Report from the Commission to the Council, the European Parliament and the Economic and Social Committee on the implementation of Council Decision 1999/784/EC of 22 November 1999 concerning Community participation in the European Audiovisual Observatory
Date: 2002-11-11
Institutions: European Commission
Subjects: audiovisual communications policy, audiovisual industry, dissemination of information, film industry, international organisation, programmes industry

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.11.2002
COM(2002) 619 final

REPORT FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN
PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE

On the implementation of Council Decision 1999/784/EC of 22 November 1999
concerning Community participation in the European Audiovisual Observatory

   
REPORT FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN
PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE

On the implementation of Council Decision 1999/784/EC of 22 November 1999
concerning Community participation in the European Audiovisual Observatory

TABLE OF CONTENTS

Foreword .................................................................................................................................... 3

I.

II.

III.

3.1.

3.2.

IV.

4.1.

4.2.

V.

5.1.

5.2.

5.3.

5.4.

VI.

Introduction.................................................................................................................. 4

Community participation ............................................................................................. 4

Implementation of the Council Decision ..................................................................... 5

The formalisation of the participation.......................................................................... 5

Community financial contributions ............................................................................. 6

Observatory's activity................................................................................................... 7

Market and financial area............................................................................................. 7

Legal area ..................................................................................................................... 8

Dissemination of the Observatory's work. ................................................................... 9

Market and financial area............................................................................................. 9

Legal area ................................................................................................................... 10

Internet ....................................................................................................................... 10

Other dissemination activities and conferences ......................................................... 10

Conclusions................................................................................................................ 11

Annex 1.

Main Observatory reports concerning market and financing issues.............. 12

Annex 2.

Main Observatory reports concerning legal issues........................................ 13

Annex 3.

Workshops organised by the Observatory..................................................... 15

2

FOREWORD

1.

2.

3.

4.

5.

6.

This  report  refers  to  the  implementation  of  Council  Decision  1999/784/EC1
concerning Community participation in the European Audiovisual Observatory. It is
an intermediate report, describing the bilateral relations between the Commission and
the Observatory and illustrates the main activities carried out by the latter since the
Council Decision's adoption

Chapter  II  recalls  the  reasons  for  the  Community  participation  in  the  Observatory
and  the  issue  of  Eurostat's  concomitant  development  of  a  statistical  information
infrastructure.

Chapter III of the report summarises the main features of the Observatory, recalls the
main legal acts necessary for finalisation of Community membership, and provides a
financial report for this Community membership.

Chapter  IV  gives  an  overview  of  the  overall  activity  of  the  Observatory  since  end
1999  till  mid  2002.  The  two  main  areas  covering  market/financial  and  legal  issues
are examined.

Chapter V  analyses  the  dissemination of  information collected and  analysed  by  the
Observatory among the main professional categories.

Chapter VI provides an overall assessment of Community participation with respect
to  the  objectives  pointed  out  in  1999  and  the  implementation  of  bilateral  relations
Commission - Observatory.

1

OJ L 307, 2.12.1999, p. 61

3

                                                
I.

INTRODUCTION

This  report  refers  to  the  implementation  of  Council  Decision  1999/784/EC2  concerning
Community  participation  in  the  European  Audiovisual  Observatory.  It  is  an  intermediate
report covering both Commission's activities concerning institutional  bilateral  relations  with
the  Observatory  and  the  latter's  main  actions  effected  in  respect  of  industry  and  public
authorities' professional requirements since the adoption of the Council Decision.

II.

COMMUNITY PARTICIPATION

The  Council  of  Europe,  by  Resolution  (92)  70  of  its  Committee  of  Ministers  adopted  on
15 December 1992, established the Observatory for an initial period of three years as a Partial
Agreement of the Council of Europe. By Resolution (97) 4 of 20 March 1997, the Committee
of Ministers confirmed the continuation of the Observatory for an indefinite period.

The legal basis for Community participation in the Observatory is article 157 (3) of the Treaty
(ex  article  130).  This  article  of  the  Treaty  refers  to  Community  activity  with  respect  to  the
industrial economic sector.

In accordance with the aim of its legal base, the Community's decision to fully participate in
the Observatory is instrumental in providing the European audiovisual economic sector with
much  needed,  detailed,  information  in  areas  such  as  marketing,  finance,  legal  acts  and
jurisprudence.

The  Observatory's  activities  have  proved  highly  effective  in  dealing  promptly  with  such
information  and  its  dissemination  to  public  comprising  operators,  and  notably  small  and
medium sized enterprises.

Moreover,  the  Observatory's  work  represents  an  important  asset  for  EU  industry  since  it
covers  a  large  number  of  countries,  including  the  candidate  countries,  as  well  as  EEA  and
most other European states.

The  wide  scope  of  the  information  made  available  by  the  Observatory  and  its  capacity  to
provide  'customised'  researches,  is  not  only  essential  for  the  industry  but  has  also  proved
important for the policymakers, both at national and Community levels.

The  Observatory  is  not  the  only  source  of  statistical  information  on  the  audiovisual  sector.
Since  1999,  Eurostat  has  been  developing  a  statistical  structure  mainly  devoted  to
implementing  a  comprehensive  approach  capable  of  delivering,  at  EU  level,  a  number  of
harmonised  statistical  series  useful  for  the  development  of  policies  and  monitoring  their
impact,  for  carrying  out  international  negotiations  and  for  monitoring  the  development  of
"non-core" audiovisual sectors.

Observatory and Eurostat experts have regular co-ordination meetings twice a  year, in order
to avoid the  duplication of work in  the  areas  that  fall  within  the  remits  of  both  institutions,
notably  market  statistics.  In  addition  the  Observatory  attends  the  meetings  of  Eurostat’s
Working  Group  on  Audiovisual  Statistics,  and  Eurostat  attends  the  Observatory’s  Advisory
Committee of Professional Organisations.

2

OJ L 307, 2.12.1999, p. 61

4

                                                
As  a  result,  Eurostat  has  tended  to  focus  on  developing  areas  where  official  statistics  have
particular strengths (such as statistics from large scale harmonised enterprises, household and
work-force  surveys,  Balance  of  Payments,  etc.),  whilst  the  Observatory  has  done  important
work  at  the  more  detailed  level  needed  by  the  firms  in  the  industry  (such  as  cinema
admissions by individual film, details of the leading enterprises using published information,
etc.). Moreover, the Observatory’s activities have developed in a specific way to cover areas
beyond  the  collection  of  statistics,  as  they  include  also  collection  and  distribution  of  legal
information and the delivery of information of professional interest.

III.

IMPLEMENTATION OF THE COUNCIL DECISION

Article 1 of the  Council Decision  establishes that  the Community  shall  be  a  member  of  the
European Audiovisual Observatory, a Partial Agreement of the Council of Europe. Article 2
of the Decision establishes that the Commission shall represent the Community in its relations
with the Observatory. Article 5 establishes that the Community participation will last until the
end of 2004.

3.1.

The formalisation of the participation

The Commission has taken part in the activity of the Observatory since its foundation and has
been  represented  in  its  constituent  bodies.  It  has  always  contributed  to  the  financing  of  the
Observatory at the same level as the largest participant countries.

At the beginning of 2000,  the Commission opened negotiations with the Council of Europe
and  the  Observatory  in  order  to  implement  the  Council  Decision.  The  main  points  under
discussion concerned the participation of the Community in the Observatory without being at
the same time a member of Audiovisual Eureka, as was the case for other countries and, inter
alia, to accommodate certain specific  financial requirements of the  Commission  concerning,
notably, the destination of unused funds and obligations in case of late withdrawal from the
Observatory.

The Council of Europe Committee of Ministers adopted Resolution (2000) 7 on 21 September
2000  providing  for  amended  Statute  and  Financial  Regulation  of  the  Observatory,  revised
according to the mentioned Commission requirements.

Further to the Council of Europe's Resolution, the Commission, by  Decision C(2000)33083,
authorised Madame Viviane Reding, as member of the Commission in charge of audiovisual
policy, to formalise Community participation in the European Audiovisual Observatory as an
Agreement, in the form of an Exchange of Letters with the Secretary General of the Council
of Europe. The Exchange of Letters was formalised on 16 and 22 November 2000.

A  specific  document  called  the  Memorandum  of  Understanding  (MoU)  was  attached  to  the
Exchange  of  Letters.  It  is  designed  to  establish  certain  specific  terms  of  the  yearly
Commission  commitments  linked  to  Community  participation  in  the  Observatory.  This
document is updated and underwritten every year by the Commission and the Observatory.

3

Decision C(2000)3308 was not published

5

                                                
3.2.

Community financial contributions

The  Financial  Statement  attached  to  the  proposal  for  the  Council  Decision  indicates  a  total
forecast for commitment and payment appropriations of 1,325,000 € over a six-year period.

As  aforementioned,  Community  participation  in  the  Observatory  was  only  formalised  in
November  2000,  about  a  year  after  the  adoption  of  the  Council  Decision.  In  order  to  avoid
discontinuing co-operation with the Observatory in 1999, the Commission, while awaiting the
conclusion of the negotiations formalising membership in the Observatory, stipulated on 31st
January  2000  a  Grant  Agreement  with  the  Observatory  for  a  total  amount  equal  to  the
theoretical  statutory  contribution  and  not  exceeding  the  sum  indicated  for  1999  in  the
Financial Statement annexed to the proposal for the Council Decision.

The  provisions  of  such  a  Grant  Agreement  were  in  line  with  the  provisions  of  the
Commission's financial Regulation concerning grants. In particular, the amount to be paid to
the  Observatory  was  calculated  as  a  percentage  of  the  total  actual  costs  incurred  by  the
Observatory in the  year  of  reference  (1999). Such  a scheme  differs from the features of the
Memorandum of Understanding, insofar as under the MoU the amount of the yearly financial
contribution is not directly linked to actual costs incurred the same year, but is fixed, with the
excess payment being deducted from the contribution of the second following year.

The  application  in  1999  of  the  financial  mechanism  of  the  Grant  Agreement  permitted  the
payment  of  a  contribution  that  was  8,528  €  s hort  of  the  foreseen  maximum  amount.  The
Observatory  has  since  requested  the  Commission  pay  this  amount  considered  as  a  due
contribution. The Commission has always contested this assessment arguing constantly that it
has  fulfilled  all  its  financial  obligations.  At  present  the  issue  has  not  been  settled,  and  the
Executive Council of the Observatory recently decided to form a panel of experts to provide
adequate proposals for a solution to this claim. It is necessary to recall that the same panel is
required  to  provide  proposals  for  another  claim  of  the  Observatory  for  contributions  dating
back  to  1993.  The  Commission  also  considers  that  no  obligation  towards  the  Observatory
exists  in  this  case.  It  notes  that  the  constitution  of  a  panel  of  experts  is  an  initiative  of  the
Observatory that cannot result in conclusions binding on the Commission.

Commitments  and  payments  in  the  years  1999  to  2002  were  consistently  lower  than  the
amounts  foreseen  in  the  Commission  proposal  for  the  Council  Decision.  The  Community's
share  of  financing  has  also  been  consistently  lower  than  what  was  indicated  by  the
Commission.

Foreseen
commitment/payment

1999

2000

2001

2002

200,000 €

215,000 €

220,000 €

225,000 €

Actual commitment

198,184 €

200,000 €

219,945 €

219,822 €

Actual payments

189,656 €

200,000 €

219,945 €

219,822 €

Foreseen  maximum
participation %

12.25 %

12.25 %

12.25 %

12.25 %

Actual participation % 9.68 %

10.04 %

10.89 %

9.64 %

6

IV.

OBSERVATORY'S ACTIVITY

According to Observatory's Statute, "the aim of the European Audiovisual Observatory shall
be  to  improve  the  transfer  of  information  within  the  audiovisual  industry,  to  promote  a
clearer view of the market and a greater transparency. In doing so, the Observatory shall pay
particular attention to ensuring reliability, compatibility and comparability of information".

In  order  to  fulfil  its  remit,  the  Observatory  has  developed  its  activity  along  two  main  axes:
publication  of  yearly  statistics  concerning  the  market  of  the  audiovisual  sector  and  certain
financial  topics;  publication  of  a  periodical  legal  newsletter.  Moreover,  a  number  of
publications have been released on several occasions.

4.1.

Market and financial area

The  objective  of  the  Observatory's  activity  in  the  area  of  market  and  financing  is  to  collect
and  to  make  available  the  information  and  data  necessary  for  professionals  to  be  able  to
understand  the  main  development  of  the  various  branches  of  the  European  audiovisual
markets (film, television, video, multimedia). Such information is useful for market analysts
and provides guidance to enterprises, notably, SMEs, when preparing their business plans and
project financing.

The  overall  financial  resources  available  to  the  whole  audiovisual  industry  (with  detailed
analysis  of  public  financing  and  of  consumer  expenditure),  the  quantitative  analysis  of
production  and  distribution  of  cinema  and  other  audiovisual  works,  consumer  behaviour
(audience,  purchase  of  audiovisual  equipment  and  programmes,  cinema-attendance,…),  and
exchanges  between  Europe  and  other  regions  of  the  world  are  the  main  subjects  of
Observatory analysis.

The  strategy  for  data  collection  is  based  on  a  wide  network  of  partners  and  information
suppliers and includes also a qualitative dimension of market "intelligence". The Observatory
has continued its strategy of collaboration with thematic pan-European information providers
such  as  professional  organisations,  private  companies  managing  international  networks  or
academic  bodies  with  networks  of  correspondents.  When  necessary,  the  Observatory  has
taken  the  lead  in  shaping  networks  of  national  sources  such  as  the  LUMIERE  and  the
KORDA networks for information related to the film industry. Collaboration with European
and  national  administrations  that  are  members  of  the  Executive  Council  of  the  Observatory
provides  also  complementary  information  from  various  national  sources.  Moreover,  the
Observatory works in close co-operation with the professional organisation represented in its
Advisory Committee.

The  Yearbook  is  the  Observatory's  main  publication.  In  2002  it  reached  its  eighth  edition,
comprising  five  volumes  that  will  be  published  at  different  dates  throughout  the  year.
Moreover,  an  on-line  version  makes  most  of  the  information  published  in  the  "Yearbook"
easily  accessible  for  those  operators  needing  a  rapid  access  to  information  and  a  flexible
electronic format.

A  second  yearly  publication  is  "FOCUS,  Trends  of  the  Film  World  Market".  It  has  been
published since 1997 in collaboration with the Cannes Film Market and widely distributed to
the participants during this event.

The  EUROFICTION  report  is  the  third  yearly  publication  of  the  Observatory.  Its  seventh
edition  will  be  published  in  autumn  2002.  EUROFICTION  is  almost  unique  providing  data

7

and  trend  analysis  on  the  national  TV  fiction  produced  in  the  5  major  European  countries
(France,  Germany,  Italy,  Spain,  and  the  United  Kingdom).  Every  year  the  report  also  puts
forward monographs on two other European countries.

In  addition  to  the  cited  publications  released  on  a  regular  basis,  the  Observatory  also
publishes a wide range of reports and studies. A summary of such works for the years 1999 to
2002 is contained in annex 1.

The Observatory has developed two specialised databases, LUMIERE on admissions for films
released  in  Europe  and  KORDA  on  the  national  and  regional  public  funding  schemes  made
available  to  the  film  and  audiovisual  industry  in  Europe.  These  two  databases  provide  the
Observatory  with  a  new  tool  to  elaborate  new  added-value  analysis  and  to  effectively
disseminate information among professionals and the public.

Since 2000, the Observatory has also dedicated efforts to the adaptation and extension of the
database AMADEUS (originally published by external consultant), listing the financial records
of  around  5  million  companies  in  Europe,  25  000  of  which  are  active  in  the  audiovisual
sector.  The  Observatory  is  now  able  to  provide  in-depth  financial  analysis  of  the  various
branches of the industry in most of the Member States.

4.2.

Legal area

In order to serve the audiovisual industry with comprehensive information and comments, the
Observatory has built up a  wide network  of legal  correspondents  with proven  experience in
specific areas. This network has a pivotal role in carrying out numerous projects by providing
basic  contributions  that  are  later  combined,  structured  and  edited  by  the  Observatory.
Observatory's work is disseminated in the form of print and online publications/services and
also  through  workshops,  seminars,  presentations,  and  in  answer  to  specific  information
requests.  Addressees  include  industry  representatives  (among  others  from  professional
associations,  small  and  medium  sized  businesses),  law  firms,  governmental  bodies,  EU
institutions, regulatory authorities, administrative entities, parliamentarians (both national and
European), research institutions, etc.

The  IRIS  newsletter  is  the  Observatory's  publication  for  legal  information  concerning
broadcasting,  film,  new  media/technologies,  and  related  fields  of  law.  It  contains  regular
reports on international and Community issues, as well as on developments in each individual
European  country.  It  also  covers  some  major  non-European  markets.  Since  1999,  the  IRIS
readership has been kept informed about the most relevant topical developments through 10
periodical  issues  per  year  (6  issues  up  to  mid  2002)  containing  approximately  850  articles.
IRIS is also available online.

Since  January  2001,  every  second  month  IRIS  is  completed  by  an  issue  of  IRIS  Plus,  a
comparative  and  context-orientated  legal  overview  on  selected  topics  of  particular
importance. In addition, the IRIS newsletter includes three updates (each year in May) of the
“State  of  Signatures  and  Ratifications  of  relevant  European  Conventions  and  other
International  Treaties”  and  (in  March  2001)  one  overview  table  on  national  regulation  of
“Events of major importance to society”.

Furthermore,  the  constant  monitoring  of  important  developments  throughout  Europe  has
resulted in the development of a comprehensive legal database. This database, which bears the
working title of IRIS Merlin, will be offered online to the public for researching the collection

8

of IRIS articles and the register of related documents. The project is well advanced and it is
expected to be available to the public by the end of this year.

In  addition  to  the  systematic  monthly  update  via  the  IRIS  newsletter,  the  legal  information
department  of  the  Observatory  has  undertaken  numerous  projects  on  selected  topics  (annex
in-depth  researches  deserve  particular  attention,  “Television  and  Media
2).  Two 
Concentration  –  Regulatory  Models  on  the  National  and  the  European  Level”  and
“Jurisdiction  over  Broadcasters  in  Europe”.  Both  researches  are  published  under  the  IRIS
Special series,

V.

DISSEMINATION OF THE OBSERVATORY'S WORK.

It  is  common  opinion  throughout  the  industry  that  in  the  recent  years  the  Observatory  has
significantly improved its effectiveness as a provider of comprehensive information in many
areas of the audiovisual industry. This result has been achieved thanks to a consistent policy
of dissemination that, in line with the source of financing, does not privilege commercial sales
but largely  relies  on free-of-charge deliveries. The  2001 reorganisation  of  the  Observatory's
Web site (www.obs.coe.int), which also provides links towards the sites of selected sources of
thematic information, contributed to its established communication and dissemination policy.

Finally,  the  Observatory  replies  on  a  regular  basis  to  requests  for  information  arising  very
often from small and medium sized business, but also from professional associations, research
institutions,  regulatory  authorities,  members  of  the  Executive  Council  and  the  Advisory
Committee of the Observatory, and parliamentarians (both national and European).

Observatory works are generally published in English, French and German.

5.1.

Market and financial area

The several publications of the Observatory in this area have different dissemination volumes.

The statistical Yearbook sales are generally around the level of 700-  800  copies  while more
than 1000 copies  are delivered free-of-charge to  the  members  of  the  statutory  bodies  of  the
Observatory  (Executive  Council,  Advisory  Committee,  etc.),  its  network  of  professional
partners, as well as to bodies such as national libraries and MEDIA desks. In 2001, sales of
the Yearbook declined due to its late release which, in turn, was linked to the availability of
some essential data. In order to remedy such unsatisfactory tendencies, starting from 2002 the
Yearbook  has  been  spilt  into  five  thematic  publications  to  be  released  at  different  times  as
soon as essential statistical data become available.

The  Yearbook  Premium  Service  has  between  50  and  100  commercial  clients,  mainly
consultants and development departments of broadcasting companies.

FOCUS.  The  World  Film  Market  is  distributed  freely  to  10  000  readers,  including  7  500
clients of the Cannes Film Market.

The EUROFICTION study has a more targeted public (20 to 30 copies sold every year) and is
distributed free to around 250 members of the Observatory network.

9

5.2.

Legal area

The  sales  of  the  several  IRIS  publications  rely  mainly  on  external  distributors  absorbing
stocks  of  about  800  copies.  Direct  sales  by  the  Observatory  are  quite  modest:  less  than
hundred  subscriptions.  The  Observatory  is  actually  pursuing  a  policy  of  free-of-charge
dissemination,  mainly  on  the  occasion  of  conferences  and  festivals.  On  a  regular  basis,  the
IRIS newsletter is distributed to public institutions and policymakers.

The  dissemination  of  IRIS  special  issues  is  carried  out  directly  by  the  Observatory.  IRIS
Focus  on  Copyright  Law  in  the  Digital  Age  received  a  large  (almost  800  copies)  free-of-
charge  distribution  in  addition  to  more  than  a  hundred  commercial  sales  since  2000.  The
report is also freely available on the Observatory’s web site.

More than 500 free copies have been distributed for each of the two IRIS Specials published
in 2001 and spring 2002 on "Media Concentration" and on "Jurisdiction over Broadcasters",
respectively. The first work was also sold to over hundred commercial customers.

Articles  published  under  the  label  IRIS  plus  are  distributed  free-of-charge  at  special  events
and effectively helped to increase the public knowledge of this family of publications.

5.3.

Internet

Almost  all  works  and  publications  released  by  the  Observatory  are  also  available  free-of-
charge or on a commercial basis on the Web sites of the Observatory, the main site of which
records  constant  public  success.  According  to  recent  statistics,  monthly  "hits"  are  generally
above the 11,000 threshold.

More recently, in order to give the largest possible public access to the information services of
the  Observatory,  two  specific  Web  sites  covering  marketing  and  financial  issues  have  been
opened in addition to the main Observatory site. While the specific "Lumiere" site devoted to
film admissions statistics is  around the  level of 4,000  "visits" per month,  the  latest "Korda"
site concerning financial statistics is heading towards the 800 "visits" level.

Analysis  of  Internet  contacts  show  that  a  large  spectrum  of  users  from  many  countries  has
regularly  access  to  the  Observatory  site.  Some  of  them  have  entered  the  site  from  the
audiovisual policy site of the European Commission, where a specific link is available.

5.4.

Other dissemination activities and conferences

The Observatory considers  it important for  the  dissemination of the results  of its activity  to
participate  actively  in  conferences  and  workshops.  It  also  promotes  and  organises  some
professional events in co-operation with its partner institutions. In many cases specific reports
are  prepared  by  the  Observatory  and  distributed  to  the  participants  of  the  events  as
background documents for discussion.

Moreover, the Observatory publishes around 10 press releases every  year. These documents
are  commonly  utilised  by  professionals  and  policy-makers,  and  in  many  cases  are  largely
covered by the international press.

Annex  3.  Contains  a  short  summary  of  the  events  organised  with  the  participation  of  the
Observatory.

10

VI.

CONCLUSIONS

Beyond  the  nature  of  a  formal  participation  in  a  multilateral  international  organisation  -  at
present, 35 countries and the European Community are full members of the Observatory, the
Council of Europe and Audiovisual Eureka have observers status - the  Commission  and  the
Observatory  have  developed  a  sound  professional  partnership  benefiting  both  the  industry,
who receive a flow of timely information enhancing transparency, and the public authorities,
who can launch profitable discussions with the industry representative built on clearer views
of the market.

Such  results  have  been  achieved  thanks  to  the  continuing  development  of  a  well-structured
and efficient network of sources allowing the Observatory to work in close collaboration with
the most competent sources of information in the various branches of the industry.

The Observatory represents a model of integration between the activities of public bodies and
the private sector from several countries, which is able to provide valuable results for a large
spectrum  of  users  at  reasonable  cost  in  terms  of  amount  financial  contributions  -  for  the
participants bodies - and access to information for the industry.

11

Annex 1.

Main Observatory reports concerning market and financing issues

"Public  Aid  Mechanisms  for  the  Film  and  the  Audiovisual  Industry  in  Europe";  volume  I:
"Comparative Analysis of National Aid Mechanisms"; volume II: national monographs. This
report, co-edited in 1999 by the Observatory with the French CNC, provided a complete view
of public support systems in the European Union.

"Developments of digital television in the European Union". A report prepared in 1999 by the
Observatory for a conference organised by the Finnish Presidency of the European Union.

"Radio  and  Television  Systems  in  Europe  2000/2001".  This  work,  an  English  and  French
translation of an original publication in German edited by the Hans-Bredow-Institut illustrate
the audiovisual landscape in 33 European countries

"European  Films  on  European  Televisions".  This  report,  prepared  in  collaboration  with
Médiamétrie  and  ETS  in  2000,  provided  detailed  information  on  the  number  and  origin  of
films  broadcast  by  the  main  unencrypted  TV  channels  in  Europe,  as  well  as  the  rating  of  a
sample of successful film broadcast by European TV channels.

"Economy of European TV Fiction - Market Value and Producers / Broadcasters Relations".
This report, was co-financed and published by the Observatory in 2000, was realised by INA
in collaboration with the Eurofiction teams and co-financed by the French CNC. This work is
based  on  an  original  methodology  and  provides  for  the  first  time  an  evaluation  of  the
economic  value  of  TV  production  in  Europe.  An  up-date  of  this  report  is  currently  under
preparation by INA (with co-financing by the Observatory and the French CNC and DDMA).

"The  Film  Industry  in  the  Russian  Federation"  and  "The  Video  industry  in  the  Russian
Federation",  were  published  in  2001.  These  two  reports  were  commissioned  by  the
Observatory from two Russian recognised consultants.

"Distribution of Third Country Films in the European Union (1996-2002)". A report prepared
for  the  conference  "The  Film  and  Television  Sector  in  the  European  Union  and  Third
Countries" organised by the Spanish Presidency of the European Union (Madrid, 18-19 April
2002).

Various national reports on the film industry, provided by national administrations or experts
have  been  published  on  the  Observatory’s  Web  site.  Countries  covered  include  Belgium,
Czech  Republic,  Estonia,  Germany,  Iceland,  Italy,  Russian  Federation,  Portugal,  Spain,  and
the United Kingdom.

A  study  concerning  the  impact  of  digital  technologies  on  the  distribution  of  films  is  under
preparation.

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Annex 2.

Main Observatory reports concerning legal issues

Topic: Jurisdiction over Broadcasters in Europe (TVwF Directive, CoE Convention)

IRIS Special, published in March 2002 based on November workshop with IViR and EPRA
covering: description of legal issues and existing case law.

Topic: Television and Media Concentration

IRIS Special, published in February 2001 covering: the regulatory models chosen by DE, GB,
ES, IT, FR; the framework set by the European Union (through legislation and case law); US
regulation; the situation in the Federation of Russia.

Topic: Convergence

In  2001,  the  IRIS  plus  series  put  a  particular  emphasis  on  issue  of  convergence  thereby
pursuing  two  main  aspects:  Applicability  of  regulation  of  traditional  media  (in  particular
broadcasting) to new media; suitability of the  current organisational structure of,  and power
distribution among, regulatory authorities and other controlling bodies (e.g. under competition
law) for converging media.

Two workshops were conducted to gather information and ideas for a total of four IRIS plus
publications on the convergence issue (IRIS plus 2001-6, IRIS plus 2001-8, IRIS plus 2001-
10, IRIS plus 2002-2)

Topic: Conditional Access

IRIS plus 2001-2 on non-discriminatory Access to Digital Access Control Services

Topic: Copyright Issues related to Electronic Distribution

IRIS  Focus  series  (2000)  presents  four  articles  discussing:  WIPO  legal  instruments  and  the
European  Copyright  Directives;  case  law  from  different  countries  on  who  owns  electronic
rights;  contractual  and  legal  framework  for  electronic  rights  on  the  national  level;  various
schemes for Internet distribution of audiovisual works (MP3, Napster, Scour, Gnutella).

In  addition  IRIS  plus  2002-4  focused  on  problems  related  to  “Movies  online”  (i.e.,  the
distribution of films over the Internet)

Topic: Self-Regulation

IRIS plus 2002-6 on Co-regulation of the Media in Europe; workshop on 6 and 7 September
2002 on this issue, hosted by the European University  Institute and co-organised with  IViR
and the EMR.

Topic: Film Making and Funding

Making  and  Distributing  Films  in  Europe:  The  Problem  of  Nationality.  Countries  covered:
Belgium, Germany, Spain,  France,  Italy,  Netherlands, Norway,  United Kingdom and on  the
European  Level  (online  publication  January  2000);  IRIS  plus  2001-4  on  National  Film
Production Aid: Legislative Characteristics and Trends (on DE, FR, IT, ES, UK and some EU
background)

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Topic: Public Service Broadcasting

IRIS Focus 2000-6 on The Financing of Public Service Broadcasting in Selected Central and
Eastern European States (BG, SK, CZ, PO, HU); research contribution for a study carried out
by  the  Hans  Bredow  Institut  and  results  published  in  “Der  schweizerische  Öffentliche
Rundfunk im Netzwerk” (IPMZ Zürich 2001) and in "Der öffentliche Rundfunk im Netzwerk
von Politik, Wirtschaft und Gesellschaft" (NOMOS Baden-Baden/Hamburg 2001)

Topic: Advertisement

Regulation on Advertising Aimed at Children in EU-Member States and some Neighbouring
States (May 2000); the  insertion  of short advertisement  spots  during  football  matches  (May
2002)

Topic: National Reports

Turkey:  Law  Relevant  to  the  Audiovisual  Sector  (online  publication  July  2001);  Russian
Federation: The Russian System of  Licensing of Television and Radio Broadcasting  (online
publication July 2001)

Mid  2002  a  number  of  projects  were  under  preparation  including  the  IRIS  Merlin  database
and a collection of hyperlinks to legal sources. The first is a comprehensive collection of IRIS
articles, and  related source  references, made available to the public  via  Internet  as  a  tool  to
carry  out  researches  in  the  legal  area.  The  latter  is  an  organised  listing  of  links  towards
sources in the legal area providing access to legislative and policy documents.

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Annex 3.

Workshops organised by the Observatory

Market and financial areas

"Film Information and Statistics" held within the framework of the conference "Audiovisual
Policies  and  their  Implementation  in  the  European  Union  and  in  Turkey”  organised  by  the
Turkish Ministry of Culture (Eskisehir, 4 April 2001)

“Case  studies  of  success  in  European  film  distribution”  (organised  in  the  framework  of  the
European Film Forum (Strasbourg, 8-13 November 2001).

“The  Film  and  Video  industry  in  the  Russian  Federation  and  their  relations  with  other
European countries” (organised in the framework of the International Moscow Film Festival)
(Moscow, 26 June 2002)

Legal information domain

“How to distinguish between broadcasting and new media services  - Broadcasters' access to
new Media markets” (Amsterdam, 16 June 2001)

“Media Supervision on the threshold of the 21st century – Structure and powers of regulatory
authorities in the era of convergence” (Saarbrücken, 6 November 2001)

“Jurisdiction over Broadcasters in Europe” (Amsterdam, 24 November 2001)

"Workshop on co-regulation of the Media in Europe" (Florence, 6-7 September 2002)

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