Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

_**it**_ *****

**Brussels, 30.06.1995**
**COM(95)** **149 final**

**95/0156 (CNS)**

**COMMUNICATION FROM THE COMMISSION**

**to the European Parliament and the Council**
**concerning a multi-annual Community programme**
**to stimulate the development of** **a** **European multimedia content industry**
**and to encourage the use of multimedia content in the emerging information society**

**(INFO2000)**

**Proposal for a**
**COUNCIL DECISION**

**adopting a multi-annual Community programme**
**to stimulate the development of a European multimedia content industry**
**and to encourage the use of multimedia content in the emerging information society**

**(INFO2000)**

**If**
**(presented by the Commission)**

COMMUNICATION FROM THE COMMISSION

to the European Parliament and the Council
concerning a multi-annual Community programme
to stimulate the development of a European multimedia content industry
and to encourage the use of multimedia content in the emerging information society

(INFO2000)

_**1***_

**TABLE OF CONTENT**

0. Definitions, 1 £

1.INFO2000: The political context 2

2. The nature of the content industry and market 4

2.1. The changing business environment 4
2.2. The strategic importance of the content industry 5

2.3. Europe's competitive position 7

3. The way forward 8

3.1. Objectives and actions 8

3.2. Addressing obstacles to growth 9
3.3. Participants 11
3.4. Selection of projects.. 12
4. Concluding remarks, 12

ANNEX 1 : SUMMARY OF INFO2000 ACTIONS

ANNEX 2: LIST OF ACRONYMS/ABBREVIATION S

_**1*>**_

**0.** **DEFINITIONS**

**WHAT** **DO WE** **MEAN** **BY CONTENT ?**

_**Content**_ is defined in this communication as data, text, sound, images or multimedia
combinations thereof, represented in analogue or digital format on a variety of carriers
such as paper, microfilm, magnetic or optical storage.

**WHAT** **DO** **WE MEAN** **BY THE CONTENT INDUSTRY?**

The _**content industry**_ is involved in three main **activities:**

- creation

- development

- packaging and distribution of content-based products and services

The different **segments** of the industry are:

- print publishing (newspapers, books, magazines, corporate publishing)

- electronic publishing (on-line databases, videotex services, audiotex services, faxand CD-based services, video games)

- the audiovisual industry (television, video, radio, audio and cinema).

The content industry is the single most important sector, both in terms of market value
and employment, within the information industry at large, which includes the
telecommunications equipment and services, computer systems and services, consumer
electronics and office equipment industries.

**WHAT** **IS THIS COMMUNICATION ABOUT?**

The focus of this communication is on the transition from print to electronic publishing
and on the interactive multimedia information services that are rapidly emerging.

This communication **does not** address those specific questions relating to the
audiovisual industry, which are the subject of specific policy measures (Action plan for
the introduction of advanced television services in Europe, MEDIA programmes and
'Television without frontiers' Council Directive). INFO2000 complements other
Community programmes under the Fourth Framework Programme (especially IT,
ACTS and TELEMATICS) and those addressing the cultural (RAPHAËL), SME
(Integrated Programme in favour of SMEs and the Craft sector) and education and
training (SOCRATES, LEONARDO) domains.

_**1c**_

**1.** **INFO2000:** **THE POLITICAL CONTEXT**

**The content industry** **—** **one of the key dimensions of the information** society

The vision of a global networked economy and information society in which
information and communication technologies and services play a crucial role in
transforming all aspects of economic and social life is now at the heart of the global
political agenda.

Content, in all its forms, is the vital raw material of the information society. This
communication therefore deals with a key dimension of the European information
society: the future development of the content industry in Europe.

The need for **political action** at European level to support Europe's transition to the
information society has been widely recognised:

- in the **White Paper** "Growth, competitiveness, employment: the challenges and
ways forward into the 21st century"

- in the **Bangemann report** "Europe and the global information society Recommendations to the European Council"

- at the **Corfu and Essen Summits**

**•** in the **Commission's Action Plan** "Europe's Way to the Information Society"

 - at the successful Brussels **G7 Conference** devoted to the information society.

The content industry is a **crucial sector** for the European economy and society, for at
least three reasons:

1. It is important in terms of **employment.** It provides knowledge-intensive
employment to over 2 million employees in Europe, realising a yearly turnover
estimated at ECU 150 billion in 1994. The growth in this market is considerably
above average growth rates and is set to remain so for years ahead.

2. Information services are key to improving the **competitiveness** of the European
economy as information increasingly becomes a major factor in determining the
efficiency and productivity of enterprises and administrations worldwide.

3. Information services are important carriers of Europe's **cultural identity** and
**linguistic diversity.** The free flow of information supports the proper functioning
of our democracies and, of course, the further development of the single market.

The content industry's role will become **even more vital in the future** because the
expanding **information infrastructure** will fuel the demand for high quality, easily
accessible and usable information services and will increase the opportunities for
knowledge-intensive employment.
#### **_I_**

The key issue is whether the European content industries will succeed in exploiting the
opportunities created by the emerging information highways.

Although basically strong and healthy, the European content industry faces some
**comparative disadvantages:**

- Telecommunication costs in Europe are higher than in other parts of the world

- The European multimedia market lags behind the US by 3-5 years and remains
fragmented through linguistic and cultural differences

- Trading of multimedia rights and access to and exploitation of Europe's public
sector information are more complex than elsewhere in the world.

- Many content providers are nationally or regionally oriented, while the single
market does not yet fully function in this domain.

Therefore, action is needed at the European level to mitigate these drawbacks. Europe
must act quickly and vigorously to ensure favourable conditions for the development
of its content industry and to foster its global competitiveness.

**An integrated and co-ordinated approach** at the European level

Important steps are already being undertaken by the Union to create the preconditions
for a thriving content industry:

 - The liberalisation of telecommunications networks and services by 1 January
1998 will facilitate the distribution of content and drive distribution costs down.

 - A clear and stable **regulatory framework,** particularly in relation to intellectual
property rights and privacy protection, will ensure protection of rights and people.

 - Research and Technological Development (RTD) on applications of public
interest is being supported in the Fourth Framework Programme.

To complement these actions, INFO2000 aims at stimulating the emerging multimedia
content industry (a large part of which comprises small and often new enterprises) to
recognise and exploit the new business opportunities that will be created. Its focus is
on the transition from print to electronic publishing and on the interactive multimedia
information services that are emerging.

The actions of INFO2000 take a dual approach: firstly, building on the basic strengths
of Europe's content industry, and secondly addressing some of the weaknesses of the
content industry and market in Europe.

To ensure that the actions fit into the global context, specific attention will be given to
linking them to the recent Group of Seven (7 most industrialised nations - G7)

**3**

initiatives and to the relevant activities of international organisations such as the
Organisation for Economic Co-operation and Development (OECD), the World Trade
Organisation (WTO), World Intellectual Property Organisation (WIPO) and the
Council of Europe.

**2.** **THE NATURE OF THE CONTENT INDUSTRY AND MARKET**

**2.1.** **THE CHANGING BUSINESS ENVIRONMENT**

**Structural changes** are taking place in the information industry with unprecedented
speed:

- the rapid progress in the development of information and communication
technologies (ICT)

- the continuing improvement in the performance and the reduction in prices of these
technologies

- the development and increased availability of new applications

- the blurring of boundaries between historically distinct sectors of the content
industry (like print publishing, electronic publishing, audiovisual) as content is
increasingly produced in digital form.

These structural changes are having the following effects:

 - _**New players are entering the market**_ New players, often from other parts of
the information value-chain like distribution (telecom operators) or end-user access
(computer, consumer electronics or software companies), are entering what used to
be the exclusive domain of the content providers

 - _**High capacity distribution channels**_ Broadband technology (high capacity
'pipelines' and ultra fast switches) and compression techniques (ability to 'squeeze'
information in digital form) are turning previously scarce delivery channels into a
commodity, soon to be in plentiful supply

 - _**Increased international competition**_ Globalisation of electronic publishing
market, coupled with deregulation, is increasing international competition in, up till
now, mainly national or regional content markets

 - _**It is more difficult to protect intellectual property rights**_ Protection of
intellectual property rights - the main instrument to ensure fair rewards for those
who create new content - is no longer self evident

**•** _**More choice and more independence for the user**_ Interactivity made possible

###### **_1_**

by producing or converting content into digital form (which can then be processed
by a computer) and market segmentation increase the choice for the user and give
him/her the ability to manipulate directly the information services that are offered.

The many take-overs, mergers, joint ventures and strategic alliances taking place,
particularly in Europe and in the US, between the different communications and mediarelated businesses, are a clear proof of the changing environment the content industry
will be facing in the years to come.

**2.2.** **THE STRATEGIC IMPORTANCE** **OF** **THE CONTENT INDUSTRY**

The importance of the content industry now and in the future can be illustrated by the
scope and size of its employment, sales, value creation, and trade position.

_**Scope**_

Content-related activities cover a whole chain whereby value is added during the
various steps in the process from source material to end-user. Creators,-developers and
packagers of the 'raw material' fuel the chain. Distributors provide the on- and off-line
delivery mechanisms allowing end-user access by a variety of terminal devices and
networks. The table on the next page illustrates this.

In addition, information is every business's second business. Different parts of the
information value-chain can be found in other industrial sectors, since most economic
or commercial activities involve the handling of information.

_**Employment and sales**_

The content industry is a big generator of revenue and jobs. Estimates of the content
industry in the European Union suggest a 1994 turnover of around 150 BECU,
employing over 2 million people. Content-related activities have historically generated
growth rates in turnover and employment well above average for the overall EU

economy.

The economic importance of the content industry within the EU can also be illustrated
by comparing it with the 1994 sales and employment levels of some related sectors:
telecommunications (133 BECU; 1.2 million full-time employees), information
technology (113 BECU; 0.96 million full-time employees) and consumer electronics
(43 BECU; 0.32 million full-time employees). Estimates for the US 1994 multimedia
market at large value the content industry at US$ 255 Billion, as against the
telecommunications sector at US$ 160 Billion and the information technology sector at
US$ 151 Billion.

If the revenue and employment associated with information activities in other industry
sectors are included in this analysis, content becomes an even more significant activity.

## **f**

**ACTIVITY** **SOURCE**

**CREATION**

**ACTORS**

eg.

**CONTENT**

**DEVELOPMENT**

```
     -48%

     UP

```

**THE INFORMATION VALUE CHAIN**

Shaded areas indicate the focus of INFO2000

**PACKAGING** **DISTRIBUTION** **END-USER**

**ACCESS**

Magnetic media
Optical media
Cable networks

Telephone networks
Mobile networks

Satellite networks

Paper

```
-38%

DOWN

```

**OBJECTS**

eg.

```
VALUE

ADDED

SHARE

TREND

```

_&_

Game consoles

Set-top boxes
PCs

TVs

Fax

Mobile terminals

```
-14%

CONSTANT

```

_**EFFECTS**_ _**OF USE**_

_Industry_

_Commerce_

_Administration_

_Services_

_Education and training_

_Consumers_

_Citizens_

_Growth_

_Compe_ _titiven ess_
_Employment_
_Better lifestyle_
_Better public service_
_Better education_

_**N.A.**_

_**UP**_

Images
Text

Graphics
Music

Sound

Code

Statistics

_**Value creation**_

Content accounts for a major share of the total value added generated in the
information value chain. Some private strategic studies estimate that at present the
share of content in the total value added is around 48%. Distribution activities and

end-user equipment generate some 38% and 14% respectively of total value added.

Due to increased competition and capacity in the distribution sector and wider
availability of distribution channels and delivery platforms, the relative share of content
in the information value chain is expected to grow even further. Recent market trends
and various studies support this expectation.

_**Trade position**_

The trading position of the European content industry is variable and contrasts with the
trading position of the IT and consumer electronics sector:

- The **audiovisual sector,** although strong in some areas such as music, has a
**negative** and deteriorating trade balance overall, estimated at -3.1 BECU with the
US for 1994. The problems of the audiovisual sector have a marked structural
component, which is receiving growing attention and is the subject of a separate
communication. [1 ]

- The computer **and** office equipment ard consumer electronics sectors have
significant and growing **negative** trade balances, evolving from -8.8 BECU in 1983
to-26 BECU in 1993.

- The traditional European publishing indu^i _y_ has a positive and improving trade
balance with the rest of the world, growing from 1.2 BECU in 1983 to 2.1 BECU
in 1993. The strong trading position in publishing has to be built upon, especially as
print publishing in its present form will be among the key sectors affected by the
move towards electronic publishing.

- An active policy as proposed in the INFO2000 programme is all the more important
because many indicators show that, within specific segments of the emerging
**electronic publishing markets,** Europe's position is weakening.

2.3. EUROPE'S COMPETITIVE POSITION ]]

The European Union's content sector possesses many strengths:

- overall market size and population

- the presence of **world-ranking** information and media conglomerates

- a long-established **publishing tradition**

COM(94)523 of 8 February 1995 'Audiovisual Policy. Stimulating dynamic growth in the European
programme industry (MEDIA2 1996-2000)'

**7-**

**•** a **rich content base**

**• large** established **markets** in **key** industrial sectors

- a **rich** cultural and linguistic **diversity.**

But, as said before (page 3), it also suffers from important weaknesses:

- more **fragmented** markets along cultural, linguistic and national lines

- more **expensive** telecommunication services, particularly transnational

- more **difficult access** to and exploitation of public sector information

- substantially **lower demand** for advanced information services

- most content providers are **nationally** or **regionally** oriented.

Considering Europe's competitive position in terms of electronic publishing and
infrastructure in the global context, it is vital that the position of European content
providers be strengthened. **Action** must be focused on:

- stimulating the necessary **structural adjustments** of the industry

 - **mobilising demand,** particularly at the European level

- exploiting the full potential of the **single market.**

**THE EU AND** **THE** **US COMPARED**

_Revenues_ In 1994 revenues of the US electronic information sector were more than

two and a half times the revenues of EU-based companies.
_**Equipment**_ The US is considerably ahead in terms of the penetration of information
technology equipment such as cable TV, personal computers (PCs) and modems (for
linking PCs to telecommunications networks).

_**Tariffs**_ High tariffs for the use of infrastructure inevitably have a negative impact
on the use and development of multimedia content. Tariffs for high capacity infrastructure
in the EU are on average 10 times higher than for equivalent capacity over equivalent
distances in North America.

_Telephone use_ The number of telephone calls per person per year in the EU is just over a
quarter of those in the US, even though a similar number of people have phones.

**3.** **THE WAY FORWARD**

**3.1A** **OBJECTIVES**

The proposed actions serve **three long-term** strategic objectives (see box below).
These objectives aim at maintaining, extending and exploiting Europe's strength in
content whilst narrowing the gap with our competitors. They are designed to
encourage an integrated development across the European Union.

##### **£**

OBJECTIVES

facilitating the development of the European content industry

optimising the contribution of new information services to growth,
competitiveness and employment in Europe

maximising the contribution of advanced information services to the
professional, social and cultural development of the citizens of Europe.

3.1B ACTIONS

In working towards the objectives of INFO2000, the weaknesses indicated above will
be tackled in an integrated and co-ordinated manner, along three action lines (see box
below). These actions aim at accelerating market uptake of multimedia products and
services; at unleashing the economic and cultural potential of public sector-information;
and at strengthening the international and pan-European dimension of the emerging
European multimedia content industry. They are described in detail in Annex 1 to the
Council Decision establishing INFO2000 and summarised in Annex 1 to this
Communication.

ACTION LINES

stimulating demand and raising awareness

exploiting Europe's public sector information

triggering European multimedia potential

3.2. ADDRESSING OBSTACLES TO GROWTH

The European content industry is faced with a number of obstacles to growth that
prevent it from quickly realising the critical mass necessary to compete on equal terms
in the newly emerging multimedia markets.

These obstacles need to be addressed by actions both at national and European level if
Europe is to expand its content industries, to exploit its richness of content and to face
international competition. It are these remaining barriers that will be addressed by the
proposed action lines as indicated below.

_**Stimulating demand and raising awareness**_

The variety of Europe's cultural and linguistic traditions makes economies of scope
and scale (economies made through being able to address a large single market with

_**°\**_

customised products) difficult to achieve and constrain product development. In
addition, many surveys point to a limited awareness of content available to users across
Europe. The aim here is to create new markets and to encourage clusters of panEuropean users.

Awareness-raising initiatives (action 1.1) are needed to develop further the
opportunities, as are actions to favour the development of pan-European user groups
(action 1.2). In addition, a common approach to information service interoperability
(action 4.2) will help to open up market potential.

_**Exploiting Europe's public sector information**_

The public sector holds a dominant position in some segments of the European content
market.

The actions proposed involve unleashing the economic and cultural potential of
Europe's public sector information by developing relevant EU policies (action 2.1), by
linking directories of European public sector information (action 2.2) and by making
use of content resources in the public sector (action 2.3).

_**Triggering European multimedia potential**_

The provision of attractive European multimedia content is still in its infancy. For this
market to take off the content must be attractive to the user, i.e. easy to access, well
presented and with adequate transaction and payment mechanisms. Solutions for
electronic advertising, electronic markets and digital revenue collection mechanisms
need to be identified, evaluated and encouraged at the European level.

Three areas of specific importance to Europe to stimulate the development of
attractive multimedia content are the exploitation of Europe's cultural heritage,
business services for SMEs, and geographic information (action 3.1). Also actions
aimed at making use of content resources in the public sector (action 2.3) will further
contribute to providing an attractive pan-European multimedia content package.

_**Encouraging small multimedia producers**_

Although large enterprises play an important role in the content industries, the great
majority of actors are small and medium sized enterprises (SMEs).

Most of the actions foreseen seek to encourage SMEs to overcome some of the
problems of the emerging multimedia market. However, the actions aiming at
catalysing high quality European multimedia content (action 3.1) and at facilitating
trading in multimedia rights (action 3.2) are particularly relevant.

_**Initiating European multimedia trading systems**_

The licensing and re-use of content is constrained by a lack of uniformity of approach
between media types, in different regions and in different markets. New digital

_**10**_

technology is only slowly being deployed to expand information trading markets.

Action is needed to ensure that multimedia trading systems can work across national
and sectoral borders and to encourage intellectual property owners to trade multimedia
rights. The actions foreseen aim at favouring a practical approach to this trading of
multimedia intellectual property rights (action 3.2).

_**Promoting new business practices**_

The newly emerging multimedia markets are often transnational in nature and require
new business approaches cutting across what used to be distinct business sectors.

New alliances and multidisciplinary teams will be increasingly required. For many
actors in the content industry this means that new forms of creativity will have to be
explored, new skills acquired, and new ways of conducting business implemented.

The changes and adjustments need to take place rapidly and be supported by
developing and exchanging best business practice to encourage entrepreneurship
(action 3.3) and by encouraging skills development (action 4.3).

3.3. PARTICIPANTS

Participants will be drawn from both users and suppliers in primarily content-related
activities in the information value chain. They will include those involved in:

source material creation of images, text, graphics, music, sound

content development for databases, electronic book titles, CD-ROM/CD-I
titles, game titles, and interactive TV programmes

content packaging, producing information services such as on-line databases,
videotex-, audiotex- and fax-based services, books, newspapers, magazines,
interactive TV services, electronic books, CD-ROM/CD-I information and
infotainment products, etc.

content distribution, exploiting delivery channels such as optical and magnetic
media, cable, satellite, and telephone networks, mobile networks, and paper

end-users such as large and small businesses, public sector administrations,
professionals, researchers, the education and training sector, consumers
and citizens. Particular attention will also be given to those end-users
who will see their roles evolving into suppliers of information services,
as part of the move towards electronic markets and communities.

Those involved in end-user equipment, communications software and hardware and
production tools will be invited to participate on the basis of the specific contributions
that they can make to the programme.

_**V**_

Although large corporations will be important players in the global information market,
they are not the main target for the programme actions. The emerging multimedia
market potentially creates a broad range of opportunities for small and new enterprises.
It is particularly this population and its inherent growth potential, in terms of both jobs
and revenue, that INFO2000 is targeting.

Distinctions between roles in the content industry are, however, blurring. An
increasingly wide range of actors from an ever broader group of sectors is becoming
involved in exchanging and trading content over electronic networks. It is important
that this whole range of experience be included in the programme if obstacles to
growth are to be properly identified and appropriate action taken.

**3.4.** **SELECTION OF PROJECTS**

The main vehicle for the implementation of the INFO2000 programme will consist of
Calls for Proposals as described in Annex III to the Council Decision.

**4.** **CONCLUDING REMARKS**

_**The role of the private sector**_ Building the information society and its
constituent elements (networks, basic services, applications, content) is first and
foremost the responsibility of the private sector. Its role is crucial because its
protagonists are accustomed to risk-taking, have extensive experience in exploring and
developing new markets and are a valuable source of capital.

_**The role of the public sector**_ Nevertheless, the public sector role is essential in
supporting the emergence of the information society at global, European, national and
regional levels. Firstly, by developing a vision that responds to the many social, societal
and cultural challenges. Secondly, by creating the appropriate regulatory conditions
through the liberalisation of telecommunications networks and services and a clear and
stable regulatory framework, particularly in relation to intellectual property rights and
privacy protection. And thirdly by catalysing the changes needed to adapt to the new
situation.

The actions proposed above aim at encouraging the transformation from print to
electronic publishing in Europe and at stimulating the emergence of interactive
multimedia information services.

The programme is based on extensive consultations with market actors, including user
groups, and with representatives of the Member States. It seeks to ensure the greatest
possible involvement of all relevant actors in the information value chain.

During the programme, the development of the European multimedia content market
will be regularly monitored. Particular attention will be given to the competitive
position of the multimedia content industry and its contribution to employment, social
development and cultural diversity.

_**iz**_

#

1

1.1

1.2

**^**

**ANNEX 1: SUMMARY** **OF INFO2000** **ACTIONS**

TITLE DESCRIPTION JUSTIFICATION

**Stimulating demand**
**and raising awareness**

Awareness and promotion are an important dimension of information
society policy actions. Activities will:

- Add a European dimension to national/regional activities

- Support know-how/experience exchange

- Facilitate co-operation in joint projects to achieve economies of scale and
European-wide coverage

- Build on previous experience and co-operation with other networks

- Lack of a well-articulated and organised demand-side at European level
because of dispersion of users

- Common European user problems for instance in relation to quality
assurance or liability questions need addressing

- European user groups are lacking in the multimedia content sector

Creating new markets by
raising awareness at the
European level with
specific user groups

Encouraging clusters of
pan-European users

Call for proposals for participating
organisations (30-50) to:

- Facilitate access to European wide
repositories and catalogues

- Demonstrate access to the European
information highways

- Support awareness campaigns and
user training

- Studies to analyse current situation

- Start-up incentives for creation and
functioning of clusters of panEuropean users

- Stimuli for co-operation and
exchange of experience

#

2

2.1

2.2

2.3

**^**

TITLE DESCRIPTION JUSTIFICATION

**Exploiting Europe's**
**public sector**
**information**

**Developing policies to access**
**and exploit European public**
**sector information**

**Linking directories of**
**European public sector**
**information**

**Making use of content**
**resources in the public**
**sector (particularly in the**
**cultural area)**

**- Studies to prepare a Green paper on access**
policies

Call for proposals for:

- Pilot projects that interconnect existing national
and regional directories of public sector
information

- Pilot projects for collaborative production of new
directories of public sector information

Call for proposals for:

- pilot projects for the networking of inventories to
exploit the digital content resources in the public

sector

- pilot projects that integrate digital inventories
with intellectual property trading systems

- **Co-ordination** **of access conditions for individuals and**

**businesses across the Union**

**- Co-ordination of conditions for re-use of content for businesses**

**across the Union**

**- Provision of equal opportunities for all individuals and**
**businesses to access public sector information in the EU**

**- Demonstration of practical solutions to make European public**
sector information easily **accessible to users in the** EU

- Co-ordination and EU-wide co-operation

- Strengthening the European content sector by providing easier
access to and transparency of content resources across Member
States

- Strengthening Europe's cultural identity

- Stimulating co-operation and experience exchange at European
level

#

3

3.1

3.2

3.3

**^**

TITLE DESCRIPTION JUSTIFICATION

**Triggering European**
**multimedia potential**

- Multimedia content developers (mainly SMEs and new companies)
have difficulty in exploiting the single market

- Partner finding, acquisition of rights, multilinguicity, multicultural
aspects, etc. are particularly problematic

- Management of rights presently dispersed by sector and by country

- A new approach is necessary for multimedia trading on a pan-European
scale

- Critical mass is a vital element in creating a true European multimedia
market

- Normal business rules of sectors in the content industry do not apply to
multimedia

- Common development of best practice and experience exchange
stimulate development of multimedia content industry

**Catalysing high quality**
**European multimedia**
**content**

**Trading multimedia**
**intellectual property rights**

**Developing and** exchanging
best business **practice**

Call for proposals to support the initial and
precommercial phases of pan-European
multimedia content development in the domains
of:

- European cultural heritage

- Business services for SMEs

- Geographic Information

- Call for proposals to support pilot projects
that lay the foundations for trading multimedia
rights across sectors (text, sound, images) and
across borders electronically

- Studies to determine how different existing
trading systems for intellectual property rights
can work together

- Development of practical tools that help SMEs
in trading EPRs

- Support to descriptions of best business
practice, e.g. studies, manuals

- Support to diffusion of best business practice,
e.g. workshops, seminars

#

4

4.1

4.2

4.3

**^**

TITLE DESCRIPTION JUSTIFICATION

**Support actions**

**Observing and**
**analysing the**
**multimedia content**

**market**

Spreading **the** use of
**multimedia** **content**

standards

Encouraging
skills development
at European level

Support to:

- scenario development

- quality assurance actions

- market monitoring

- strategic studies in specific areas

- concertation meetings with relevant players
(suppliers, users, administrations) to identify key
issues affecting the multimedia content industry

- Support to actions that raise awareness of
multimedia content standards

- Support will be given to consensus building
(workshops, etc.)

- Support to develop pilot courses for multimedia
developers

- Full implementation in Community education and
training programmes (LEONARDO and
SOCRATES)

- Multimedia content industry largely composed of SMEs

- Global and international markets rapidly changing

 - SMEs lack resources for such critical activities

- Programme actions need to remain rooted in reality

- Lack of interoperability and standardisation are obstacles to
development of the multimedia content market

- Adequate skills a key element for high quality multimedia
titles

- Interdisciplinary approach necessary (text, sound, video,
stills, animation)

- European dimension (mutilinguicity, multicultural) needs to
be incorporated at the design stage

**ANNEX** **2:** **List** **of** **Acronyms/Abbreviations**

ACTS RTD in the field of Advanced Communication Technologies and

Services

BECU Billion ECU
CD Compact Disk
CD-I Compact Disk Interactive
CD-ROM Compact Disk Read Only Memory
G7 Group of Seven Most Industrialised Nations
ICT Information and Communication Technology
IMPACT Information Market Policy Actions
IT Technological Development in the field of Information
Technologies
LEONARDO Vocational training programme
MECU Million ECU
MEDIA II Audiovisual Policy: Stimulating dynamic growth in the European
programme industry
OECD Organisation for Economic Co-operation and Development
PC Personal Computer
RAPHAEL Community action programme in the field of cultural heritage
RTD Research and Technological Development
SME Small or Medium Sized Enterprise
SOCRATES Community education programme
TELEMATICS RTD in the field of Telematics Applications
WIPO World Intellectual Property Organisation
WTO World Trade Organisation

_**(r**_

**Proposal for a**
**COUNCIL DECISION**

**adopting a multi-annual Community programme**
**to stimulate the development of** **a** **European multimedia content industry**
**and to encourage the use of multimedia content** **in** **the emerging information society**

**(INFO2000)**

**(presented by the Commission)**

_**I?**_

**Proposal for a Council Decision adopting a multi-annual** **Community**

**programme to stimulate the development of a** **European** **multimedia content**

**industry and to encourage the use of multimedia content in the emerging**

**information society** **(INFO2000)**

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular

Article 130 paragraph 3 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

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

Whereas the European content industry can make a significant contribution to the

stimulation of growth, to the strengthening of competitiveness and to the development

of employment in the Community, as indicated in the White Paper on "Growth,

competitiveness, employment - The challenges and ways forward into the 21st

century",

Whereas the European Council at Brussels on 10-11 December 1993 decided, on the

basis of that White Paper, to implement an action plan, consisting of concrete measures

at both Union and Member States level, notably with respect to information

infrastructures and new applications, for which new content is required;

Whereas the European Council at Corfu on 24-25 June 1994 took note of the

Recommendations of the High Level Group on the information society as presented in

the report "Europe and the global information society" ; and underlined that the

Community and Member States have an important role to play in bringing about the

information society by giving political impetus, by creating a clear and stable

regulatory and legal framework and by setting an example in areas which come under

OJN°.
OJN°.
OJN°.
'Growth, competitiveness, employment - The challenges and ways forward into the 21st century [1 ]
COM(93)700 final of 5.12.1993, Chapter 5A "The information society'.
'Europe and the global information society   - Recommendations to the European Council', Brussels,
26 May 1994.

_**tf**_

their aegis;

Whereas the Commission's action plan " Europe's Way to the Information Society - An

Action Plan" recognises the importance of content and stipulates that the

Commission will propose ways to stimulate the creation of favourable conditions for

content providers to adapt their skills and products to the new multimedia environment

and to stimulate increased usage of new information services;

Whereas the Council on 28 September 1994 underlined the particular urgency of the

need to enhance the global competitiveness of the European content industry, taking

account of the cultural diversity and of the impact of these products on society;

Whereas the European Council at Essen on 9-10 December 1994 underlined the

importance of content in bringing about the information society;

Whereas the Council Resolution on Culture and Multimedia [ 8] on 3-4 April 1995

underlined the importance of multimedia for facilitating the development of the content

industry and improving access of citizens to cultural heritage, as well as the catalysing

role of Member States and the Union in the creation, production and distribution of

high quality cultural multimedia programmes;

Whereas the three long-term strategic objectives of the Union's content policy shall be

to facilitate the development of the European content industry; to optimise the

contribution of new information services to growth, competitiveness and employment

in Europe; and to maximise the contribution of advanced information services to. the

professional, social and cultural development of the citizens of Europe;

Whereas there are numerous barriers to the development of a European multimedia

content industry and market, which are hindering the transition towards an information

society;

Whereas the Community needs to build on the strong competitive position it has in

some content sectors and whereas its competitive position needs to be strengthened in

other content sectors;

6 COM(94)347 final of 19 July 1994 ' Europe's Way to the Information Society - An Action Plan'.
7 Conclusions of the 1787th Council meeting 9561/94 (Press 197), 28 September 1994.
8 Audiovisual/Culture Council session nr 1841 of 3-4 April 1995, Council document 6072/95 of 24
March 1995

_**20**_

Whereas the needs of users of information services, particularly in small and medium
sized enterprises and in the less favoured regions of the Community, merit special

attention;

Whereas provision should be made for measures to encourage the participation of

small and medium-sized enterprises (SMEs) in this programme;

Whereas the different rates of development in the provision and use of information

services in the Member States deserve special consideration, having regard to the

internal cohesion of the Community and the risks associated with a two-tier

information society;

Whereas policy actions under this programme aiming at strengthening the position of

the European content industry will be complementary to other content actions,

particularly those related to the audiovisual sector,

Whereas any content policy actions must be complementary to other ongoing national

and Community initiatives, as outlined notably in the Commission's action plan

"Europe's Way to the Information Society - An Action Plan", and shall be performed in

synergy with the Commission's education, training [ 11], RTD [ 1 2] and SME ^

policies and initiatives;

Whereas progress of this programme should be continuously and systematically

monitored with a view to adapting it, where appropriate, to developments in the

multimedia content market; whereas in due course there should be an independent

evaluation of the progress of the programme so as to provide the background

information needed in order to determine the objectives for subsequent content policy

actions; whereas at the end of this programme there shall be a final evaluation of

results obtained compared with the objectives set out in this Decision;

Council Decision 93/424/EEC of 22 July 1993 on an action plan for the introduction of advanced
television services in Europe; COM(94)523 of 8 February 1995 *Politique Audio-visuelle. Créer
un environnement favorable à l'essor des entreprises de l'industrie européenne des programmes
(MEDIA2 1996-2000)'; Council Directive 89/552/EEC of 3 October 1989 'Television without
frontiers' (OJN° L 298, 17.10.1989, p. 15).
10 COM(93) 708 final of 3 February 1994.
11 Council Decision of 6 December 1994 (OJ N° L 340, 29.12.1994, p.8).

Fourth Framework Programme of the European Community activities in the field of research and
technological development and demonstration (1994 to 1998), adopted by the Decision N°
1110/94/EC of the European Parliament and of the Council of 26 April 1994 (OJ N° L 126,
18.5.1994, p.l).
13 COM(94) 207 final of 3 June 1994

_**%**_

Whereas the actions in this programme will not in any way prejudice the competition

rules of the Community;

Whereas it may be appropriate to engage in international co-operation activities with

international organisations and third countries for the purpose of implementing this

programme;

Whereas it is necessary to fix the duration of the programme;

HAS ADOPTED THIS DECISION :

Article 1

A programme is hereby adopted with the following objectives:

- Stimulate demand for, and use of, multimedia content,

- Create favourable conditions for the development of the European multimedia

content industry,

- Contribute to the professional, social and cultural development of the citizens of

Europe.

Article 2

**«**

In order to attain the objectives referred to in Article 1, the following actions shall be

undertaken under the guidance of the Commission, in accordance with the action lines

in Annex I and the detailed implementation arrangements set out in Annex III:

 - stimulating demand and raising awareness,

 - exploiting Europe's public sector information,

 - triggering European multimedia potential,

 - support actions.

Article 3

The programme shall cover a period of four years from 1 January 1996 to 31

December 1999.

**< &**

Article 4

1. The Commission shall be responsible for the implementation of the programme.

2. The procedure laid down in Article 5 shall apply to:

the work programme,

the breakdown of the budgetary expenditure,

the content of calls for proposals,

the measures for programme evaluation,

any departure from the rules set out in Annex III,

participation in any project by legal entities from third countries and

international organisations.

Article 5

1. The Commission shall be assisted by a committee of an advisory nature composed

of the representatives of the Member States and chaired by the representative of the

Commission.

2. The Commission representative shall submit to the committee a draft of measures to

be taken. The committee shall deliver its opinion on the draft within a time limit

which the chairman may lay down according to the urgency of the matter

concerned, if necessary by taking a vote.

3. The opinion shall be recorded in the minutes; in addition, each Member State shall

have the right to ask to have its position recorded in the minutes.

4. The Commission shall take the utmost account of the opinion delivered by the

committee. It shall inform the committee of the manner in which its opinion has

been taken into account.

Article 6

At the mid-term and at the end of the programme, the Commission shall submit to the

European Parliament, the Council, the Economic and Social Committee and the

Committee of the Regions, once the committee referred to in Article 5 has examined it,

### **_P_**

an evaluation report drawn up by independent experts on the results obtained in

implementing the action Unes referred to in Article 2. The Commission may present, on

the basis of those results, proposals for adjusting the orientation of the programme.

Article 7

Participation in this programme may be open, normally without financial support by the

Community, to legal entities established in third countries and to international

organisations, where such participation contributes effectively to the implementation of

the programme and taking into account the principle of mutual benefit.

Article 8

This Decision is addressed to the Member States.

Done at Brussels, For the Council

The President

###### **_M_**

**ANNEXI**

**ACTION LINES** **FOR INFO2000**

_**ACTION LINE 1:**_ _**Stimulating demand and raising awareness**_

Lack of awareness of the potential of the new multimedia information products and
services is an important factor constraining demand. This action line contributes to
redressing that situation by adding a European dimension to awareness and user-group
activities taking place at the national or regional level. Specific attention will be given
to favouring demand development in less-favoured and peripheral regions of the
Union.

_**1.1.**_ _**Creating new markets by raising awareness at the European level with**_
_**specific user groups**_

Under the IMPACT programme a network of organisations in the Member States has
been created that have a responsibility for conducting awareness and information
campaigns in relation to new information services. In different Member States this role
is performed by different organisations like chambers of commerce, professional
organisations or public bodies. By working in a European network these organisations
are able to add a European dimension to their activities.

Under INFO2000 this successful formula will be continued and extended. The

involvement of the Community in the network as a catalyst and a co-ordinator adds
value to the individual activities and puts these activities in a clear European context.
Apart from financial support for specific activities with a European dimension the
Commission will encourage the exchange of know-how and experience, the use of
common communication and information facilities, and co-operation between the
various organisations in joint projects.

The organisations in the network will perform the following tasks:

 - provide access to information collections and catalogues across the European
Union;

 - demonstrate and facilitate access to the European information highways;

 - advise users on the possible sources for satisfying their multimedia content
needs, both nationally and internationally;

 - organise co-ordinated European awareness campaigns at the national or
regional level;

 - stimulate the training of users.

The main target groups for the actions will be small and medium-sized companies and
libraries. The actual selection of specific target groups will be left to the national and

**<?r**

regional organisations concerned, since they are closest to the target groups.

Following a call for proposals a total of 30 to 50 organisations will be selected to
participate in the network. Selection criteria will include knowledge of the local
information market, affinity with the target groups foreseen and readiness to work in a
European network. Actions which aim to stimulate women's interests in new
information services are encouraged.

The network will co-operate with other relevant national organisations. It will liaise
closely with other EU supported bodies and networks that have a complementary
mission, such as the Information Society Project Office (ISPO), the European
Information Centres (EICs), the Business Co-operation Network (BC-NET), the
Value Relay Centres and the University Enterprise Training Partnerships (UETPs).
Organisations from these networks could be selected in the call for proposals. Efforts
will be made to avoid parallel or overlapping networks. Synergy and spin-offs will be
sought with other awareness activities performed under the 4th Framework research
programme such as the Advanced Communication Technologies and Services and
Telematics applications programmes.

_**1.2.**_ _**Encouraging clusters of pan-European users**_

A flourishing demand side is important for the development of a healthy market for
advanced information products and services such as multimedia. In view of the rapid
changes taking place in the information market, regular dialogue between suppliers and
users can smooth the transition process. In general the supply side tends to be better
organised than the user side, both at the national and at the European level. In two of
the three sectors that compose the multimedia industry - information technology and
telecommunications - the user side is increasingly organising itself both at the national
and at the European level.

In the third sector of the multimedia industry - the content industry - the demand side
is much less organised and is fragmented. Historically, the relationship between the
content providers and the users has been indirect, i.e. through intermediaries.
However, under the influence of the new communication networks this situation is
changing. The need to develop direct relations between suppliers and users is
increasingly being felt in the content sector also. At the national level, professional
organisations and industry sector organisations are beginning to address the issue.
However, for a successful development of the European multimedia content market it
is important that groupings of users also emerge at the European level.

The actions foreseen under INFO2000 aim to stimulate this process by providing
incentives for co-operation and exchange of experience between national user groups,
thereby encouraging the emergence of European groupings. Specific measures will be
tailored to address key user problems, for example quality assurance and questions of
liability. The network of awareness organisations will be used to analyse the situation
in individual Member States and will play a catalytic role in bringing about panEuropean user groups.

_**<?G**_

_**ACTION**_ _**LINE 2:**_ _**Exploiting**_ _**Europe's**_ _**public sector information**_

Europe's public sector information is a hidden resource to be exploited. The public
sector collects and produces vast amounts of information, much of which is of interest
to individuals and businesses, and which can be the raw material for value-added
information services produced by the private sector content industry. Official statistical
services either at regional, national or European level are an example.

Three sets of actions will be particularly helpful in supporting this public sector role
and in exploiting its potential at European level:

 - developing policies to access and exploit public sector information,

 - linking directories of European public sector information,

 - making use of content resources in the public sector.

Particular attention will be given to improving access from the peripheral regions of the
Union.

_**2.1.**_ _**Developing policies**_ _**to access and exploit European public**_ _**sector**_
_**information**_

In the Member States, rules for access to public sector information are very different
or in some cases do not exist at all. As the transition to the information society
progresses, this situation could become a barrier to full participation by individuals and
businesses across Europe and may become the cause of unevenly distributed
opportunities. Therefore, initiatives need to be taken at the European level to develop
policies which facilitate access to and exploitation of public sector held information, in
particular as regards information resources of European interest.

The Commission will produce, in close collaboration with Member States and market
actors, a Green Paper analysing the situation in the different Member States, the
relative position of the EU in a global context and the various possibilities for
convergence of national approaches. To lay the foundations for this Green Paper,
studies comparing national situations will be undertaken and exchanges of national
experience will be encouraged.

_**2.2.**_ _**Linking directories of European public sector information**_

In a number of Member States practical initiatives are being taken to improve access to
public sector information. In the European information society it must be ensured that
the relevant public sector information becomes more easily accessible to all European
individuals and businesses that may have an interest in such information.

The Commission will support initiatives to produce directories of European public
sector information to a common format, so that they can be interlinked and easily
accessed from any point in Europe.

Following a call for proposals, pilot projects for the production of information
directories that incorporate the above characteristics will be supported. These pilot

projects may address the transnational interconnection of existing national or regional
information directories as well as the collaborative production of new directories. Pilot
projects based on public/private partnerships and applying multilingual solutions will be
particularly encouraged.

_**2.3.**_ _**Making use of content resources in the public sector**_

Europe is blessed with a rich stock of what might be called "information collections"
under public sector control, for instance in museums, libraries, copyright and patent
deposit systems, educational and training bodies, historical archives and architectural
and industrial objects. These information collections need to be exploited if Europe is
to build on these cultural and economic assets commercially and if Europe is to realise
the potential of advanced technologies in support of public sector services. They are
central to the Union's strength in the global information society and their commercial
and strategic potential has already been underlined by a series of deals transferring
control over some of them to private companies, not all of which have been European.

Most of these information collections are still in analogue form but they are
increasingly being digitised. The INFO2000 programme aims at mobilising these digital
collections for exploitation by the private sector.

To this end the Commission will support the creation of European inventories of
digital information collections and stimulate their interconnection across the EU. This
involves defining a common standard format for such inventories as well as integrating
them with intellectual property rights trading systems. Support for the creation of
inventories and their integration with intellectual property rights trading systems will be
provided on the basis of calls for proposals. Related standards and specifications will
be developed through studies and through task groups composed of the actors
involved.

_**ACTION LINE 3:**_ _**Triggering European multimedia potential**_

The transition from "scribe to screen" is rapidly and fundamentally changing the
structure of the content industry and the roles of the different players within it.
Internationalisation and multimedia are key words in this respect. Content itself and
new ways of creating, packaging, distributing and marketing it are increasingly
becoming the key drivers behind these changes.

Coping with these changes and exploiting the opportunities that emerge is primarily the
responsibility of the industries concerned. However, apart from a limited number of
large corporations that operate on a global scale, the present day content sector in
Europe is mainly made up of small and medium size companies. These have difficulty
in dealing with a rapidly developing international multimedia market and the speed
with which the changes take place. In addition the initial cost of producing high quality
multimedia titles is high and the European market fragmented through cultural and
linguistic barriers. The critical mass needed to recoup initial investments is therefore
much more difficult to reach.

###### **_M_**

This puts European multimedia publishers, traditionally used to operating in a national
or regional setting, at a disadvantage compared with their competitors from other parts
of the world. Exploitation of the single market potential will become vital for global
competitiveness.

This action Une aims at mitigating these comparative disadvantages for European
producers in the emerging multimedia market by:

catalysing high quality European multimedia content
favouring a practical approach to trading multimedia rights

- developing and exchanging best business practice

_**3.1**_ _**Catalysing high quality European multimedia content**_

The production of high quality European multimedia content will be stimulated in three
strategic areas: economic exploitation of Europe's cultural heritage, business services
for SMEs, and geographic information. Under the IMPACT programme pilot actions
in these areas have illustrated the problems connected with a pan-European approach
and have laid the foundations for further actions under INFO2000.

Multilingual interactive multimedia products can build on the wealth of available
European content, while overcoming language barriers and other limitations of national
and regional markets. Apart from the economic benefits, strong European business
activity in this area is Ukely to contribute to the safeguarding of cultural identity and
linguistic diversity. It will also increase the pubUc's understanding of European cultural
diversity across the Member States and regions.

In the areas indicated above - European cultural heritage, business services for SMEs
and geographic information - calls for proposals will be launched to provide support to
the initial and pre-commercial phases of pan-European multimedia content
developments. The support given should help the companies concerned overcome the
specific barriers with respect to multilingual and multicultural (re)use of content and to
trans-national co-operation. These initial phases would include product definition,
partner identification, cross-licensing negotiation, planning of co-operative distribution
etc. up to and including the production of a prototype.

Support will be given to projects that demonstrate the feasibility of a trans-European
multilingual and multicultural approach, contain a risk element, exert a strong catalytic
effect on the market and imply substantial user involvement. Special add-on incentives
can be provided to encourage participation by small and medium sized companies and
organisations from less favoured and peripheral regions.

The calls for proposals will be co-ordinated closely with the Community programmes
RAPHAEL and the Integrated Programme in favour of SMEs and the craft sector, as
well as with the sectoral policy actions in the areas of Trade, Tourism and Social
Economics.

_**tf**_

_**3.2.**_ _**Trading multimedia intellectual property rights**_

Historically, the management of rights is organised by sector (text, sound, image, video
etc.) and by country. With the dawning of the multimedia age this situation is
increasingly becoming a barrier to the development of multimedia content markets, as
the time and effort that has to be spent on identifying and acquiring the different rights
increases steeply with the number of data types involved and the number of countries
where right holders are located. Small companies and new media start-ups suffer most
from the present system as they may wish to re-use existing material.

The development of pan-European multimedia content often requires input from
various Member States. Effective and efficient mechanisms for trading multimedia
rights at the European level are therefore essential for the development of the
European multimedia content industry.

A call for proposals wiU be launched inviting proposals for pilot projects that lay the
foundations for cross-border trading of multimedia rights electronically. In addition,
studies will be launched to determine how different intellectual property rights trading
systems for multimedia in Europe can work together. As an aid to small and medium
sized companies practical tools will be developed on best practices to acquire, exploit
and protect multimedia rights. The actions will build on the relevant research and
technological development activities under the Fourth Framework Programme.

Although the difficulty of reaching consensus should not be underestimated, in the
longer term, harmonisation and rationalisation of legal requirements may be necessary.

_**3.3.**_ _**Developing and exchanging best practice**_

Actions will be supported that aim at developing and exchanging best business practice
in the multimedia content industry at the European level. Such actions will include
descriptions of business processes and models relevant to the content industry, such as
procedures for intellectual property acquisition and content asset valuation and
management, and exchange of experiences with multimedia consumer panels to test
and evaluate multimedia products and services.

These activities will be implemented by means of a combination of studies, workshops,
seminars and publications. The relevant organisations in the European content industry
will be closely involved.

_**4.**_ _**Support actions**_

The programme support actions aim at amplifying the effects of the core actions of the
programme by addressing a number of horizontal issues relevant for the programme as
a whole.

_**3d**_

_**4.1.**_ _**Observing and analysing the multimedia content market**_

At regular intervals senior experts from the content industry, from user communities
and from Member States will be convened to monitor, analyse and discuss the impact
of multimedia on the content industry and on the different actors in the information
value chain. When organising these meetings modern multimedia information and
communication facihties will be used where possible.

The composition of the meetings will reflect the various segments of content creation,
distribution and use within the European Union, as well as the many regulatory aspects
(e.g. personal data protection) affecting the content dimension. They will thus serve as
a focus for discussion, exchange of experience and co-operation between the various
sectors of the content industry, between European and national policy makers, and
between the supply and user sides of the content market.

The meetings will focus on:

- long-term scenarios, updated whenever justified by major international
developments in markets, technologies, industries and poUcies

- key issues of common interest to market actors from different sectors and from
different Member States, such as legal aspects and quality assurance

- obstacles to market development and recommendations to the industries,
administrations and users to overcome them

- the execution of INFO2000, making recommendations on orientations and
priorities.

Studies will be carried out to monitor changes in the European and global content
markets and provide in-depth analysis of key issues.

_**4. 2.**_ _**Spreading the use of multimedia content standards**_

Standards for the structuring and presentation of information, and standards for
content encoding, including terminology, are essential in order to facilitate the
exchange of documents and publications, and to enable the exploitation, access,
maintenance and re-use of content.

The work started in this domain under the IMPACT programme will be continued and
extended. Actions will be supported that raise awareness of and stimulate the use of
existing content standards through workshops and electronic fora and by publishing
reports on paper and electronically.

_**4.3.**_ _**Encouraging skills development at European level**_

In order to stimulate skills development, the relevant European associations will be
encouraged to develop and implement measures to equip the European content
providers with the necessary skills to enter the age of multimedia and interactivity.
Actions to be supported will normally be based on a three-staged approach:

##### **_V_**

- identification of the most urgent training needs

- development of pilot courses to test the effectiveness and efficiency of the
proposed actions

- launching of the activities in the relevant parts of the content
industry and in the educational and training systems.

The first two steps could be supported under INFO2000. The third step would fall
within the remit of programmes Uke SOCRATES and LEONARDO, thus achieving
important multipUer effects.

The content industry will be extensively consulted in order to identify urgent needs and
key areas. Representatives of universities and vocational training establishments will be
closely associated with these initiatives. The role of the Community will mainly consist
of stimulating, co-ordinating and enabling this process.

_**32**_

**ANNEX** **H**

**INDICATIVE BREAKDOWN OF EXPENDITURE**

**1.** **Stimulating demand and raising awareness** **30-40%**
**2.** **Exploiting Europe's pubUc sector information** **18-23%**
**3.** **Triggering European multimedia potential** **33-45%**
**4.** **Support actions** **7-12%**

**Total** **100** **%**

**This breakdown does not exclude the fact that a project could relate to several**
**activities.**

**33**

**ANNEX** **m**

**THE MEANS FOR IMPLEMENTING** **INFO2000**

1. The Commission will implement the programme in accordance with the technical
content specified in Annex I.

2. The programme will be executed through indirect action and wherever possible on
a shared-cost basis. The Community's financial contribution for shared-cost
projects shall normally not exceed 50% of the cost of the project, with
progressively lower participation the nearer the project is to the market place.
Special add-on incentives can be provided to encourage participation by SMEs
and less favoured regions.

3. The selection of shared-cost projects will normally be based on the usual
procedure of calls for proposals published in the Official Journal of the European
Communities. The content of the calls for proposals will be defined in close
consultation with the relevant experts and according to the procedure referred to
in Article 5 of the Decision. The main criterion for supporting projects through
calls for proposals will be their potential contribution to achieving the objectives
of the programme. Implementation procedures will accommodate the interests of
all kinds of market operators and facilitate their participation in the programme.

4. The Commission may also implement a more flexible funding scheme than the call
for proposals in order to provide incentives for the creation of partnerships, in
particular involving SMEs and organisations in less favoured regions, or for other
exploratory activities in different segments of the multimedia content market. This
scheme might be operated on a permanent basis.

5. The Commission will make provision for considering in exceptional cases
unsolicited project proposals which involve a particularly promising and significant
multimedia market development, a highly innovative approach or an exceptional
technology or methodology, and which cannot be submitted within the normal call
for proposals procedure. The objective of avoiding market distortion will be
maintained.

6. The detailed arrangements for the procedures referred to under points 4 and 5 will
be implemented through the consultative committee procedure (type I) and in
accordance with the Commission's financial regulations. They will be published in
the Official Journal of the European Communities.

7. Projects fully financed by the Commission within the framework of study and
services contracts will be implemented through calls for tenders in accordance
with the Commission's Financial Regulations. Transparency will be achieved by
publishing the work programme and circulating it to trade associations and other
interested bodies.

8. For the implementation of the programme the Commission will also undertake

preparatory, accompanying and support activities designed to achieve the general
objectives of the programme and the specific aims of each action line. This
includes activities such as: studies and consultancy in support of this programme;
preliminary actions in preparation of future activities; measures aimed at
facilitating participation in the programme as well as facilitating access to the
results produced under the programme; publications and activities for the
dissemination, promotion and exploitation of results; analysis of possible socioeconomic consequences associated with the programme; and support activities
such as observation and analysis of the multimedia content market, spreading the
use of multimedia content standards, and encouraging skills development at
European level.

9. Participation in this programme by international organisations may be financed, in
exceptional cases, on the same basis as that of legal entities established in the
Community.

**55~**

**FINANCIAL STATEMENT**

**1.** **TITLE OF OPERATION**

INFO2000, a multi-annual Community programme to stimulate the development of a
European multimedia content industry and to encourage the use of multimedia content
in the emerging information society

**2.** **BUDGET HEADING INVOLVED**

ItemB5-723

**3.** **LEGAL BASIS**

Article 130 of the EU Treaty and Council Decision /95 of . . 1995.

**4.** **DESCRIPTION OF OPERATION**

**4.1.** **General objectives of operation**

Three long-term strategic objectives underpin the INFO2000 programme: to facilitate
the development of the European content industry; to optimise the contribution of new
information services to growth, competitiveness and employment in Europe; and to
maximise the contribution of advanced information services to the professional, social
and cultural development of the citizens of Europe.

These objectives aim at maintaining, extending and exploiting Europe's strength in
content whilst narrowing the gap with our competitors. They encourage an integrated
development across the European Union and so reduce the risks that different rates of
progress might lead to a two-tier economy and a society composed of two segments:
the information rich and the information poor.

**4.2** **Duration**

The programme will be carried out over the period 01.01.1996 - 31.12.1999.

**5.** **CLASSIFICATION OF EXPENDITURE OR REVENUE**

5.1. Non-compulsory expenditure
5.2. Differentiated appropriations
5.3. Type of revenue involved

Revenues provided by contributions of third parties towards activities under action line
1.1 will, where applicable, be re-used pursuant to Article 27.2 of the Financial
regulations of 21 December 1977 as last modified by Regulation 610/90 of 13 March
1990.

_**3Q>**_

**6.** **TYPE OF EXPENDITURE**

**6.1.100%** **subsidy**

Projects fully financed by the Community will be implemented through calls for tenders
in accordance with the Commission's Financial Regulations. Full financing will apply
generally to activities such as studies, workshops and seminars under action lines 2.1
and 3.2, and to the programme support actions under action line 4. Transparency will
be achieved by publishing the work programme and circulation of it to trade
associations and other interested bodies.

**6.2. Subsidy for joint financing with other sources in the public and private**

**sector**

The selection of shared-cost projects will normally be based on the usual procedure of
calls for proposals published in the Official Journal of the European Communities. This
type of financing will apply to most of the activities defined under action lines 1, 2 and
3 and in particular to the financing of pilot projects. The content of the calls for
proposals will be defined in close consultation with the relevant experts and the
programme committee referred to in the Council Decision. The main criterion for
supporting projects through calls for proposals will be their potential contribution to
achieving the objectives of the programme. The Community's financial contribution for
shared-cost projects shall normally not exceed 50% of the cost of the project, with
progressively lower participation the nearer the project is **to** the market place. Special
add-on incentives will be provided to encourage participation by SMEs and less
favoured regions.

**6.3.** **Interest subsidy** Not applicable

**6.4. Other** Not applicable

**6.5. Should the operation prove an economic success, is there provision for all or**
**part of the Community contribution to be reimbursed? No**

**6.6.** **Will** **the proposed operation cause any change in the level of revenue? If so,**
**what sort of change and what type of revenue is involved? No**

**7.** **FINANCIAL IMPACT ON APPROPRIATIONS FOR OPERATIONS**

**(PART B OF THE BUDGET)**

**7.1.** **Method of calculating total cost of operation**

The amount of appropriations needed to finance the Community's contribution to the
execution of the INFO2000 programme takes into account financial parameters
derived from past experience and the nature of the actions proposed for realising the
specific objectives defined under point 9.1. These unit costs and activity levels have
been considered in determining the amounts indicated in the following table.

**< # -**

**7.2.** **Breakdown of costs**

The breakdown of commitment appropriations by action line in MECU (current prices)
is indicated by the foUowing table:

1998

10

8

5

2

25

1999

11

8

10

2

31

TOTAL

37

22

33

8

100

1997

9

4

10

2

25

ACTION LINE

Stimulating demand and raising

awareness

Exploiting Europe's public sector
information

Triggering European multimedia
potential
Programme support actions

TOTAL

1996

7

2

8

2

19

The above breakdown takes account of the nature, volume and unit costs of the

individual activities defined in detail in Annex I of the Council Decision.

**7.3.** **Indicative schedule of commitment and payment appropriations**

The total amount for the programme is estimated at 100 MECU (current prices) over
the period 01.01.1996-31.12.1999 and is scheduled as follows:

SITUATION

END 94

/

BUDGET

95

/

IP

1997

25

IP

1999

31

IP

2000

TOTAL

100

PDB

1996

19

IP

1998

25

8. ANTI-FRAUD MEASURES PLANNED

Overall monitoring will be performed by a committee composed of delegates of
Member States. Specific monitoring criteria and procedures taking into account the
nature of the action lines will be developed at the start of the programme and applied
periodically during the programme implementation phase. Officials of the Commission,
where necessary assisted by independent experts, will verify the proper implementation
of the projects and studies prior to payment, taking into account contractual
obligations and principles of good management. There will be administrative control by
administrative services of DG XIII and by DGs XIX and XX. Audit by the Court of
Auditors in accordance with the Treaty will apply. At the mid-term and at the end of
the programme, an evaluation report will be drawn up by independent experts on the
results obtained in implementing the action lines referred to in Article 2 of the Council
Decision.

_**3?**_

9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

**9.1.** **Specific objectives and target population**

**Specific objectives**

To achieve the general objectives defined under 4.1., the INFO2000 programme will
stimulate demand for, and use of, multimedia content and create favourable conditions
for the development of the European multimedia content industry, by:

- stimulating demand and raising awareness

- exploiting Europe's public sector information

- triggering European multimedia potential.

The specific objectives are to accelerate market uptake of multimedia products and
services by mobiUsing the users; to unleash the economic and cultural potential of
public sector information; and to strengthen the international and pan-European
dimension of the emerging European multimedia content industry.

**Target population**

Participants will be drawn from both users and suppliers in primarily content-related
activities in the information value chain. Those involved in end-user equipment,
communications software and hardware and production tools will be invited to
participate on the basis of the specific contributions that they can make to the

programme.

**9.2.** **Grounds for the operation**

**Subsidiarity**

The proposals take account of the principle of subsidiarity between the Community
and Member States and between public and private sector roles, as outlined in the
Commission's action plan "Europe's Way to the Information Society" (COM(94)347 of
19.7.94). In line with article 3B of the Maastricht Treaty, the programme's activity is
only directed at those areas where there is added value at European level.

To ensure that the actions fit into the global context, specific attention will be given to
linking them to the recent G7 initiatives and to the relevant activities of international
organisations such as the OECD, the WTO, WIPO and the Council of Europe.

Synergy between the national and European content policy initiatives will be favoured.
Apart from financial support for specific activities with a European dimension, the
Commission will encourage the exchange of know-how and experience, the use of
common communication and information facilities and co-operation between the
various organisations in joint projects. Together, the proposed actions favour the
further consolidation of the functioning of the single market. They provide for
economies of scale in particular through experience exchange, joint pilot projects and
demonstrators, and stimulation of pan-European information service provision in

**3<?**

support of a wide range of Community policies. They aim at favouring an integrated
development across the European Union, by reducing the risks of different speed
developments leading to a two-tier economy and a society composed of two segments:
the information rich and the information poor.

**Intervention modes**

The costs of interventions will be kept as low as possible through recourse to
competitive mechanisms in the form of calls for tenders and calls for proposals. The
Commission's contribution to shared-cost actions will normally not exceed 50%.
DupUcation of work will be avoided and synergy with ongoing work at national and
international level will be favoured by wide consultation on the work programme.
Common facilities will be used to the largest extent possible for supporting the range
of envisaged actions. The choice of intervention modes takes due account of the midterm evaluation of the IMPACT2 programme, the orientations laid down in the
Bangemann report and the Commission's action plan COM(94) 347, as well as of the
results of various consultations with industry, users and Member States representatives
in the preparation of the current programme proposal.

**Spin-off and multiplier effects**

Spin-off effects of content-related actions are likely as content provision contributes to
the attainment of critical mass for delivery networks. The amount intended to finance
pilot projects will be used, in particular, to attract possible additional sources of
funding from the partners concerned, thereby having a multiplier effect on the
development of the European multimedia content market.

**Factors of uncertainty**

The main factors of uncertainty which could affect the specific results of the
programme are inherent technology push/demand pull uncertainties and the speed and
shape of regulatory and legal reforms.

**9.3.** **Monitoring and evaluation of the operation**

At the mid-term and before the end of the programme, an evaluation report will be
drawn up by independent experts on the results obtained in implementing the action
lines referred to in Article 2 of the Council Decision. The evaluation shall take account

of the 1995 base position as described in the "Study on assessing the present situation
of the market for electronic information services for professional purposes in the EEA"
(MSSTUDY), and of its evolution to be assessed by study updates.

In addition to the measurement of the evolution of the base position and the impact of
the programme actions on this evolution, for each of the activities mentioned in Annex
I of the Council Decision a limited number of activity performance indicators will be
monitored. The most important performance indicators include the following:

For action line 1, stimulating demand and raising awareness: effectiveness and
efficiency of national awareness organisations; scope, quality and volume of awareness

and training activity; and degree and quality of experience exchange and co-operation.

For action line 2, exploiting Europe's public sector information: catalysing effect of
pilots in terms of degree of standardisation of national services and resources,
networking among inventories, integration of inventories with intellectual property
rights trading systems and share of public/private joint projects.

For action Une 3, triggering European multimedia potential: catalysing effect of pilots
in terms of number of companies involved, share of SME and Less Favoured Region
participation, trans-national/cross-sectoral co-operation, public/private sector cooperation and facilitation of cross-border intellectual property rights trading.

**9.4. Coherence with financial programming**

The operation is included in the financial programming of DG XIII for the years
concerned.

The objectives of the proposed operation correspond to broader objectives defined in
DG XTTTs financial programming and to the objectives relating to the development of
the European information society as mentioned in the Commission's action plan
COM(94)347 final of 19 July 1994 "Europe's Way to the Information Society -An
Action Plan".

###### **_t/_**

**10.** **ADMINISTRATIVE EXPENDITURE**

**10.1.** **Additional Commission staff**

Beyond the staff levels associated with the IMPACT2 programme it is estimated that
an additional aUocation of _3_ A, I B and 2 C posts is required, without prejudice from
where they will be derived from.

**10.2.** **Amount of staff and administrative expenditure involved**

The following annual amounts of administrative expenditure are foreseen:

**10.2.1.** **Seconded national experts**

A-1520 Total expenditure: ECU 210,000

Three national civil servants, each responsible for five Member States, will need to be
seconded to co-ordinate content poUcy actions between the EU and national levels. In
addition, three national civil servants, each responsible for a set of neighbouring
programmes, will need to be seconded to co-ordinate INFO2000 with other relevant
complementary programmes.

**10.2.2.** **Meetings of experts**

A-250 Total expenditure: ECU 324,000

In order to support the working of the expert meetings (4 meetings), and the project
activities (5 calls with 1 meeting), the network of national awareness organisations (3
meetings), and the user groups (10 groups with 1.5 meetings), a total envelope of 27
meetings with an average cost of 12,000 ECU is requested.

**10.2.3.** **Committee meetings**

A-2510 Total expenditure: ECU 120,000

The INFO2000 Programme Committee referred to in the Council Decision will hold on
average 6 meetings/year at an average cost of 20,000 ECU

**10.2.4.** **Missions**

A-130 Total expenditure: ECU 240,000

The total mission costs for Commission staff and seconded national experts are
estimated at 240,000 ECU.

The actual allocation of the necessary administrative resources will follow from the
relevant Commission decision on this question, taking into account the staff posts and
supplementary amounts which will have been approved by the Budgetary Authority.

**%?**

**INFORMATION** **PLAN**

**0.** **RESPONSIBLE SERVICE**

DGXin-E

**1.** **SUBJECT**

INFO2000, a multi-annual Community programme to stimulate the development of a
European multimedia content industry and to encourage the use of multimedia content
in the emerging information society

Code number: 21132.3

```
2. NATURE AND LEGAL BASIS

```

Communication from the Commission to the European Parliament and the Council
concerning a multi-annual Community programme to stimulate the development of a
European multimedia content industry and to encourage the use of multimedia content
in the emerging information society and proposal for a Council Decision adopting a
multi-annual Community programme to stimulate the development of a European
multimedia content industry and to encourage the use of multimedia content in the
emerging information society (INFO2000).

Article 130 of the EU Treaty

**3.** **TIMETABLE**

It is desirable that the European Parliament, the Council, the Economic and Social
Committee and the Committee of the Regions take account of the Communication and
the proposal for a Council Decision with the relevant annexes in the second quarter of
1995.

**4.** **INCIDENCE AND PROBABLE REACTIONS**

**ON** **THE INITIATIVE MENTIONED UNDER POINT 1**

A) Council, European Pariiament, the Economic and Social Committee, the Committee
of the Regions: +
B) General Public: +
C) Specific Publics: + Programme participants will be drawn from the electronic
content value chain particularly in such sectors as content creation, development and
packaging, and end-user access.
D) Opinion leaders: +
E) Political decision makers: +

_**<43**_

**5.** **REFERENCE TO AVAILABLE OPINION SURVEYS**

No

**6.** **OPPORTUNITY OF AN INFORMATION PLAN**

YES LIMITED

Press release YES on adoption of the Communication by the Commission

Press conference YES on adoption of the Communication by the Commission

Publication in the O J YES on adoption of the programme by the Council

7. **DGs CONCERNED**

No

**8.** **VISAS**

a) INFORMATION b) DG X c) SPP
CORRESPONDENT
DGXÏÏI

Date: Date: Date:

Name: Name: Name:

**</«/**

**RELATIONSHIPS OF** **INFO2000** **WITH OTHER EU PROGRAMMES**

**PROGRAMME CHARACTERISTICS**

IN Ft)2(KM) INFO2000 is a Community programme to encourage Europe's content providers to develop new multimedia products and services and to stimulate user demand for these products and services
ENFO2000 aims at creating favourable conditions for the development of the European multimedia content industry, complementing other important policy actions announced in the Commission's
action plan COM(95)347 final " Europe's Way to the Information Society " such as liberalisation of telecommunications and provision of a clear and stable regulatory framework. INFO2000 will
focus on the transition from print to electronic publishing and on the interactive multimedia services that are currently emerging. Three lines of action are devised to tackle market bottlenecks and to
meet the needs of both users and producers in this market area:          - actions to stimulate demand and raise awareness, - actions to exploit Europe's public sector information, and actions to trigger
European multimedia potential. _ _ _ _

**INFO2000** **RELATIONSHIPS**

IT AND ACTS IT and ACTS cover _infrastructure-oriented_ _research_ and _technological development_ programmes **in** the field of _information technologies_ (addressing software technologies, technologies for IT
components and subsystems and _multimedia technologies)_ and advanced _communication technologies_ (addressing the technological base for interactive digital multimedia services, photonics, highspeed networking, mobility and personal communications, intelligent networks and service engineering, and quality, security and safety of communications services and systems). In contrast,
INFO2000 is _content-oriented_ and concentrates on the use _of both existing and future technologies_ and _narrows the gap between research and market._ In particular contrast to the ACTS programme,
INFO2000 is _delivery channel neutral_ and aims at stimulating multimedia content for both network-based and off-line solutions. **In short, IT and ACTS** **stimulate** **the required** research for
providing better 'boxes and pipes' or information **infrastructures of the future, while** **INFO2000** **is concerned with content production,** **distribution** **and access over current** and future
technology boxes and pipes, enabled by previous research **efforts.** **INFO2000** **will thus be building on the results of the IT and ACTS programmes as and when they emerge.**
TELEMATICS Tlie specific programme Telematic Applications of Common Interest, which is _applied research-, network-_ and _application-oriented,_ is focusing on _applications_ _in the public sector._ INFO2000 is
_delivery channel_ _neutral,_ is about _creating favourable conditions for the development of the private sector content industry._ **In short, Telematics stimulates applied research** for a limited
number of public sector application domains **such as healthcare, education, transport and libraries,** thereby **setting an example in areas which come under government** aegis, while
measures proposed by INFO2000 focus on creating **favourable conditions for the development of the private sector European multimedia content industry and of the multimedia** content
market, where information products and services are **traded for** a **price.**

MEDIA II MEDIA II addresses tlie specific needs of the _audiovisual segment,_ which is one sector of the content industry. The content industry at large is composed of those enterprises involved in content
creation, development, packaging and distribution. It comprises, on tlie one hand, the different segments of print publishing (newspapers, books, magazines, corporate publishing) and electronic
publishing (on-line databases, videotex services, audiotex services, fax- and CD-based services, videogames) and, on the other, the audiovisual industry (television, video, radio, audio and cinema).
INFO2000 will contribute to tlie establishment of a comprehensive European content policy, addressing print publishing and electronic publishing segments in complement to content policy
measures proposed by the Commission for the audiovisual segment. Tlie focus of INFO2000 is on the _transition from print to electronic publishing_ and on the _interactive multimedia_ _information_
_services_ that are rapidly emerging. In short, both programmes address different content **segments and** propose **actions adapted to each segment's** specific needs **over the** programme
period. In the longer term, due to convergence of technologies, operators and markets, programme actions are likely **to** converge.

RAPHAEL Firstly, RAPHAEL is an instrument of EU _cultural policy,_ while INFO2000 is basically an instrument of EU _information society policy._ Secondly, RAPHAEL is a _vertical programme_ addressing
specifically the cultural heritage sector, while MFO2000 is essentially a _horizontal programme_ addressing more generic questions in relation to the information society. Thirdly, RAPHAEL covers a
wide range of _sector-specific policy actions relevant for the EU cultural heritage_ sector, while INFO2000 proposes a _limited number of actions focusing on common structural problems of a range_
_of sectors._ Common ground between both programmes emerges in tlie areas of interplay between multimedia use for making cultural assets more visible, accessible and affordable as part of cultural
policy (RAPHAEL) and exploitation of cultural assets for multimedia content industry development purposes (INFO2000). **In short,** **INFO2000** **and** RAPHAËL are **different in terms** of overall
policy domain, sectoral coverage and range of proposed actions. Both programmes address, however, in a complementary way, **limited** common ground, related to the exploitation of
European cultural heritage through multimedia.

SOCRATES The SOCRATES and LEONARDO programmes establish _general_ Community frames for education and training policy actions for the _educational systems_ and for a _wide range of economic sectors,_
AND while LNFO2000 concentrates on the _specif c needs_ of the multimedia content industry, by setting up _pilots_ to be extended under the SOCRATES and LEONARDO programmes. INFO2000,
LEONARDO

SMEs AND

CRAFT

SECTOR

The SOCRATES and LEONARDO programmes establish _general_ Community frames for education and training policy actions for the _educational systems_ and for a _wide range of economic sectors,_
while LNFO2000 concentrates on the _specif c needs_ of the multimedia content industry, by setting up _pilots_ to be extended under the SOCRATES and LEONARDO programmes. INFO2000,
SOCRATES and LEONARDO are therefore complementary as on the one hand LNFO2000 pilot actions can be extended favouring large-scale use of adequate multimedia content in education and
vocational training contexts and on the other hand SOCRATES and LEONARDO schemes can be used for the purposes of skills development within the multimedia content industry. LEONARDO
addresses _predominantly supply-sector needs,_ while INFO2000, in addition to skills-development actions aimed at the supply side of the multimedia content industry, also proposes awareness and
training actions aimed at the _demand side._ In short, INFO2000 stimulates pilot and experimental actions, while SOCRATES/LEONARDO provide the frames for large-scale application.
The purpose of the Integrated Programme in favour of SMEs and tlie Craft sector is, in the context of the White Paper, to initiate in a concerted maimer measures facilitating reciprocal consultation |
between Member States and, where necessary, co-ordination between Member States with a view to improving the business environment by simplifying administrative procedures, promoting
support measures for enterprises and identification of ways in which the Community can contribute to the development of enterprises. DNFO2000 addresses the multimedia content industry which is,
apart from a limited number of international and global players, composed of mainly SMEs. The INFO2000 programme aims at stimulating this sector and its users. In short, the Integrated
A' Li!Si*il [n] J [ [] il [e] [ a n] d IN F O 2 0 0 () _ar e f u lly com pi ementary in improving the competitiveness of SMEs in Europe.

**ISSN 0254-1475**

**COM(95)** **149 final**

# **DOCUMENTS**

**EN** **15**

**Catalogue** **number** **:** **CB-CO-95-170-EN-C**

**ISBN 92-77-88129-1**

**Office for Official Publications of** **the** **European Communities**

**L-2985** **Luxembourg**