Proposal for a Council Decision on the implementation of a programme to encourage the development, distribution and promotion of European audiovisual works (MEDIA Plus - Development, Distribution and Promotion) (2001-2005)
Date: 1999-12-14
Institutions: European Commission
Subjects: EU aid, EU programme, audiovisual industry, audiovisual programme, vocational training

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Official Journal of the European Communities

C 150 E/65

Proposal for a Council Decision on the implementation of a programme to encourage the devel-
opment, distribution and promotion of European audiovisual works (MEDIA Plus (cid:151) Development,
Distribution and Promotion) (2001-2005)

(2000/C 150 E/07)

(Text with EEA relevance)

COM(1999) 658 final (cid:151) 1999/0276(CNS)

(Submitted by the Commission on 28 January 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 157(3) thereof,

increased public

need for
at
Community level, for strengthening the competitiveness
of the European audiovisual industry.

support, particularly

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parlament,

(5) The Green Paper on the (cid:145)Convergence of the telecom-
munications, Media and Information Technology Sectors,
and the Implications for Regulation(cid:146) (2) underlines the risk
of a shortage of good quality content on the digital and
analogue television market.

Having regard to the opinion of
Committee,

the Economic and Social

Whereas:

the digital age(cid:146),

(1) From 6 to 8 April 1998, the Commission, in collaboration
with the United Kingdom presidency, held a European
audiovisual conference on (cid:145)Challenges and opportunities
of
in Birmingham. This consultation
process revealed the need for an enhanced programme
of support
in
particular in the area of the development, distribution
In the
and promotion of European audiovisual works.
digital age, activities in the audiovisual field contribute
towards the creation of new jobs, particularly in the
production and dissemination of audiovisual content.

the European audiovisual

industry,

for

(2) The Culture/Audiovisual Council of 28 May 1998,

in
approving the outcome of
the European Audiovisual
Conference in Birmingham, highlighted the desirability
of encouraging the development a strong and competitive
European
taking
particular account of Europe’s cultural diversity and the
specific conditions obtaining in restricted linguistic areas.

programme

audiovisual

industry,

(3) The Report of

the High-Level Group on Audiovisual
Policy of 26 October 1998, entitled (cid:145)The Digital Age:
the need to
European Audiovisual Policy(cid:146),
strengthen support measures
the cinematographic
and audiovisual industry, in particular by endowing the
MEDIA programme with resources that are commensurate
with the size and strategic importance of the industry.

recognises
for

(6) The public consultation on the Green Paper, conducted by
the Commission (3), highlighted the need to establish a
framework to underpin the distribution and promotion
of European audiovisual content for the traditional and
new media in a digital environment.

(7) In its Conclusions of 27 September 1999 regarding the
the public consultation on the Convergence
results of
Green Paper (4), the Council
invited the Commission to
take account of the outcome of the consultation when
drawing up proposals for measures to strengthen the
European audiovisual industry, including the multimedia
sector.

(8) The Commission implemented an (cid:145)Action programme to
the European audiovisual
promote the development of
industry (MEDIA)
adopted by Council
Decision 90/685/EEC (5) including in particular measures
designed to support the development and distribution of
European audiovisual works.

(1991-1995)(cid:146),

(9) The Community strategy for developing and strengthening
the European audiovisual industry was confirmed in the
framework of
the MEDIA II Programme (1996-2000),
adopted by Council Decision 95/563/EC (6), and by
Council Decision 95/564/EC (7) It is appropriate, on the
basis of the experience acquired from the Programme, to
the results
ensure its extension,
obtained.

taking into account

(4) The Communication from the Commission to the
European Parliament
and the Council of Ministers
entitled (cid:145)Audiovisual Policy: Next Steps(cid:146) (1) recognises the

(1) COM(1998) 446 final, 14.7.1998.

(2) COM(1997) 623 final, 3.12.1997.
(3) SEC(1998) 1284 final, 29.7.1998.
(4) OJ C 283, 6.10.1999, p. 1.
(5) OJ L 380, 31.12.1990, p. 37.
(6) OJ L 321, 30.12.1995, p. 25.
(7) OJ L 321, 30.12.1995, p. 33.

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(10) The Commission report on the results obtained under the
MEDIA II programme (1996-2000) from 1 January 1996
to 30 June 1998 states that the Programme responds to
the necessary subsidiarity of Community funds compared
with national funds, since MEDIA areas of involvement
complement
the national
the traditional emphasis of
mechanisms (1).

(11) It is necessary to take into account the cultural aspects of
the audiovisual sector, in accordance with Article 151 of
the Treaty.

(12) The advent of a European audiovisual market necessitates
the development and production of European works,
namely works originating from Member States as well
as works originating from European third countries
participating in the MEDIA Plus programme or having a
cooperation framework satisfying the conditions set out in
Article 6 of Council Directive 89/552/EEC of 3 October
1989 on the coordination of certain provisions laid down
by law, regulation or administrative action in Member
States concerning the pursuit of television broadcasting
activities (2), as amended by European Parliament and
Council Directive 97/36/EC (3).

(13) The

competitiveness of

audiovisual programme
the
industry depends on the use of new technologies at the
programme development, production and distribution
stages. It is therefore appropriate to ensure suitable and
effective coordination with the measures undertaken in
the field of new technologies,
in particular the Fifth
Framework Programme of the European Community for
technological development and demonstration
research,
adopted by Decision No
activities
(1998-2002),
the
182/1999/EC of
Council (4).

the European Parliament and of

as

(14) In its Report to the European Council, entitled Job oppor-
tunities in the information society (5),
the Commission
referred to the major job-creation potential provided by
the new audiovisual services.

(15) In its Communication on Community policies in support
of employment (6), the Commission recognised the MEDIA
II Programme’s positive impact on employment in the
audiovisual sector.

(16) There is a need to improve the conditions for distributing
European cinematographic works on the European and
international markets. Cooperation between international
and national distributors, cinema owners and producers

(1) COM(1999) 91 final, 16.3.1999.
(2) OJ L 298, 17.10.1989, p. 23.
(3) OJ L 202, 30.7.1997, p. 60.
(4) OJ L 26, 1.2.1999, p. 1.
(5) COM(1998) 590 final.
(6) COM(1999) 167 final.

should be encouraged and support should be given to
concerted
common scheduling
measures at European level.

action to promote

(17) There is a need for improvement in the television broad-
casting prospects of European works on the European and
international markets. Cooperation between broadcasters,
(as defined in Article 2 of Directive 89/552/EEC,
inter-
national distributors and producers should be encouraged.

(18) There is a need to facilitate market access for independent
European production and distribution companies, and to
promote both European works and European companies
in the audiovisual sector.

(19) Public access to the European audiovisual heritage should
in particular through its digitisation and

be improved,
networking at European level.

(20) The associated countries of Central and Eastern Europe, as
well as Cyprus, Malta, Turkey and those EFTA countries
which are parties to the EEA Agreement are recognised as
potential participants in Community programmes on the
basis of supplementary appropriations and in accordance
with the procedures to be agreed with those countries.

(21) The other countries of Europe which are parties to the
European Convention on Transfrontier Television are an
integral part of the European audiovisual area and should
therefore be enabled to participate in this Programme on
the basis of supplementary appropriations, in accordance
with the procedures to be established in the agreement
between the interested parties. Those countries should be
if they wish, and regard being had to budgetary
able,
considerations or
their audiovisual
industries,
to participate in the programme and to
benefit under a more limited cooperation formula, on
the basis of supplementary appropriations and specific
arrangements to be agreed between the interested parties.

the priorities of

(22) Cooperation with

third

countries,
non-European
developed on the basis of mutual and balanced interests,
may enable the European audiovisual industry to derive
an added value in terms of the promotion, market access,
distribution, dissemination and exploitation of European
works in those countries. Such cooperation should be
developed on the basis of supplementary appropriations
and specific arrangements
to be established in the
agreement between the interested parties.

the Declaration by the European Parliament,

(23) A financial reference amount, within the meaning of point
the
2 of
Council and the Commission of 6 March 1995 (7)
is
included in this Decision for the entire duration of the
programme, without prejudice to the powers of
the
budgetary authority as defined by the Treaty.

(7) OJ C 102, 4.4.1996, p. 4.

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(24) In accordance with Article 2 of Council Decision
laying down the
1999/468/EC of 28 June 1999,
implementing powers
procedures
conferred on the Commission (1), measures
the
implementation of this Decision should be adopted by
use of the advisory procedure provided for in Article 3
of that Decision.

the exercise of

for

for

HAS DECIDED AS FOLLOWS:

Article 1

referred

(hereinafter

A programme

1.
(cid:145)the
is hereby established to encourage the devel-
Programme(cid:146)),
opment, distribution and promotion of European audiovisual
to run from 1
works within and outside the Community,
January 2001 to 31 December 2005,
for the purpose of
strengthening the European audiovisual industry.

to

as

2.

The objectives of the Programme are as follows:

Article 3

In the distribution sector,
Programme are as follows:

the specific objectives of

the

(a) to strengthen the European distribution sector in the field
of cinema by encouraging distributors to invest
in the
acquisition and promotion of non-domestic European
cinema films;

(b) to foster

the wider

dissemination of
non-domestic European films on the European and inter-
national markets
to stimulate their
through measures
distribution and their screening in cinemas;

transnational

(c) to strengthen the distribution sector for European works on
media intended for private use, by encouraging distributors
to invest in digital technology and in the promotion of
non-domestic European works;

(a) an improvement in the competitiveness of the European
audiovisual
industry on the European and international
markets, by supporting the development, distribution and
promotion of European audiovisual works,
taking due
account of the development of new technologies;

(d) to promote the movement, in the Community and outside
it, of European television programmes
intended for a
European and world audience, by encouraging independent
European broadcasters and independent distributors and
producers to cooperate right from the production stage;

(b) respect for European linguistic and cultural diversity;

(e) to encourage the creation of catalogues of Europe works in
digital format intended for exploitation on new media;

(c) exploitation of the European audiovisual heritage, and in

particular its digitisation and networking;

(f)

to support the linguistic diversity of European audiovisual
and cinematographic works.

(d) the development of the audiovisual sector in countries or
regions with a low capacity for audiovisual production
and/or a restricted geographical and linguistic area;

(e) building up a production and distribution sector, especially

comprising small and medium-sized enterprises.

Those objectives shall be realised in accordance with the
detailed arrangements set out in the Annex.

Article 4

In the field of promotion and market access, the Programme
aims to:

(a)

facilitate and encourage the promotion and movement of
European audiovisual and cinematographic works at trade
fairs in Europe and around the globe, as well as at
European audiovisual festivals;

Article 2

In the development
Programme are as follows:

sector,

the specific objectives of

the

(b) encourage the networking of operators at European level,
particularly by supporting joint activities between national
promotion organisations.

(a) to promote, by providing financial support,

the devel-
opment of production projects (dramas for cinema or
television,
for
television or cinema, works exploiting the audiovisual and
cinematographic heritage) submitted by companies and
aimed at the European and international markets;

creative documentaries,

animated films

(b) to promote, by providing financial support,

the devel-
opment of production projects that make use of new
creation, production and dissemination technologies.

(1) OJ L 184, 17.7.1999, p. 23.

Article 5

Beneficiaries of Community support

shall provide a
1.
the funding. Community funding
significant proportion of
shall not exceed 50 % of the cost of operations. In the cases
expressly provided for in the Annex,
this percentage may
nonetheless reach 60 % of the cost of operations.

2.
The financial reference amount for implementation of the
Programme for the period referred to in Article 1(1) shall be
EUR 350 million. The annual appropriations shall be auth-
orised by the budgetary authority within the limits of
the
financial perspectives.

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3. Without prejudice to the agreements and conventions to
which the Community is a contracting party, the undertakings
benefiting from the programme shall be owned and shall
continue to be owned, whether directly or by majority partici-
pation, by Member States and/or by nationals of Member
States.

Article 6

Financial support under the Programme may be granted in the
form of conditionally repayable advances or subsidies, as
defined in the Annex. The repayments under the Programme,
together with the repayments
the
MEDIA programme (1991-1995) and MEDIA II programme
the
(1996-2000), shall be allocated to the requirements of
MEDIA Plus Programme.

from operations under

Article 7

The Commission shall be responsible for the implementation of
the Programme, in accordance with the procedure referred to
in Article 8(2) and with the rules laid down in the Annex.

Article 8

1.
The Commission shall be assisted by the committee (the
(cid:145)MEDIA Committee(cid:146)) established by Article 6 of Decision
. ./. . ./EC (1) of the European Parliament and of the Council.

2. Where reference is made to this paragraph, the advisory
procedure laid down in Article 3 of Decision 1999/468/EC
shall apply, in compliance with Article 7(3) thereof.

Article 9

To ensure that the Programme can be flexibly adapted to tech-
nological developments, pilot projects shall be implemented in
the fields defined in the Annex.

This Programme shall be open to the participation of
2.
Cyprus, Malta, Turkey and those EFTA countries which are
parties to the EEA Agreement on the basis of supplementary
appropriations, in accordance with the procedures to be agreed
with those countries.

This Programme shall be open to the participation of the
3.
to the Council of Europe
countries which are parties
Convention on Transfrontier Television other
than those
referred to in paragraphs 1 and 2, on the basis of
supplementary appropriations, in accordance with conditions
to be established in the agreements between the interested
parties.

The opening-up of the programme to the European third
4.
countries referred to in paragraphs 1, 2 and 3 may be subject
to a prior examination as to the compatibility of their national
legislation with the Community acquis,
including the second
subparagraph of Article 6(1) of Directive 89/552/EEC.

5.
The Programme shall also be open to cooperation with
other third countries on the basis of supplementary appro-
priations and the specific arrangements to be established in
agreements between the interested parties. The European
third countries referred to in paragraph 3 which do not wish
to benefit from full participation in the Programme may be
eligible for cooperation with the Programme under
the
conditions set out in this paragraph.

Article 11

1.
The Commission shall ensure that measures taken under
this Decision are subject to prior appraisal, and to subsequent
monitoring and evaluation.

2.
After completion of the projects, the Commission shall
evaluate the manner in which they have been carried out and
the impact of their implementation, in order to assess whether
the original objectives have been achieved.

various

In this task the Commission may consult Technical Consul-
tation Groups. These shall be composed of professionals
industry,
from the
appointed by the Member States and chaired by a represen-
tative of the Commission. The Technical Consultation Groups
shall submit their reports to the Commission, which shall take
the utmost account of them.

sectors of

audiovisual

the

to the European Parliament,

After two years of implementation of the Programme, the
3.
Commission shall present
the
Council and the Economic and Social Committee an evaluation
report on the impact and effectiveness of the Programme based
on the results obtained. This report shall be accompanied, if
need be, by any adjustment
including
budgetary adjustments.

to the Programme,

Article 10

The Programme shall be open to the participation of the
1.
associated countries of Eastern and Central Europe
in
accordance with the conditions laid down in the association
agreements or their additional protocols relating to partici-
pation in Community programmes concluded or
to be
concluded with those countries.

On completion of the Programme the Commission shall
4.
submit
the Council and the
Economic and Social Committee a report on the implemen-
tation and results of the Programme.

to the European Parliament,

Article 12

This Decision shall take effect on 1 January 2001.

(1) See page . . . of this Official Journal.

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ANNEX

1.

MEASURES TO BE IMPLEMENTED

1.1.

In the (cid:145)development of audiovisual works(cid:146) sector

The object of the programme measures is to provide financial assistance for enterprises in the audiovisual sector
submitting:

(cid:151) proposals supporting the development of audiovisual works presented project by project;

(cid:151) proposals supporting the development of project catalogues (project packages) as part of a medium-term

business strategy.

Selection criteria will chiefly take account of the European and international nature of the projects, and in
particular:

(cid:151) the interest shown by co-producers in the project;

(cid:151) the project’s transnational exploitation potential

interest by
distributors, the project’s production potential, previous productions by the tendering enterprise or its
constituent individuals);

(as demonstrated by the expression of

(cid:151) the quality and originality of the concept, script or narrative;

(cid:151) the potential for using new technologies (special effects, computer images, interactivity, etc.).

As a general rule, financial support for development will take the form of conditionally reimbursable loans for
individual projects, and non-reimbursable subsidies for project catalogues. The contribution will generally be
limited to 50 % of project costs, but may be raised to 60 % for projects that exploit European cultural diversity.

1.2.

In the distribution and dissemination sector

1.2.1. Cinema distribution:

The following lines of action will be implemented in order to achieve the objectives outlined in Article 3:

(a) a support scheme in the form of a conditionally reimbursable advance for distributors of European cinema-

tographic works outside their production territory. The aim of this scheme is:

(cid:151) to encourage the networking of European distributors in conjunction with international producers and

distributors, in order to promote joint strategies for the European market,

(cid:151) to encourage distributors in particular to invest in adequate promotion and distribution costs for

European films, whatever their production budget,

(cid:151) to assist with the multilingual aspects of European film-making (dubbing, subtitling and multilingual

production).

The criteria for selecting beneficiaries may include provisions to distinguish between projects according to
their budget category. Special support will be granted for films that exploit European cultural diversity.

(b) a system of (cid:145)automatic(cid:146) support for European distributors proportional to the number of seats sold for
non-domestic European films in countries participating in the programme, up to a limit per film and
adjusted for each country. This type of support may be used by distributors only for investment in the
following:

(cid:151) the acquisition of non-domestic European films;

(cid:151) editing costs (copying, dubbing and subtitling), promotion costs and publicity costs for non-domestic

European films.

Reinvestment arrangements will provide for a Community contribution of over 50 % (but not more than
60 %) of project costs, particularly for investment in the production stage and in films exploiting European
cultural diversity.

(c) a system to assist European companies specialising in the international distribution of cinema films (sales
agents) according to their performance on the market over a given period. This type of assistance may be
used by international distributors only for investment in costs arising from the promotion of new European
works on the European and international markets.

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(d) appropriate assistance to encourage operators to screen a significant proportion of non-domestic European
films in premiere cinemas for a minimum screening period. The support granted to each cinema will be
determined according to the number of cinema seats sold for non-domestic European films during a
in particular, contribute to measures to educate and raise awareness
reference period. Support should,
the creation and consolidation of
amongst young cinema-goers. Support will also be granted for
networks of European operators running joint schemes to encourage such scheduling.

(e) a support scheme for the production of international soundtracks (music and effects) for European cinema-

tographic works. The support granted will be determined according to the production budget.

1.2.2. Distribution of off-line European works.

This is understood to mean the distribution of European works on media intended for private use.

Automatic support: a system of automatic support for editors and distributors of European cinematographic
works on media intended for private use (e.g. videocassettes, DVD, DVD-Rom) according to market performance
over a given period. The support granted may be used by distributors only for investment in the following:

(cid:151) the costs of editing and distributing new non-domestic European works in digital form; or

(cid:151) the costs of promoting new non-domestic European works in non-digital format.

This system is designed to:

(cid:151) encourage the use of new technologies in the production of European works intended for private use

(production of a digital master for use by all European distributors);

(cid:151) encourage distributors in particular to make adequate investment in the costs of promoting and distributing

non-domestic European films and audiovisual works;

(cid:151) assist with multilingual European productions (dubbing, subtitling and multilingual production).

1.2.3. Television broadcasting:

Encourage independent producers to produce works (feature films, documentaries and animated films) involving
at least three broadcasters in several Member States belonging to different language zones.

The criteria for selecting beneficiaries may include provisions that distinguish between projects by budget
category. Special support will be granted for audiovisual works that exploit European heritage and cultural
diversity.

1.2.4. Distribution of European works on-line:

This is taken to mean the distribution of European works on-line via advanced distribution services and new
media (Internet, video-on-demand, pay-per-view). The aim is to encourage the European audiovisual industry to
adapt to developments in digital technology, particularly as regards advanced on-line distribution services.

Introduction of incentives to digitise works and create promotional and publicity material in digital form, so
encouraging European companies (suppliers of on-line access, special-interest channels, etc.) to create catalogues
of European works in digital format for exploitation via new media.

1.3.

Promotion

1.3.1.

In the field of promotion and market access:

The programme measures aim to:

(a) improve the conditions governing access by professionals to the European and international markets via

specific technical and financial support schemes as part of events such as:

(cid:151) the main European and international cinema markets;

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(cid:151) the main European and international television markets;

(cid:151) special-interest markets, particularly for animated films, documentaries, multimedia and new tech-

nologies.

(b) encourage the creation of a database on catalogues of European programmes.

To this end, the Commission is encouraging the networking of operators at European level, essentially by
supporting joint initiatives involving national promotional bodies.

Criteria for selecting projects will principally take account of the following:

(cid:151) the European dimension,

(cid:151) the quality of professional services (producers, distributors, broadcasters, sales agents),

(cid:151) the expertise of service providers and operators in the field of promotion.

Support will generally be limited to 50 % of project costs.

1.3.2.

In the festivals field:

The programme measures aim to:

(cid:151) support joint audiovisual festivals that screen a significant proportion of European works;

(cid:151) encourage joint projects with a European dimension involving audiovisual events from at least eight Member

States, with a common action plan to promote European audiovisual works and their movement.

Particular attention will be paid to festivals which help to promote works from Member States or regions with a
low audiovisual production capacity and works by young European producers, and which establish a policy for
monitoring the distribution of the European works featured at the festivals.

Priority will be given to projects from networks which encourage lasting cooperation between events.

Support will generally be limited to 50 % of project costs.

1.3.3. Activities to promote European productions:

To encourage professionals,
European audiovisual and cinema productions intended for the general public.

in close association with the Member States, to organise activities to promote

1.4.

Pilot projects

The Commission will implement pilot projects in the following areas:

(cid:151) conservation and exploitation of

the cinematographic heritage, by encouraging partnerships between

operators in the cinematographic sector and public or private bodies;

(cid:151) digitisation of European audiovisual programme archives;

(cid:151) networking the owners of rights to catalogues of European audiovisual works;

(cid:151) scheduling of European audiovisual works on special-interest channels in digital format;

(cid:151) creation of a suitable environment for developing and disseminating new advanced on-line distribution

services.

Where appropriate, the Commission may approach the technical consultation groups for assistance.

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2.

IMPLEMENTATION PROCEDURE

2.1.

Approach

In implementing the programme, the Commission will work closely with the Member States. It will also consult
the partners concerned and ensure that the participation of professionals in the programme reflects European
cultural diversity.

2.2.

Funding

2.2.1. Community contribution

Community funding will not exceed 50 % of the cost of the planned measures (other than in the cases expressly
provided for in the Annex, where a higher ceiling applies) and will be granted in the form of advances or
conditionally reimbursable loans. For multilingual support, the Community contribution will be in the form of
subsidies.

2.2.2. Prior appraisal, monitoring and subsequent evaluation

Prior to approving a request for Community support, the Commission will carefully evaluate it to check that it
complies with this Decision and with the conditions set out in points 2 and 3 of this Annex.

Requests for Community support must include the following:

(cid:151) a financial plan setting out all the project funding components, including the financial support requested

from the Commission;

(cid:151) a provisional work timetable;

(cid:151) any other relevant information required by the Commission.

2.2.3.

Financial provisions and control

The Commission shall set out the rules on commitments and payments for the measures undertaken pursuant to
this Decision, in compliance with the appropriate provisions of the financial regulations.

2.3.

Implementation

2.3.1. The Commission shall

implement the programme. It may, to this end, call upon consultants and technical
assistance offices to be selected, after a call for tenders, on the basis of their expertise in the sector. The
Technical assistance shall be financed by the programme’s budget. The Commission may also conclude,
in
accordance with the procedure referred to in Article 8(2), partnerships for ad hoc operations with specialist
bodies such as Audiovisual Eureka, in order to implement joint measures that meet the programme objectives in
the field of promotion.

The Commission will make the final selection of the beneficiaries of the programme and decide on the financial
support to be granted, in accordance with Article 7.

In order to execute this programme and, in particular, evaluate the projects benefiting from the programme
funding and networking activities, the Commission shall draw on the know-how of recognised audiovisual
experts in the fields of development, production, distribution and promotion.

2.3.2. The Commission shall take the necessary steps to provide information on the opportunities offered by the

Programme, and shall ensure its promotion.

The Commission and the Member States shall take the necessary steps, by continuing with the activities of the
network of MEDIA Desks and Antennae and ensuring that their professional skills are enhanced, in order to:

(cid:151) publicise and promote the programme;

(cid:151) encourage maximum participation in the programme’s activities by professionals;

(cid:151) assist professionals with the presentation of projects in response to calls for proposals;

(cid:151) foster transborder cooperation between professionals;

(cid:151) liaise between the various support bodies in the Member States with a view to ensuring that programme

activities complement national support measures.