REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS First Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the application of Directive 2010/13/EU &quot;Audiovisual Media Service Directive&quot; Audiovisual Media Services and Connected Devices: Past and Future Perspectives
Date: 2012-05-04
Institutions: European Commission
Subjects: advertising, advertising malpractice, audiovisual industry, broadcasting, child protection, free movement of programmes, freedom to provide services, technological change

EUROPEAN COMMISSION 

Brussels, 4.5.2012  
COM(2012) 203 final 

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

First Report from the Commission to the European Parliament, the Council, the 
European Economic and Social Committee and the Committee of the Regions on the 
application of Directive 2010/13/EU "Audiovisual Media Service Directive" 

Audiovisual Media Services and Connected Devices: Past and Future Perspectives 
{SWD(2012) 125 final} 

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   EN 

 
 
 
 
  
 
 
TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

2.7. 

3. 

4. 

Introduction — Background to this Report.................................................................. 3 

Application of the Directive......................................................................................... 4 

Country of origin, free circulation and freedom of expression.................................... 4 

Public policy objectives: protection of minors and incitement to hatred..................... 4 

Audiovisual media services for all: accessibility ......................................................... 4 

Freedom of expression: right to information ............................................................... 4 

Cultural diversity: promotion of European and independent works ............................ 5 

Commercial communications....................................................................................... 5 

Self-regulatory initiatives............................................................................................. 7 

Recent technological developments and expansion of the audiovisual media services 
market in Europe .......................................................................................................... 7 

Conclusions .................................................................................................................. 7 

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1. 

INTRODUCTION — BACKGROUND TO THIS REPORT 

Article  33  of  the  Audiovisual  Media  Services  Directive,  ‘the  AVMSD’,  invites  the 
Commission to submit regularly a report on the application of the Directive to the European 
Parliament, the Council and the European Economic and Social Committee. This is the first 
application report on the AVMSD and covers the period 2009-20101. 

The  first  part  of  the  report  looks  retrospectively  at  the  implementation  of  the  Directive, 
including questions about the effectiveness of qualitative advertising rules in a sector where 
the  offer  and  individuals'  response  to  advertising  are  changing.  Where  the  assessment 
identifies room for improvement, this does not weaken the intervention logic of the AVMSD 
but calls for more effective means. The report thus serves as a building block to strengthen the 
evidence base towards that end. 

The  second  part  addresses  in  a  prospective  way  the  influence  of  important  technological 
changes  on  the  regulatory  framework  as  traditional  broadcasting  and  internet  rapidly 
converge.  

The AVMSD aims to ensure the free circulation of audiovisual media services as an internal 
market instrument reflecting the right to freedom of expression and information enshrined in 
Article  11  of  the  Charter  of  Fundamental  Rights  of  the  European  Union  while  at  the  same 
time ensuring the protection of important public policy objectives. 

The  AVMSD  defines  a  set  of  minimum  requirements  to  ensure  a  level  playing  field  and 
allows  audiovisual  media  services  to  circulate  freely  throughout  Europe.  In  some  cases,  the 
AVMSD harmonises concepts (e.g. advertising spot) whereas in other cases, it does not affect 
the  competence  of  Member  States  to  define  specific  requirements  in  the  light  of  national 
circumstances and traditions (e.g. content harmful for minors). 

Altogether  the  European  regulatory  framework  for  audiovisual  media  services  has  served 
citizens and businesses well. 

For business, it has provided the stable legal framework media service providers need to make 
business  decisions.  Since  its  creation,  the  regulatory  framework  has  allowed  the  market  to 
grow from a small number of service providers to more than 7,500 broadcasters today. It has 
also enabled the development and growth of video-on-demand services. An estimation of on-
demand services in the EU by the competent regulatory authorities would be at least 650 as of 
January 2012. 
In February 20122 the number of online video-on-demand services3 (excluding catch-up TV 
services,  news-only services, adult  programmes,  film  trailers,  home  shopping  programmes 
and  branded  services  such  as  YouTube,  Dailymotion  and  iTunes)  is  estimated at  251  in  the 
EU.  

1 
2 
3 

Developments in 2011 have been covered where appropriate. 
European Audiovisual Observatory. 
Feature  or  short  films,  TV  catalogue  programmes,  animation,  documentaries,  training,  music  and 
archives. 

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From a citizen's perspective, access to channels and choice of audiovisual services has increased 
significantly. In 2009, television viewing time increased in almost all Member States, with the 
daily average ranging from 145 minutes in Austria to 265 in Hungary.  

The  last  revision  of  the  Directive  (2005-2007)  was  in  response  to  the  convergence  of  all 
audiovisual  media  and  brought  on-demand  services  within  the  regulatory  framework.  The 
challenge is now to monitor market developments and new business models to ensure that the 
regulatory  framework  continues  to  provide  the  right  conditions  for  growth  and  the 
achievement of public policy goals. 

In  response  to  the  call  from  the  European  Council  to  develop  a  roadmap  for  a  true  digital 
single market in Europe by 2015 and as part of the Union’s Europe 2020 strategy for growth 
and  jobs  and  the  Digital  Agenda  for  Europe  as  its  flagship  initiative,  the  European 
Commission will launch a debate on the challenges and opportunities of convergence. 

2. 

APPLICATION OF THE DIRECTIVE 

The AVMSD is an internal market instrument that combines the right to provide audiovisual 
services  with  the  right  to  freedom  of  expression  and  information  and  the  protection  of 
important public interest objectives. 

As  regards  the  transposition  of  the  AVMSD,  by  the  end  of  2011  notifications  had  been 
received from a total of 23 Member States, twenty of which amounted to full transpositions. 
Three Member States still need to make some changes to their legislation in order to comply 
with the Directive. Measures communicated by two Member States are still being examined. 
At the end of 2011, seven infringement proceedings for non-communication of transposition 
measures were still pending. 

In  2011  the  Commission  wrote  on  various  issues  to  24  Member  States  seeking  information 
about  their  implementation  of  the  AVMS  Directive.  This  exercise  was  followed  up  by 
meetings with the Member States concerned. 

2.1. 

Country 
(Articles 2, 3 and 4) 

of 

origin, 

free 

circulation 

and 

freedom 

of 

expression  

Internal market rules in conjunction with the right to freedom of expression and information 
find  practical  application  in  the  country  of  origin  principle  of  Article  2  of  the  AVMSD. 
Services  that  comply  with  the  law  of  the  Member  State  in  which  their  providers  are 
established  may  circulate  freely  within  Europe  without  a  second  control  by  the  receiving 
Member State. 

However, this freedom of circulation of services is not limitless. The Directive provides for 
safeguard  clauses  for  the  receiving  country  to  protect  societal  interests  of  paramount 
importance,  such  as  the  protection  of  minors  and  bans  on  incitement  to  hatred.  In  practice, 
Member  States  may  take  safeguard  measures  where  a  television  broadcast  originating  in 
another  Member  State  manifestly,  seriously  and  gravely  infringes  the  Directive’s  rules  on 
protection  of  minors  or  incitement  to  hatred.  A  similar  provision  exists  with  respect  to  on-
demand services. 

Media  freedom  and  pluralism  are  essential  features  of  democratic  societies  and  explicitly 
recognised by the Charter of Fundamental Rights of the European Union as an element of the 

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right to freedom of expression and information. Notably when using the possibility of Article 
4(1) AVMSD to apply stricter rules to the providers under their jurisdiction, Member States 
have to comply with these fundamental principles. These considerations also formed the basis 
of the discussions between the Commission and the Hungarian authorities on the new media 
legislation as regards the obligation of balanced coverage and the rules on offensive content. 
Some modifications were also agreed between the Commission and the Hungarian authorities 
on other provisions which could constitute an infringement of the AVMSD and/or the rules on 
free circulation of services and establishment.4 

2.2. 

Public  policy  objectives:  protection  of  minors  and  incitement  to  hatred 
(Articles 6, 12 and 27) 

Prohibition of incitement to hatred based on race, sex, religion or nationality is a key public 
policy  objective  pursued  by  the  AVMSD.  During  the  reference  period,  this  provision  was 
applied in relation to the repeated broadcasting by the satellite channel Al Aqsa under French 
jurisdiction of material inciting to anti-Semitic hatred. 

The  Commission  intervened  and  the  French  regulator  ordered  the  French  satellite  capacity 
provider  Eutelsat  to  stop  the  retransmission  of  Al  Aqsa  TV,  who  ceased  transmitting  such 
programmes in Europe. 

2.3. 

Audiovisual media services for all: accessibility (Article 7)  

Accessibility of audiovisual media services for all EU citizens is a further key objective that 
the AVMSD pursues by requiring access for hearing and visually impaired people to improve 
over  time.  All  Member  States  have  introduced  rules  to  that  effect.  The  implementation  of 
these rules, however, reflects the diversity of market conditions. While some Member States 
have very detailed statutory or self-regulatory rules, others have only very general provisions 
or limit the accessibility obligation to the services of public service broadcasters. 

2.4. 

Freedom of expression: right to information (Articles 14 and 15) 

In  order  to  ensure  the  public's  right  to  information  on  events  of  major  importance,  Member 
States may draw up a list of events that they deem to be of major importance for their society. 
The list of events and the measures must be approved by the Commission. 

FIFA and UEFA introduced a complaint before the General Court against the decisions taken 
by the Commission with respect to the Belgian and UK lists of major events. This concerned 
the inclusion of the entire final tournament of the FIFA World Cup and the UEFA European 
Championship in these lists. 

The  General  Court  has  recognised  the  possibility  of  restricting  fundamental  freedoms  for 
overriding reasons of public interest, which in this case is the public's right to information as 
an element of freedom of expression and information5. 

4

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http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/11/6&format=HTML&age

d=0&language=EN&guiLanguage=en. 
Cases T-385/07, T-55/08 and T-68/08, FIFA/ UEFA/ Commission, 17.2.2011. 

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The General Court closely scrutinised the elements put before it and recognised the validity of 
the  Commission's  decision  on  the  Belgian  and  UK  lists  of  events  of  major  importance 
regarding  the  inclusion  of  the  entire  final  tournament  of  the  FIFA  World  Cup  and  UEFA 
European Championship. 

2.5. 

Cultural  diversity:  promotion  of  European  and 
(Articles 13, 16 and 17) 

independent  works  

In  order  to  promote  cultural  diversity,  broadcasters  must  reserve  a  majority  of  their 
transmission  time  for  European  works.  They  must  also  reserve  at  least  10 %  of  their 
broadcasting  time  or  programming  budget  for  European  works  created  by  independent 
producers. A similar obligation exists regarding video-on-demand services. The Commission 
reports periodically on the implementation of these obligations. 

The  last  report6  shows  that  throughout  the  EU  the  average  broadcasting  time  for  European 
works increased from 62.6 % in 2007 to 63.2 % in 2008. Between 2005 and 2008 it remained 
stable  at  a  satisfactory  level.  The  average  share  of  independent  works  broadcast  by  all 
European channels dropped slightly in 2008 (34.9 %) compared to 2007 (35.3 %). The overall 
trend in the medium term (2005-2008) also shows a slight downward trend for independent 
works. Nevertheless, the results achieved testify to satisfactory implementation of Article 17. 

Some Member States have included stricter or additional rules in their national legislation by 
requiring  a  higher  proportion  of  European  works,  independent  works  or  productions  in  an 
official  language  of  the  country7.  Spanish  legislation,  for  instance,  requires  broadcasters  to 
earmark  a  percentage  of  their  operating  revenues  for  the  pre-funding  of  European 
cinematographic films and films made for television; 60 % of that funding is reserved for the 
production  of  works  in  one  of  Spain's  official  languages.  This  obligation  was  challenged 
before  the  European  Court  of  Justice8.  The  Court  confirmed  that  Member  States  may  adopt 
measures  to  defend  and  promote  one  or  several  official  languages  as  part  of  their  cultural 
policy. 

2.6. 

Commercial communications (Articles 10, 11 and 19 to 25) 

The proportion of advertising and teleshopping spots on television may not exceed 12 minutes 
per  hour.  The  application  of  this  rule  gave  rise  to  discussions  on  the  concept  of  advertising 
spots. Monitoring of advertising practices in Spain highlighted the use of special commercial 
formats,  clearly  promotional,  called  ‘anuncios  publicitarios  de  patrocinio’,  ‘microespacios’, 
'merchandising  spots’,  ‘telepromotion  spots’  and  ‘morphing  spots’  which,  according  to  the 
Spanish authorities, did not amount to advertising spots and hence did not fall under the 12 
minute rule. 

In line with the Commission's position, the Court found that an advertising spot is any type of 
advertising broadcast between programmes or during breaks, unless it is covered by another 
form of advertising expressly governed by the AVMSD or unless it requires, because of the 
way  it  is  presented,  a  duration  greater  than  that  of  advertising  spots,  on  condition  that  an 
application  of  the  restrictions  prescribed  for  advertising  spots  would,  without  valid 

6 
7 

8 

COM(2010) 450.  
See Contact Committee document 
http://ec.europa.eu/comm/avpolicy/reg/tvwf/contact_comm/index_en.htm. 
Case C-222/07, UTECA, 5.3.2009. 

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justification,  amount  to  disadvantaging  the  form  of  advertising concerned9 . In other words, 
the Court adopted a wide and uniform interpretation of the notion of ‘advertising spot’ in line 
with  the  purpose  of  Article  23  AVMSD,  which  is  to  protect  the  viewer  from  an  excessive 
amount of advertising. 

The Commission monitored advertising practices in eight Member States during the reference 
period.  In  a  number  of  Member  States  the  12-minute  limitation  of  advertising  spots  is 
regularly  breached.  On  the  basis  of  these  findings,  administrative  letters  were  sent  to  the 
Member  States  concerned  and  discussions  are  still  ongoing.  The  Commission  intends  to 
continue  monitoring  Member  States'  compliance  with  the  12-minute  rule  and,  if  necessary, 
initiate infringement procedures.10 

The  monitoring  of  advertising  practices  also  revealed  a  number  of  issues  in  the  area  of 
commercial communications concerning sponsorship, self-promotion and product placement. 
This  shows  a  need  to  clarify  the  rules  governing  the  various  forms  of  commercial 
communications. 

For  the  first  time,  the  implementation  of  the  qualitative  provisions  on  advertising  was 
monitored  separately  during  the  reference  period.  The  relevant  provisions  concern  alcohol 
advertising,  gender  discrimination  and  advertising  targeting  minors.  Content  analysis  was 
considered to be the most appropriate methodology11. 

In  the  monitored  Member  States  alcohol  advertising  represents  between  0.8 %  and  3 %  of 
overall advertising activity on audiovisual media services based on the total number of spots 
broadcast over the monitored period. As regards the application of the relevant provision of 
the AVMSD, very few cases of clear infringements have been found. However, a significant 
proportion,  more  than  50 %,  of  the  advertising  spots  contained  elements  which  might  be 
linked to some of the characteristics banned by the AVMSD, although in view of the detailed 
requirements of the AVMSD they fell short of constituting a clear cut infringement.  

In  implementing  the  AVMSD  requirements  on  alcohol  advertising,  22  Member  States  have 
put  in  place  somewhat  stricter  rules  for  alcohol  advertising12  involving  channels,  advertised 
products or time slots. 

The  AVMSD  also  regulates  advertising  targeting  children.  Audiovisual  commercial 
communications must not cause physical or moral harm to minors. This means that they must 
not: directly exhort minors to buy or hire a product or service by exploiting their inexperience 
or  credulity;  directly  encourage  minors  to  persuade  their  parents  or  others  to  purchase  the 
goods or services being advertised; exploit the special trust minors place in parents, teachers 
or other persons; or unreasonably show minors in dangerous situations.  

Content  analysis  of  the  100  most  frequently  broadcast  advertising  spots  showed  that  the 
Directive’s provisions on the protection of minors in advertising were seldom contravened. As 

9 
10 

11 

12 

Case C-281/09, Commission/Spain, 24.11.2011. 
For results of previous monitoring activity, see the application reports available at: 
http://ec.europa.eu/avpolicy/reg/tvwf/implementation/reports/index_en.htm. All Member States will 
have been monitored by the end of 2012. 
Content analysis is a research technique for the objective, systematic and quantitative description of the 
manifest content of communication. For more details see staff working paper. 
See Contact Committee document   
http://ec.europa.eu/comm/avpolicy/reg/tvwf/contact_comm/index_en.htm . 

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with alcohol advertising, because of the detailed wording of the relevant provisions, there are 
few  infringements  of  the  AVMSD.  Nevertheless,  it  does  appear  that  advertising  techniques 
geared towards minors are frequently used in television advertising. 

Five  Member  States  prohibit  advertising  in  children’s  programmes.  Four  Member  States 
impose  a  partial  ban  or  other  restrictions  on  advertising  in  children’s  programmes,  either 
during  specific  time  slots  or  for  specific  products,  and  seven  Member  States  prohibit  the 
showing of sponsorship logos in children’s programmes13.  

In view of the above, it seems appropriate to update in 2013 the Commission’s interpretative 
communication on certain aspects of the provisions on televised advertising in the ‘Television 
Without  Frontiers’  Directive14.  The  experience  gained  around the  EU  Platform  on  Nutrition 
and the Alcohol Health Forum as well as the work carried out on behavioural advertising will 
be taken into account in this update. Further investigations are required to assess the impact of 
commercial  communications,  especially  for  alcoholic  beverages,  on  minors  as  regards 
exposure  and  consumption  behaviour,  and  the  effectiveness  of  the  Directive's  restrictions  in 
achieving  requisite  protection,  while  taking  account  of  the  benefit/cost  ratio  of  monitoring 
activities. The Commission will initiate necessary research in 2013. 

Another  issue  addressed  by  the  AVMSD  in  the  field  of  commercial  communications  is 
discrimination based on sex, racial or ethnic origin, nationality, religion or belief, disability, 
age or sexual orientation. Such discrimination is prohibited. Another aspect of discrimination 
is  the  systematic  association  of  a  certain  category  of  the  population  with  specific  roles  or 
attitudes. An analysis of sex discrimination and gender stereotypes in the 100 most frequently 
broadcast advertising spots in eight Member States was made. Stereotyped representation of 
gender  roles  was  found  in  21 %  to  36 %  of  the  spots  analysed.  However,  in  some  Member 
States a number of positions, professions or products are more systematically associated with 
a specific gender than in other Member States. None of the countries surveyed is immune to 
such stereotyped representations. 

Member  States  and  stakeholders  raised  the  question  whether  cross-border  broadcasts  of 
gambling  advertising  fall  within  the  areas  coordinated  by  the  AVMSD.  Article  1(1)(h)  is 
intended to cover all forms of audiovisual commercial communication defined as 'images with 
or without which are designed to promote, directly or indirectly, the goods, services or image 
of  a  natural  or  legal  entity  pursuing  an  economic  activity'.  However,  the  AVMSD  does  not 
apply to gambling services as such. 

2.7. 

Self-regulatory initiatives (Article 4(7)) 

Another important feature of the AVMSD is the reference to alternative means of regulation 
by way of self-/co-regulatory initiatives, particularly in the field of advertising. These regimes 
must  be  broadly  accepted  by  the  main  stakeholders  in  the  Member  States  concerned  and 
provide  for  effective  enforcement.  In  all  but  two  Member  States  self-  or  co-regulatory 
schemes  exist,  or  encouragement  provisions  have  been  directly  included  in  the  media 
legislation15. 

13 

14 
15 

See Contact Committee document 
http://ec.europa.eu/comm/avpolicy/reg/tvwf/contact_comm/index_en.htm. 
OJ C 102, 28/4/2004, p. 2, see Annex. 
See Contact Committee document   
http://ec.europa.eu/comm/avpolicy/reg/tvwf/contact_comm/index_en.htm. 

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For the advertising and marketing of food to children, self-regulatory practices have also been 
promoted  at  EU  level  through  the  EU  Platform  for  Action  on  Diet,  Physical  Activity  and 
Health.  The  Platform  has  obtained  a  total  of  more  than  300  stakeholder  commitments.16 
Responsible  commercial  communication  for  alcoholic  beverages  also  accounts  for  25%  of 
more  than  200  commitments  undertaken  by  members  of  the  European  Alcohol  and  Health 
Forum.  Self-regulation  of  marketing  and  advertising  of  alcoholic  beverages  has  thus 
substantially improved in terms of media services and Member States covered. Further work 
will  have  to  establish  the  contribution  that  these  initiatives  make  to  attaining  the  level  of 
protection required and whether common definitions need to be introduced to reinforce their 
effectiveness.  An  evaluation  of  the  Platform  for  Action  on  Diet,  Physical  Activity  and 
Health17  concluded  that  stakeholders’  initiatives  in  the  field  of  marketing  and  advertising 
showed good progress, but that their impact could be further strengthened. In the context of 
these platforms, the Commission will support the development of a definition of stricter age 
and  audience  thresholds  for  advertising  and  marketing  and  more  consistent  nutritional 
benchmarks across companies. Member States have a key role to play in framing industry-led 
self-regulatory  approaches,  in  particular  with  regard  to  the  efficient  and  well-resourced 
administration of codes and the handling of complaints. 

In  the  more  specific  area  of  audiovisual  commercial  communications  in  children’s 
programmes  for  sweet,  fatty  or  salty  foods  or  drinks,  Member  States  must  encourage 
audiovisual  media  service  providers  to  develop  codes  of  conduct  regarding  inappropriate 
audiovisual commercial communications in children’s programmes. 

3. 

RECENT  TECHNOLOGICAL  DEVELOPMENTS  AND  EXPANSION  OF  THE  AUDIOVISUAL 
MEDIA SERVICES MARKET IN EUROPE 

The  emergence  of  Connected  or  Hybrid  TV  integrating  Internet  and  Web  2.0  features  into 
modern television receivers marks a new stage in the convergence of Internet and TV. While 
some  providers  offer  a  limited  number  of  applications  with  no  real  Internet  access,  others 
offer open access to audiovisual content on the Internet.  

Several major US operators are in the process of launching their services in the EU and the 
emergence  of  those  new  platforms  will  undoubtedly  increase  competitive  pressure  on  the 
creation, financing and retail of EU works.  

Connected  TV  services  are  currently  operational  in  Germany  and  Italy  and  about  to  be 
introduced  in  France  and  the  UK.  The  use  of  Connected  TV  remains  limited  at  present. 
Although  many  of  the  TV  sets  sold  now  are  connectable,  only  20%  to  30 %  are  actually 
online.  With  more  citizens  having  access  to  higher  Internet  speeds,  and  the  increase  of 
connected  devices  and  available  content,  it  can  be  expected  that  Connected  TV  will  grow 
relatively fast over the next few years.  

In addition to traditional broadcast TV, connected devices including tablets, smart phones and 
consoles also provide consumers with access to video-on-demand services through apps and 
catch-up  TV  services  from  broadcasters’  own  hybrid  broadcast/broadband  platforms. 
Estimates predict 47 million active connected in-home devices in Europe including connected 

16 
17 

http://ec.europa.eu/health/nutrition_physical_activity/platform/platform_db_en.htm 
http://ec.europa.eu/health/nutrition_physical_activity/docs/evaluation_frep_en.pdf  

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TV sets, games consoles, standalone TV set-top boxes, Blu-ray disc players and pay-TV set-
top boxes by the end of 201118. 

The opportunities opening up and the challenges posed by the transition to Connected TV are 
substantial:  achieving  a  level  playing  field, standardisation  issues,  access  to  underlying 
platforms, switching costs and ‘lock-in’, control over advertising and content, impact on the 
effectiveness  of  measures  promoting  European  works,  intellectual  property  rights  issues19, 
protection of minors, data protection and media literacy of vulnerable groups. 

technological  evolution  might  have  as  consequence 

This 
that  boundaries  between 
broadcasting and over the top delivery of audiovisual content become blurred. The regulatory 
framework set by the AVMSD will have to be tested against evolving viewing and delivery 
patterns.  There  is  a  need  to  maintain  a  consistent  level  of  protection  across  different 
audiovisual  media  environments  while  taking  into  account  their  respective  specificities. 
Recent studies indicate that consumers suffer substantial detriment when using digital content, 
including audiovisual media, especially due to problems with accessing the content, unclear 
or  missing  information,  and  low  quality  content20.  Viewers  also  have  high  expectations  of 
content  regulation  of  broadcast  television  and  associated  VOD  and  catch-up  services.21  For 
on-demand  delivery,  the  Directive  already  provides  the  same  high  levels  of  protection  on  a 
number  of  issues  including  service  provider  identification,  a  complete  ban  on  incitement  to 
hatred and qualitative standards for audiovisual commercial communication. 

An  important  element  going  forward  is  the  level  of  media  literacy.  Media  literacy  is  the 
ability to access, understand and critically evaluate different aspects of the media and media 
content  and  to  establish  communications  in  a  variety  of  contexts.  A  monitoring  for  the 
Commission during the reference period22 found 28 % of the EU's population to have a basic 
level of critical understanding, 41 % a medium level and 31 % an advanced level. 

A  significant  part  of  the  population  (75%-80 %)  seems  to  have  a  rather  critical  view  of 
audiovisual  media  services  and  is  aware  of  the  existence  of  regulation  in  that  area. 
Nevertheless, there are parts of the population (offline, young people, low income) where the 
level of media literacy and regulatory awareness is clearly much lower. As regards younger 
age  groups  and  their  perception  of  advertising,  the  study  concluded  that  age  is  one  factor 
involved in the identification of advertising, but not the only one. Advertising literacy helps 
younger people recognise the selling intent, but the identification of more subtle techniques is 
more complex and generally not within the reach of the majority of children. 

In  view  of  the  above,  technological  developments  need  to  be  followed  closely.  Preliminary 
discussions have already taken place with the Working Group of EU Regulatory Authorities 
in the field of Audiovisual Media Services and the Contact Committee. A further debate with 
stakeholders should help formulate a European policy response to maximise opportunities for 

18 
19 
20 

IHS Source Digest. 
See also Green Paper on the online distribution of audiovisual works, COM(2011) 427 fin.  
Europe Economics: Digital Content Services for Consumers: Assessment of Problems Experienced by 
Consumers (2011):  

http://ec.europa.eu/justice/consumer-marketing/files/empirical_report_final_-_2011-06-15.pdf;  
Detailed Survey Results:  
http://ec.europa.eu/justice/consumer-marketing/files/empirical_report_final_appendix_9_2011-06-15.pdf 
21 
22 

Ipsos MORI, Protecting Audiences in a Converged World, January 2012. 
Danish Technological Institute and European Association for Viewers’ Interests, Testing and Refining 
Criteria to assess Media Literacy levels in Europe, April 2011. 

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citizens and for the European audiovisual sector and to address the policy challenges which 
Connected TV raises. 

The  Commission  will  deepen  its  analysis  in  the  coming  months  and  launch  a  wider 
consultation process in view of a policy document on Connected TV. 

4. 

CONCLUSIONS 

All  in  all,  the  European  regulatory  framework  for  audiovisual  media  services  has  struck  the 
right balance and served citizens and businesses well. 

Nevertheless, some points need attention, particularly in the field of audiovisual commercial 
communications,  where  several  of  the  issues  involved  should  be  further  monitored  and 
assessed in order to strengthen the effectiveness of the rules having regard to their objective, 
in  particular  with  regard  to  the  protection  of  minors  across  different  audiovisual  media 
environments. The envisaged update of the Interpretative Communication on certain aspects 
of the provisions on televised advertising in the ‘Television Without Frontiers’ Directive will 
provide clarification on specific issues in this field. 

More effort needs to be made to create scale, support and best practice for codes of conduct 
on  inappropriate  commercial  communications  for  food  high  in  fat,  salt  or  sugar  targeting 
children. The effectiveness of such codes of conduct must be further assessed. 

Foreseeable technological developments might blur the boundaries between broadcasting and 
over the top delivery of audiovisual content. As a result, the current regulatory framework set 
by the AVMSD may have to be tested against evolving viewing and delivery patterns taking 
into  account  related  policy  goals  such  as  consumers'  protection  and  the  level  of  media 
literacy. 

As the possible impact on the market and the regulatory framework are not totally clear yet, a 
full assessment of the current and future situation should be made. The Commission launched 
an  open  debate  with  stakeholders  about  "over-the-top"  delivery  of  audiovisual  content  and 
will deepen this analysis in the coming months in view of a policy document on Connected 
TV. 

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