Proposal for a Decision of the European Parliament and the Council Concerning the implementation of a programme of support for the European audiovisual sector (MEDIA 2007) {SEC(2004) 955}
Date: 2004-07-14
Institutions: European Commission
Subjects: EU programme, audiovisual communications policy, audiovisual industry, cultural transmission, economic and social cohesion

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.7.2004 
COM(2004) 470 final 

2004/0151 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Concerning the implementation of a programme of support  
for the European audiovisual sector  
(MEDIA 2007) 

{SEC(2004) 955} 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

JUSTIFICATION FOR COMMUNITY ACTION 

The audiovisual sector is a vector for the expression of European citizenship and culture and 
plays  a  primary  role  in  building  a  European  cultural  identity,  in  particular  regarding  young 
people.  Increased  circulation  of  European  audiovisual  works  has  proved  to  be  an  important 
means  of  strengthening  intercultural  dialogue,  mutual  understanding  and  knowledge  among 
European  cultures  to  form  a  basis  for  European  citizenship.  Community  support  to  the 
audiovisual sector is part of a strategy to give Europeans a choice. Unless Europeans are able 
to  watch  fiction,  drama,  documentaries  and  other  works  that  reflect  the  reality  of  their  own 
lives and histories, and those of their neighbours, they will cease to recognise and understand 
them  fully.  Circulation  of  European  audiovisual  works  can  only  be  achieved  by  reinforcing 
the  sector  and  enabling  the  creative  potential  of  European  cultures  to  be  fully  realised.  The 
European  audiovisual  sector  has  not  only  great  political  and  cultural  value  but  also 
considerable social and economic potential. In the Lisbon European Council’s conclusions, it 
was  stated  that  the  “content  industries  create  added  value  by  exploiting  and  networking 
European  cultural  diversity”.  Community  action  to  support  the  competitiveness  of  the 
audiovisual industry will contribute to achieving the objectives set by the Lisbon strategy. 

Moreover,  in  the  draft  Treaty  establishing  a  Constitution  for  Europe  one  of  the  objectives 
under Article  3 is that  “the  Union  shall respect its  rich cultural and linguistic diversity, and 
shall  ensure  that  Europe's  cultural  heritage  is  safeguarded  and  enhanced”.  It  is  the  task  of 
Community  action  to  give  European  cultures  a  say  in  the  harmonious  construction  of  a 
common European identity and the political concept of European citizenship. Article 151.2 of 
the  EC  Treaty  states  that  action  by  the  Community  shall  be  aimed  at  supporting  and 
supplementing  the  action  of  the  Member  States  in  the  area  of  artistic  and  literary  creation, 
including  in  the  audiovisual  sector.  Alongside  the  single  market  for  television  broadcasting 
established  by  the  “Television  without  Frontiers”  Directive,  the  EU  has  taken  measures  to 
promote  the  European  audiovisual  industry1  which  is  a  unique  vehicle  for  the  exchange  of 
ideas.  

Finally, support for the audiovisual sector will contribute to achieving the objectives of other 
European  policies,  as  audiovisual  works  are  an  essential  vehicle  for  transmission  of 
knowledge in the field of education, science, environment, research and governance. Finally, 
audiovisual  production  could  constitute  a  basis  for  cultural  cooperation  and  dialogue  with 
third countries, in particular in the Mediterranean area.  

2. 

THE EUROPEAN AUDIOVISUAL SECTOR AND THE ROLE OF COMMUNITY ACTION 

The European audiovisual sector is fragmented in terms of both its production structure and 
the  cultural  framework  in  which  it  operates.  Whilst  it  is  clear  that  this  fragmentation  has 
resulted in a culturally diverse and highly independent production industry, providing a voice 
for  the  different  cultural  traditions  that  make  up  our  European  heritage,  it  has,  however, 

1 

Council  Directive  of  3  October  1989  on  the  coordination  of  certain  provisions  laid  down  by  law, 
regulation or administrative action in Member States concerning the pursuit of television broadcasting 
activities  (89/552/EEC)  as  amended  by  Directive  97/36/EC  of  the  European  Parliament  and  of  the 
Council of 30 June 1997  

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prevented  European  industry  from  achieving  a  larger  market  share  with  respect  to  non-
European imports both within the Union and worldwide. The European audiovisual industry 
struggles to match the high competitiveness of its American counterpart.  

New Community action for the audiovisual industry should contribute to translating European 
cultural  values  into  a  competitive  worldwide  industry,  by  overcoming  the  obstacles  that 
prevent operators from benefiting from the advantages of the Internal Market for non-national 
audiovisual productions. The typically small size of audiovisual enterprises, whose existence 
is  linked  to  individual  audiovisual  products,  and  the  labour  intensity  of  the  audiovisual 
production process mean that the sector is not able to profit fully from the positive effects of 
economies  of  scale  seen  in  other  industries.  With  its  specific  and  unique  value  chain  and 
production and distribution cycles, the audiovisual sector carries very high financial risks. The 
current economic context heightens its dependency on public policy. Private investors in the 
actual economic context are even less inclined to bear the risks associated with the production 
process  of  the  SMEs  active  in  the  audiovisual  sector.  In  addition,  the  high  risks  associated 
with  production  and  distribution  stem  from  the  fact  that  the  success,  and  therefore  the 
economic viability, of individual projects is based on a number of random and unpredictable 
factors,  notably  public  taste,  cultural  aspects,  the  experience  of  those  associated  with  the 
projects, and the “story” in question.  

The  role  of  public  policy  for  the  sector  is  to  increase  positive  externalities  to  maximise  the 
development potential of the industry. In this respect the exploitation of the potential of the 
Internal  Market  is  a  positive  externality  for  the  sector  and  can  only  be  strengthened  at 
European level. Due to the structure of the sector, full exploitation does not mean that public 
policy  should  try  solely  to  create  large  market  players,  but  rather  to  create  an  environment 
adapted in particular to SMEs that will facilitate circulation of non-national audiovisual works 
throughout the European Union. A more competitive audiovisual industry will have positive 
effects  on  growth  and  employment  for  the  whole  Union  and  will  consolidate  the  European 
cultural values at the basis of European citizenship. 

Community support will contribute to creating a favourable socio-economic environment for 
the  European  audiovisual  sector.  It  aims  at  stimulating  private  financing  for  the  sector  to 
enable  companies  active  in  the  audiovisual  sector  to  improve  their  competitiveness  and 
financial  solidity.  The  new  programme  will  focus  on  supporting  the  creative  process  at  all 
levels  of  the  production  chain  with  the  objective  of  enabling  the  sector  to  fully  exploit  the 
economic  and  cultural  potential  of  the  European  Internal  Market.  Community  action  will 
therefore be integrated into a single programme intervening in the pre-production and in the 
post  production  phases  in  line  with  the  principle  of  subsidiarity.  National  funding  for  the 
audiovisual sector is, in fact, centred almost entirely on support for production and little if any 
effort  is  made  to  develop  a  European  dimension  in  production  and  circulation  of  European 
audiovisual  works.  It  is  clear  that  the  task  of  promoting  Europe-wide  distribution  of 
audiovisual  works  is  best  carried  out  and  co-ordinated  at  Union  level.  The  European 
dimension  in  cultural  production  can  similarly  be  enhanced  effectively  only  at  a  European 
level. 

3. 

THE MEDIA PROGRAMMES 

Community support measures in favour of the European audiovisual industry take the form of 
the  MEDIA  Plus  and  the  MEDIA-Training  Programmes.  The  current  programmes  run  from 
1 January 2001 until the 31 December 2006 and result from proposals made by the European 

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Commission  in  December  1999  on  the  basis  of  Articles  157  and  150(4)  respectively  of  the 
Treaty.  Community  action  in  the  sector  has  been  monitored  and  evaluated  throughout  its 
implementation  to  ensure  that  it  remains  appropriate  and  effective.  The  evaluation  process 
consists  of  ex-ante,  mid-term  and  ex-post  evaluations.  In  the  evaluation  and  monitoring 
function the Commission has benefited from the data provided by the European Audiovisual 
Observatory, which has provided an important tool for analysis and follow up of the sector.  

The  mid-term  evaluation  of  the  current  MEDIA  Programmes,  together  with  the  Preparatory 
action  “i2i  Audiovisual:  Growth  and  Audiovisual”  has  recently  been  carried  out  for  the 
Commission  services  by  an  external  independent  consultant.  The  MEDIA  Plus  Programme 
has supported the audiovisual industry by means of grants to SMEs2 active in the audiovisual 
sector  and  has  encouraged  the  creation  of  a  Single  European  Market  by  promoting  the 
circulation  of  audiovisual  works  in  Europe  and  worldwide.  The  valorisation  of  the  cultural 
richness  of  audiovisual production in Europe has been the means of promoting the industry 
within Europe and on the International market. Full exploitation of the cultural and economic 
potential  of  the  European  audiovisual  sector  depends  also  on  the  integration  of  Europe’s 
audiovisual heritage in the Member States’ education and cultural policies.  

The  evaluation  confirmed  that  Community  intervention  operates  in  line  with  the  sector’s 
needs  (newcomers,  funding  crisis,  consolidation  of  the  industrial  base,  international 
expansion),  which  are  increasingly  at  the  heart  of  the  problems  experienced  by  European 
professionals.  In  economic  terms,  effectiveness  is  measured  by  the  fact  that  MEDIA  Plus 
accompanies  risk-taking  by  European  SMEs,  which  are  otherwise  increasingly  hesitant  to 
develop European actions and strategies and to try to get a foothold on European markets. The 
preparatory  action  I2I  for  SMEs  has  been  effective  in  contributing  to  the  construction  of 
financial plans for these companies. The action has represented a first attempt to intervene in 
response  to  the  increasing  financing  needs  of  the  sector.  It  has  shown  the  necessity  of 
pursuing  support  policies  aiming  at  attracting  private  investments  for  the  European 
audiovisual sector. These support measures are effective in strengthening the SMEs operating 
in the sector.  

Community action has had an added value for the sector in all participating countries. It has 
been successful in supporting European audiovisual production and in consolidating European 
culture. The programme has had a positive impact within the different countries of the Union. 
In countries with a high production capacity, the programme has been particularly effective. 
In countries with low production capacities, the programme has been an essential player in the 
development  of  the  industry.  The  programme  has  ensured  a  more  balanced  distribution  of 
support by the adoption of positive discrimination measures directed at those countries with 
low production capacity.  

The  results  of  the  MEDIA  Training  Programme  have  shown  the  need  for  intervention  at 
Community level to increase the acquisition and improvement of competencies and skills by 
professionals  within  the  European  audiovisual  sector.  The  programme  set  up  has  been 
effective  in  responding  to  these  needs  and  has  added  a  European  dimension  to  professional 
audiovisual  training.  In  Development,  the  impact  on  SMEs  active  in  the  sector  has  been 

2 

Micro,  small  and  medium  size  enterprises  –  see  Commission  Recommendation  of  6  May  2003 
concerning the definition of micro, small and medium-sized enterprises OJ L124 (2003) pages 0036 - 
0041 

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positive,  also  in  terms  of  enabling  them  to  formulate  better  business  plans  for  their 
productions. It has guaranteed reinvestments in new productions.  

The  Distribution  component  of  the  MEDIA  Programme,  the  largest  in  terms  of  budget 
allocation, has had a positive effect on the circulation of European works on the European and 
International  markets  and  supported  90%  of  the  films  distributed  outside  their  countries  of 
origin.  It  has  also  increased  co-operation  among  European  operators  with  the  creation  of 
distributors’ networks at European level. Support to cinema exhibition has also proved to be 
an  effective  instrument  to  increase  the  circulation  of  European  audiovisual  works.  Positive 
results were also registered in the promotion of European industry in Europe and world-wide. 
The  MEDIA  Plus  and  Training  programmes  have  become  essential  instruments  for  the 
European audiovisual industry and have recognized European added value for the sector.  

4. 

PUBLIC CONSULTATION 

In  view  of  the  preparation  of  MEDIA  2007  the  Commission  services  widely  consulted  all 
interested parties on the sector’s needs. The public consultation, which took place between 12 
May and 12 August 2003, confirmed the positive impact of Community policy for support of 
the European audiovisual sector. Furthermore, the results of the public consultation exercise 
clearly show the need for continued Community action, in view of the structural deficiencies 
and  market  failure  in  the  sector.  The  accession  of  ten  new  Member  States  will  bring  about 
significant  changes  within  the  EU  audiovisual  market,  the  problems  of  financing  for  SMEs 
have become more acute and the advent of digital technology has created further barriers that 
need to be overcome to enable the operators active in the sector to profit from the potential 
offered by the Internal Market. MEDIA 2007 should continue to target its actions on the pre- 
and  post-production  phases,  but  these  actions  will  change  in  the  light  of  technological  and 
market  evolution  to  reflect  the  changes  brought  about  by  digitisation.  In  addition,  MEDIA 
2007 should include measures to address the problems facing the professionals from the new 
Member  States,  as  well  as  innovative  and  focused  actions  in  respect  of  digitisation  and 
measures for facilitating access to financing for SMEs. 

5. 

GLOBAL OBJECTIVES 

Community  action  will  be  integrated  into  a  single  programme  intervening  in  the  pre-
production and in the post production phases. This intervention is in line with the principle of 
subsidiarity. Furthermore, the enhancement of the circulation of European audiovisual works 
entails a specific European added value that transcends the borders of National policies. 

MEDIA 2007 will have as global objectives, of equal importance, to:  

– 

– 

– 

and 

its 
Preserve 
cinematographic and audiovisual heritage, guarantee its accessibility for 
European citizens and promote intercultural dialogue; 

enhance  European 

cultural  diversity 

and 

Increase  the  circulation  of  European  audiovisual  works  inside  and 
outside the European Union; 

Strengthen  the  competitiveness  of  the  European  audiovisual  sector  in 
the framework of an open and competitive market. 

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The programme will take into account four horizontal priorities: 

Firstly, the importance of the creative process within the European audiovisual sector and the 
cultural  value  of  Europe’s  cinematographic  and  audiovisual  heritage  need  to  be  integrated 
within the actions proposed.  

Secondly, strengthening of the production structures of the SMEs, which constitute the core 
of  the  European  audiovisual  sector,  as  a  means  of  enhancing  its  competitiveness.  This  will 
mean  contributing  to  the  spread  of  a  business  culture  for  the  sector  and  facilitating  private 
investments in the sector. 

Thirdly, the programme will reduce, within the European audiovisual market, the imbalances 
between countries with a high production capacity and countries with low production capacity 
or  a  restricted  linguistic  area.  This  priority  responds  to  the  need  to  preserve  and  enhance 
cultural  diversity  and  inter-cultural  dialogue  in  Europe.  This  priority  will  contribute  to  the 
transparent and competitive functioning of the Single Market with its potential of economic 
growth for the whole Union. 

Finally,  the  programme  will  follow  and  support  market  developments  with  regard  to 
digitisation.  The  programme  will  put  in  place  measures  to  accompany  the  changes  that 
digitisation  is  producing  in  the  audiovisual  sector  at  all  stages  of  the  production  and 
distribution chain as well as in terms of new competencies for the professionals of the sector. 

6. 

SPECIFIC OBJECTIVES AND INTERVENTIONS 

6.1. 

Pre-production 

– 

Acquisition and improvement of skills in the audiovisual sector 

The programme will support projects aiming at improving the creative and management skills 
of  European  audiovisual  professionals  as  well  as  adapting  their  technical  skills  to  digital 
technologies.  It  will  aim  to  encourage  a  European  dimension  in  promoting  networking  of 
professionals  and  training  projects,  including  film  schools,  as  well  as  individual  training 
projects,  including  scholarships.  Finally,  it  will  promote  a  European  strategy  regarding  co-
operation of professionals, both for co-productions and the elaboration of business plans. 

The actions put in place will be grants to training projects with a European added value. In 
addition,  special  scholarships  for  professionals  from  the  new  Member  States  will  be 
established, with a view to enabling those professionals to meet the challenges of the enlarged 
European  audiovisual  market.  This  action  will  contribute  to  narrowing  the  gap  between  the 
countries  with  high  production  capacities  and  the  countries  with  low  production  capacities 
and/or restricted linguistic areas. 

– 

Development: 

The programme will support the development phase of production from independent SMEs in 
the  documentary,  animation  and  drama  genres  as  well  as  multimedia.  It  will  encourage 
companies  to  elaborate  international  promotion  and  marketing  strategies  for  their  projects 
from  the  pre-production  phase.  The  programme  will  also  assist  companies  in  elaborating 
sound financial plans for their production and will facilitate access to credit for independent 
SMEs from the European audiovisual sector.  

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The  programme  will  provide  grants  to  independent  production  companies  for  the 
development of single projects. It will support the development of a catalogue of works both 
for companies with a limited investment capacity and for companies with higher investment 
capacity. Support will be provided for the development of sound financial plans related to the 
works and the catalogue of works. 

Given  the  specificity  of  the  audiovisual  sector,  particular  attention  will  be  given  to  the 
encouragement  of  synergies  between  the  need  for  improvement  of  skills  and  competencies 
and the development component of the programme. The co-ordination and greater integration 
of  these  two  components  will  have  a  positive  effect  on  the  value  chain  for  European 
audiovisual production. 

6.2. 

Post-production 

– 

Distribution 

Community  action  will  concentrate  its  efforts  on  transnational  distribution  support,  in  line 
with the principle of subsidiarity and as a complementary approach to Member State support 
mechanisms.  Support  for  the  distribution  phase  (cinema,  TV,  video,  DVD  and  on-line) 
remains a priority for the consolidation of the Single Market in Europe and for improving the 
competitiveness of the industry. Only the implementation of a European distribution strategy 
will enable European audiovisual works to face world competition. 

The  new  programme  will  strengthen  the  European  distribution  sector  by  encouraging 
investment  in  production,  acquisition,  marketing  and  promotion  of  non-national  European 
works and by encouraging  co-ordinated marketing strategies between  the different actors of 
the  sector  (distributors,  sales  agents,  producers,  exhibitors…)  within  the  limits  of  EU 
competition  law.  It  will  improve  the  circulation  of  European  non-national  films  on  the 
European  and  International  markets  by  encouraging  their  export,  distribution  and  cinema 
exhibition.  Furthermore  it  will  promote  the  transnational  circulation  of  the  European 
audiovisual works of independent production companies by encouraging co-operation among 
broadcasters, producers and independent distributors. 

The programme will continue to build on the results achieved through the actions set up under 
the  MEDIA  Plus  Programme,  namely  the  automatic  scheme  and  the  selective  scheme  for 
distributors  as  well  as  groupings  of  distributors.  In  addition  it  will  support  distribution 
companies for catalogues of works with lower commercial potential and high cultural value.  

In line with the priority of digitisation, actions will be implemented to support the digitisation 
of European audiovisual works. In particular an automatic scheme for the creation of digital 
prints  of  European  non-national  films  will  be put  in  place.  Support  will  also  be  granted  for 
dubbing,  subtitling  and  multilingual  copies  as  a  means  of  enhancing  cultural  diversity. 
Finally,  support  to  digital  exhibition  will  be  provided  in  terms  of  facilitating  access  to 
financing for investments in digital equipment. 

– 

Promotion 

The  programme  will  encourage  the  circulation  of  European  cinematographic  works  and 
television  programmes  within  the  framework  of  professional  markets  within  Europe  and 
world-wide.  It  will  also  encourage  co-operation  and  co-ordination  of  European  operators 
through the support of common actions undertaken on the European and international markets 

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by private or public national organisations for promotion as a way of enhancing a European 
promotion  strategy.  Finally  the  programme  will  ensure  that  the  festivals’  role  in  the 
formulation of cultural policy and audience education realises its full potential. 

The actions envisaged include ensuring access for professionals to European and International 
audiovisual  markets,  guaranteeing  the  broadest  access  possible  of  the  European  and 
international public to European cultural diversity and to intercultural dialogue, encouraging 
common actions between national film and audiovisual programme promotion organisations 
and encouraging promotion of Europe’s cinematographic and audiovisual heritage.  

6.2.1 

Pilot Projects/Digital technology 

Innovation is vital to ensure the widest choice for the audience at the end of the audiovisual 
value chain. In this respect, the pilot projects have proved to be a successful test bed. Whilst 
certain  of  the  areas  previously  covered  have  now  been  introduced  into  the  programme,  this 
“test laboratory” remains vital. The results of the pilot projects will be publicised widely in 
order  to  encourage  the  dissemination  of  best  practices  by  means  of  conferences,  and  the 
organisation of events on-line or off-line. 

7. 

SIMPLIFICATION 

The  new  programme  will  structurally  simplify  Community  intervention  for  the  audiovisual 
sector. The establishment of a single integrated programme (MEDIA 2007) replacing the two 
existing  programmes  (MEDIA  Plus  and  MEDIA  Training)  and  the  integration  of  4  budget 
headings into a single one (the budget heading for MEDIA 2007 will integrate the two current 
programmes, the decision on the European Audiovisual Observatory as well as the follow up 
of audiovisual policy) will contribute in a decisive manner to a better allocation of resources 
for the beneficiaries and the Commission services.  

The Commission will consider all possible means to ease constraints for the beneficiaries, in 
accordance  with  the  current  financial  regulations.  The  Commission  will  in  particular 
concentrate on: 

– 

– 

– 

simplification of the application forms and procedures; 

transparency in awarding procedures and in exchange of information with applicants; 

the application of the proportionality principle, as far as possible, with regard to the 
verification of the financial capacity of the applicants and reporting requirements for 
the  beneficiaries,  when  small  grants  or  clearly  identifiable  budgetary  items  are 
concerned.  

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To improve the efficiency and effectiveness of the programme, the Commission will delegate 
the  management  of  the  programme  to  an  executive  agency,  as  established  by  the  Council 
regulation on the executive agencies for the management of Community programmes3 and of 
the guidelines on the functioning of the executive agencies financed by the general budget of 
the European Communities4. 

In the light of the above the Commission proposes that the European Parliament and Council 
adopt the appended Decision concerning the MEDIA 2007 Programme. 

3 
4 

Council Regulation 58/2003 of 19 December 2002, OJ L11 of 16.01.2003. 
C (2003) 4645 of 12/12/2003 

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2004/0151 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Concerning the implementation of a programme of support  
for the European audiovisual sector  
(MEDIA 2007) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
157(3) and 150(4) thereof, 

Having regard to the proposal from the Commission5, 

Having regard to the opinion of the European Economic and Social Committee6, 

Having regard to the opinion of the Committee of the Regions7, 

Acting in accordance with the procedure referred to in Article 251 of the Treaty8, 

Whereas: 

(1) 

(2) 

(3) 

The European audiovisual sector has a key role to play in the emergence of European 
citizenship because it is one of the principal vectors for conveying cultural values to 
Europeans and especially young people. Community support is designed to enable the 
European audiovisual sector to play its part in consolidating European citizenship. It is 
intended to enhance competitiveness and, in particular, to increase the market share in 
Europe of non-national European works. 

It is also necessary to promote active citizenship and to do more to combat all forms of 
exclusion, including racism and xenophobia. 

Community  support  to  the  audiovisual  sector  takes  account  of  Article  151  of  the 
Treaty, which stipulates that: 

– 

the Community shall contribute to the flowering of the cultures of the Member 
States,  while  respecting  their  national  and  regional  diversity  and  at  the  same 
time bringing the common cultural heritage to the fore; 

5 
6 
7 
8 

OJ C of, p.. 
OJ C of, p.. 
OJ C of, p.. 
OJ C of, p.. 

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– 

the Community shall take cultural aspects into account in its action under other 
provisions  of  this  Treaty,  in  particular  in  order  to  respect  and  to  promote  the 
diversity of its cultures. 

(4) 

(5) 

Community support to the audiovisual sector is also in keeping with the new strategic 
aim  defined  for  the  Union  by  the  Lisbon  European  Council9,  namely  to  boost 
employment, economic reform and social cohesion in a knowledge-based economy. In 
its  conclusions,  the  Council  stated  that  “the  content  industries  create  added  value  by 
exploiting and networking European cultural diversity”. This approach was confirmed 
in the conclusions of the Brussels European Council10. 

Finally,  Community  support  to  the  audiovisual  sector  is  based  on  the  considerable 
experience acquired in the MEDIA I, MEDIA II, MEDIA Plus and MEDIA–Training 
programmes11, which have helped the European audiovisual industry to develop since 
1991. This has emerged clearly in the evaluation of the above programmes12. 

(6) 

This showed that Community action should concentrate mainly: 

– 

– 

upstream  of  audiovisual  production,  on  the  development  of  European 
audiovisual  works  and  on  the  acquisition  and  improvement  of  audiovisual 
skills, the latter  needing to  be  seen as an  integral  part  of the audiovisual pre-
production process; 

downstream of production, on distribution, cinema exhibition and promotion of 
European audiovisual works. 

The preparatory action “Growth and Audiovisual: i2i Audiovisual”, complementary to 
the  MEDIA  Plus  and  MEDIA  Training  programmes,  marked  a  further  stage  in 
implementing  the  policy  of  Community  support  for  the  audiovisual  sector.  It  was 
intended  specifically  to  provide  a  remedy  for  the  problems  of  access  to  funding  of 
small  and  medium  sized  enterprises  in  this  sector.  The  evaluation  of  “Growth  and 
Audiovisual: i2i Audiovisual” confirmed that it met the sector’s needs and confirmed 
the need to pursue Community action along these lines. 

For  the  purposes  of  implementing  Community  support,  the  specific  nature  of  the 
audiovisual  sector  must  be  taken  into  account  and  it  must  be  ensured  that 
administrative and financial procedures are simplified as far as possible and adapted to 
the aims pursued and the sector’s practices and requirements. 

2000 
2003 
Programmes which were established by Council Decision 90/685/EEC (MEDIA I), Councils Decisions 
95/563/EC  and  95/564/EC  (MEDIA  II),  Council  Decision  2000/821/EC  (MEDIA  Plus)  and  Decision 
163/2001/EC of the European Parliament and the Council (MEDIA-Training) respectively. 
Commission report to the Council, the European Parliament, the Economic and Social Committee and 
the  Committee  of  the  Regions:  Report  on  implementation  and  results  of  the  MEDIA  II  programme 
(1996  to  2000)  COM  (2003)  802  18/12/2003,  Report  from  the  Commission  to  the  Council,  the 
European Parliament, the Economic and Social Committee and the Committee of the Regions: Report 
on the implementation and mid-term results of the MEDIA Plus and the MEDIA-Training programmes 
(2001-2005)  and  the  results  of  the  preparatory  action  “Growth  and  the  audiovisual  industry:  i2i 
audiovisual” COM (2003) 725 24/11/2003. 

(7) 

(8) 

9 
10 
11 

12 

EN 

11 

   EN 

 
                                                 
(9) 

(10) 

Article  3  of  the  Treaty  establishing  the  European  Community  stipulates  that  for  all 
activities  it  envisages  the  Community  shall  aim  to  eliminate  inequalities  and  to 
promote equality, for men and women. 

Increased  transparency  and  dissemination  of  information  about  the  European 
audiovisual  market  can  make  operators  in  the  sector,  and  especially  small  and 
medium-sized enterprises, more competitive. They also make it easier for Community 
action  to  be  evaluated  and  followed  up.  Participation  by  the  European  Union  in  the 
European Audiovisual Observatory should help it to achieve these aims. 

(11) 

It  should  be  emphasised  that  any  strategy  for  cooperation  between  players  in  the 
audiovisual sector must comply with the European Union’s competition law. 

(12)  European  Union  accession  countries  and  those  EFTA  countries  which  are  parties  to 
the  EEA  Agreement  are  recognised  as  potential  participants  in  Community 
programmes in accordance with the agreements concluded with these countries. 

(13)  The European Council in Thessalonica of 19 and 20 June 2003 adopted “The agenda 
for  the  Western  Balkans:  Moving  towards  European  integration",  providing  that 
Community  programmes  should  be  open  to  countries  in  the  process  of  stabilisation 
and  association  on  the  basis  of  framework  agreements  to  be  signed  between  the 
Community and these countries. 

(14)  The other European countries which are parties to the Council of Europe 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  conditions  to  be  laid  down  in  the 
agreements between the parties concerned; those countries should be able, if they wish 
and  taking  into  account  budgetary  considerations  or  priorities  of  their  audiovisual 
industries, to participate in the programme or benefit under a more limited cooperation 
formula on the basis of supplementary appropriations and specific arrangements to be 
agreed between the parties concerned. 

(15)  Cooperation with non-European third countries developed on the basis of mutual and 
balanced  interests  may  create  added  value  for  the  European  audiovisual  industry  in 
terms  of  promotion,  market  access,  distribution,  dissemination  and  exhibition  of 
European works in those countries; such cooperation should be developed on the basis 
of supplementary appropriations and specific arrangements to be agreed upon with the 
parties concerned. 

(16)  Suitable  measures  should  be  implemented  to  prevent  irregularities  and  fraud  and  to 

recover funds which have been lost or transferred or used improperly. 

(17)  This  Decision  establishes  a  budget  for  the  entire  duration  of  the  programme  which 
constitutes  a  benchmark  within  the  meaning  of  points  33  and  34  of  the 
Interinstitutional  agreement  between  the  European  Parliament,  the  Council  and  the 
Commission  of  6 May  1999  on  budgetary  discipline  and  improvement  of  budgetary 
procedure13. 

13 

OJ C 172 of 18.6.1999, p.1 

EN 

12 

   EN 

 
                                                 
(18)  The  measures  required  to  implement  this  Decision  should  be  adopted  in  accordance 
with Council Decision 1999/468/EEC of 28 June 1999 laying down the procedures for 
the exercise of implementing powers conferred on the Commission14, 

(19)  Provision  needs  to  be  made  for  measures  governing  the  transition  from  the 
programmes established by Council Decision 2000/821/EC of 20 December 2000 and 
Decision  163/2001/EC  of  19 January  2001  of  the  European  Parliament  and  the 
Council, and the programme established by this Decision. 

HAVE DECIDED AS FOLLOWS: 

CHAPTER 1: GLOBAL OBJECTIVES AND BUDGET 

Article 1 
Objectives and priorities of the programme 

1. 

2. 

This  Decision  establishes  a  programme  for  support  to  the  European  audiovisual 
sector,  hereinafter  referred  to  as  the  “programme”,  for  a  period  running  from 
1 January 2007 to 31 December 2013. 

The audiovisual sector is an essential vector for conveying and developing European 
cultural  values.  The  programme  is  intended  to  strengthen  the  audiovisual  sector 
economically to enable it to play its cultural role more effectively.  

The global objectives of the programme are to: 

(a) 

(b) 

(c) 

preserve and enhance European cultural diversity and its cinematographic and 
audiovisual  heritage,  guarantee  its  accessibility  to  European  citizens  and 
promote intercultural dialogue; 

increase the circulation of European audiovisual works inside and outside the 
European Union; 

strengthen  the  competitiveness  of  the  European  audiovisual  sector  in  the 
framework of an open and competitive European market. 

3. 

In order to achieve these objectives, the programme will support: 

(a) 

(b) 

upstream of audiovisual production: the acquisition and improvement of skills 
in the audiovisual field and the development of European audiovisual works; 

downstream  of  audiovisual  production:  the  distribution  and  promotion  of 
European audiovisual works; 

(c) 

pilot projects to ensure that the programme adjusts to market developments. 

4. 

The priorities in the areas for intervention set out in paragraph 3 shall be as follows: 

14 

OJ L 184 of 17.7.1999, p. 23 

EN 

13 

   EN 

 
                                                 
(a) 

(b) 

(c) 

fostering creativity in the audiovisual sector and knowledge and dissemination 
of Europe’s cinematographic and audiovisual heritage; 

strengthening  the  production  structure  of  the  European  audiovisual  sector, 
particularly SMEs; 

reducing  the  imbalances  in  the  European  audiovisual  market  between  high 
production  capacity  countries  and  countries  or  regions  with  low  production 
capacity and/or a restricted geographic and linguistic area; 

(d) 

following and supporting market developments with regard to digitisation. 

Article 2 
Budget 

1. 

2. 

The budget for implementing this programme for the period set out in Article 1(1) is 
fixed at €1 055 million. 

The annual appropriations shall be authorised by the budgetary authority within the 
limits of the financial perspectives. 

CHAPTER 2: SPECIFIC OBJECTIVES UPSTREAM OF AUDIOVISUAL PRODUCTION 

Article 3 
Acquisition and improvement of skills in the audiovisual field 

In the field of acquisition and improvement of skills, the specific objectives of the programme 
are to: 

1. 

strengthen  the  skills  of  European  audiovisual  professionals  in  the  fields  of 
development,  production,  distribution/dissemination  and  promotion,  in  order  to 
improve  the  quality  and  potential  of  European  audiovisual  works.  The  programme 
shall support notably action in the following areas: 

(a) 

(b) 

(c) 

scriptwriting  techniques  with  the  aim  of  increasing  the  quality  of  European 
audiovisual works and their potential circulation; 

financial  and  commercial  management  of  production,  distribution  and 
promotion  of  audiovisual  works  to  enable  European  strategies  to  be  devised 
right from the development phase; 

inclusion  upstream  of  digital  technologies  for  production,  post-production, 
distribution, marketing and archiving of European audiovisual programmes. 

Steps should also be taken to ensure that professionals and trainers from other countries than 
those  in  which  training  activities  supported  under  (a)  to  (c)  of  this  Article  take  place 
participate. 

2. 

improve the European dimension of audiovisual training activities by: 

EN 

14 

   EN 

 
(a) 

support for the networking and mobility of European training professionals, in 
particular: 

– 

– 

– 

European film schools; 

training institutes; 

partners in the professional sector; 

(b) 

training for trainers; 

(c) 

support for individual training maps; 

(d) 

adoption of coordination activities and of promotion of the bodies supported in 
relation to the activities set out in paragraph 1 of this Article. 

3. 

enable,  through  special  scholarships,  professionals  from  the  new  Member  States  to 
take part in the training activities set out in paragraph 1 of this Article. 

The measures set out in paragraphs 1 to 3 of this Article shall be implemented in accordance 
with the provisions in the Annex. 

Article 4 
Development 

1. 

In the development sector, the specific objectives of the programme are to: 

(a) 

(b) 

support the development of production projects intended for the European and 
international market, submitted by independent production companies; 

support  the  elaboration  of  financial  plans  for  companies  and  projects  for 
European productions, including financing of co-productions. 

The measures set out in points (a) and (b) of this paragraph shall be implemented in 
accordance with the provisions in the Annex. 

2. 

The Commission shall take steps to ensure that the activities supported in the field of 
improving  professional  skills  and  those  set  out  in  paragraph  1  of  this  Article 
complement each other. 

CHAPTER 3: SPECIFIC OBJECTIVES DOWNSTREAM OF AUDIOVISUAL PRODUCTION  

Article 5 
Distribution and dissemination 

In the field of distribution and dissemination, the programme’s specific objectives are to: 

(a) 

strengthen  European  distribution  by  encouraging  distributors  to  invest  in  the 
co-production, acquisition and promotion of non-national European films and 
to set up coordinated marketing strategies; 

EN 

15 

   EN 

 
(b) 

(c) 

improve  the  circulation  of  non-national  European  films  on  the  European  and 
International  markets  by  incentive  measures  for  export,  distribution  on  any 
medium and cinema exhibition; 

promote  the  transnational  dissemination  of  European  audiovisual  works 
produced  by  independent  production  companies  by  encouraging  cooperation 
between  broadcasters  on  the  one  hand  and  independent  producers  and 
distributors on the other; 

(d) 

encourage the digitisation of European audiovisual works; 

(e) 

encourage cinemas to exploit the possibilities offered by digital distribution. 

The measures set out under points (a) to (e) of this Article shall be implemented in accordance 
with the provisions in the Annex.  

Article 6 
Promotion 

In the field of promotion, the specific objectives of the programme are to: 

(a) 

(b) 

(c) 

improve  the  circulation  of  European  audiovisual  works  by  ensuring  that  the 
European  audiovisual  sector  has  access  to  European  and  International 
professional markets; 

improve 
audiovisual works; 

the  European  and 

international  public’s  access 

to  European 

encourage common actions between national film and audiovisual programme 
promotion organisations; 

(d) 

encourage promotion of Europe’s cinematographic and audiovisual heritage. 

The measures set out in points (a) to (d) of this Article shall be implemented in accordance 
with the provisions in the Annex. 

CHAPTER 4: PILOT PROJECTS 

Article 7 
Pilot projects 

1. 

2. 

The  programme  may  support  pilot  projects  to  ensure  that  the  programme  adapts  to 
market developments, particularly in connection with the introduction and utilisation 
of information and communication technologies. 

For the purposes of implementing paragraph 1 of this Article, the Commission shall 
be  advised  by  technical  advisory  groups  made  up  of  experts  designated  by  the 
Member States in response to a proposal by the Commission. 

EN 

16 

   EN 

 
CHAPTER  5:  ARRANGEMENTS  FOR  IMPLEMENTING  THE  PROGRAMME  AND  FINANCIAL 

PROVISIONS 

Article 8 
Provisions concerning third countries 

1. 

The programme is open to the participation of the following countries as long as the 
required conditions are met and supplementary appropriations are received:  

(a) 

(b) 

(c) 

EFTA  States  which  are  members  of  the  EEA,  in  accordance  with  the 
provisions of the EEA agreement; 

accession  countries  benefiting  from  a  strategy  for  pre-accession  to  the 
European  Union  in  accordance  with  the  general  principles  and  general 
conditions  and  arrangements  for  these  countries  participating  in  Community 
programmes  laid  down  in  the  framework  agreement  and  the  Association 
Councils’ decisions respectively; 

the  Western  Balkan  countries  in  accordance  with  arrangements  made  with 
these  countries  following  framework  agreements  to  be  established  governing 
their participation in Community programmes. 

The  programme  is  also  open  to  the  participation  of  States  which  are  parties  to  the 
Council of Europe Convention on Transfrontier Television other than those referred 
to  in  paragraph  1,  assuming  that  supplementary  appropriations  are  received  in 
compliance with the conditions to be agreed upon between the parties concerned. 

Opening up of the programme to European third countries covered by paragraphs 1 
and  2  may  be  subject  to  prior  examination  of  the  compatibility  of  their  national 
legislation  with  Community  legislation,  including  Article  6.1  paragraph  5  of 
Directive 89/552/EEC, as amended by Directive 97/36/EC. This provision does not 
apply to actions under Article 3. 

The  programme  is  also  open  to  cooperation  with  other  third  countries  which  have 
concluded  association  and  cooperation  agreements  with  the  European  Union 
incorporating  clauses  on  the  audiovisual  sector  and  on  the  basis  of  supplementary 
appropriations  and  specific  arrangements  to  be  agreed  upon.  Western  Balkan 
countries  referred  to  in  paragraph  1  that  do  not  wish  to  participate  fully  in  the 
programme may benefit from cooperation with the programme under the conditions 
provided for in this paragraph. 

2. 

3. 

4. 

Article 9 
Financial provisions 

1. 

In  accordance  with  Article  114(1)  of  Council  Regulation  1605/200215,  the 
beneficiaries of the programme may be natural persons. 

15 

OJ L 248 of 16.9.2002, p.1  

EN 

17 

   EN 

 
                                                 
Without prejudice to the agreements and conventions to which the Community is a 
contracting party, enterprises which benefit from the programme must be owned and 
must  be  continued  to  be  owned,  whether  directly  or  by  majority  participation,  by 
Member States and/or Member State nationals. 

In  accordance  with  Article  176(2)  and  (4)  of  Commission  Regulation  2342/200216, 
the Commission may decide, depending on the beneficiaries and the type of action, 
whether  they  may  be  exempted  from  verification  of  the  professional  skills  and 
qualifications required to successfully complete an action or programme of work. 

Depending  on  the  type  of  action,  financial  aid  may  take  the  form  of  grants17  or 
scholarships. The Commission may also award prizes for the programme’s activities 
or projects. Depending on the nature of the activity, flat-rate financing or the use of 
scales of unit costs may be authorised in accordance with Article 181 of Commission 
Regulation No 2342/2002.  

Financial aid awarded under the terms of the programme may not exceed 50% of the 
final costs of the operation supported. However, in the cases expressly provided for 
in the Annex, financial aid may be as high as 75%.  

In keeping with the specific nature of the activities cofunded and Article 112(1) of 
Council Regulation 1605/2002, the Commission may deem costs directly linked with 
implementing  the  activity  supported  to  be  eligible,  even  if  they  were  partially 
incurred by the beneficiary before the selection procedure. 

In  accordance  with  Article  113(1)  of  Council  Regulation  1605/200218,  cofunding 
may  be  provided  either  entirely  or  partly  in  kind  as  long  as  the  value  of  the 
contribution  does  not  exceed  the  cost  actually  borne  and  duly  supported  by 
accounting documents, or the cost generally accepted in the market in question.  

Any  sums  reimbursed  under  the  programme,  those  from  the  MEDIA  programmes 
(1991  to  2006)  and  sums  not  used  by  selected  projects  shall  be  allocated  to  the 
requirements of the MEDIA 2007 programme. 

Article 10 
Implementation of this Decision 

The Commission is responsible for implementing the programme in accordance with 
the arrangements laid down in the Annex. 

The  measures  for  the  implementation  of  this  Decision  concerning  the  matters 
referred  to  below  shall  be  adopted  in  accordance  with  the  management  procedure 
referred to in Article 11(2): 

OJ L 357 of 31.12.2002, p. 1 
In  the  case  of  selective  aid  for  distribution  and  in  compliance  with  Article  109  (2)  of  Council 
Regulation (EC Euratom) No 1605/2002 and Article 168 first paragraph of Commission Regulation (EC 
Euratom) No 2342/2002, overall takings during the first year of cinematographic marketing of the film 
will be reimbursed to the tune of the media contribution (excluding support for dubbing/subtitling). 
In conjunction with Article 172 of Commission Regulation (EC Euratom) No 2342/2002 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

16 
17 

18 

EN 

18 

   EN 

 
                                                 
(a) 

the general guidelines for all the measures described in the Annex; 

(b) 

(c) 

the  content  of  the  calls  for  proposals,  the  definition  of  the  criteria  and  the 
procedures for the selection of projects; 

questions  concerning  the  annual  internal  breakdown  of  the  programme 
resources,  including  the  breakdown  between  measures  in  the  fields  of 
improving  professional  skills,  development,  distribution/dissemination  and 
promotion; 

(d) 

the arrangements for monitoring and evaluating actions. 

The  measures  necessary  for  implementing  this  Decision  with  regard  to  any  other 
matters  shall  be  adopted  in  accordance  with  the  advisory  procedure  referred  to  in 
Article 11(3). 

Article 11 
Committee 

The Commission shall be assisted by a committee made up of representatives of the 
Member States and chaired by a Commission representative. 

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. 

Where  reference  is  made  to  this  paragraph,  the  advisory  procedure  referred  to  in 
Article 3 of Decision 1999/468/EC shall apply in accordance with the provisions of 
Article 7(3) and Article 8 thereof. 

3. 

1. 

2. 

3. 

4. 

The committee shall adopt its rules of procedure. 

Article 12 
MEDIA Desks 

1. 

The  European  network  of  MEDIA  Desks  shall  act  as  an  implementing  body  for 
disseminating  information  on  the  programme  at  national  level  whilst  abiding  by 
Article 54 (2)(c) and (3) of Council Regulation 1605/ 2002 as defined at point 2.2 of 
the Annex. 

2. 

The MEDIA Desks must respect the following criteria: 

–  have  an  adequate  number  of  staff,  with  professional  and  linguistic  capacities 

appropriate for work in an environment of international cooperation; 

–  have  an  appropriate  infrastructure,  in  particular  as  regards  informatics  and 

communications; 

–  operate  in  an  administrative  context  which  enables  them  to  carry  out  their  tasks 

satisfactorily and to avoid conflicts of interest. 

EN 

19 

   EN 

 
Article 13 
The programme’s contribution to other Community policies and prerogatives 

1. 

The  programme  shall  help  to  strengthen  the  European  Community’s  horizontal 
policies by: 

(a) 

promoting the fundamental principle of freedom of expression; 

(b) 

(c) 

(d) 

(e) 

encouraging  awareness  of 
multiculturalism in Europe and the need to combat racism and xenophobia; 

importance  of  cultural  diversity  and 

the 

encouraging  awareness  of  the  importance  of  contributing  to  sustainable 
economic development; 

helping  to  combat  all  forms  of  discrimination  based  on  sex,  race  or  ethnic 
origin, religion or beliefs, disabilities, age or sexual orientation. 

contributing to the debate on and information about the European Union as an 
area of peace, prosperity and security. 

2. 

1. 

2. 

3. 

Particular  attention  shall  be  paid  to  consistency  and  complementarity  between  the 
programme and Community policies on cultural cooperation with third countries. 

Article 14 
Monitoring and evaluation 

The Commission shall monitor the programme regularly. The results of the process 
of monitoring and evaluation shall be taken into account in the implementation of the 
programme. 

This  monitoring  process  will  comprise  drawing  up  the  reports  mentioned  in 
paragraph 3(a) and (c) of this Article and specific activities. 

The Commission shall ensure that the programme is evaluated regularly, externally 
and independently.  

The Commission shall present to the European Parliament, the Council, the European 
Economic and Social Committee and the Committee of the Regions: 

(a) 

(b) 

 an interim evaluation report on the results and the qualitative and quantitative 
aspects of implementing the programme by 31 December 2010 at the latest; 

a Communication on the continuation of the programme by 31 December 2011 
at the latest; 

(c) 

an ex-post evaluation report by 31 December 2015 at the latest. 

EN 

20 

   EN 

 
Article 15 
Transitional provisions 

Activities  undertaken  before  31  December  2006  on  the  basis  of  Council  Decision 
2000/821/EC  of  20  December  2000  and  Decision  163/2001/EC  of  the  European  Parliament 
and the Council of 19 January 2001 will continue to be managed until they are terminated in 
compliance with the provisions of these Decisions.  

The committee provided for by Article 8 of Council Decision 2000/821/EC of 20 December 
2000 and Article 6 of Decision 163/2001/EC of the European Parliament and the Council of 
19 January  2001  shall  be  replaced  by  the  committee  provided  for  under  Article  11  of  this 
Decision. 

CHAPTER  6:  INFORMATION  ABOUT  THE  EUROPEAN  AUDIOVISUAL  SECTOR  AND 

PARTICIPATION IN THE EUROPEAN AUDIOVISUAL OBSERVATORY 

Article 16 
Information about the European audiovisual sector 

The  European  Union  shall  contribute  to  increased  transparency  and  dissemination  of 
information about the European audiovisual sector. 

Article 17 
Participation in the European Audiovisual Observatory 

For the purposes of implementing Article 16, the European Union shall be a member of the 
European Audiovisual Observatory throughout the programme.  

The Commission shall represent the European Union in its dealings with the Observatory. 

Article 18 
Contribution to meeting the programme’s objectives 

Participation by the European Union in the European Audiovisual Observatory shall form an 
integral part of this programme and shall contribute to meeting its objectives: 

– 

– 

by  encouraging  transparency  in  the  market  and  ensuring  that  operators  have 
access to financial and legal statistics  and information, thereby enhancing the 
European audiovisual sector’s ability to compete and develop; 

enabling the programme to be monitored more effectively and making it easier 
to evaluate. 

EN 

21 

   EN 

 
Article 19 
Monitoring and assessment  

Monitoring  and  evaluation  of  the  European  Union’s  participation  in  the  European 
Audiovisual  Observatory  shall  be  carried  out  within  the  framework  of  the  evaluation  and 
monitoring of the programme in accordance with Article 14 of this Decision. 

CHAPTER 7: ENTRY INTO FORCE 

Article 20 
Entry into force 

This Decision shall enter into force on the day following its publication in the Official Journal 
of the European Union and shall take effect from 1 January 2007. 

Done at Brussels,  

For the European Parliament 
President 

For the Council 
President 

EN 

22 

   EN 

 
Annex to the proposal for a Decision of the European Parliament and the Council 
concerning the implementation of a programme to support the European audiovisual 
sector 
(MEDIA 2007) 

Chapter 1: Operational objectives and actions to be implemented 

1. 

1.1 

ACQUISITION AND IMPROVEMENT OF SKILLS IN THE AUDIOVISUAL FIELD 

Strengthen  European  audiovisual  professionals’  skills 
in  the  fields  of 
development, production, distribution/dissemination and promotion in order to 
improve the quality and the potential of European audiovisual works 

1.1.1 

Scriptwriting techniques 

Operational objective: 

– 

Enable  experienced  scriptwriters  to  improve  their  capacities  to  develop 
techniques based on traditional and interactive methods of writing. 

Action to be implemented 

– 

– 

Support the development and the implementation of training modules on 
identifying  the  target  public,  editing  and  development  of  scripts  for  an 
international  public,  and  the  relationship  between  the  scriptwriter,  the 
script editor, the producer and the distributor. 

Support  distance  learning  and  encourage  exchanges  and  partnerships 
associating  countries  and  regions  with  low  audiovisual  production 
capacity and/or with a restricted linguistic or geographical area. 

1.1.2 

Economic,  financial  and  commercial  management  of  production,  distribution  and 
promotion of audiovisual works 

Operational objective 

– 

Develop  the  professionals’  ability  to  grasp  and  integrate  the  European 
dimension  into  the  fields  of  development,  production,  marketing, 
distribution/dissemination and promotion of audiovisual programmes. 

Action to be implemented 

– 

– 

Support, in addition to the actions carried out by the Member States, the 
development  and  updating  of  training  modules  in  management,  taking 
into account the European dimension.  

Support  distance  learning  and  encourage  exchanges  and  partnerships 
associating  countries  and  regions  with  low  audiovisual  production 
capacity and/or with a restricted linguistic or geographical area.  

EN 

23 

   EN 

 
1.1.3 

Inclusion  upstream  of  digital  technologies  for  the  production,  post-production, 
distribution, marketing and archiving of European audiovisual programmes 

Operational objective 

– 

Develop  the  professionals’  capacity  to  use  digital  technologies,  in 
particular  in  the  fields  of  production,  post-production,  distribution, 
marketing, archiving and multimedia.  

Action to be implemented 

– 

– 

Support  the  development  and  implementation  of  training  modules  in 
digital audiovisual technologies, in addition to the actions carried out by 
the Member States.  

Support  distance  learning  and  encourage  exchanges  and  partnerships 
associating  countries  and  regions  with  low  audiovisual  production 
capacity and/or with a restricted linguistic or geographical area. 

1.2 

Improve the European dimension of audiovisual training activities 

1.2.1 

Support  for  the  networking  and  mobility  of  European  training  professionals 
(European film schools, training institutes, partners of the professional sector) 

Operational objective 

– 

Encourage  exchanges  between  existing  training  institutions  and/or 
activities.  

Action to be implemented 

– 

Encourage the programme beneficiaries to intensify coordination of their 
initial  and  further  training  activities  in  order  to  develop  a  European 
network.  

1.2.2 

Training for trainers 

Operational objective 

– 

Ensure that trainers are competent.  

Action to be implemented 

– 

Contribute to training for trainers, in particular by distance learning. 

1.2.3 

Support for individual training maps 

Operational objective 

– 

Encourage mobility of cinema students in Europe. 

EN 

24 

   EN 

 
Action to be implemented 

–  Mobility scholarships linked to a training project. 

1.2.4 

Introduction of coordination and promotion measures by the bodies supported under 
1.1.1 of this Annex 

Operational objective 

– 

Promote  coordination  and  promotion  of  the  projects  supported  by  the 
programme.  

Action to be implemented 

– 

Contribute  to  the  adoption  of  targeted  actions  of  coordination  and 
promotion of the training activities supported by the programme.  

1.2.5 

Enable, through special scholarships, the professionals from the new Member States 
to take part in the training activities set out in 1.1.1 of this Annex 

Operational objective 

– 

Facilitate the participation by professionals from the new Member States 
in the projects supported by the programme. 

2. 

2.1 

Action to be implemented 

– 

Contribute to setting up a grant mechanism. 

DEVELOPMENT 

Support the development of production projects intended for the European and 
International market submitted by independent production companies  

Operational objectives: 

– 

– 

– 

– 

– 

Support  the  development  of  European  works  of  the  following  types: 
drama, animation, documentary and multimedia;  

Encourage  companies  to  produce  quality  projects  with  international 
potential;  

Encourage  companies  to  use  digital  technologies  in  production  and 
distribution right from the development phase;  

Encourage  companies  to  devise  strategies  for  international  screening, 
marketing and distribution right from the development phase;  

Enable  small  and  medium-sized  companies  to  access  support  for 
development and tailor actions to meet their needs;  

EN 

25 

   EN 

 
– 

Ensure  complementarity  with  the  actions  supported  by  MEDIA  to 
improve audiovisual professionals’ skills.  

Action to be implemented 

– 

– 

Support the development of audiovisual projects or project catalogues. 

Support  digitisation  of  European  audiovisual  works  right  from  the 
development phase. 

2.2 

Support the elaboration of financing plans for European production companies 
and projects, including co-production projects  

Operational objectives: 

– 

– 

Encourage  the  elaboration  of  financing  plans  by  production  companies 
for  works  of  the  following  types:  drama,  animation,  documentary  and 
multimedia. 

Encourage the search for financial partners at European level to achieve 
synergy  between  public  and  private  investors  and  the  devising  of 
distribution strategies right from the production phase. 

Action to be implemented 

– 

– 

– 

Support  the  side  costs  of  private  financing  of  production  and  co-
production  projects  presented  by  SMEs  (such  as  financial  expenses, 
insurance and completion guarantee costs). 

Support  financial  companies  active  in  drawing  up  investment  plans  for 
the  development  and  co-production  of  audiovisual  works  with  potential 
for international distribution. 

Support  cooperation  between  the  national  agencies  in  the  audiovisual 
sector. 

3. 

DISTRIBUTION AND DISSEMINATION 

Horizontal operational objective 

– 

Enhance 
distributed. 

the 

Action to be implemented 

linguistic  diversity  of  European  audiovisual  works 

– 

Support  dubbing  and  subtitling  for  distribution  and  dissemination, 
through  all  available  channels,  of  European  audiovisual  works  for  the 
benefit of producers, distributors and broadcasters. 

EN 

26 

   EN 

 
3.1 

Strengthen  European  distribution  by  encouraging  distributors  to  invest  in  the 
co-production,  acquisition  and  promotion  of  non-national  European  films  and 
to set up coordinated marketing strategies 

Operational objective No 1 

– 

Encourage  cinematographic  distributors  to  invest  in  the  co-production, 
acquisition and promotion of non-national European films. 

Actions to be implemented 

– 

– 

Establish  a  system  of  automatic  support  for  European  distributors, 
proportional to cinema admissions for non-national European films in the 
Member States taking part in the programme, subject to a ceiling for each 
film and adjusted for each country.  

The  support  thus  generated  may  be  used  by  distributors  only  for 
investment in: 

– 

– 

– 

non-national European film co-production;  

the acquisition of non-national European films;  

editing  (copying,  dubbing  and  subtitling),  promotion  and 
advertising of non-national European films. 

Operational objective No 2 

– 

Encourage  European  distributors  to  cooperate  with  a  view  to  adopting 
joint strategies on the European market. 

Action to be implemented 

– 

Establish  a  system  of  selective  aid  for  non-national  European  film 
distribution intended for European distributor groupings and grant them 
direct aid where they exist on a permanent basis.  

Operational objective No 3 

– 

Encourage  cooperation  between  distributors,  producers  and  sales  agents 
in  order  to  set  up  international  marketing  strategies  for  European 
audiovisual works right from the production phase. 

Action to be implemented 

– 

Establish  a  system  of  support  for  the  creation  of  a  promotion  kit  for 
European  cinematographic  works  (including  a  subtitled  copy,  an 
international sound track - music and effects - and promotion materials). 

EN 

27 

   EN 

 
Operational objective No 4 

– 

Encourage access to financing of SMEs for distribution and international 
sale of non-national European works. 

Action to be implemented 

– 

Support  the  side  costs  (such  as  financial  expenses  and  completion 
guarantee  costs)  connected  with  distribution  and/or  international  sales 
activities such as: acquisition of European film catalogues, searching for 
new  markets  for  these  films,  and  setting  up  of  permanent  groupings  of 
European distributors.  

3.2 

Improve  the  circulation  of  non-national  European  films  on  the  European  and 
international  markets  by  incentives  measures  for  export,  distribution  on  any 
medium and cinema exhibition  

Operational objective No 1 

– 

Encourage  cinematographic  distributors  to  invest  in  appropriate  editing 
and promotion of non-national European films.  

Actions to be implemented 

– 

– 

Establish  a  system  of  selective  support  to  cinematographic  distributors 
for  the  promotion  and  marketing  of  European  films  outside  their 
production  territory.  The  selection  criteria  for  the  films  may  include 
provisions aiming to differentiate between the projects according to their 
origin and the size of their budget.  

Grant  special  support  to  films  of  interest  for  the  development  of 
European cultural diversity, in particular in the form of aid for the release 
of a non-national European works catalogue over a given period.  

Operational objective No 2 

– 

Encourage the screening of non-national European films on the European 
market, in particular by supporting the coordination of a cinema network.  

Action to be implemented 

– 

– 

– 

Encourage  cinema  owners  to  screen  a  significant  proportion  of  non-
national  European  films  in  commercial  cinemas  for  first  release  for  a 
minimum  defined  period.  The  support  granted  to  each  cinema  will  be 
determined  according  to  the  number  of  tickets  sold  for  non-national 
European films over a reference period.  

Contribute  to  the  development  of  educational  and  awareness-raising 
activities for young cinema-goers.  

Support the creation and the consolidation of a European cinema owners' 
network developing common actions of this type. 

EN 

28 

   EN 

 
Operational objective No 3 

– 

Encourage international sales and export of non-national European films 
in Europe and world-wide. 

Action to be implemented 

– 

Establish  a  support  system  for  European  companies  distributing  cinema 
films internationally (sales agents) according to their performance on the 
market over a given period. This support will have to be invested in the 
acquisition and promotion of new European works on the European and 
international markets.  

3.3 

Promote  the  transnational  broadcasting  of  European  audiovisual  works 
produced  by  independent  production  companies  by  encouraging  cooperation 
between  broadcasters  on  the  one  hand,  and  independent  producers  and 
distributors on the other 

Operational objective No 1 

– 

Encourage the broadcasting of non-national European audiovisual works 
from independent production companies.  

Actions to be implemented 

– 

to  produce  works 

independent  producers 

Encourage 
(drama, 
documentary  and  animation)  involving  the  participation  of  at  least  two 
broadcasters  from  several  Member  States,  belonging  to  different 
linguistic  areas.  The  selection  criteria  for  the  beneficiaries  will  include 
provisions  aiming  to  differentiate  between  the  projects  according  to  the 
size of their budget.  

– 

Grant special support to films of interest for the enhancement of Europe’s 
cultural diversity and audiovisual heritage.  

Operational objective No 2 

– 

Facilitate  access  to  financing  for  European  independent  production 
companies.  

Action to be implemented 

– 

Support the side costs (such as financial costs, insurance and completion 
guarantee  costs)  connected  with  the  production  of  works  (drama, 
documentary and animation) involving the participation of at least three 
broadcasters  from  several  Member  States,  belonging  to  different 
linguistic areas.  

Operational objective No 3 

– 

Encourage 
programmes. 

the 

international  distribution  of  European 

television 

EN 

29 

   EN 

 
Action to be implemented 

– 

Establish  a  system  of  support  for  European  international  distribution 
companies of audiovisual works (international distributors) according to 
their  performance  on  the  market  over  a  given  period.  Support  thus 
generated will have to be invested by the international distributors in the 
acquisition and promotion of new European works on the European and 
international markets.  

3.4 

Encourage the digitisation of European audiovisual works  

Operational objective No 1 

– 

– 

– 

– 

Improve  the  distribution  of  non-national  European  works  on  digital 
media  for  private  use  (DVD),  in  particular  by  encouraging  editors  to 
cooperate on creating multilingual masters on a European scale. 

Encourage  the  use  of  digital  technologies  in  European  works  (creating 
digital masters which can be used by all European distributors). 

Encourage  editors  in  particular  to  invest  in  appropriate  promotion  and 
distribution of non-national European audiovisual works. 

Support the multilingualism of European works (dubbing, subtitling and 
multilingual production). 

Action to be implemented 

– 

Establish  a  system  of  automatic  support  for  European  cinematographic 
and audiovisual works editors on media intended for private use (such as 
DVD, DVD-ROM) according to their performance on the market over a 
given  period.  Support  thus  generated  will  have  to  be  invested  by  the 
editors  in  the  editing  and  distribution  of  new  non-national  European 
works on digital media.  

– 

Support companies specialising in the digitisation of content 

Operational objective No 2 

– 

– 

Encourage  on-line  distribution  of  non-national  European  works  through 
advanced  distribution  services  and  new  media  (Internet,  video-on-
demand, pay-per-view). 

Encourage  the  European  audiovisual  programme  industry  to  adapt  to 
developments in digital technology, in particular with regard to advanced 
on-line distribution services. 

Action to be implemented 

– 

Encourage European companies (on-line access suppliers, special-interest 
channels, etc.) – by measures to digitise works and create promotion and 

EN 

30 

   EN 

 
publicity material on digital media – to create European works catalogues 
in digital format intended for use on the new media.  

3.5 

Encourage cinemas to exploit the possibilities offered by digital distribution 

Operational objectives 

– 

Encourage cinemas to invest in digital equipment, by facilitating access 
to credit by cinema owners.  

Action to be implemented 

– 

Support  the  side  costs  (such  as  financial  expences  and  insurance) 
incurred by cinema owners for investment in digital equipment.  

4. 

4.1 

PROMOTION 

Improve  the  circulation  of  European  audiovisual  works  by  ensuring  that  the 
European  audiovisual  sector  has  access  to  the  professional  European  and 
international audiovisual markets; 

Operational objective No 1 

– 

Improve the conditions of access for professionals to trade events and to 
professional audiovisual markets inside and outside Europe.  

Action to be implemented 

– 

Provide technical and financial assistance in connection with events such 
as:  

– 

– 

– 

the principal European and international cinema markets;  

the principal European and international television markets;  

thematic  markets,  particularly  for  cartoons,  documentary, 
multimedia and new technologies.  

Operational objective No 2 and action to be implemented 

– 

Encourage  and  support  the  constitution  of  European  catalogues  and  the 
setting up of databases of European programme catalogues intended for 
professionals. 

Operational objective No 3 

– 

Encourage support for promotion from the pre-production or production 
phase.  

EN 

31 

   EN 

 
Action to be implemented 

– 

– 

Support  the  organisation  of  forums  for  development,  financing,  co-
production and distribution of European (or mainly European) works and 
programmes. 

Set  up  and  launch  marketing  and  sales  promotion  campaigns  for 
European  cinematographic  and  audiovisual  programmes  during  the 
production phase. 

4.2 

Improve  access  to  European  audiovisual  works  for  the  European  and 
international public 

Operational objectives and action to be implemented 

– 

– 

– 

– 

Encourage  and  support  audiovisual  festivals  to  screen  a  majority  or 
significant proportion of European works. 

Prioritise  and  support  festivals  contributing  to  the  promotion  of  works 
from Member States or regions with low audiovisual production capacity 
and  of  works  produced  by  young  Europeans,  and  enhancing  cultural 
diversity and intercultural dialogue. 

Encourage  and  support  initiatives  for  image  education  organised  by 
festivals for young people, in particular in close cooperation with schools 
and other institutions. 

Encourage  and  support  initiatives  by  professionals,  in  particular  cinema 
owners,  public  or  commercial  television  channels,  festivals  and  cultural 
institutions which aim, in close cooperation with the Member States and 
the  European  Commission,  to  organise  promotional  activities  for  the 
general public for European cinematographic and audiovisual creation. 

– 

Encourage  and  support  the  organisation  of  events  with  wide  media 
coverage such as prize awards. 

4.3 

Encourage common actions between national film and audiovisual programme 
promotion organisations 

Operational objective: 

– 

Encourage  networking  and  coordination  of  European  common  actions 
and projects. 

Action to be implemented 

– 

– 

Support the creation of European promotion platforms. 

Support  European  groupings  and  umbrella  organisations  for  national 
and/or regional promotion on the European markets and worldwide. 

EN 

32 

   EN 

 
– 

– 

Support  the  networking  of  festivals,  in  particular  the  exchange  of 
programming and of expertise. 

Support  the  grouping  of  projects  pursuing  identical,  similar  and/or 
complementary aims. 

– 

Support the setting up of networks of databases and catalogues. 

4.4 

Encourage promotion of Europe’s cinematographic and audiovisual heritage 

Operational objective and action to be implemented 

– 

Encourage  and  support  the  organisation  of  events,  in  particular  those 
targeting  young  people,  to  promote  Europe’s  cinematographic  and 
audiovisual heritage.  

5. 

PILOT PROJECTS 

Operational objective 

– 

Ensure  that  the  programme  adapts  to  market  developments,  mainly  in 
connection  with 
information  and 
communication technologies. 

introduction  and  use  of 

the 

Action to be implemented 

– 

– 

Support pilot projects in areas considered by audiovisual sector players to 
be likely to be influenced by the introduction and use of new information 
and communication technologies. 

the  results  of  pilot  projects  by  organising 
Disseminate  widely 
conferences or on- and off-line events to encourage the dissemination of 
good practices. 

Chapter 2: Arrangements for implementation 

1. 

COMMUNITY SUPPORT 

1.1 

The share of the Community contribution in the cost of operations supported 

The  financial  contribution  from  MEDIA  may  not  exceed  50%  of  the  costs  of 
operations supported, except in the following cases. 

The financial contribution from MEDIA may be up to 60% of the costs of operations 
supported: 

(a) 

for  training  activities  in  countries  or  regions  with  low  audiovisual  production 
capacity and/or with a restricted linguistic or geographical area; 

EN 

33 

   EN 

 
(b) 

(c) 

for  projects  submitted  under  the  development,  distribution/dissemination  and 
promotion strands which have the merit of highlighting the value of European 
linguistic and cultural diversity; 

for  actions,  amongst  those  described  in  point  1.3  of  this  Annex  (distribution 
and  dissemination),  identified  as  conforming  with  the  procedure  set  out  in 
Article 11(2) of this Decision. 

The financial contribution from MEDIA may be up to 75% of the costs of operations 
supported  for  training  activities  in  the  new  Member  States  of  the  European  Union. 
Attention  will  be  focused  on  this  provision  during  the  mid-term  evaluation  of  the 
programme. 

1.2 

Arrangements for Community support 

Community support is in the form of grants or scholarships. 

In the training sector, at least 10% of the available funds each year must be allocated 
to new activities as far as possible. 

1.3 

Project selection 

The selected projects must comply with: 

– 

– 

the provisions of this Decision and its Annex; 

the  provisions  of  Council  Regulation  No  1605/2002  and  Commission 
Regulation No 2342/2002. 

2. 

COMMUNICATION 

2.1 

Commission 

The  Commission  may  organise  seminars,  symposia  or  meetings  to  help  implement 
the  programme  and  may  institute  any  suitable  information,  publication  and 
dissemination measures, particularly in connection with monitoring and evaluation of 
the programme. Such activities may be funded by grants or calls for tender or may be 
organised and financed directly by the Commission. 

2.2 

MEDIA desks and MEDIA antennae 

The Commission, acting directly in concert with the Member States, shall establish a 
European network of MEDIA desks and MEDIA antennae, which will operate as an 
implementing  body  at  national  level  in  accordance  with  Article  54(2)(c)  and  (3)  of 
Regulation No 1605/2002 for the purposes of: 

(a) 

informing professionals in the audiovisual sector about the various types of aid 
available under European Union policies; 

(b) 

publicising and promoting the programme; 

EN 

34 

   EN 

 
(c) 

encouraging  the  greatest  possible  participation  by  professionals  in  the 
programme’s activities; 

(d) 

helping professionals to present their projects in response to calls for proposals; 

(e) 

encouraging cross-border cooperation between professionals; 

(f) 

liaising with the various support bodies in the Member States in order to ensure 
that the programme’s activities complement national support measures; 

(g) 

providing data on national audiovisual markets and trends therein. 

3. 

INFORMATION ABOUT THE EUROPEAN AUDIOVISUAL MARKET AND PARTICIPATION 
IN THE EUROPEAN AUDIOVISUAL OBSERVATORY 

The  programme  provides  the  legal  basis  for  the  expenditure  necessary  to  monitor 
Community audiovisual policy measures.  

It  provides  for  the  European  Union  to  continue  participating  in  the  European 
Audiovisual  Observatory.  This  will  ease  access  to  information  for  operators  and 
dissemination  in  the  sector.  It  will  also  contribute  to  greater  transparency  in  the 
production process. 

4. 

MANAGEMENT TASKS 

The  programme’s  financial  allocation  can  also  cover  expenses  pertaining  to 
preparatory, monitoring, control, audit and evaluation activities, required directly for 
the management and the realisation of the objectives of the programme, in particular, 
studies, meetings, information and publication actions, expenses linked to informatic 
networks  focusing  on  information  exchange,  together  with  all  other  technical  and 
administrative assistance expense that the Commission may have recourse to for the 
management of the programme. 

5. 

CHECKS AND AUDITS 

For the projects selected in accordance with the procedure described in Article 9(3) 
of this Decision, a system of random auditing shall be set up. 

Any  beneficiary of a grant shall keep at the Commission’s  disposal for  a period of 
five years following the final payment all supporting documents on the expenditure 
incurred. Beneficiaries shall ensure that, if need be, any supporting document in the 
possession of partners or members is made available to the Commission. 

The  Commission,  either  directly  through  its  staff  or  through  any  other  qualified, 
external agency of its choice, is entitled to carry out an audit on the use of the grant. 
These audits may be carried out throughout the term of the contract and for a period 
of five years from the date of the payment of the balance of the grant. The outcome 
of these audits may lead to a decision by the Commission to recover funds. 

EN 

35 

   EN 

 
The  Commission’s  staff  and  external  persons  authorised  by  the  Commission  shall 
have  suitable  access,  in  particular  to  the  offices  of  the  beneficiary  and  to  all 
information  needed,  including  that  in  electronic  form,  to  carry  out  the  audits 
properly. 

The  Court  of  Auditors  and  the  European  Anti-Fraud  Office  shall  have  the  same 
rights, especially of access, as the Commission. 

Moreover, in order to protect the European Communities’ financial interests against 
fraud and other irregularities, the Commission is authorised to carry out checks and 
verifications  in  situ  under  the  present  programme,  in  compliance  with  Council 
Regulation 2185/9619. If need be, investigations shall be carried out by the European 
Anti-Fraud Office and shall be governed by Regulation 1073/1999 of the European 
Parliament and the Council20. 

19 
20 

OJ L 292 of 15.11.1996, p. 2. 
OJ L 136 of 31.5.1999, p. 1. 

EN 

36 

   EN 

 
                                                 
LEGISLATIVE FINANCIAL STATEMENT 

Policy area: Education and Culture 

Activity: Audiovisual policy and sport 

TITLE OF ACTION: SUPPORT PROGRAMME FOR THE EUROPEAN AUDIOVISUAL SECTOR (MEDIA 

2007) 

1. 

BUDGET LINE(S) + HEADING(S) 

15 05 01 01 Support programme for the European audiovisual sector 

15 01 04 08 Support programme for the European audiovisual sector – administrative 
management expenses. 

15.01.04.30 Executive agency – DG Education and Culture 

2. 

OVERALL FIGURES  

2.1. 

Total allocation for action: € 1.055 million for commitment 

2.2. 

Period of application: 

1 January 2007 – 31 December 2013 

2.3. 

Overall multiannual estimate of expenditure: 

(a)  Schedule  of 

commitment 

appropriations/payment 

appropriations 

(financial intervention) (see point 6.1.1) 

€ million (to three decimal places) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Commitments 

94.977 

101.068 

121.403 

137.736 

158.049 

170.411 

186.110 

969.754 

Payments 

60.470 

97.187 

110.280 

140.681 

179.266 

186.908 

194.962 

969.754 

(b)  Technical  and  administrative  assistance  and  support  expenditure  see 

point 6.1.2) 

Commitments 

10.023 

10.932 

11.597 

12.264 

12.951 

13.589 

13.890  85.246 

Payments 

10.023 

10.932 

11.597 

12.264 

12.951 

13.589 

13.890  85.246 

Subtotal a+b 

Commitments 

105 

112 

133 

150 

171 

184 

200 

1.055 

Payments 

70.493 

108.119 

121.877 

152.945 

192.217 

200.497 

208.852 

1.055 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(c)  Overall  financial  impact  of  human  resources  and  other  administrative 

expenditure  
(see points 7.2 and 7.3) 

2.855 

2.855 

2.855 

2.855 

2.855 

2.855 

2.855 

19.985 

Commitments / 
payments 

TOTAL a+b+c 

Commitments 

107.855 

114.855 

135.855 

152.855 

173.855 

186.855 

202.855 

1074.985 

Payments 

73.348 

110.974 

124.732 

155.8 

195.072 

203.352 

211.707 

1074.985 

2.4. 

Compatibility with financial programming and financial perspective 

[X]  The  Proposal  is  compatible  with  the  Commission  Communication 
“Building  our  common  future:  Financial  and  political  outlook  for  the 
enlarged Union 2007-2013” of 10 February 2004 (COM (2004) 101). 

2.5. 

Financial impact on revenue: 

[X]  Proposal  has  no  financial  implications  (involves  technical  aspects 

regarding implementation of a measure) 

3. 

BUDGET CHARACTERISTICS 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

YES/NO 

YES/NO 

No 3 

Type of expenditure 

New 

Comp/ 
Non-comp 

Diff/ 
Non-diff 

YES/ 
NO 

4. 

LEGAL BASIS  

Art. 251 EC Treaty 

Art. 157 EC Treaty 

Art. 150(4) EC Treaty 

5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention 

5.1.1.  Objectives pursued 

MEDIA 2007 will have as global objectives to:  

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
– 

– 

– 

Preserve  and  enhance  European  cultural  diversity  and  its 
cinematographic  and  audiovisual  heritage,  and  guarantee  its 
accessibility  for  European  citizens  as  well  as  to  promote 
intercultural dialogue; 

Increase the circulation of European audiovisual works inside 
and outside the European Union; 

Strengthen  the  competitiveness  of  the  European  audiovisual 
sector in the framework of an open and competitive market. 

The programme will take into account four horizontal priorities in the programme: 

Firstly, the importance of the creative process within the European audiovisual sector 
and the cultural value of Europe’s cinematographic and audiovisual heritage need to 
be integrated within the actions proposed.  

Secondly,  the  strengthening  of  the  production  structures  of  the  SMEs,  which 
constitute the core of the European audiovisual sector, as a means of enhancing its 
competitiveness. This will mean contributing to the spread of a business culture for 
the sector and facilitating private investments in the sector. 

Thirdly,  the  programme  will  reduce,  within  the  European  audiovisual  market,  the 
imbalances  between  countries  with  a  high  production  capacity  and  countries  with 
low production capacity or a restricted linguistic area. This priority responds to the 
need to preserve and enhance cultural diversity and inter-cultural dialogue in Europe. 
This  priority  will  contribute  to  the  transparent  and  competitive  functioning  of  the 
Single Market with its potential of economic growth for the whole Union. 

Finally,  the  programme  will  follow  and  support  market  evolutions  with  regard  to 
digitisation.  The  programme  will  put  in  place  measures  to  accompany  the  changes 
that digitisation is producing in the audiovisual sector at all stages of the production 
and distribution chain as well as in terms of new competencies for the professionals 
of the sector. 

The  improvement  of  the  competitiveness  of  the  industry  will  be  pursued  in  a  more 
capillary way by reinforcing the strategic and coherent approach of the programme. 
Community action will be integrated into a single programme intervening in the pre-
production and in the post production phases. Community intervention is in line with 
the  principle  of  subsidiarity  with  Member  States’  policies,  as  these  are  mainly 
directed  to  support  the  production  of  audiovisual  works.  Furthermore,  the 
enhancement  of  the  circulation  of  European  audiovisual  works  entails  a  specific 
European added value that transcends national policies. 

5.1.2.  Measures taken in connection with ex ante evaluation  

The  ex  ante  evaluation  was  intended  to  set  out  the  lines  for  future  Community 
intervention in the European audiovisual sector. It was an integral part of the process 
leading to the design of the programme. It followed the Guide on ex-ante evaluation 
(published  by  DG  BUDG  in  December  2001)  and  reflected  the  conclusions  of  the 
analysis carried out.  

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It  was  based  upon  several  sources  of  information  and  summarised  a  number  of 
different exercises. In particular, the document relied upon information provided by 
the  European  Audiovisual  Observatory  (EAO)  as  well  as  the  conclusions  of  an 
economic analysis of the film industry carried out for the Commission by an external 
consultant. In terms of future developments in the sector, the conclusions of a further 
study carried out for the Commission were used. It also drew on the findings of the 
ex post evaluation of the MEDIA II programme21, and the mid term evaluation of the 
MEDIA  Plus  and  MEDIA-Training  programmes,  as  well  as  the  evaluation  of  the 
Preparatory  Action  “i2i  Audiovisual:  Growth  and  Audiovisual”.  An  independent 
consultant, appointed following an open call for tender launched by the Commission, 
carried  out  the  last  two  evaluations22.  Lastly,  information  provided  by  the  MEDIA 
Programme Technical Assistance Office (TAO) was used.  

The  document  also  drew  on  the  results  of  the  far-reaching  public  consultation 
exercise.  The  public  consultation  on  the  new  generation  of  programmes  for  the 
European audiovisual sector was launched on May 12th and ended on August 12th. It 
consisted  of  three  different  exercises:  a  public  hearing  held  in  Brussels  on  July  1st 
and  2nd;  an  on-line  consultation  on  the  MEDIA  web-site  and  focus  group  meetings 
with industry professionals on specific aspects of Community  policy (including  the 
pilot projects and i2i Audiovisual) held in several Member States. The consultation 
was  carried  out  on  the  basis  of  the  public  consultation  document  published  on  the 
web-site. 

All  interested  parties,  notably  private  and  public  bodies  active  in  the  audiovisual 
industry,  were  invited  to  participate  in  the  consultation,  by  means  of  a  written 
contribution  or  intervention  at  the  public  hearing.  The  consultation  of  all  industry 
stakeholders was deemed necessary to understand and properly take into account the 
needs  of  the  sector.  The  public  hearing  was  well  attended  and  the  Commission 
received more than 40 contributions from the sector and from the Member States.  

The  information  contained  in  the  various  studies,  the  findings  of  the  evaluation 
exercise carried out on MEDIA Plus, MEDIA Training, i2i Audiovisual and MEDIA 
II together with the results of the far-reaching public consultation have provided the 
basis to elaborate the lines of the new generation of programme. 

Two key messages emerge from the ex ante evaluation: 

– 

(supported  by 

the  MEDIA  Programmes 

The  continuing  need  for  Community  action  in  the  areas  currently 
the 
covered  by 
professionals  and  institutions).  The  actions  undertaken  by  the 
MEDIA  Plus  and  Training  Programmes  were  considered  to  be 
effective and appropriate to the needs of the sector, in view of the 
structural  deficiencies  and  market  failure  in  the  sector.  Certain 
proposals  were  made  with  a  view  to  improving  the  focus  or 
functioning  of  existing  actions,  notably  with  a  view  to  integrating 
digital technology throughout the Programme lines; 

21 
22 

BIPE report for the European Commission. 
Invitation to tender No S230-182-679 awarded to APRIL 

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– 

The  new  generation  of  programmes  would  need  to  take  into 
account  the  changes  bought  about  by  enlargement  and  the  acute 
difficulties of the SMEs from the sector in accessing finance. Co-
production would need to be considered for support. 

Specific points were made on a number of areas: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

The  importance  of  complementarity  between  Community  and 
Member State actions as part of the reinforcement of the sector and 
of increasing its competitiveness;  

The need to ensure that the instruments put in place are adapted to 
the production cycle of the SMEs that are the core operators within 
the audiovisual industry;  

The  elaboration  of  mechanisms  to  favour  co-production  and 
notably to cover gap and bridge financing; 

The need for additional measures focusing on the financing needs 
of  SMEs  to  be  included  in  the  new  generation  of  programmes  to 
increase the full potential of the action at each stage of the chain in 
the audio-visual sector (balance the negative effects for a segment 
of the market which suffers from the lack of interest of commercial 
banks);  

The need to develop in co-ordination with the Member States and 
other  European  financial  institutions,  specific  instruments  within 
the  MEDIA  programme  to  reduce  the  shortage  of  capital  which 
constitute  the  main  characteristic  of  the  independent  audiovisual 
sector; 

The  problems  faced  by  the  sector  in  finding  matching  funds, 
especially in the new Member States; 

The need to provide flexibility throughout the Programme, partly to 
address regional, linguistic and cultural diversity (such as restricted 
linguistic/geographic  markets  or  the  specific  situation  of  the  new 
Member  States’  audiovisual  sectors)  but  also  to  allow  for  future 
market and technological changes; 

The  importance  of  working  with  broadcasters  to  benefit  from  this 
important  European  distribution  and  promotion  opportunity  – 
suggestions  were  put  forward  in  respect  of  the  need  for  specific 
skills and competencies and subtitling/dubbing; 

The  need  to  restructure  the  promotion  line  of  the  Programme, 
bearing in mind the limitations of national promotion for film, and 
the role played by promotion outside the EU; 

The  need  to  integrate  digital  throughout  the  programme  and  the 
question  of  digitising  content  systematically  to  benefit  from  all 
exploitation possibilities;  

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– 

– 

In respect of the improvement of skills and competencies there was 
a need to ensure that digital was covered fully by actions under the 
programme; 

Visibility and coherence of initiatives (perhaps in association with 
TV channels for European “events”) on the promotion mechanism 
to foster “audience education”. 

5.1.3.  Measures taken following ex post evaluation 

Experience  acquired  from  MEDIA  II  influenced  the  design  of  MEDIA  Plus  in  the 
following  ways.  The  focusing  of  resources  on  the  three  strands  of  training, 
development and distribution was maintained. However, the instruments set up under 
MEDIA II were adapted to take account of the results recorded over the period 1996-
2000  and  to  take  account  of  the  sector's  changing  needs.  These  results  were 
confirmed  in  the  context  of  the  mid-term  evaluation  of  MEDIA  Plus  and  MEDIA 
Training.  

The  choice  of  a  single  programme  reflects  the  needs  of  the  sector  and  notably  the 
heterogeneous  nature  of  the  European  markets,  in  socio-economic,  financial,  and 
regulatory terms. The results of the preliminary impact assessment carried out by DG 
EAC confirm that Community action should target pre and post production in a more 
capillary  manner.  The  assessment  clearly  demonstrates  that  there  is  a  need  for 
simplification  and  integration  of  the  different  components  of  the  European 
audiovisual value chain. In view of this, the design for a new programme reflects this 
need  and  streamlines  and  integrates  the  two  current  MEDIA  Programmes  into  one 
programme,  focusing  on  pre  and  post-production.  This  reflects  the  interlinkage 
between  the  various  activities  in  the  production  and  distribution  value  chain.  In 
particular  this  approach  recognises  that  the  pre-production  process  depends  on  the 
quality of professional skills and competencies. The new programme therefore places 
an important emphasis on the role played by the acquisition and improvement of the 
skills  and  competencies  of  professionals,  which  has  a  positive  impact  along  the 
whole of the European audiovisual value chain. It also recognizes the importance of 
establishing  exchanges  of  competencies  among  European  professional  for  the 
promotion of European co-operation. 

The Programme will be simpler for the Commission to manage and for the user, for a 
number  of  reasons.  First,  there  will  be  a  simplification  of  internal  procedures:  for 
example to render the issue of financial capacity of an applicant proportional to the 
size  of  the  subsidy  requested.  The  Commission  will  propose  a  clause  in  the  draft 
decisions  setting  out  that  the  levels  of  financial  and  administrative  complexity  that 
can be imposed on applicants and beneficiaries must be proportionate to the size of 
the  grant,  with  the  intention  that  this  should  lead  to  significant  procedural 
simplification. The aim here is to respond to the demand in the public consultation to 
reduce the complexity of these programmes.  

The  Programme  will  be  simpler  for  the  beneficiary. A number  of  measures will be 
introduced to facilitate access and use by potential beneficiaries. An example is that 
of  their  reporting  obligations:  given  that  those  that  benefit  from  the  MEDIA 
programme  are  mostly  small  and  micro-enterprises,  it  is  absolutely  essential  to 

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reduce the amount of resources allocated to the administrative follow-up of projects 
without allowing the quality of the information provided to deteriorate. 

The  Commission  regards  these  measures  as  the  starting  point  for  a  clearer  and 
simpler approach to an extremely complicated sector. This approach will still need to 
evolve. The introduction of new technology and technical innovations has to be taken 
into consideration, just like the changing structural, economic and cultural landscape 
of the audiovisual industry in general. The new programme should retain and build 
on  flexibility;  the  European  audiovisual  sector  is  adapting  to  constantly  changing 
parameters.  The  aim  is  to  continue  to  build  on  the  simplified  procedures  and  new 
integrated approach to constantly evaluate and respond to changes that impact on the 
Programme. 

5.2. 

Action envisaged and budget intervention arrangements 

Pre-production 

The  programme  will  intervene  upstream  in  the  production  chain  in  the  field  of 
improvement  of  professional  skills  and  competencies  and  the  development  of 
audiovisual works. 

In the field of the acquisition and improvement of the skills and the competencies in 
the audiovisual sector, the specific objectives of the programme are to:  

– 

– 

– 

strengthen the professionals' skills and competencies in the development, 
production,  distribution/exhibition  and  promotion  sectors,  in  order  to 
improve the quality of European audiovisual works.  

The programme supports in particular actions concerning:  

Script  writing  techniques,  with  the  aim  of  increasing  the  quality  of 
European audiovisual works and their potential circulation;  

Operational  objective:  enable  experienced  script  writers  to  improve  their  capacities 
to develop techniques based on traditional and interactive methods of writing.  

Actions  to  be  implemented:  support  the  development  and  the  implementation  of 
training modules covering the identification of the target public, the edition and the 
development of scripts for an international public, the relationship between the script 
writer, the editor of the script, the producer and the distributor.  

support  distance  learning  and  encourage  exchanges  and  partnerships  associating 
countries and regions with low audiovisual production capacity and/or with linguistic 
or geographically restricted areas.  

– 

financial  and  commercial  management  of  production,  distribution  and 
promotion  of  audiovisual  works,  with  the  aim  of  improving  the 
development of European strategies from the development phase;  

Operational  objective:  develop  the  capacity  of  professionals  to  understand  and 
incorporate  a  European  dimension  into  the  fields  of  development,  production, 
marketing, distribution/distribution and promotion of audiovisual programmes.  

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Actions  to  be  implemented:  support,  in  addition  to  the  actions  carried  out  by  the 
Member States, the development and the update of training modules in management 
taking into account the European dimension.  

support  distance  learning  and  encourage  exchanges  and  partnerships  associating 
countries  and  regions  with  low  audiovisual  production  capacity  and/or  with  a 
linguistic or geographically restricted area.  

– 

technologies  for  production,  post-
inclusion  upstream  of  digital 
production,  distribution,  and  marketing  and  archiving  of  European 
audiovisual programmes.  

Operational  objective:  develop  the  capacity  for  professionals  to  use  digital 
technologies,  in  particular  in  the  fields  of  production,  post-production,  distribution, 
marketing and archiving of European audiovisual programmes.  

Actions to be implemented: support the development and implementation of modules 
of training in digital audiovisual technologies, in addition to the actions carried out 
by the Member States.  

support  distance  learning  and  encourage  exchanges  and  partnerships  associating 
countries  and  regions  with  low  audiovisual  production  capacity  and/or  with  a 
linguistic or geographically restricted area.  

– 

– 

– 

– 

– 

improve the European dimension of audiovisual training activities by:  

support  for 
professionals, in particular:  

the  networking  and  mobility  of  European 

training 

European film schools;  

training institutes;  

partners of the professional sector;  

Operational objective: encourage exchanges between the institutions and/or existing 
activities of training.  

Action  to  be  implemented:  encourage  the  programme  beneficiaries  to  intensify  the 
co-ordination  of  their  activities  of  initial  and  further  training  in  order  to  develop  a 
European network.  

– 

training for trainers;  

Operational  objective:  Improve  the  skills  and  the  exchange  of  best  practices  of 
trainers.  

Action to be implemented: contribute to training for trainers.  

– 

support for individual training maps 

Operational objective: encourage mobility in Europe of cinema students. 

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44 

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Action to be implemented: mobility scholarships linked to a training project  

– 

the  adoption  of  co-ordination  actions  and  of  promotion  of  the  projects 
supported.  

Operational  objective:  promote  co-ordination  and  projects  supported  by  the 
programme.  

Action  to  be  implemented:  contribute  to  the  adoption  of  targeted  actions  of  co-
ordination and of promotion of the training activities supported by the programme.  

– 

enable,  through  special  scholarships,  the  professionals  from  the  new 
Member States to take part in such projects.  

Operational  objective:  facilitate  the  participation  of  national  professionals  from  the 
new Member States to the projects supported by the programme. 

Actions to be implemented: set up a grant mechanism.  

In the sector of development, the specific objectives of the programme are to:  

– 

support the development of production projects intended for the European and 
international market, submitted by independent production companies;  

Operational  objectives:  support  the  development  of  European  audiovisual  works: 
drama, animation, multimedia and documentary;  

encourage companies to produce quality projects with an international potential;  

encourage  companies  to  take  digital  technologies  into  account  in  the  fields  of 
production and distribution from the development phase;  

encourage  companies  to  elaborate  international  use,  marketing  and  distribution 
strategies from the projects development phase.  

enable small and medium-sized companies to access support for development and to 
adapt actions to their respective needs;  

ensure  complementarity  with  the  actions  supported  by  MEDIA  in  the  field  of  the 
improvement of the skills and competencies of audiovisual sector professionals.  

Actions to be implemented: support the development of audiovisual works projects 
or of project catalogues. 

Establish  a  support  scheme  for  the  digitisation  of  productions  accessible  for 
independent producers or production companies. 

– 

support  the  elaboration  of  sound  financial  plans  and  setting  up  of  European 
production and co-production projects.  

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Operational  objectives:  encourage  the  development  of  sound  financing  plans  by 
production  companies  for  production  of  works  of  the  following  types:  drama, 
animation, multimedia and documentary;  

encourage the search for financial partners at European level to achieve the optimal 
financial  synergy  between  public  and  private  investors  and  include  distribution 
strategies at the outset of production. 

Action to be implemented: support the side costs of private financing of production 
and co-production projects presented by SMEs; 

support  financial  companies  active  in  the  elaboration  of  investment  plans  for  the 
development  and  co-production  of  audiovisual  works  with  a  potential  for 
transnational circulation; 

enhance  co-operation  with  the  national  agencies  in  the  form  of  an  institutionalised 
exchange of monitoring tools as well as implementation of transparency practices in 
a European network. 

The programme will ensure that adequate co-ordination and synergy between the two 
components of pre-production support is established and pursued. 

Post-production 

The  programme  will  intervene  downstream  in  the  production  chain,  namely  in  the 
distribution and promotion phases.  

In the sector of distribution and exhibition, the specific objectives of the programme 
are to:  

Horizontal  operational  objective:  promote  the  linguistic  diversity  of  European 
audiovisual works distributed.  

Action  to  be  implemented:  support  dubbing  and  subtitling  for  distribution  and  the 
distribution,  by  all  channels,  of  European  audiovisual  works,  accessible  for 
producers, distributors and broadcasters.  

– 

strengthen  European  distribution  by  encouraging  distributors  to  invest  in  the 
co-production, acquisition and promotion of non-national European films and 
to set up co-ordinated marketing strategies;  

Operational  objective  n°1:  encourage  cinematographic  distributors  to  invest  in  co-
production, acquisition and promotion of non-national European films.  

Actions  to  be  implemented:  establish  a  system  of  automatic  support  for  European 
distributors,  proportional  to  cinema  admissions  for  non-national  European  films  in 
the  Member  States  taking  part  in  the  programme,  subject  to  a  ceiling  by  film  and 
modulated by the country concerned.  

The support thus generated should only be used by distributors for investment in:  

– 

Non-national European film co-production;  

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46 

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– 

– 

the acquisition of non-national European films;  

expenses of edition (copies, dubbing and subtitling), of promotion and of non-
national European film publicity. 

Operational objective n°2: encourage co-operation between European distributors for 
the adoption of common strategies on the European market.  

Action  to  be  implemented:  establish  a  system  of  selective  aid  for  non-national 
European  film  distribution  intended  for  European  distributor  groupings  and  grant 
them direct aid when they exist on a permanent basis.  

Operational  objective  n°3:  encourage  co-operation  between  distributors,  producers 
and  sale  agents  in  order  to  set  up  international  marketing  strategies  from  the 
production phase of European audiovisual works.  

Action to be implemented: establish a support system for the creation of a promotion 
kit of European cinematographic works (including a subtitled copy, an international 
sound track - music and effects - and promotion materials).  

Operational  objective  n°4:  encourage  access  to  financing  of  SMEs  for  distribution 
and international sale of non-national European works. 

Action to be implemented: support part of the financial expense, in insurance and in 
completion  guarantees  connected  with  the  activities  of  distribution  and/or  of 
international  sale  such  as:  the  acquisition  of  European  film  catalogues,  the 
prospecting of new markets for these films, the constitution of permanent groupings 
of European distributors.  

– 

improve  the  circulation  of  non-national  European  films  on  the  European  and 
international  markets  by  incentive  measures  for  their  exportation,  their 
distribution on any support and for their programming in cinemas;  

Operational  objective  n°1:  encourage  cinematographic  distributors  to  invest  in 
appropriate edition and promotion costs for non-national European films.  

Actions to be implemented: establish a selective support system to cinematographic 
distributors  for  promotion  and  European  cinematographic  work  marketing  outside 
their production territory.  The  selection  criteria of the films will include provisions 
aiming to differentiate between the projects according to their origin and their budget 
category.  

grant support to films of interest to the development of European cultural diversity, 
in  particular  in  the  form  of  aid  for  the  release  of  a  non-national  European  works 
catalogue over a given period.  

Operational objective n°2: encourage the use of non-national European films on the 
European market, in particular by supporting the co-ordination of a cinema network.  

Actions  to  be  implemented:  support  cinema  owners  in  programming  a  significant 
share  of  non-national  European  films  in  commercial  cinemas  for  first  release  for  a 
minimum defined duration. The support granted to each cinema will in particular be 

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47 

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determined according to the number of admissions for these cinemas for non-national 
European films over a reference period.  

contribute  to  the  development  of  actions  for  education  and  of  young  public 
awareness-raising in cinemas.  

support  the  creation  and  the  consolidation  of  a  European  cinema  owners'  network 
developing common actions for this type of programming.  

Operational objective n°3: encourage international sales and the exportation of non-
national European films in Europe and world-wide  

Action  to  be  implemented:  establish  a  support  system  for  European  international 
distribution companies of cinematographic films (sale agents), established according 
to their performance on the market over a given period. Support thus generated will 
have  to  be  invested  by  the  international  distributors  in  the  expenses  of  acquisition 
and of promotion of new European works on the European and international markets.  

– 

promote the transnational distribution of European audiovisual works produced 
by  independent  production  companies  by  encouraging  co-operation  between 
broadcasters  on  the  one  hand,  and  independent  producers  and  distributors  on 
the other;  

Operational  objective  n°1:  encourage  the  distribution  of  non-national  European 
audiovisual works coming from independent production companies.  

Actions to be implemented: support independent producers to produce works (drama, 
documentary and animation) involving the participation of at least two broadcasters 
from  several  Member  States,  belonging  to  different  linguistic  areas.  The  selection 
criteria  of  the  beneficiaries  will  include  provisions  aiming  to  differentiate  between 
the projects according to their budget category.  

grant support to audiovisual programmes of interest to the development of European 
cultural diversity and audiovisual heritage.  

Operational  objective  n°2:  facilitate  access  to  financing  for  European  independent 
production companies.  

Action to be implemented: support part of the financial expense, of insurance and of 
completion guarantees connected with the production of work (drama, documentary 
and animation) involving the participation of at least two broadcasters from several 
Member States, belonging to different linguistic areas.  

Operational  objective  n°3:  encourage  the  international  distribution  of  European 
television programmes.  

Action  to  be  implemented:  establish  a  support  system  for  European  international 
distribution companies of audiovisual works (international distributors), determined 
according  to  their  performance  on  the  market  over  a  given  period.  Support  thus 
generated will have to be invested by the international distributors in the expenses of 
acquisition and promotion of new European works on the European and international 
markets.  

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– 

encourage the digitisation of European audiovisual works;  

Operational objectives n°1: improve the distribution of non-national European works 
on digital support for private use (DVD), in particular by encouraging co-operation 
between editors for the creation of multilingual masters on a European scale;  

encourage the use of digital technologies in European works (realisation of numerical 
masters suitable for being exploited by all the European distributors); 

encourage particularly the editors to invest in appropriate promotion and distribution 
for non-national European audiovisual works;  

support the multilingualism of European works (dubbing, subtitling and multilingual 
production).  

Action  to  be  implemented:  establish  an  automatic  support  system  to  European 
cinematographic and audiovisual works editors on supports intended for private use 
(such as DVD, Dvd-Rom), given according to their performance on the market over 
a given period. Support thus generated will have to be invested by the editors in the 
expenses of edition and distribution of new non-national European works on digital 
support.  

Support companies specialised in the digitisation of content  

Operational objectives n°2: encourage on-line distribution of non-national European 
works through advanced distribution services and media (Internet, video-on-demand, 
pay-per-view);  

encourage  the  adaptation  of  the  European  audiovisual  programme  industry  to  the 
developments  of  digital  technology,  in  particular  with  regard  to  the  advanced 
services of on-line distribution.  

Action  to  be  implemented:  support  European  companies  (on-line  access  suppliers, 
subject chains etc), by measures for the digitisation of works and for the creation of 
promotion  and  publicity  material  on  digital  support,  to  create  European  works 
catalogues in numerical format intended for use on the new media.  

– 

encourage cinemas to exploit the possibilities offered by digital exhibition.  

Operational  objectives:  encourage  cinemas  to  invest  in  digital  equipment,  by 
facilitating access to credit by cinema owners.  

Action  to  be  implemented:  support  part  of  the  financial  expenses  and  of  insurance 
costs incurred by the cinema owners for investment in digital equipment.  

In the field of promotion, the specific objectives of the programme are to:  

– 

improve the circulation of European audiovisual works by ensuring access for 
professionals to European and international audiovisual markets; 

Operational objective n° 1: improve the conditions for professionals' access to trade 
events and to professional audiovisual markets, inside and outside Europe.  

EN 

49 

   EN 

 
Action  to  be  implemented:  give  technical  and  financial  assistance  within  the 
framework of events such as:  

– 

– 

– 

the principal European and international cinema markets;  

the principal European and international television markets;  

the thematic markets, in particular for cartoons, documentary, multimedia and 
new technologies.  

Operational  objective  n°  2:  encourage  the  constitution  of  European  catalogues  and 
the setting up of databases concerning European programme catalogues intended for 
professionals.  

Action to be implemented: support the constitution of European catalogues and the 
setting  up  of  databases  concerning  European  programme  catalogues  intended  for 
professionals  

Operational objective n°3: encourage support for promotion from the pre-production 
or production phase.  

Action  to  be  implemented:  support  the  organisation  of  forums  for  development, 
financing,  co-production  and  distribution  of  European  (or  mainly  European)  works 
and programmes;  

set  up  and  launch  marketing  and  sales  promotion  campaigns  of  European 
cinematographic and audiovisual programmes at the production phase  

– 

to  improve  access  to  European  audiovisual  works  for  the  European  and 
international public;  

Operational  objectives:  encourage  audiovisual  festivals  to  program  a  majority  or 
significant share of European work; 

prioritise  festivals  contributing  to  the  promotion  of  works  from  Member  States  or 
regions with low audiovisual production capacity and of works of young Europeans, 
and enhancing cultural diversity and intercultural dialogue; 

encourage initiatives for image education organised by festivals for a young public, 
in particular in close co-operation with schools and other institutions;  

encourage  professionals'  initiatives,  in  particular  of  cinemas,  public  or  commercial 
television networks, festivals and cultural institutions, aiming, in close co-operation 
with  the  Member  States  and  the  European  Commission,  to  organise  promotional 
activities  intended  for  the  general  public  for  European  cinematographic  and 
audiovisual creation;  

Actions to be implemented: support audiovisual festivals programming a majority or 
significant share of European works; 

EN 

50 

   EN 

 
support festivals contributing to the promotion of works from the Member States or 
regions with low audiovisual production capacity and of works of young Europeans, 
and enhancing cultural diversity and intercultural dialogue; 

support initiatives for image education organised by festivals for a young public, in 
particular in close co-operation with schools and other institutions; 

support  the  setting  up  by  professionals,  in  particular  of  cinemas,  public  or 
commercial  television  networks,  festivals  and  cultural  institutions,  aiming,  in  close 
co-operation  with  the  Member  States  and  the  European  Commission,  to  organise 
promotional activities intended for the general public for European cinematographic 
and audiovisual creation;  

support the organisation of events with broad media coverage such as prize awards.  

– 

encourage common actions between national film and audiovisual programme 
promotion organisations;  

Operational  objectives:  encourage  networking  and  co-ordination  of  European 
common actions and projects.  

Action to be implemented: support the creation of European promotion platforms; 

support  European  groupings  and  umbrella  organisations  of  national  and/or  regional 
promotion on the European markets and world-wide;  

support the networking of festivals, in particular the exchange of programming and 
of expertise;  

support  the  grouping  of  projects  following  identical,  similar  and/or  complementary 
objectives;  

support the setting up of networks of data bases and catalogues.  

– 

encourage  promotion  of  the  European  cinematographic  and  audiovisual 
heritage.  

Operational objective: Facilitate the organisation of events, in particular for a young 
public, intended to promote the European cinematographic and audiovisual heritage.  

Action  to  be  implemented:  support  the  organisation  of  events  valorising  the 
European cinematographic and audiovisual heritage.  

Pilot projects 

These have proved to be a success in responding to market evolutions resulting from 
the  introduction  of  information  and  communication  technologies.  Whilst  certain  of 
the  areas  previously  covered  have  now  been  introduced  into  the  programme,  this 
“test laboratory” remains vital to respond to changes. The new programme will focus 
on those areas considered by the sector as likely to be influenced by the use of new 
information and communication technologies. The results of the pilot projects will be 

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publicised widely in order to encourage the dissemination of best practices by means 
of conferences, and the organisation of events on-line and off-line. 

5.3.  Methods of implementation 

The  implementation  mechanism  will  follow  the  general  regulation  for  Community 
actions. It includes grants, scholarships and co-financing schemes, based on detailed 
financial requests. The Community fully finances services such as the organisation of 
expert  panels,  market  studies,  evaluation  of  projects  and  technical  assistance.  The 
financing will be awarded following calls for tender and calls for proposals. 

The  MEDIA  Programme  is  implemented  by  the  Commission,  through  its  own 
services  and  an  Executive  Agency.  At  national  level  and  in  co-operation  with 
national authorities MEDIA desks ensure the interface with the beneficiaries of the 
Programme.  

The  new  programme  will  provide  the  legal  basis  for  the  expenditure  required  for 
monitoring the implementation of Community instruments of audiovisual policy. In 
particular,  the  new  programme  will  pursue  the  existing  participation  of  the 
Commission  to  the  European  Audiovisual  Observatory.  This  co-operation  will 
facilitate  access  to  and  dissemination  of  information  among  the  operators  of  the 
sector and enhance transparency of practices in the production process. 

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B - (over the entire programming period) 

6.1.1.  Financial intervention 

Commitments (in € million to three decimal places) 

Breakdown 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Action 1 Pre-production 

Action 2 Post-production 

Action 3 Pilot projects 

31 

54 

6 

33 

58 

6 

40 

70 

7 

45 

81 

7 

51 

56 

62 

93.5 

100.5 

109 

8 

8 

9 

318 

566 

51 

Action 4 Horizontal issues 

3.977 

4.068 

4.403 

4.736 

5.549 

5.911 

6.110 

34.754 

TOTAL 

94.977 

101.068 

121.403 

137.736 

158.049 

170.411 

186.110 

969.754 

6.1.2.  Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure 

(commitment appropriations) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

1) 
administrative assistance 

Technical 

and 

a)  Contribution 
Executive agency

to 

the 

8.889 

9.776 

10.419 

11.062 

11.724 

12.338 

12.613  76.821 

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   EN 

 
 
 
 
 
 
 
 
 
 
 
b)  Other 
administrative assistance: 

technical 

and 

0.094 

0.095 

0.097 

0.099 

0.101 

0.103 

0.105 

0.694 

0.029 

0.030 

0.030 

0.031 

0.032 

0.032 

0.033 

0.217 

- intra muros: 

- extra muros: 

of  which  for  construction 
and 
of 
maintenance 
computerised  management 
systems 

Subtotal 1 

9.012 

9.901 

10.546 

11.192 

11.857 

12.473 

12.751  77.732 

2) Support expenditure 

a) Studies 

0.562 

0.573 

0.584 

0.596 

0.608 

0.620 

0.633  4.176 

b) Meetings of experts 

0.189 

0.193 

0.197 

0.200 

0.205 

0.209 

0.213  1.406 

c) Information and 
publications 

0.260 

0.265 

0.270 

0.276 

0.281 

0.287 

0.293  1.932 

Subtotal 2 

1.011 

1.031 

1.051 

1.072 

1.094 

1.116 

1.139  7.514 

TOTAL 

10.023 

10.932 

11.597 

12.264 

12.951 

13.589 

13.890  85.246 

These  costs  include  the  programme’s  contribution  to  the  functioning  costs  of  the 
Education  and  culture  Executive  agency,  and  notably  the  personnel  costs  to  the 
agency  for  this  programme.  These  costs  correspond  to  an  estimation  of  81  people 
(statutory personnel at the agency and contractual agents) in 2007 and 106 people in 
2013;  the  increase  of  personnel  over  the  period  results  from  the  increase  in  the 
volume of activity entrusted to the agency, stemming from the increase in the budget 
allocated  for  the  different  activities  for  which  it  will  be  responsible  for  the 
management. 

6.2. 

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire 
programming period) 

Commitments (in € million to three decimal places) 

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Breakdown  

Type  
of outputs 
(projects) 

Number of 
outputs 

Average unit 
cost 

(total for years 
1…n)  

Total cost 

(total for years 
1…n)  

1 

2 

3 

4=(2X3) 

Action 1 Pre-production 

- Measure 1: Skills improvement 

- Measure 2: Development 

Action 2 Post-production 

- Measure 1:Distribution 

Distribution (selective/automatic) 

TV Distribution 
Exhibition 

- Measure 2: Promotion 

Action 3 Pilot projects 

Action 4 Horizontal issues 

- Measure 1 : MEDIA Desks 

- Measure 2 : EAO  

- Measure 3 : Events 

300 

2615 

- 

- 

3000 

1000 

1700 

1500 

50 

28 

1 

14 

0.267 

0.091 

- 

- 

0.090 

0.096 

0.056 

0.070 

1.020 

1.000 

0.350 

0.304 

318.000 

80.000

238.000

566.000 

461.000

270.000

96.000

95.000

105.000

51.000 

34.754 

28.000

2.500

4.254 

TOTAL COST 

969.754 

7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

7.1. 

Impact on human resources 

The officials currently managing the existing programme will also be in charge of the 
management of the MEDIA 2007 Programme.  

It  is  envisaged  to  further  expand  the  human  resources  currently  deployed  on  the 
management of the MEDIA Plus and MEDIA Training programmes. The rationale of 
that expansion is the new scope of the Programme, notably in respect of digital and 
financing  measures.  The  estimation  of  expenses  is  based  on  an  average  for  2007-
2013. In particular, the evolution of human resources takes into account the increase 
of  operational  credit  for  the  programme,  and  increase  from  19  to  21  officials  from 
2007 to 2013.  

EN 

54 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Types of post 

Staff to be assigned to management of the 
action using existing and/or additional 
resources 

Number of 
permanent posts 
2007 (2013) 

Number of 
temporary posts 

Officials 
temporary staff 

or 

A 

B 

C 

8(10) 

3(3) 

8(8) 

Total 

8(10) 

3(3) 

8(8) 

Description of tasks deriving from the 
action 

Implementation of the programme. 

Other human resources 

Total 

19(21) 

2 

2 

2 

2 DNEs 

21(23) 

7.2. 

Overall financial impact of human resources 

Type of human resources 

Amount (€) 

Method of calculation *  

Officials: 19 (21) 

2052.000 
(2268.000) 

108.000 x 19 (21) 

Other human resources 2 

90.000  45.000 x 2 

The amounts are total expenditure for twelve months. 

Total 

2142000 (2358000) 

7.3. 

Other administrative expenditure deriving from the action 

Budget line 

(number and heading) 

Overall allocation (Title A7) 

A0701 – Missions 
A07031 – Compulsory committees 1 

A07040 – Conferences 

A0705 – Studies and consultations 

Other expenditure (specify) 

A07030 – Meetings 

Information systems (A-5001/A-4300) 

Other expenditure - Part A (specify) 

Amount € 

Method of calculation 

35.000 

54 missions at 650€ per mission 

258.000 

200.000 

50.000 

- 

62.000 

25  Member  State  representatives  for 
860€ for 6 meetings per year.  

- 

- 

3  meetings  per  year  of  focus  groups 
(1010€  for  travel  and  per  diem  per 
person) 

Total 

605.000 

The amounts are total expenditure for twelve months. 

1 Specify the type of committee and the group to which it belongs. 

EN 

55 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
I. 

II. 

Annual total (7.2 + 7.3) 

Duration of action 

III. 

Total cost of action (I x II) 

2855000€ 

7 years 

19985000€ 

The  requirements  for  human  and  administrative  resources  expenditure  will  be  met 
within the budget allocated to the Direction General responsible within the context of 
the annual allocation procedure. The allocation of posts will depend on the one hand 
on  the  internal  organisation  of  the  next  Commission  and  on  the  other  hand  on  a 
possible  reallocation  of  posts  among  services  as  a  result  of  the  new  financial 
perspectives. 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

The  Commission  monitors 
implementation of the programme.  

the  most  pertinent 

indicators 

throughout 

the 

The  indicators  for  the  "improvement  of  professional  skills"  area  of  the  programme 
are as follows: 

Objectives 

Improve 
competencies 
management and technological skills  

in 

creative, 

Enhance  a  European  dimension  in  the 
training projects 

Indicators 

N° projects supported 

N° of participants in the projects supported 

N°  of  participants  in  training  projects  having 
projects  developed  in  the  development  programme 
N° of co-productions initiated after training projects 

N° on non national participants 

N° of projects involved in the European network 

Continuation  of  the  co-operation  and  professional 
contacts within the training projects supported 

the 
Encourage 
professionals from new countries 

participation 

of 

N° of participants from the newly entered countries  

N° of co-productions initiated after training projects 

Continuation  of  the  co-operation  and  professional 
training  projects 
contacts 
supported 

initiated  within 

the 

The indicators for the "development" area of the programme are as follows: 

Objectives 

Indicators 

Support  the  development  of  works  of 
and 
animation, 

documentary 

drama, 

N° of projects supported  

Distribution per type of project supported 

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   EN 

 
multimedia with an international potential 

N° of projects completed and produced 

Percentage  of  aid  going  in  costs  above  the  line, 
creative part 

Percentage  of  aid  going  in  costs  below  the  line, 
management part 

Geographical distribution of support  

N° of projects supported in international distribution 

Revenues  of  the  projects  produced  that  received 
development funding 

the  elaboration  of 

Encourage 
sound 
financial  plans  for  production  including 
strategies  of  exploitation  and  marketing  as 
well as strategies for financing 

N° of companies supported 

N° of projects completed with co-production  

N° of projects completed with private finance 

Percentage  of  Community  financing  relative  to 
overall financing 

Structure  of  financing  of  the  projects  in  terms  of 
sequence of investors joining the plan 

Recurrence of support for single projects  

Average turnover of the companies  

Revenues of the projects produced  

Percentage of development expenses relative to the 
final budget of the production 

Average  number  of  employees  of  the  companies 
receiving support 

EN 

57 

   EN 

 
The indicators for the "distribution" area of the programme are as follows: 

Specific objectives 

Indicators 

Strengthen the European distribution sector 

N°  of  companies  supported  in  their  distribution 
activities 

Size of the companies supported 

N° of films distributed in Europe with Community 
financial support; 

Increase in reinvestments (in P&A and MG and co-
productions) 

Percentage of the reinvestments going to P&A and 
MG and co-production 

Groupings of distributors created in Europe 

N° of films subtitled and dubbed 

N° of films circulated 

N°  of  admissions  by  non-national  European  films 
outside their national territory 

Improve  the  circulation  of  non-national 
European  (NNE)  films  on  European  and 
international markets 

Audience share of NNE Film  

Share of the market in commercial cinemas  

Market share of the NNE film 

Promote  the  transnational  distribution  of 
audiovisual 
by 
produced 
independent production companies  

works 

Market  share  of  NNE  films  in  cinema  network 
supported  

N° of projects supported 

N° of promotional packages supported  

N° of independent producers companies supported 

N° of works produced with private financing and its 
percentage 

N° of groupings created in order to get Community 
support 

N°  of  groupings  continued  after 
Community support 

receiving 

N° of works supported 

N° of countries sold to per work 

Revenues from the projects supported 

Number of works shown on TV at prime time  

EN 

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Support 
audiovisual works 

the  digitisation  of  European 

Encourage 
possibilities offered by digital exhibition 

cinemas 

exploit 

to 

the 

N° of digital prints, disks DVD supported 

N° of subtitling and dubbing of works supported 

N° of films circulated by digital means 

N°  of  films  edition  from  areas  of  restricted 
linguistic areas  

Size of the companies supported  

N° of cinemas investing in digital equipment 

The indicators for the "promotion" area of the programme are as follows: 

Objectives 

Indicators 

Promote the European audiovisual industry 
within the Union and abroad by facilitating 
participation  at  markets  by  professionals 
and  encouraging  common  promotional 
actions at European level 

the  widest  promotion  of 

Ensure 
the 
European cinematographic and audiovisual 
heritage in particular for a young public 

N°  of  companies  financed  for  their  promotion  by 
the Community 

N° of promotion organisation set up  

N°  of  companies  that  made  use  of  the  promotion 
projects set up by Community support 

N° of audiovisual markets attended by professionals 

Percentage of promotion budget in productions  

N° of films sold in Europe 

N° of films sold outside Europe 

Margins  of  revenues  of  the  films  sold  relative  to 
their costs 

Use of data bases set up within promotion actions 

N° of festivals supported 

N° of audience reached by these festivals 

N° of NNE Films shown in these festivals 

Promotion programmes on TV  

N° of promotion actions targeting young people 

The Commission services will monitor the implementation of the programme at three 
levels. Firstly, the data collected through the European Audiovisual Observatory will 
enable  the  Commission  services  to  follow  the  economic  evolution  of  the  European 
audiovisual sector and will provide an essential instrument to assess the relevance of 
the objectives of the programme with to the evolving needs of the sector. Secondly, 
the  MEDIA  Desks  network  will  enable  the  Commission  services  to  monitor  the 
evolution  of  nationals  markets  and  policies  with  a  view  of  ensuring  synergies 
between European action and national supports. Finally, the follow-up of individual 
contracts will ensure feedback from the beneficiaries on the effective implementation 
of  the  programme.  In  the  context  of  this  follow-up  the  Commission  will  consult, 
when necessary, the operators from the sector to ensure that the specific objectives 
and  the  implementation  of  the  programme  remain  adapted  to  the  evolution  of  the 
sector. 

EN 

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8.2. 

Arrangements and schedule for the planned evaluation 

Details and frequency of planned evaluation: 

The  Commission  will  draw  up  two  Programme  evaluation  reports  based  on  an 
external  independent  evaluation,  which  will  be  communicated  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the 
Committee of the Regions.  

Mid-term  report:  the  first  report  will  be  drawn  up  three  years  after  the  start  of  the 
programme. The object of this report is to provide an initial assessment of the impact 
and effectiveness of the programme on the basis of the results obtained. Any changes 
or  adjustments  that  are  deemed  necessary  will  be  proposed  by  the  Commission  for 
the second half of the programme.  

Final Report: the second report will be drawn up no later than 31st December 2015. 

Furthermore,  in  the  light  of  the  experience  acquired  under  the  MEDIA  II 
Programme, the Commission plans to continue its practice of auditing beneficiaries 
(around  30  per  year)  in  order  to  check  that  Community  funds  are  being  used 
properly. The results of audits will form the subject of a written report. 

Evaluation of the results obtained: 

Information  providing  a  measure  of  the  performance,  results  and  impact  of  the 
Programme will be taken from the following sources: 

– 

– 

– 

– 

– 

statistical data compiled on the basis of the information from application 
dossiers and the monitoring of beneficiaries' contracts; 

audit reports on a sample of programme beneficiaries (30 per year); 

consultations with MEDIA Desks and Antennae and on national markets; 

consultations  with  experts  and 
international professional associations); 

institutional  bodies  (national  and 

consultations  with  audiovisual  professionals  and  with  specialist  training 
bodies. 

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9. 

ANTI-FRAUD MEASURES 

All  the  contracts,  conventions  and  legal  undertakings  concluded  between  the 
Commission and the beneficiaries under the programme foresee the possibility of an 
audit at the premises of the beneficiary by the Commission’s services or by the Court 
of  Auditors,  as  well  as  the  possibility  of  requiring  the  beneficiaries  to  provide  all 
relevant  documents  and  data  concerning  expenses  relating  to  such  contracts, 
conventions  or  legal  undertakings  up  to  5  years  after  the  contractual  period. 
Beneficiaries are subject to the requirement to provide reports and financial accounts, 
which are analysed as to the eligibility of the costs and the content, in line with the 
rules  on  Community  financing  and  taking  account  of  contractual  obligations, 
economic principles and good financial management. 

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