Corrigendum to Council Decision 2000/821/EC of 20 December 2000 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 L 336 of 30.12.2000)
Date: 2001-01-17
Institutions: Council of the European Union
Subjects: EU programme, European audiovisual area, audiovisual communications policy, audiovisual programme, cultural transmission, financial aid

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CORRIGENDA

Corrigendum to Council Decision 2000/821/EC of 20 December 2000 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)

(Official Journal of the European Communities L 336 of 30 December 2000)

The text of the Decision should be replaced by the following:

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L 13/35

‘COUNCIL DECISION

of 20 December 2000

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)

(2000/821/EC)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas:

From 6 to 8 April 1998, the Commission, in cooperation with
the Presidency-in-office, held a European audiovisual conference
in
on “Challenges and opportunities of
Birmingham. This consultation process revealed the need for an
enhanced programme of support for the European audiovisual
industry, in particular in the area of the development, distribu-
tion and promotion of European audiovisual works. Moreover,
in the digital age, activities in the audiovisual field also contri-
bute towards the creation of new jobs, particularly in the
production and dissemination of audiovisual content.

the digital age”

On 28 May 1998, the Council, in approving the outcome of the
European Audiovisual Conference in Birmingham, highlighted
the desirability of encouraging the development of a strong and
competitive European audiovisual programme industry, taking
particular account of Europe's cultural diversity and the specific
conditions obtaining in restricted linguistic areas.

The Report of the High-Level Group on Audiovisual Policy of
26 October 1998 entitled “The Digital Age: European Audio-
visual Policy” recognises the need to strengthen support meas-
ures for the cinematographic and audiovisual industry, in partic-
ular by endowing the MEDIA programme with resources
commensurate with the size and strategic importance of the
industry.

The challenges of production, distribution and availability of
European audiovisual content were the main topics discussed at
the Forum on Audiovisual Policy entitled “European content for
the digital millennium”, organised in Helsinki on 10 and 11
September 1999 by the Presidency-in-office in cooperation with
the Commission.

In the communication from the Commission to the European
Parliament and the Council of Ministers entitled “Audiovisual
policy: Next Steps” the Commission recognises the need for
increased public support, particularly at Community level, for
strengthening the competitiveness of the European audiovisual
industry.

The Green Paper on the “The Convergence of the Telecommuni-
cations, Media and Information Technology Sectors, and the
Implications for Regulation” underlines the risk of a shortage of
good quality content on the digital and analogue television.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

In its conclusions of 27 September 1999 concerning the results
of the public consultation on the Convergence Green Paper (1),
the Council called upon the Commission to take account of
these results when drawing up proposals for measures for the
strengthening of the European audiovisual industry, including
the multimedia industry.

In its Communication of 14 December 1999 on “Principles and
Guidelines for
the Community's Audiovisual Policy in the
Digital Age”, the Commission defined its priorities in the audio-
visual sector for the period 2000 to 2005.

The Commission implemented an “Action programme to
promote the development of the European audiovisual industry
(MEDIA)
(1991-1995)”, adopted by Council Decision 90/
685/EEC (2), and which comprised in particular measures
designed to support the development and distribution of Euro-
pean audiovisual works.

Further to the Green Paper “Strategy options to strengthen the
European programme industry in the context of the audiovisual
policy of the European Union”, the Commission submitted in
November 1995 a proposal for a Council Decision establishing
a European Guarantee Fund to promote cinema and television
production (3), on which the European Parliament delivered a
favourable opinion on 22 October 1996 (4).

The Community strategy for developing and strengthening the
European audiovisual industry was confirmed under the MEDIA
II Programme (1996-2000), adopted by Council Decision 95/
563/EC (5) and by Council Decision 95/564/EC (6). It is appro-
priate, on the basis of
the experience acquired from the
Programme, to ensure its extension, taking into account the
results obtained.

In its report on the results obtained under the MEDIA II (1996-
2000) programme, from 1 January 1996 to 30 June 1998, the
Commission considers that the programme meets the principle
of the subsidiarity of Community aid to national aid, since the
areas in which MEDIA II intervenes complement the areas in
which national support mechanisms traditionally intervene.

It is necessary to take cultural aspects of the audiovisual sector
into account in accordance with Article 151(4) of the Treaty.

In accordance with the negotiating mandate given to the
Commission by the Council, during the forthcoming World
the Union should
Trade Organisation (WTO) negotiations
ensure, as in the Uruguay Round, that the Community and its
Member States maintain the possibility to preserve and develop
their capacity to define and implement their cultural and audio-
visual policies for the purpose of preserving their cultural
diversity.

The Commission's public consultation on the Green Paper,
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.

(1) OJ C 283, 6.10.1999, p. 1.
(2) OJ L 380, 31.12.1990, p. 37.
(3) OJ C 41, 13.2.1996, p. 8.
(4) OJ C 347, 18.11.1996, p. 33.
(5) OJ L 321, 30.12.1995, p. 25.
(6) OJ L 321, 30.12.1995, p. 33.

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(16)

(17)

(18)

(19)

(20)

(21)

(22)

in its
Taking the same approach, the European Parliament,
Resolution of 18 November 1999, recognised the European
audiovisual sector's special role in sustaining cultural pluralism,
a healthy economy and freedom of expression, reaffirmed its
commitment to the freedom of action in the sphere of audio-
visual policy obtained at the Uruguay Round, and took the view
that the General Agreement on Trade in Services (GATS) rules
on cultural services,
in particular in the audiovisual sector,
should not jeopardise the cultural diversity and autonomy of the
WTO contracting parties.

In order to increase the added value of the Community meas-
it is necessary to ensure complementarity between the
ures,
measures taken at Community level and national
forms of
support.

It is necessary to establish consistency between this Decision
and the action of the Commission on national measures to
support the audiovisual sector, especially in the interests of
preserving cultural diversity in Europe, by enabling national
policies to develop adequately the potential for production in
Member States.
In addition, Community support can be
combined with any public support.

The emergence of a European audiovisual market necessitates
the development and production of European works, i.e. works
originating in the Member States as well as works originating in
European third countries participating in the MEDIA Plus
programme or having a cooperation framework satisfying the
in Council Directive 89/552/EEC of 3
conditions set out
October 1989 on the coordination of certain provisions laid
down by law, regulation or administrative action in Member
States
television broadcasting
activities (1).

concerning the pursuit of

In the next few years the digital revolution will mean that
European audiovisual works will become more easily accessible
thanks to new ways of transporting audiovisual content, and
will become more widely available outside their country of
origin.

The competitiveness of the audiovisual programme 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
and
demonstration activities (1998-2002), as adopted by Decision
No 182/1999/EC of
the
Council (2), the future Sixth Framework Programme, and new
opportunities for multilingual production, in order to make for
consistency with the measures to be undertaken under those
programmes, focusing in particular on the needs and potential
of small and medium-sized enterprises (SMEs) operating on the
audiovisual market.

the European Parliament and of

technological development

research,

In order to support European audiovisual projects, the Commis-
sion will examine the possibility of additional funding under
other Community instruments, notably in the framework of
“e-Europe” and the initiatives resulting from the Lisbon Euro-
pean Council conclusions, such as the European Investment
Bank (EIB), the European Investment Fund (EIF) and the research
framework programmes. The professionals in the audiovisual
sector should be informed of the various support arrangements
available to them within the framework of the European Union.

(1) OJ L 298, 17.10.1989, p. 23. Directive as amended by Directive 97/36/EC of
the European Parliament and of the Council (OJ L 202, 30.7.1997, p. 60).

(2) OJ L 26, 1.2.1999, p. 1.

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

(32)

(33)

(34)

In accordance with the conclusions of the Lisbon European
Council, the Council and Commission are to report by the end
of 2000 on the ongoing review of EIB and EIF financial instru-
ments in order to redirect funding towards business start-ups,
high-tech firms and micro-enterprises, as well as other risk
capital initiatives and guarantee arrangements proposed by the
EIB and the EIF. In this connection, particular attention should
be paid to the audiovisual
in order to improve its
access to capital markets and increase its competitiveness.

industry,

In its report to the European Council, entitled “Job Opportuni-
ties in the Information Society”, the Commission referred to the
major job-creation potential provided by the new audiovisual
services.

In its Communication on Community policies in support of
the Commission recognised the MEDIA II
employment,
Programme's positive impact on employment in the audiovisual
sector.

is appropriate therefore to facilitate the development of
It
investment in the European audiovisual industry and to call on
the Member States to encourage job-creation in that industry by
various means.

The MEDIA Plus programme should allow the establishment of
an environment conducive to entrepreneurial skills and invest-
ment, so as to guarantee a place for the European audiovisual
sector in the global economy and the effective promotion of
cultural diversity.

The contribution that SMEs can make to the development of the
audiovisual sector should be turned to good account.

There is a need to improve the conditions for distributing and
promoting European cinematographic works on the European
and international markets. Cooperation between international
and national distributors, cinema owners and producers should
be encouraged; networking by distributors, in particular SMEs,
should also be encouraged, and support should be given to
concerted action to promote common programming measures
at European level.

There is a need to improve the television broadcasting prospects
of European works on the European and international markets.
Given the leading role which television channels can play in
disseminating European works and the inadequate time they
currently devote to such works in their scheduling, it is impor-
tant that European broadcasters (as defined in Article 2 of
Directive 89/552/EEC), encourage the European transmission of
programmes by purchasing works produced in other Member
States.

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.

Public access to the European audiovisual heritage should be
improved, in particular through its digitisation and networking
at European level.

European content holders should be encouraged to digitise and
network their catalogues, including their archives and cinemato-
graphic heritage.

Support for development, distribution and promotion should
take account of structural objectives, such as developing poten-
tial in countries or regions with a low audiovisual production
capacity and/or a restricted linguistic or geographical area, and/
or the development of an independent European sector,
in
particular SMEs.

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(35)

(36)

(37)

(38)

(39)

(40)

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 partici-
pants in Community programmes on the basis of supplemen-
tary appropriations and in accordance with the procedures to be
agreed with those countries.

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 estab-
lished in the agreements between the interested parties. Those
countries should be able, if they wish, and regard being had to
budgetary considerations or the priorities of their audiovisual
industries, to participate in the programme and to benefit under
a more limited cooperation formula, on the basis of supplemen-
tary appropriations and specific arrangements to be agreed
between the interested parties.

The opening-up of the Programme to European third countries
is subject to prior examination of the compatibility of their
national
in particular
with Council Directive 89/552/EEC.

legislation with the Community acquis,

Cooperation with non-European third countries, 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. The inclu-
sion of third countries will increase awareness of the cultural
diversity of Europe and promote the spread of common demo-
cratic values. Such cooperation should be developed on the
basis of supplementary appropriations and specific arrange-
ments to be established in the agreements between the inter-
ested parties.

A financial reference amount, within the meaning of point 34
of the Interinstitutional Agreement of 6 May 1999 between the
European Parliament,
the Council and the Commission on
budgetary discipline and improvement of the budgetary proce-
dure (1) 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.

The measures necessary for the implementation of this Decision
should be adopted in accordance with Council Decision 1999/
468/EC of 28 June 1999 laying down the procedures for the
the
exercise
Commission (2),

implementing

conferred

powers

on

of

HAS DECIDED AS FOLLOWS:

Article 1

Establishment and objectives of the Programme

A programme, (hereinafter referred to as “the Programme”),

1.
is
hereby established to encourage the development, distribution and
promotion of European audiovisual works within and outside the
Community, to run from 1 January 2001 to 31 December 2005, for
the purpose of strengthening the European audiovisual

industry.

2.

The objectives of the Programme shall be as follows:

(a) an improvement in the competitiveness of the European audio-
visual sector — including small and medium-sized enterprises —
on the European and international markets, by supporting the

(1) OJ C 172, 18.6.1999, p. 1.
(2) OJ L 184, 17.7.1999, p. 23.

development, distribution and promotion of European audiovisual
works, taking account of the development of new technologies;

(b) strengthening the sectors which help improve the transnational

movement of European works;

(c) respect for and promotion of linguistic and cultural diversity in

Europe;

(d) enhancing the European audiovisual heritage, in particular by digiti-

sation and networking;

(e) development of the audiovisual sector in countries or regions with
a low audiovisual production capacity and/or a restricted linguistic
or geographical area and strengthening networking and transna-
tional cooperation between small and medium-sized enterprises;

(f) the dissemination of new types of audiovisual content using new

technologies.

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

Article 2

Specific objectives of the Programme in the development field

In the development field, the specific objectives of the Programme shall
be as follows:

(a) to promote, by providing financial support, the development of
production projects (dramas for cinema or television, creative docu-
mentaries, animated films for television or cinema, works exploiting
the audiovisual and cinematographic heritage) submitted by inde-
pendent enterprises,
in particular small and medium-sized, and
aimed at the European and international markets;

(b) to promote, by providing financial support, the development of
production projects that make use of new creation, production and
dissemination technologies.

Article 3

Specific objectives of the Programme in the fields of distribution
and dissemination

In the fields of distribution and dissemination, the specific objectives of
the Programme shall be as follows:

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

(b) to foster the wider transnational dissemination of non-domestic
European films, on the European and international markets,
their distribution and their
through incentives
screening in cinemas,
inter alia by encouraging coordinated
marketing strategies;

to stimulate

(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;

(d) to promote the movement, in the Community and outside it, of
European television programmes produced by independent compa-
nies by encouraging cooperation between broadcasters, on one
hand, and independent European distributors and producers, on the
other hand;

(e) to encourage the creation of catalogues of European works in

digital format intended for exploitation on new media;

(f) to support the linguistic diversity of European audiovisual and

cinematographic works.

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Article 4

Specific objectives of the Programme in the field of promotion
and market access

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

(a) facilitate and encourage the promotion and movement of European
audiovisual and cinematographic works at trade shows, fairs and
audiovisual festivals in Europe and around the globe,
insofar as
such events may play an important role in the promotion of
European works and the networking of professionals;

(b) encourage the networking of European operators, by supporting
joint activities on the European and international markets by
national public or private promotion bodies.

in the case of promotion. These thresholds may be reviewed by the
Committee in the light of experience;

(f) the choice of pilot projects provided for in Article 10.

2.
The measures necessary for the implementation of this Decision
concerning all the other matters shall be adopted in accordance with
the advisory procedure referred to in Article 8(3). This procedure shall
also apply to the final choice of technical assistance offices.

Technical assistance shall be governed by the provisions adopted

3.
pursuant to the Financial Regulation.

The Commission shall give the European Parliament and the
this

4.
Council regular and timely notice of
Decision,

in particular the use of the available resources.

the implementation of

Article 5

Financial provisions

Article 8

Committee procedure

1.

The Commission shall be assisted by a committee.

1.
Beneficiaries of Community support shall provide a substantial
proportion of funding, which may include any other public funding.
Community funding shall not exceed 50 % of the cost of operations.
However, in the cases expressly provided for in the Annex, this propor-
tion may reach as much as 60 % of the cost of operations.

2. Where reference is made to this paragraph, Articles 4 and 7 of
Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be
set at two months.

The financial

reference amount

2.
the
Programme for the period referred to in Article 1(1) shall be EUR 350
million. An indicative breakdown of that amount by sector is set out in
section 1.5 of the Annex. The annual appropriations shall be authorised
by the budgetary authority within the limits of the financial perspective.

implementation of

for

3. Without prejudice to the agreements and conventions to which
the Community is a contracting party, enterprises benefiting from the
Programme must be owned and continue to be owned, whether directly
or by majority participation, by Member States and/or by nationals of
Member States.

Article 6

Financial support

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
from operations carried out under the MEDIA programme (1991-1995)
and MEDIA II programme (1996-2000), shall be allocated to the
requirements of the MEDIA Plus Programme.

Article 7

Implementation of this Decision

The measures necessary for the implementation of this Decision
1.
concerning the matters referred to below shall be adopted in accord-
ance with the management procedure referred to in Article 8(2):

(a) the general guidelines for all the measures described in the Annex;

(b) the content of the calls for proposals, the definition of the criteria

and the procedures for the selection of projects;

(c) questions concerning the annual

the
Programme resources, including the breakdown between measures
in the development, promotion and distribution sectors;

internal breakdown of

3. Where reference is made to this paragraph, Articles 3 and 7 of
Decision 1999/468/EC shall apply.

4.

The committee shall adopt its rules of procedure.

Article 9

Consistency and complementarity

1. When implementing the Programme, the Commission shall,
in
close cooperation with the Member States, ensure general consistency
and complementarity with other Community policies, programmes and
actions that impinge upon the audiovisual field.

The Commission shall ensure that

2.
there is effective liaison
between this Programme and programmes and actions in the audio-
visual field being carried out under Community cooperation with non-
member countries and the relevant international organisations.

Article 10

Pilot projects

1.
Pilot projects shall be implemented throughout the duration of
the Programme aimed at improving access to European audiovisual
content and at taking advantage of opportunities arising from the
development and introduction of new and innovative technologies,
including digitisation and new methods of dissemination.

2.
In selecting the pilot projects to be implemented, the Commission
shall be advised by technical consultation groups composed of experts
designated by the Member States. The list of potential projects shall be
submitted to the Committee regularly in accordance with the procedure
laid down in Article 8(2).

Article 11

Opening of the Programme to non-member countries

(d) the arrangements for monitoring and assessing actions;

(e) any proposal for the allocation of Community funds in excess of
EUR 200 000 in the case of development, EUR 300 000 in the
case of distribution and EUR 200 000 per beneficiary and per year

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

relating

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The Programme shall be open to the participation of Cyprus,
2.
Malta, Turkey and those EFTA countries which are members of the EEA
Agreement, on the basis of supplementary appropriations, in accord-
ance with the procedures to be agreed with those countries.

3.
The Programme shall be open to the participation of the countries
which are parties to the Council of Europe 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 coun-
4.
tries referred to in paragraphs 1, 2 and 3 shall be subject to 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 appropriations and the
specific arrangements, including cost sharing under agreed procedures,
to be established in agreements between the interested parties. The
European third countries referred to in paragraph 3 which do not wish
to participate fully in the Programme may be eligible for cooperation
with the Programme under the conditions set out in this paragraph.

Article 12

Monitoring and evaluation

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

and evaluation. It shall ensure the accessibility of the programme and
the transparency of its implementation.

2.
After the completion of the projects, the Commission shall eval-
uate 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.

implementation,

After two years'

3.
the Commission shall, after
bringing the matter before the Committee provided for in Article 8,
present to the European Parliament, the Council and the Economic and
Social Committee an evaluation report on the impact and effectiveness
of the Programme on the basis of the results obtained. This report shall
be accompanied,

if need be, by any proposals for adjustments.

4.
On completion of the Programme the Commission shall submit
to the European Parliament, the Council and the Economic and Social
Committee a detailed report on the implementation and results of the
Programme.

Article 13

Entry into force

This Decision shall take effect on 1 January 2001.

Done at Brussels, 20 December 2000.

For the Council

The President

É. GUIGOU

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ANNEX

1.

MEASURES TO BE IMPLEMENTED

1.1.

In the development of audiovisual works sector

In order to respond to business strategies reflecting the diversity of production structures and of projects, the Programme measures
aim to provide financial assistance for enterprises in the audiovisual sector submitting either:

(a) proposals for developing project packages for companies with a larger investment capacity, or

(b) proposals for developing project packages for companies with a smaller investment capacity, or

(c) proposals for developing audiovisual works presented project by project.

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

— production potential;

— potential for transnational exploitation, and the marketing and distribution strategies envisaged;

— quality and originality.

Support for development will be granted on terms that require, once a project enters the production phase, the support for the
project to be reinvested in the development of new production projects.

The contribution will generally be limited to 50 % of project costs but may be raised to 60 % for projects which contribute to the
enhancement of European linguistic and cultural diversity.

In the report provided for in Article 12, the Commission will evaluate the comparative results of the systems referred to in this Annex
with regard to the programme objectives. It will submit to the Committee, in accordance with the procedure laid down in Article
8(2), appropriate proposals for the implementing rules for the rest of the Programme.

1.2.

In the distribution and dissemination sector

1.2.1. C i n e m a d i s t r i b u t i o n

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 cinematographic works

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

— encourage the networking of European distributors in conjunction with international producers and distributors, in order to

promote joint strategies for the European market;

— encourage distributors in particular to invest in promotion and adequate distribution for European films;

— support the multilingual aspects of European film-making (dubbing, subtitling, multilingual production and international
sound tracking). That part of the support intended to finance the linguistic diversity of works will take the form of a subsidy.

The criteria for selecting beneficiaries may include provisions to distinguish between projects according to their budget category.
Special attention will be given to films which contribute to the enhancement of European linguistic and cultural diversity.

(b) a system of “automatic” support for European distributors proportional to the number of admission tickets sold for non-domestic
European films in States participating in the Programme, up to a fixed ceiling per film and adjusted for each country. The support
thus generated may be used by distributors only for investment in the following:

— the coproduction of non-domestic European films;

— the acquisition of distribution rights, for example by means of minimum guarantees, of non-domestic European films;

— editing costs (prints, dubbing and subtitling), promotion costs and publicity costs for non-domestic European films.

Reinvestment arrangements will generally be limited to 50 % of project costs, but may be raised to 60 %, particularly for
investment in the production stage and in films that are of interest in enhancing European linguistic and 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 reference period of at least one year. This type of assistance may be used by sales agents
for investment in acquisition (minimum guarantees) and in costs arising from the promotion of new European works on the
European and international markets.

(d) appropriate assistance to encourage operators to screen a significant proportion of non-domestic European films in première
cinemas for a minimum screening period. The support shall be made conditional on showing a minimum number of European
films. The level of support may take account of the number of admission tickets sold for non-domestic European films during a
reference period up to a fixed ceiling.

Support may also be granted for the creation and consolidation of networks of European operators running joint schemes to
encourage such scheduling.

Support may be used for the development of educational activities and for raising awareness amongst young cinema-goers.

As far as possible, support for cinemas and networks will encourage a balanced geographical distribution.

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1.2.2. Di s t r i b u t i o n o f E u r o p e a n w o r k s o f f - l i n e

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 and audiovisual works,
excluding games, on media intended for private use (e.g. videocassettes and DVD) according to market performance over a reference
period of at least one year. The evaluation of that performance may take account of the specific features of different national markets
through appropriate weightings. The support granted may be used by distributors only for investment in the following:

(a)

the costs of editing and distributing new non-domestic European works in digital form; or

(b)

the costs of promoting new non-domestic European works in non-digital format.

This system is designed to:

(a) 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);

(b) encourage distributors in particular to invest in the promotion and adequate distribution of non-domestic European films and

audiovisual works;

(c) support the linguistic diversity of European productions (dubbing, subtitling and multilingual production).

1.2.3. T e l e v i s i o n b r o a d c a s t i n g

Encourage independent producers to produce works (fiction, documentaries and animated films)
involving no less than two
broadcasters, and preferably more, in several States participating or cooperating on the programme, belonging to different language
zones.

The criteria for selecting beneficiaries may include provisions that distinguish between projects by budget category and type. Special
attention will be given to audiovisual works that contribute to the enhancement of European heritage and linguistic and cultural
diversity.

That part of the support which is intended to finance the linguistic diversity of works (including production of the sound track -
music and effects) will take the form of a subsidy.

1.2.4. Di s t r i b u t i o n o f E u r o p e a n w o r k s o n - l i n e

This is taken to mean the distribution of European works on-line via advanced distribution services and new media (e.g. Internet,
video-on-demand). The aim is to encourage the European audiovisual industry to adapt to the development of 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.

I n t h e f i e l d o f p r o m o t i o n a n d a c c e s s t o p r o f e s s i o n a l m a r k e t s

The programme measures aim to:

(a)

improve the conditions governing access by professionals to trade shows and professional audiovisual markets within and outside
Europe and via specific technical and financial support schemes as part of events such as:

— the main European and international cinema markets;

— the main European and international television markets;

— special-interest markets, particularly for animated films, documentaries, multimedia and new technologies;

(b) encourage the creation of a database and/or a network of databases on catalogues of European programmes, intended for

professionals;

(c) whenever possible, encourage support to promote cinematographic works, as from the production phase of the work in

question.

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

Support will generally be limited to 50 % of project costs but may be raised to 60 % for projects that enhance European linguistic and
cultural diversity.

1.3.2.

I n t h e f i e l d o f

f e s t i v a l s

The programme measures aim to:

(a) support audiovisual festivals realised in partnership that screen a significant proportion of European works;

(b) encourage cooperative projects with a European dimension involving audiovisual events from at least eight States participating or
cooperating in the programme, with a common action plan to promote European audiovisual works and their movement.

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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 directors, and which establish an active policy for promoting and encouraging the
distribution of the European works featured.

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

Support will generally be limited to 50 % of project costs but may be raised to 60 % for projects that contribute to the enhancement
of European linguistic and cultural diversity.

1.3.3. A c t i v i t i e s t o p r o m o t e E u r o p e a n f i l m s a n d a u d i o v i s u a l p r o g r a m m e s

To encourage professionals, in close association with the Member States, to organise activities targeted at the general public and
promoting European cinema and audiovisual productions.

1.4.

Pilot projects

Pilot projects, the objectives of which are defined in Article 10, may focus, inter alia, on the following areas, with a view to the
enhancement, networking and promotion of:

(a) cinematographic heritage;

(b) European audiovisual programme archives;

(c) catalogues of European audiovisual works;

(d) digital dissemination of European content through, for instance, advanced distribution services.

The pilot projects will give rise to exchanges of experience; their results will be publicised widely in order to encourage the
dissemination of best practices.

Once the programme has been implemented for two years, the Commission will verify the results of the pilot projects and propose
adjustments to the programme.

1.5.

Breakdown of resources

The funds available will be broken down according to the following guidelines:

Development:

Distribution:

Promotion:

Pilot projects:

at least 20 %

at least 57,5 %

approximately 8,5 %

approximately 5 %

Horizontal costs:

at least 9 %

All the percentage figures are indicative and are subject to changes by the Committee provided for in Article 8, in accordance with
the procedure referred to in Article 8(2).

2.

IMPLEMENTATION PROCEDURE

2.1. Approach

In implementing the Programme, the Commission will ensure compliance with the objectives set out in Article 1(2).

In implementing the Programme, the Commission, assisted by the Committee provided for in Article 8, 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. C o m m u n i t y c o n t r i b u t i o n

Community funding will not exceed 50 % of the final cost of the measures (other than in the cases expressly provided for in this
Annex, where a ceiling of 60 % applies) and will be granted in the form of conditionally reimbursable advances or subsidies. Only
costs directly linked to execution of the measure receiving support will be eligible, even if the costs are defrayed in part by the
beneficiary before the selection procedure. For multilingual support, the Community contribution will be in the form of subsidies.

2.2.2. P r i o r a p p r a i s a l , m o n i t o r i n g a n d s u b s e q u e n t e v a l u a t i o n

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 subsections 2 and 3 of this section of the Annex.

Requests for Community support must include the following:

(a) a financial plan setting out all the project funding components, including the financial support requested from the Commission;

(b) a provisional work timetable;

(c) any other relevant information required by the Commission.

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2.2.3. F i n a n c i a l p r o v i s i o n s a n d c o n t r o l

The Commission will 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.

It will particularly ensure that the administrative and financial procedures used are geared to the objectives pursued and to the
practice and interests of the audiovisual

industry.

2.3.

Implementation

2.3.1. The Commission will implement the Programme. It may, to this end, call upon independent consultants and technical assistance
offices to be selected, after a call for tenders, on the basis of their expertise in the sector, experience acquired in the MEDIA II
programme, or other experience acquired in this area. The technical assistance will 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 operations with
specialist bodies, including those which have been set up under other European initiatives such as Audiovisual Eureka, EURIMAGES
and the European Audiovisual Observatory 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 8, on the basis of preparatory work conducted by the technical assistance offices. It will give
grounds for its decisions to applicants for Community support and ensure the transparency of implementation of the programme.

In order to execute the Programme and, in particular, evaluate the projects benefiting from Programme funding and networking
activities, the Commission will draw on recognised,
independent audiovisual experts in the fields of development, production,
distribution and promotion, who are, where necessary, proficient in the area of the management of rights, especially in the new
digital environment.

2.3.2. The Commission will take the necessary steps to provide information on the opportunities offered by the Programme, and will ensure
its promotion. The Commission will also provide via the Internet comprehensive information concerning the support arrangements
available under the European Union's policies which are of relevance to the audiovisual sector.

In particular, the Commission and the Member States will 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:

(a)

inform professionals in the audiovisual sector of the various support arrangements available under European Union policies;

(b) publicise and promote the Programme;

(c) encourage maximum participation in the Programme's activities by professionals;

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

(e)

foster transborder cooperation between professionals;

(f)

liaise between the various support bodies in the Member States with a view to ensuring that Programme activities complement
national support measures.’