Opinion of the Economic and Social Committee on the "Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions — Principles and guidelines for the Community's audiovisual policy in the digital age"
Date: 2000-10-19
Institutions: European Economic and Social Committee
Subjects: audiovisual communications policy, cultural pluralism, cultural policy, democracy, job creation, pluralism in the media

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Opinion of the Economic and Social Committee on the ‘Communication from the Commission
to the Council, the European Parliament, the Economic and Social Committee and the Committee
of the Regions — Principles and guidelines for the Community’s audiovisual policy in the digital
age’

(2001/C 14/22)

On 22 December 1999 the Commission decided to consult the Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 8 September 2000. The
rapporteur was Mr Morgan, but following his resignation the section appointed Mrs Carroll to replace
him on 18 October 2000.

At its 376th plenary session held on 19 October 2000 the Economic and Social Committee adopted the
following opinion by 75 votes to four, with six abstentions.

1.

Introduction

1.1.
In its Communication ‘Principles and guidelines for
the Community’s audiovisual policy in the digital age’ the
Commission sets out
its
intended strategy over the next five years.

to inform interested parties of

1.2.
The Communication is timely because digital tech-
nologies are bringing about major changes in the audiovisual
sector. In the Commission’s words: ‘Regulatory policy in the
sector is aimed at safeguarding certain public interests, such as
cultural and linguistic diversity, the protection of minors and
consumer protection. These are not called into question by
technological development. However,
following on wide-
ranging consultation in recent years, new regulatory approach-
es and techniques would appear necessary in future’ (1).

1.3.
The ESC endorses the regulatory principles adopted by
the Commission. Furthermore it recognises the challenges to
the principles represented by multi-channel digital TV and
unlimited access to a world of Internet web-sites.

1.4.
Community policy is now based on separate approach-
es to the regulation of transmission infrastructure and content.
The main infrastructures envisaged in the Communication are
Internet in an IT environment, audiovisual transmission via
the Internet, audiovisual transmission to television sets and
Internet transmission to television sets. Broadly speaking,
conventional audiovisual films and TV programmes intended

(1) See ESC Opinion of 22 September 1999 on the Proposal for a
Council Decision concerning Community participation in the
European Audiovisual Observatory, OJ C 329, 17.11.1999; ESC
Opinion of 29 April 1998 on the Convergence Green Paper, OJ
C 214, 10.7.1998.

for the cinema and TV can be regulated in the public interest
and controlled by parents. The Internet is less easy to control
although its reception on TV sets can be physically controlled.
On the Internet a more explicit categorisation of web-sites
could provide a way forward. Our detailed comments on
regulatory policy are made later in this Opinion in the context
of the Commission’s proposals. We have dealt with these
chapter by chapter as follows.

2.

The audiovisual Sector — why it matters (Chapter 1)

The Communication states that the sector matters for

2.1.
two reasons:

— economic growth and jobs

— the social, cultural and educational impact of the sector.

2.2.
However, these two factors do not receive the same
emphasis in the Communication: ‘Whilst the economic aspects
and job-creating potential of the sector ... are clearly major
elements to be taken into account in the elaboration of
Community policy, it is the social and cultural role of the
audiovisual media which forms the point of departure for
policymaking’.

The ESC endorses the view of audiovisual media
2.3.
expressed in the Communication: ‘The audiovisual media play
a central role in the functioning of modern democratic
societies. Without the free flow of information, such societies
cannot function. Moreover, the audiovisual media play a
fundamental role in the development and transmission of
social values. This is not simply because they influence to a

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large degree which facts about and which images of the world
we encounter, but also because they provide concepts and
categories — political, social, ethnic, geographical, psychologi-
cal and so on — which we use to render these facts and images
intelligible. They therefore help to determine not only what
we see of the world, but how we see it’.

2.8.
The Commission’s export strategy as expressed in the
Communication is virtually non existent. This is a major
lacuna in the Commission’s thinking. What is needed is a
strategy to provide global entertainment products in the
languages of world markets. Successful businesses in every
sector sell in the language of the customer. One key oppor-
tunity not mentioned is to use the industries of the various
Community countries to develop the global cultural diaspora
addressable in their various languages.

2.4.
This perspective leads the Commission to conclude
that the audiovisual industry is not like others, simply produc-
ing goods and services for the market. Its ethos is cultural not
commercial. This is certainly not the ethos of Hollywood,
Bollywood, or even Pinewood, who clearly set out to satisfy
the market need for entertainment. Hence, while we endorse
the principles of ethnic and cultural diversity, and acknowledg-
ing the ‘exemplary’ role assigned to audiovisual policy in
Europe, we believe that the balance of trade deficit highlighted
by the Commission is likely to persist, for as long as the
‘market’ is given a secondary priority.

2.9.
In any case, the specific needs of the audiovisual sector
in countries of low audiovisual capacity and in small linguistic
and geographical regions will need to be addressed. Since
multilingualism represents Europe’s chief asset, it should be
promoted by means of the digital systems generated by
technological progress (e.g. DVDs offering subtitles in a range
of languages).

The ESC therefore suggests that Community audiovisu-
2.5.
al policy propose, in addition to social, cultural and educational
objectives, two basic commercial ones:

2.10.
Competition policy must serve as an appropriate and
effective instrument for preventing the creation of market
dominance, in terms of both concentration of media owner-
ship in the new digital environment and preservation of
pluralism.

— progressive substitution of imports on EU markets;

— implementation of export strategies designed to penetrate

world markets.

These objectives would allow the present audiovisual trade
deficit with the US to be reduced. To this end, measures such
as tax rebates on audiovisual investments should be boosted,
in particular offering incentives for SMEs to invest in the
sector.

Import substitution can be achieved in two ways. There
2.6.
is clearly scope for co-production by Member States and for
the supportive use of EU funds in this context. For multi-
country distribution, the presumption is that, with translation,
successful productions would be accepted in other Member
States because they reflect shared European cultural values. The
Media II programme is designed to facilitate this distribution. In
this context, cultural diversity can be a positive advantage.

The Committee suggests that

2.10.1.
the Commission
examine the advantages of applying at European level a single
set of competition rules like those in the United States which
prevent
the same operator from functioning at different
levels within the audiovisual sector (creation, production,
distribution and transmission).

2.10.2.
In order to achieve the legal certainty called for by
European operators in the audiovisual sector, the ESC calls
upon the Commission to draw up ‘guidelines on aid to the
European audiovisual sector’ which, in line with the Treaty
rules on culture, could allow for aid to be allocated in the light
of a range of factors based on a points system taking account
of specific headings such as a given amount for each ticket
sold, or a percentage in the case of films bought in by TV
channels, etc.

3. Aims and means of the Community’s audiovisual

policy (Chapter 2)

2.7.
The ESC believes that this import substitution strategy
can both promote Europe’s cultural and linguistic heritage
while stimulating economic growth in the production sector.
The only concern must be that with the channel proliferation
which is now taking place, EU output could still be swamped.

The ESC acknowledges the progress achieved by Com-

3.1.
munity initiatives in the audiovisual sector:

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— the Television Without Frontiers (1) directive provided the
necessary framework for crossborder transmissions;

place by building in its existing instruments and principles
and where appropriate through providing initiatives for self
regulation’.

— the Media I and Media II (2) programmes give essential
support to the industry. The distribution focus of Media
II provides an important stimulus to the distribution of
national audiovisual output into international markets;

— technological innovation via broadcasting standards has
been as important for digital media as GSM standards
have been for mobile telephony;

— the INFO 2000 programme is also significant.

3.2.
The ESC agrees that digital television will require new
initiatives along the same axes and expects that the 5th
Framework Programme will also make a significant contri-
bution to audiovisual developments in the EU. In particular,
we would highlight ‘User Friendly Information Society’ pro-
gramme and the two key actions — ‘Multimedia contents and
tools’ and ‘Systems and services for the citizen’.

3.3.
The Committee further considers important the coordi-
nation and a greater cooperation with other European initiat-
ives in the audiovisual field and in particular with Audiovisual
Eureka (3).

4.

Principles for regulation of the audiovisual sector in
the digital age (Chapter 3)

The ESC congratulates the Commission on the scope
4.1.
and effectiveness of its recent consultative process and endorses
the five general principles for regulatory action towards the
communications infrastructure.

4.2.
The ESC endorses the concept that the principle of
proportionality as applied to audiovisual content ‘requires that
the degree of regulatory intervention should not be more than
is necessary to achieve the objective in question’ and that
therefore ‘the Community can now manage the changes taking

(1) COM(95) 86 final; ESC Opinion of 13 September 1995 on
the Proposal for a European Parliament and Council Directive
concerning the pursuit of television broadcasting activities, OJ
C 301, 13.11.1995.

(2) See ESC Opinion on the Proposal

for a Council Decision
concerning the Media II Programme (1996-2000), OJ C 256,
2.10.1995.

(3) Eureka Audiovisual is a pan-European intergovernmental organis-
ation established in 1989 with the aim of promoting the European
audiovisual industry. It has 35 members (the Member States, the
European Commission and the Council of Europe with associated
member status).

4.2.1
In view of the growth of digital technology, existing
Community law on the audiovisual sector must be adjusted
rapidly in order to strike a proper balance between the
application of current basic principles and on-going techno-
logical change.

The ESC has already contributed to the consensus that
4.3.
the regulation of audiovisual content and communications
infrastructure should be separated. Accordingly, we endorse
the conclusions given in chapter 3, section 2 of the Communi-
cation.

4.4.
The ESC agrees that ‘the digital revolution does not call
into question the need for audiovisual policy to identify
interests and, where necessary, to protect
relevant general
them through the regulatory process’, and that ‘technological
developments call for an ongoing evaluation of the means and
methods used’. The Internet is a case in point.

4.4.1.
The ESC is of the view that the digital age must not
be accompanied by a failure to apply public interest objectives
such as freedom of expression and opinion, pluralism, cultural
and linguistic diversity, safeguarding of minors and human
dignity and consumer protection, since it is convinced their
protection and reinforcement fulfils a key function for democ-
racy.

4.5.
The ESC considers that broadcasting as a public service
fulfils a number of cultural, social and democratic functions
from which all benefit, and is therefore of crucial importance
in guaranteeing democracy, pluralism, social cohesion and
cultural and linguistic diversity.

4.5.1.
The growing diversity of programmes provided by
the media in the new technological environment heightens the
importance of the overall function of broadcasting bodies
having public service obligations.

The Committee believes that public service broad-
4.5.2.
casters’ capacity to provide the public with high-quality,
majority-taste programmes and services must be maintained
and further developed. This includes diversifying activities in
the digital age.

4.6.
The ESC endorses the Commission’s view of self-
regulation and, in particular, the caveat designed to prevent
major incumbent operators defining ‘the rules of the game’.

4.6.1.

The ESC believes that:

— self-regulation could effectively supplement normal rules

in the context of the digital age, and

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— third-party interests, particularly those of consumers,
must be taken into consideration when envisaging self-
regulation in the new services offered by the media.

The ESC expects that technological developments will gradu-
ally allow the production of multi-linguistic audiovisual
works (1)
thus making easier the achievement of cultural
objectives.

4.7.
The ESC would like to emphasise the principle that
regulatory authorities should be independent of Government
It would welcome the establishment of a
and operators.
‘European audiovisual forum’ bringing together the industry
and interested parties, such as broadcasting professionals and
operators, regulatory and self-regulatory bodies from the
audiovisual sector, organisations classifying Internet and com-
puter programme content and specialist consumer associ-
ations, in order to examine how greater clarity can be brought
to bear on methods for assessing and classifying audiovisual
and multimedia content (cinema, television, Internet, video
games and webcasting).

4.8.
The Committee generally welcomes the Commission’s
statement of the general principles of European law, which
apply in the audiovisual sector.

5. Action in the regulatory field (Chapter 4)

The Committee

5.3.
agrees with the Commission’s
approach to access on audiovisual content and shares the
Commission’s concern about the danger of social and cultural
exclusion. In particular, the Committee agrees with the Com-
mission’s statement that ‘access to content may raise questions
of affordability: where there may be a danger of social
exclusion (resulting in a society of information “haves” and
“have-nots”), consumers should have access to the content in
question at an affordable price’.

5.3.1.
The ESC reaffirms the principle whereby in the
information society, all consumers must be guaranteed access
to networks and content in accordance with the criteria of
accessibility, non-discrimination and trans-
universality,
parency. Some specific technical aspects concerning consumer
access to content, such as electronic programme guides
and conditional access, together with all technical systems
interposed between access to the broadcasting media and
choice of content, require specific standards in order to protect
consumers’ freedom of choice.

The Committee generally welcomes and agrees with

5.1.
the Commission’s proposal for action.

5.3.2.
Access to content actually implies access to the
digital infrastructure and the availability of information and
entertainment across that infrastructure.

In particular,

5.2.
the Committee endorses the Com-
mission’s proposal for an independent study into the impact
of the provisions of the Television Without Frontiers Directive
concerning the promotion of European works to be carried
out by June 2002. The Commission states that such study
will provide ‘an opportunity for an overall examination of
regulatory and support instruments for the promotion of
cultural and linguistic diversity with regard to the audiovisual
sector’. The Committee believes that an effort must be made
so that, without prejudice to their cultural and linguistic value,
such products can be sufficiently attractive to be marketed
competitively throughout the world. To this end, the Com-
mission’s action should focus on:

— fostering multilingualism and European cultural diversity;

— the demand for high-quality products making use of new

forms of expression;

— the need for compatible standards and formats to facilitate

data exchange;

— introducing support mechanisms for the creation of

European networks and products;

— the need for multimedia-friendly training combining

technical know-how with mastery of content;

Digital terrestrial television and conversion of the
5.3.3.
terrestrial radio and television system must be matters of public
interest in accordance with content policy. The consequence of
this principle is the need for public service broadcasting to be
guaranteed available bandwidth for free digital transmission.

5.3.4.
Clearly one of the technological uncertainties recog-
nised by the Commission is the final shape of the digital
delivery infrastructure and, within that, the definition of the
‘free to air’ content.

5.3.5.
The ESC will support regulatory development which
ensures that the information and entertainment content of
public service broadcasting is freely available in the digital
environment.
information content such as
national news is critical for the proper functioning of democ-
racy.

In particular,

5.3.6.
As far as premium entertainment content is con-
cerned, the question of affordability is not a regulatory matter.
Broadcasters pay heavily for premium broadcast rights and it
is up to them to set prices which generate audiences sufficient
to provide the necessary return on investment.

— supporting dissemination and promotion.

(1) See also MLIS-Multilingual Information Society.

www.hltcentral.org/hlt/mlis/.

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5.4.
The Committee agrees with the importance attached
by the Commission to copyright protection and the fight
against piracy and is looking forward to the adoption of the
Directive on Copyright and Related Rights.

Committee considers that the proposal to develop a coherent
approach to support mechanisms should not harm successful
national measures.

The Committee agrees with the Commission’s con-
5.5.
clusions regarding the protection of minors. The Committee
considers that protection of minors is becoming more difficult
to achieve in the digital era and therefore a stricter approach
to standards and mechanisms should be adopted, for example:

(a)

it would be possible to place child protection mechanisms
in television sets and computers which allow the highest
level of protection. At the same time, the protection
mechanisms could be removed or reduced to suit individ-
ual circumstances;

(b)

information on child/human dignity and protection sys-
tems and rating should be available on Internet pages,
leaflets and mouse pads at points of sale;

(c)

compulsory rating of programming/content;

(d)

the use of domain names to extend the film rating system
to the Internet;

(e)

in a positive and pro-active direction, quality and attract-
ive programming like the German ‘Kinder Kanal’ sets a
good example.

5.6.
The Committee welcomes the Commission’s proposal
for a study into new advertising techniques in view of a
possible future evaluation of the provisions contained in the
Television without Frontiers Directive. The Committee agrees
with the Commission in that a clear distinction between
advertising and other content should be ensured and that
consumers should be made aware when they receive adver-
tising.

6.

Principles for the development of Community sup-
port instruments (Chapter 5)

6.1.
The Committee generally agrees with the proposed
principles which should guide the action of the Community in
respect of support instruments.

6.3.
The Committee supports the Commission’s proposal
to seek added-value through ensuring ‘better synergy between
the various instruments aimed at promoting content for the
information society’.

7. Action in the
(Chapter 6)

field of

support mechanisms

7.1.
The ESC supports the Commission’s goal that Europe’s
cultural and linguistic diversity must be assured and as such be
a component of the development of the information society.
At the same time, the ESC warns that policy which concentrates
exclusively on cultural and linguistic diversity is unlikely to
satisfy the complementary objective of increased European
market share of global audiovisual entertainment.

The ESC has already given its endorsement of the

7.2.
Media Plus initiative (1).

The ESC looks forward to giving its opinion on the

7.3.
eEurope initiative.

Actions within the 5th Framework Programme can
7.4.
play an important part in EU’s audiovisual development (see
paragraph 3.2).

The ESC encourages the Commission to pursue its

7.5.
proposal for experience sharing between Member States.

8.

The external dimension of Community audiovisual
policy (Chapter 7)

8.1.
The Committee urges the Commission to adopt the
necessary measures concerning trade in audiovisual services in
the context of WTO negotiations so that European products
will have easier access to non-EU markets. It also welcomes
the possibility of the Community and the Member States
maintaining and developing their capacity to define and
implement cultural and audiovisual policies in order to protect
their cultural diversity.

6.2.
However, the Committee would welcome clarification
by the Commission of its proposal for reflection at European
level on how to strengthen the complementarity of support
mechanisms in order to develop a coherent approach. Does
this mean control over national support measures? The

(1) COM(1999) 658 final, ESC Opinion of 27 April 2000 on the
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), OJ
C 168, 16.6.2000.

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9. Conclusion

9.1

The Committee

— generally supports the Commission’s Communication
as a significant step towards the determination of an
appropriate audiovisual policy in the digital age;

— is looking forward to see and evaluate the results of the

studies and other actions proposed by the Commission;

— considers the need for consistency between EC cultural,
audiovisual and competition policy must be reflected in
guidelines which safeguard cultural diversity by allowing
the different national systems to provide proper encour-
agement for production potential in the Member States;

— recognises that the audiovisual sector, as well as being
one of the main sources of job creation, is set to continue
playing a crucial function in terms of democracy, freedom
of opinion and pluralism, together with the protection
and promotion of cultural diversity in Europe;

— believes that public broadcasting services must continue
to take advantage of technological progress in the per-
formance of
in order to guarantee
democracy, pluralism, social cohesion and cultural and
linguistic diversity.

their functions,

Brussels, 19 October 2000.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Directive
concerning the European Agreement on the Organisation of Working Time of Mobile Workers
in Civil Aviation concluded by the Association of European Airlines (AEA), the European
Transport Workers’ Federation (ETF), the European Cockpit Association (ECA), the European
Regions Airline Association (ERA) and the International Air Carrier Association (IACA)’

(2001/C 14/23)

On 19 October 2000, the Economic and Social Committee decided to draw up an opinion, in accordance
with Rule 23(3) of its Rules of Procedure, on the above-mentioned proposal.

The Committee’s work on the subject was prepared by the Section for Transport, Energy, Infrastructure
and the Information Society. In accordance with Rules 20 and 50 of the Rules of Procedure, Mr Konz
was appointed rapporteur-general.

At its 376th plenary session of 19 October 2000 the Economic and Social Committee adopted the
following opinion by 81 votes to one with one abstention.

1.

Introduction

the Commission in accordance with Article 139(2) of the
Treaty.

1.1.
On 22 March 2000 the social partners in the civil
aviation sector concluded a European Agreement on the
organisation of working time of ‘mobile’ staff, in other words
airline pilots and flight engineers as well as cabin crew.

1.3.
On both the employers’ and the trade union side, the
five organisations (1) which are signatories to the Agreement
are recognised as:

They then forwarded this European Agreement to the
1.2.
Commission, with the specific request that it be implemented
at Community level by a Council decision on a proposal from

(1) AEA (Association of European Airlines)

AICA (International Air Carrier Association)
ERA (European Regions Airline Association)
ECA (European Cockpit Association)
ETF (European Transport Workers’ Federation).