4:555; 

5.64a. 

ÏX099* 

.'2C55fc|r 

.6:066', 

.2.567 

£feî 

Seven  calls for  proposals  have been  organised  since the Action  Plan  started:  one  in 
1993, two  in  1994, two  in  1995, one  in  1996 and  one  in  1997. The  budget  for  each 
call  was  different.  At  first  there  was  an upward  trend  until  the  second  call  in  1994 
and  then  a downward  trend  until  the  second  call  in  1995.  The  budget  for  the  1996 
call was just slightly larger while  1997 budget was again lower. 

In  all,  ECU  116.2 million  was  allocated  to  European  producers  between  July  1993 
and 30 June  1997 to produce Or remaster programmes in the  16:9 format. 

33 

The ECU  116.2  million cofinanced 25 422 hours of programmes in 16:9: 

ECU  105.2 million cofinanced  16 856 hours of new programmes in  16:9; and 

ECU  11 million cofinanced  8 565 hours of remastering. 

5.2.  Proposals  (production  and  remastering  projects)  received  under  the 

Action Plan 

Number of proposals received 

The number of proposals received was relatively constant at  1  000 or so for each call 
with  a  significant  upward  trend  as from 2/95. The  smallest  number  of  applications 
received  (732) after the  1/94  call can be explained by the fact that the first  call under 
the Action Plan (1/93) had benefited  from  the launch of the programme and most of 
the  production  projects  in  preparation  were  attracted  en  masse.  It  was  necessary  to 
wait for  call 2/94 for producers to submit numerous new applications. The  1996 and 
1997  calls  received  the  largest  number  of  application  since  the  beginning  of  the 
Action Plan  with, respectively, (-1350 and  1580 proposals. 

Call 

1/93 

1/94 

2/94 

1/95 

2/95 

1/96 

1/97 

Proposals 
received 

944 

732 

1.113 

970 

1.116 

1.350 

1.580 

Increase in the number of programme hours submitted under the Action Plan 

Since  the  start  of  the  implementation  of  the  Action  Plan,  the  programme  hours 
corresponding  to aid applications  received  under the Action  Plan rose  significantly, 
as is shown by the following  table: 

Call 

1/93 

1/94 

2/94 

1/95 

2/95 

1/96 

1/97 

Hours  received 

7.500 

8.000 

10.356 

16.392 

10.735 

22.350 

24.012 

The  proposals  submitted  after  each  of  the  first  two  calls  (1993  and  early  1994) 
totalled  8 000 programme  hours. At the end  of  1994, the total  was  10 300 hours. A 
new  peak  was  passed  early  1995  when  applications  from  producers  totalled 
16 400 programme  hours.  For  1995  as  a  whole,  demand  reached  27  127 hours  as 
against  18 356 hours  in  1994.  Call  1/96  and  1/97  had  a  massive  response  with 
respectively 22 350 and 24 012 proposals  submitted. 

34 

Substantial increase in the number of proposals using the Action Plan 

Over  the  first  two  years  of  its  implementation,  the  total  number  of  proposals 
increased  threefold.  At the end of  1994, following  three calls, this total  stabilised  at 
an average  of 200 producers  per  call. The total  number  of proposals  increased  then 
dramatically  in the  last  two  calls, reaching  the remarkable  total  of 421  in call  1/97. 
The  main  reasons  of  this  important  increase  have  probably  been  the  fact  that  the 
Action  Plan  was  at  this  point  well  known  and  also  that  it  was  known  by  the 
interested parties that the Plan was coming to an end. 

Call 

1/93 

1/94 

2/94 

1/95 

2/95 

1/96 

1/97 

Number 
producers 

of 

80 

148 

243 

184 

190 

385 

421 

5.3.  The professionals  involved 

The  two  categories  of  producers  who  benefited  from  the  Action  Plan  are  the 
independent  producers  and  broadcasters. The  following  table  shows the  breakdown 
of budgetary funds between them and their respective share in the production of new 
16:9 programmes. 

35 

5.3.1.  General analysis 

Since  the  start  of  the  implementation  of  the  programme,  Community  funds 
have been shared out evenly between independent broadcasters and producers: 
on  average,  between  1993  and  1997,  55% of  the  funds  were  allocated  to 
broadcasters  and  45% to  independent  producers,  while  broadcasters  account 
for  about  69%  of  the  hours  and  independent  producers  31%.  In  these 
percentages,  it  must  be  noted  that  broadcasters'  hours  consist  mainly  of 
remastering,  studio  productions  and  sports programmes,  for  which the  hourly 
scales  on  which  the  Community  grant  is  calculated  are  much  lower  than  for 
other  categories  of  programmes.  Independent  producers,  for  the  most  part, 
make long-life programmes for which the scale is much higher. 

The above table and  graph  show the development  of the various  stages of the 
implementation  of the Action Plan, which are as follows: 

1993-1994 - Launch of the first  16:9 services cofinanced  at the rate of 50% of 
the additional costs: 

At the time of the first  call for proposals (1/93), broadcasters received  56% of 
the  budgetary  funds  and  produced  63%  programme  hours.  The  pioneer 
markets were ready to start up, and this first  call  coincided  with the launch  of 
the  first  16:9  services  for  which  broadcasters  urgently  needed  16:9 
programmes.  Although  there  were  only  a  few  of  them (60),  independent 
producers  submitted  programmes  under  the  Action  Plan  that  were  ambitious 
in  terms  of  hours,  a  fact  which  explains  how  they  provided  37%  of 
programme hours. 

Call  1/94  saw  a  strengthening  in  the  new  16:9  services.  16:9  broadcasters 
intensified  their  efforts  to  reinforce  the  identity  of  their  channel  and  thus 
needed  a very  large  quantity  of  programmes  in  order  to  immediately  fill  the 
programming  schedules.  That  call  was  dominated  by  broadcasters,  who 
produced 78% of programme hours in order to achieve a breakthrough  of their 
16:9  services.  The  budget  rose  by 67%  (ECU  19.4 million  compared  with 
ECU  11.6 million  for  the  first  call) and thus made possible that  a total  of  128 
producers (68 more than the previous call) to enter the  16:9 market. 

End  1994  -  Arrival  of  a  large  number  of  independent  producers  on  the 
European  16:9 market 

Call 2/94, which was allocated the largest budget of all the calls for  proposals, 
marked  a  turning-point  in  the  implementation  of  the  Action  Plan.  On  that 
occasion  independent  producers  arrived  in  numbers  on  the  16:9  market.  A 
total  of  220 producers  (92 more  than  for  the  previous  call)  made  45% 
programme  hours,  the  highest  percentage  of  all  the  calls.  Broadcasters  and 
independent  producers  shared  the  budget  evenly.  That  call  was  the  first  to 
prove by its results that there was a genuine pioneer market  for  European  16:9 
services. 

36 

1995/96  - Launch  of  16:9  services  on  late  developing  markets  cofinanced  at 
the rate of 80% of the additional costs 

Because  of  the  variable  rate  of  economic  and  technological  development  in 
broadcasting  in  the  various  Member  States  and  the  absence  of  projects  from 
some of them, the Action  Plan  was unable to cover the whole  of  Europe  in a 
homogeneous  manner  from  the  outset.  But  the  16:9  market  had 
in  time  to 
cover  all  the  European  Union  markets.  The  Council  Decision  consequently 
made  provision  for  a  budgetary  reserve,  available  on  1  January  1995,  for 
"markets  not  being  fully  served  in  the  early  stages  of  the  implementation  of 

the  action  plan".27  The  rate  of  assistance  for  these  markets  was  higher  than 
for  pioneer  markets:  Community  funds  covered  a  maximum  of  80%  of  the 
additional costs for production and remastering. 

Call  1/95  was the first call for  proposals to apply the  80% rule. The  countries 
which  benefited  from  it  were,  in  principle  Italy,  Denmark,  Greece,  Ireland, 
Luxembourg,  Sweden,  Austria  and  Finland.  Call  1/95  enabled  producers  on 
these markets to launch the  16:9 format. 

On  the  whole,  funds  allocated  to  this  call  were  evenly  distributed  between 
broadcasters  and  producers.  Broadcasters  produced  73%  of  the  programme 
hours. The number  of  16:9 broadcasters  increased from 20 to 42 during  1995. 
The  launch  of  the  services  of  a  second  wave  of  broadcasters  was  a  decisive 
factor  in  the  need  of  programmes  by  the  broadcasters.  The  very  strong 
demand  for  hours  received  under  this  call  (16 392 hours,  or  60%  up  on  the 
previous  call)  confirmed  the  very  high  programme  requirements  of  the  new 
services on the new markets. 

to 
In  the  case  of  call 2/95,  56%  Community  support  was  allocated 
broadcasters. The distribution of hours was similar to that of the previous call: 
73%  new  programme  hours  were  produced  by  broadcasters  and  27%  by 
independent producers. 

Finally,  as far  as  call  1/96  was  concerned,  financial  support  was  very  evenly 
distributed  : 52  %  of  the  financial  support  was  allocated  to  broadcaster  and 
the  break-down  of 
48%  to  independent  producers.  On  the  other  hand, 
production  hours  shows  a  predominance  of  the  broadcaster  (72  %)  on  the 
independent producers (28 % ). This result is in line with those of the previous 
calls. 

27  Twelfth recital. 

37 

1997 - The last call 

Call  1/97  received the highest number  of applications  ever (1580) with a total 
request  of  about  75  Mecu.  55%  of  the  available 
funds  (9.5  Mecu)  were 
distributed  to  broadcasters  and  45  %  to  independent  producers.  This  result 
was in line with the average of the previous calls. As far as hours allocation in 
call  1/97  is  concerned,  it  has  to  be  pointed-out  the  predominance  of 
broadcasters with a share of  76% of the total hours. 

5.3.2. 

Independent producers 

The variety  of producers  reflects  that of the European  audiovisual  world.  The 
big  names  in  the  production  world  appeared  regularly,  as  did  some  younger 
producers  who  are  interested  in the  16:9 format.  Since the entry  into  force  of 
the  Action  Plan,  a nucleus  of  pioneer  producers  producing  16:9  programmes 
has  been  formed.  Over  a quarter  of  the  hours  of  new  productions  relating  to 
the  1/95  call  came  from  producers  who  responded  to  all  the  calls  since  the 
beginning.  The  percentage  of  producers  who  are  loyal  to  the  Action  Plan  is 
constantly  increasing:  11%  for  the  1/94  call,  15% for  the  2/94  call  and  up  to 
35 % for  the  1/97  Call. These producers  who  are resolutely  committed  to  the 
16:9 format primarily produce documentaries and fiction programmes. 

In its action to support the durability  of European  audiovisual  catalogues, the 
Action Plan is an efficient  tool of the Union's audiovisual  policy.  Audiovisual 
catalogues  are  the  business  asset  of  the  European  programmes  industry,  and 
particularly  of the  independent  producers  who  are the  spearhead  of  European 
audiovisual  creation.  Although  European  producers  lack  financing  capacity, 
works produced  must  have a long  life  in order to  ensure  income  and  develop 
their activities. 

While the  16:9 format  is a decisive  substantive  argument  for  the durability  of 
the  audiovisual  heritage,  it  is  also  an  essential  formal  argument  for 
audiovisual  creators and professionals  generally.  16:9 format  aligns  television 
and  cinema.  16:9  image  quality  is a decisive  aesthetic  contribution  to  fiction 
programmes,  documentaries  and  other  cultural  programmes  which  illustrate 
the European heritage  (painting, architecture, music, dance, history).  Europe's 
cultural heritage which is enhanced by the audiovisual media is thus enriched.. 

38 

5.3.3.  Broadcasters 

An average of forty  or so broadcasters took part in the programmes  section. 
They  responded  to  calls  under  the  Action  Plan  in  their  dual  capacity  as 
broadcaster  and  producer.  As  they  set  up  their  own  16:9  services,  they 
enjoyed  support from the  Action  Plan  not  only  through  the  production  aid 
which it provides but also through the clear political signal of commitment to 
a European future  which the Plan's very existence  sends to the industry  as a 
whole. 

Little by little broadcasters are fitting their studios out in such a way that they 
can produce a range of in-house material that accounts for a significant part of 
their  programmes  and  audience.  Moreover,  the  identity  of  the  channel  is 
closely linked to this type of production. 

5.3.4.  The 16:9 European map 

Independent  producers  and  broadcasters  work  increasingly  with  the  Action 
Plan to  implement  the  new  16:9 technologies  which  are  already digital  and 
thus counting on quality. 

The  16:9  map  is  European.  16:9  broadcasters  have  come  to  support  each 
other, launching their services together and forging new ties of solidarity in an 
environment which still remains essentially 4:3. For example, the Pal+ group 
of  broadcasters  launched  the  16:9 format  in  Germany  in  1995;  certain 
activities such as coverage of major  events, like the Olympic Games and the 
next Football World Cup in France, are organised at European level. 

Broadcasters  and  producers  increasingly  act  as  real  partners  to  prepare  the 
present  and the future,  that  is to  say, to create  a suitable  programme  supply 
which  will  enable  16:9  services  to  continue.  That  emphasises  their  real 
complementarity  in the audiovisual field. By its pioneering work, the Action 
Plan  has  awakened  the  European  programmes  industry  to  the  need  for  a 
massive co-ordinated  effort  for  a genuine renewal.  16:9 services  are an area 
where the only successful  action is European. 

39 

6. 

RESULTS OF THE ACTION  PLAN 

6.1.  New  productions 

6.1.1.  Types of 16:9 programmes 

(expressed in hours for  each call for  proposals) 

Year 

Call 

1993 

1/93 

1994 

1/94 

1994 

2/94 

1995 

1/95 

1995 

2/95 

1996 

1/96 

1997 

1/97 

Hours  %  Hours  %  Hours  %  Hours  %  Hours  %  Hours  % 

Hours  % 

Fiction 

165 

10 

201 

8 

320 

9 

391 

14 

256 

13 

403 

17 

487,7 

19 

Documentary 

'193 

11..  <"A64^>& 

8 4 5 : ^ 25 

650,  .  24 

4 9 6 .. 2 4. 

840  ^ 35  . 

5I3;4  i  c20 

Cartoon 

0 

0 

23 

1 

19  *" '  1 

12 " 

0  "*  "  46  *""" 0 

*  30 * 

I 

' 

0 

*'  0 

Cultural Event 

^230.>  "14 

,~,,.312.-  ,  . 13 ; ''?A402|j JI'Al  £f 

500 

,"19  *_y  29?> hlS  ^  * 3 M U | g |g 

'fyj&fffijjj&l 

Sport 

613 

37 

471 

19 

1001 

29 

446 

16 

265 

13 

444 

18 

205,4 

8 

LiveRecording  Xr' ,466 

'. 28  ;$> 1019 <%40  *".  821' T  24 ~ S 

,729 

27  '.  . 714 ~ '1 35  1^010'4  4.4%$ '• *' 

»^Jtf&936 

Total 

1667 

100 

2490 

100 

3408 

100 

2728 

100 

2074  100 

2425 

100 

2567 

100 

Between  1993 and  1997, the Action  Plan  cofinanced  the production  of 16 
856 hours of new  16:9 programmes, about half of which consisted of long-life 
programmes  (fiction,  documentaries,  cultural  events),  20% sports  and  29% 
live broadcasts. 

The different  categories developed in various ways: 

Significant  progress of the documentary: 4 001 hours produced 

The documentary  has progressed  steadily  and significantly:  it rose  from  11% 
of the hours of new productions in 1993 to 24% hours in the last call of 1995 
and reached  a peak of  35% in  1996, thus  more than  tripling  its share of the 
total  hours  of programmes.  Within  call  1/97, 20% of the  total  hours  of new 
productions  have  been  documentaries,  confirming,  substantially,  the progress 
made in the previous calls. This breakthrough  by the documentary  shows that 
the  16:9 format  is particularly  suited to documentaries  with a creative  content. 
This  result  fits  in with  the objectives  pursued  by the European  audiovisual 
policy  in  its  concern  to  encourage  the  creation  of  audiovisual  catalogues. 
Documentaries  offer  significant  long-term added value; professionals  put their 
life  span  at twenty  years.  They  can be exploited  on markets  other  than  their 
own  (dubbing  is  easy)  and  can be  transposed  to  other  modes  (CD-ROM, 
multimedia, video cassettes). 

40 

It  should  be  noted  that  on  the  world  market  the  documentary  is  in  full 
expansion  and that  among  European  broadcasters  the  16:9 channels  are those 
which broadcast the most documentaries. 

Progress of fiction  programmes: 2 223  hours produced 

Fiction programmes have significantly  reinforced  their position  and at the last 
two  calls  accounted  respectively  for  17% and  19% of  the  total  hours  of  new 
productions  cofinanced  by  the  Action  Plan,  as  against  10%  for  the  first  call. 
The  hourly  production  costs  of  fiction  programmes  are  the  highest  and  the 
development process is the longest. 

Fiction  programmes  in  16:9 form  a prestigious  part  of  European  audiovisual 
catalogues. 

Maintenance  of  the  proportion  of  cultural  programmes:  2  515 hours  were 
produced 

Cultural  events  (operas,  concerts,  ballets,  live  shows, circus)  tend  to  account 
for  around  15% at  each  call  (17%  at  call  1/97).  The  use  of  the  16:9 format 
goes hand  in hand  with  the  aesthetic  and  cultural  quality  of these  broadcasts. 
In  1995, three quarters of the cultural events were filmed by broadcasters. One 
quarter was produced  by independent  producers  who  specialise  in this type  of 
production  and  who  maintain  very  close  links  with  various  broadcasters  with 
whom they plan  and make their  broadcasts  of events. From  1995 up to  1997, 
independent  producers  have  further  intensified  the  production  of  cultural 
events. 

Decline  in  1996  and  prompt  recovery  in  1997  of  the  proportion  of  studio 
programmes: 5 043 hours produced 

important  part  of 

Studio  programmes  are  a  very 
the  programming 
requirements  of  broadcasters  at  every  stage  of  progress  in  16:9  services. 
Studio  programmes  (games,  chat  shows  and  the  like)  have  many  functions: 
immediately filling programming  grids, securing the ratings and its public and 
the  advertisers - the  key  to  the  success  of  the  channel:  creating  the  channel's 
image  and  establishing  its identity.  Within  the  1996 call, nevertheless,  studio 
programmes  accounted  for  15 % only  of the hours produced.  This  significant 
decline had  its reason  in the progress  made by  long-life  types  of  programmes 
such  as documentary  and  fiction.  On the  other  hand,  in  1997 the  percentage 
of  studio  programmes  grew  up  dramatically  reaching  a  share  of  37%  of  the 
total hours of new productions. 

41 

Large  but  significantly  declining  proportion  devoted  to  sport:  3  445  hours 
produced 

The  number  of  hours  devoted  to  sport  has  been  falling  steadily  since  1993: 
37% of  the  total  volume  of  hours  in  1993,  13% at  the  last  call  of  1995.  In 
1996  there  has  been  an  important  recovery  (18%  ;  444  hours  produced) 
mainly  due  to  the  Atlanta  Olympic  Games  .  The  downward  trend  was 
confirmed  in  1997 with only  a 8% share devoted  to  sport programmes.  Sport 
is one of the  strongest  attractions  in the programming  of a television  channel 
and  retransmissions  are  extremely  important  in  terms  of  market  shares. 
Moreover,  major  events  like the  Olympic  Games  or the  Football  World  Cup, 
are  faithfully  followed  by  a public  that  is  normally  much  less  interested  in 
televised  sport.  It  is  also  an  occasion  clearly  identified  by  professionals  for 
renewing a large part of the television sets. 

Cartoons are almost non-existent:  130 hours produced 

About  1% of programmes at each call were cartoons. No cartoons  productions 
were funded  within  call  1/97. 

The preferences  of broadcasters and producers were as follows: 

-  70% of 

short-life 
the  programmes  produced  by  broadcasters  were 
programmes - live studio shows or sports programmes. The remaining 30% 
can be broken down into cultural programmes, documentaries and  fiction; 

-  85% of 

the  programmes  produced  by 

independent  producers  were 
documentaries  and  fiction  -  catalogue  works.  The  remainder  of  the 
independent production consisted of broadcasts of cultural events. 

6.1.2. 

Programmes analysed by format 

(results expressed  in hours per  call for  proposals) 

Year 

Call 

1993 

1/93 

1994 

1/94 

1994 

2/94 

1995 

1/95 

1995 

2/95 

1996 

1/96 

1997 

1/97 

Hours 

Hours  % 

Hours  % 

Hours 

Hours  % 

Hours 

Hours 

197 

12 

259 

10 

393 

12 

365 

293 

14 

460 

19 

359 

14 

Video 625 

698 

42 

"~*2034"  *~60" 

2 0 9V  ""77 

"**JM""*I284 " "  62 

1746 

72 

2182 

85 

Video  1250^, 

TOTAL 

3408 

100 

2074 

100 

2424  100 

2567 

lOOfl 

42 

Four formats  received  Community  subsidies. Two of them were  film  formats, 
namely  the  35 mm  and the  super  16. The two  others  were  video  formats:  the 
625-line  format  for  the  conventional  television  video  and  the  high-definition 
1250-line format.  Through these four  categories, the Action Plan thus covered 
all aspects of television production. 

Ceiling on 35 mm: 461  hours produced 

Compared with other formats, use of the 35 mm rarely exceeded the 3% mark. 
In  the  last  call  (1/97)  this  format  has  been  used  for  only  1%  of  the 
programmes.  It  is  infrequently  used  in  European  television  production 
because  it  is  very  expensive,  but  it  retains  pride  of  place  in  certain  fiction 
programmes  or certain prestige documentaries.  In  1995, 90% hours  in 35 mm 
were produced by independent producers and  10% by broadcasters. 

Super  16 made progress: 2 324 hours produced 

From  12% at the first call, the super  16 format  has  reached  19% in  1996 and 
14 %  in  1997. This  format  is  the  link  between  cinema  and  television  and  is 
emerging as the standard format  for the European film intended for  television. 
In  1995, 54% hours in super  16 mm were produced  by independent producers, 
a more balanced figure than that for the 35 mm format.  The 46% produced  by 
broadcasters were mainly documentaries and  fiction. 

Domination by 625 video:  11 780 hours produced 

This format,  as expected, dominated  16:9 services. Video 625 is used by most 
broadcasters:  in  1995,  80%  of  the  video  625  hours  were  produced  by 
broadcasters.  20% of the  625 video  hours  were  lighter  programmes  produced 
by independent producers who produce series. 

Drop in High-Definition  (1250 video): 2 779 hours produced 

From  42% in  1993 to  23% at the  end  of  1995 and  down  to just  6%  in  1996, 
the  HD  experienced  a  sharp  drop  in  the  total  number  of  hours  supported  by 
the Action Plan and practically disappeared  in call  1/97.  The  1250 video is the 
preferred  medium  for  broadcasting  high-profile  sports  events  (Olympic 
Games,  world  championships),  cultural  events  and  documentaries  with  a 
creative  content.  HD  is  used  for  programmes  which  have  à  catalogue  value. 
Moreover, the aesthetic quality  (realistic picture, faithful  colour  reproduction) 
of the high-definition  technique coupled with retransmission  in  16:9 format  is 
the reason why prestige events are broadcast  in this  format. 

Broadcasters  devoted  more  time  to  medium-length  documentaries,  while 
independent  producers  preferred  to  make  ambitious  long-length  series  on 
cultural  matters  such  as  music  or  the  arts  in  general.  That  explains  how  in 
1995 60% of the HD video hours were used by independent producers. 

43 

6.2.  Remastering 

Remastering  is  a  technique  whereby  programmes  existing  on  one  master  are 
transferred  to  another  master  compatible  with  16:9 broadcasting;  it  is  used  mainly 
for  cinema  films.  On  the  launch  of the  16:9  services, remastering  of  films  has  two 
advantages.  It enables  programming  schedules  to be  filled  immediately  much  more 
cheaply than with new productions, and it can be done very rapidly  if the original  is 
of good quality. 

When  16:9  services  were  being  launched,  broadcasters'  investments  tended  to  be 
spread  over  many  areas.  While  channels  equipped  themselves  with  studios  and 
ordered  works  from  independent  producers,  two  categories  of  programmes  which 
are  extremely  popular  with  the  public  made  it  possible  to  fill  the  programming 
schedules  immediately  without  going  through  the  television  studios -  remastered 
films and sports retransmissions. 

As the  16:9 market  develops, the European  16:9 catalogue  grows and the volume of 
16:9  programmes  available  increases.  Circulation  of  these  programmes  to  the 
various  16:9 services in the European Union increases  supply. Accordingly  demand 
for remastering is falling  slightly. 

Most  remastering  was made  on digital  media  and  it thus enjoyed  all  the  associated 
technical  advantages  .  Remastering  is  a  way  to  make  European  film  catalogues 
durable. 

Development  in remastering since the beginning of the Action Plan 

Since  the  beginning  of  the  implementation  of  the  Action  Plan,  remastering  has 
accounted for an aggregate  8 565 hours programmes. 

ECU million 

Call 

1/93 

1/94 

2/94 

1/95 

2/95 

1/96 

1/97 

New 
productions 

Remastering 

MECU  % 

MECU  % 

MECU  % 

MECU  %  MECU  % 

MECU  % 

MECU  % 

10,2 

88 

16,7 

86 

30 

91 

15,7  87 

11,8 

94 

11,6 

96 

9,1  96 

1 . « lî  -r—  %  " 

^2,4&«1'3 

%7 

'6 

t\,Af*W*t*A 
04 

/0,*Jf4 

»i,«<mfi 

•^ 

44 

Hours 

Call 

New 
productions 

1/93 

1/94 

2/94 

1/95 

2/95 

1/96 

1/97 

Hours  % 

Hours  % 

Hours  % 

Hours  % 

Hours  % 

Hours  % 

Hour  % 

s 

1667 

57 

2490 

55 

3408 

60 

2728 

67 

2074 

81 

2423 

79 

2074  96 

Remastering 

^ 1 2 6 9 ^ 4 3 P* 

S20&S8J4S: 

^2240^401 

rK:137M33 

"#5;.;;'é43*f2t 

1* 

**** 

* * *< 

'* 

The  budget  for  remastering  followed  the  general  budget  trend  of  the  calls  for 
proposals and the percentage  of the total budget  allocated to remastering was  10.8%) 
at 31 December  1995. 

The  steady  evolution  of  remasterisations  towards  a  less  significant  position  in  the 
allocated  number of hours implicates that a majority  of the  50% and  80% countries 
are  now  focusing  on  new  productions  as  opposed  to  remasterisation  which  are 
typically preferred  by starting markets. 

7. 

CONCLUSIONS -  PROGRAMME PRODUCTION 

7.1.  Expanding the audiovisual  catalogues 

In four  years, the Action Plan cofinanced  25 422 programme  hours  for  an  allocated 
total  of  ECU  116.2 million.  This  volume  of  hours  can  be  broken  down  into 
8 565 hours  of  remastering  and  16 856 hours  of  new  productions.  Among  the  new 
productions,  there  were  4 001  hours  of  documentaries,  2 223  hours  of  fiction 
programmes  and  2 515  hours  of  cultural  events.  These  stock  works  are  a  major 
contribution 
to  European  audiovisual  catalogues,  the  business  asset  of  the 
programmes  industry  as a whole. Thus  independent  producers  stepped  up their  role 
in  the  creation  of  these  catalogues.  For  them  the  16:9 format  is  a  substantive  and 
formal  argument in favour  of quality production. 

In order to make  16:9 services general throughout Europe, less mature markets must 
be encouraged to start.  1995 was the year the Action Plan started, as foreseen  by the 
Council decision, to use the budgetary reserve for that purpose. The generation of an 
adequate  supply  of  programmes  and  the  creation  of  a  programme  catalogue  takes 
time  and  independent  producers  needed  time  to  adjust.  The  Action  Plan  has  been 
monitoring  this  trend  and  supported  those  producers  during  this  transitional  stage. 
The Action Plan is improving  its programme  data base by finalising  the  preparation 
of  the  European  16:9  catalogue,  which  will  be  available  via  the  European 
Commission's Europa server in  http://europa.eu.inf/A16_9/. 

45 

7.2.  A partnership for a dynamic 16:9 market 

Through  the  dynamics  of the  Action  Plan,  broadcasters  and  producers  act  as true 
partners  in the  supply  of  16:9 services, proceeding  from  their  complementarity  to 
create a viable supply of material which will make 16:9 services generally available 
at  European  level.  After  four  years  of  implementation  of  the  programme,  the 
budgetary funds of the Action Plan were evenly distributed among them:  55% were 
allocated to broadcasters and  45% to producers. Broadcasters were responsible  for 
about  69% hours and independent producers  31%.  For the most part,  broadcasters 
requested  remasterisation  and  produced  very  programmes  which  establish  their 
channel's identity. This identity attracts an audience which will then become loyal to 
other types of programmes. 

7.3.  The programmes industry invests in the future at European level 

The Action Plan made the programmes industry  aware of the need  for  a massive, 
coordinated effort  to renew and upgrade professional  equipment and practices. The 
Action  Plan  succeeded  in  transforming  wide-screen  from  an  interesting  technical 
possibility into a market phenomenon 

7.4.  International competition and innovation 

The  European  audiovisual  industry  faces  international  competition.  In  addition, 
there  is the  challenge  of  technological  innovation  which  will  enable  it  to  remain 
competitive. Thus the audiovisual  industry  must  constantly  prepare  its future.  The 
ongoing  digital  revolution  is boosting  efficiency,  though  it is  causing  a review of 
conventional broadcasting modes. A first result is the multiplicity of channels. 

The  industry  must  take  up  a  dual  challenge:  modernise  and  consolidate.  It  is 
imperative that an effort  be made to adjust  to the future  in a coordinated manner in 
order  to  achieve  the  European  dimension  essential  to  ensure  that  the  European 
audiovisual industry holds its own in world competition. 

7.5.  Integration of new technologies into the European audiovisual industry 

This is the real context  of the Action Plan's objective - the emergence  of a critical 
mass  of  advanced  television  services.  The  audiovisual  industry  must  pass  a 
threshold  beyond  which  there  will  be  an  autonomous  impetus  resulting  in 
generalised  16:9 services on a European scale. By the end of its implementation, the 
Action Plan will have funded  over 25 000 hours of new or remastered programmes, 
giving a fundamental  support to the 16/9 market in approaching a critical mass. 

46 

The  16:9  format  is  the  format  of  the  future.  That  was  confirmed  in  terms  of 
European  rules  and  regulations  by  the  October 1995  Directive  on  transmission 
standards.28 Professionals  who commit themselves to the  16:9 format  thus commit 
themselves  to  rethink  the  long-term  future  of  their  profession,  their  audiovisual 
catalogues and television. 

The  16:9 format  is part of a broader challenge - the integration of new technologies 
into the European audiovisual industry which it helps to encourage. Already, digital 
television is not spoken of in terms of the future  but of the present. In fact,  digital 
broadcasting  is  gaining  ground  every  day.  Moreover,  the  16:9  format  is  now 
considered  by  all  broadcasters  to  be  one  of  the  important  factors  in  identifying 
digital broadcasting as the "Television of the Future". 

* ** 

28  Directive 95/47/EC of the European  Parliament  and of the Council  of 24 October  1995 on the use of 

standards  for the transmission  of television  signals. OJ L 281, 23.11.1995. 

47 

ANNEX  1 

Figure 1A 

Broadcasting  Costs 

First 50 hours 
From the 50 first hours 

Figure  IB 

Programme  Type 

Revised Programme Making Costs 

Programmes remastered from existing material, suitable for broadcasting  in 
16:9 and in 625 lines 
Programmes remastered from existing material, suitable for broadcasting  in 
16:9 and in  1  250 lines 
Super  16 mm 
16/9 625-line video production 
stock programmes 
a) 
flow  programmes hours 
b) 

1  to 20 
21 st and following  hours 

35 mm production 
HD-video production  (1250 lines) 
a) 
b) 

stock programmes 
flow  programmes hours 

1  to 20 
21st and following  hours 

Flat  rate 
(ecus per  hour) 
6 000 
2 500 

Flat  rate 
(ecus per  hour) 
3 000 

5 000 

12 000 

12 000 
12 000 
6 000 
30 000 

60 000 
20 000 
10 000 

48 

ISSN 0254-1475 

COM(98) 441 final 

DOCUMENTS 

EN 

08  10  15 

Catalogue  number  :  CB-CO-98-453-EN-C 

ISBN 92-78-38111-X 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

k*