CELEX: 51993PC0556
Language: en
Date: 1993-11-15
Title: PROPOSAL FOR A DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON THE USE OF STANDARDS FOR THE TRANSMISSION OF TELEVISION SIGNALS (INCLUDING REPEAL OF DIRECTIVE 92/38/EEC)

COMVIISSION OF THE EUROPEAN COMMUNITIES
                                                              C0M(93) 556 final - COD 476
                                                              Brussels, 15 November 1993
                                               PROPOSAL FOR A
                         DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
                               ON THE USE OF STANDARDS FOR THE TRANSMISSION
                                            OF TELEVISION SIGNALS
                                 (INCLUDING REPEAL OF DIRECTIVE 92/38/EEC)
                                       (PRESENTED BY THE COMMISSION)
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 ---pagebreak---                                   EXPLANATORY MEMORANDUM
1.     INTRODUCTION
Council Directive 92/38/EEC of 11th May 1992 had the objective of facilitating Europe's
transition from standard definition (as delivered by today's PAL and SECAM television
systems)* to high definition television (HDTV). The compatible evolutionary approach, using
the D2-MAC and HD-MAC transmission systems**, developed for satellite and cable
distribution, was the chosen way forward. It was considered at the time that a window of
opportunity of some years existed for this strategy to be successfully implemented.
The Directive itself, however, foresaw the need to keep the strategy under constant assessment.
It requires the Commission to review, report on, and if necessary, adapt the Directive in the
light of current and probable market changes, evolution in technology, and use of Community
funding. The review is required before 1 January 1994.
2.     CHANGES IN THE MARKET
 There can be little doubt that the explosion in the number of satellite television services in
 Europe is now providing a wider range of diversity and choice of programming for viewers
 than was the case 5 years ago. Service concepts have also developed as experience has been
 gained of viewers' likes and dislikes. Increasingly important to the financial success of many
 television service providers are subscription revenues, and the near prospect of on-demand pay-
 per-view services, most notably exemplified by the film channels.
 Economic and other factors (including technical - see Section 3) have contributed to a general
 reluctance on the part of many broadcasters to invest in new technologies, in new equipment,
 in refurbishing studios, in programme making in HDTV. In short the start-up costs for HDTV
 were perceived to be off-putting particularly in the critical area of production of programmes.
  *   The characteristics of the PAL and SECAM television systems are defined in CCIR Report 624-4, 1990.
  ** ETSI standards references : D2MAC - prETS 300 250 ; HDMAC - prETS 300 352
 ---pagebreak--- With the continued growth of satellite television services in the period it transpired that there
was a greater immediate need for quantity in programmes rather than an emphasis on
improving the technical quality of the image. This need for programmes and establishing a
market presence in standard definition was a more commercially necessary activity to the
satellite broadcasters than introducing visually better services than their terrestrial competition.
However in the consultations that the Commission has held with the satellite broadcasters over
the past year or so a consensus emerged that wide-screen (16:9 aspect ratio)*** TV was both an
attractive feature for viewers and also commercially attractive to the broadcasters.
 Furthermore, to shift the emphasis to wide-screen 16:9 services was a useful and reasonably
 manageable step towards HDTV.
 Terrestrial broadcasters also shared this view (seeing wide-screen 16:9 TV either as an
 opportunity for improving the appeal of their own services or as a threat to their market share
 from the prospect of wide-screen 16:9 satellite services) but felt largely excluded from the
 European policy since D2-MAC and HD-MAC are only suitable for satellite and cable systems.
 3.    CHANGES IN TECHNOLOGY
 Given the exclusivity of D2MAC/HDMAC applicability to the satellite and cable environment
 it was not surprising that the terrestrial broadcasters should undertake research into how to
 improve the standard definition (with 4:3 aspect ratio) television systems to which they were
 wedded, PAL and SECAM. That effort has been accelerated and wide-screen 16:9 variants
 should be available in 1994/95.
 The period has also seen a rapid rate of development in digital technologies and systems.
 Already, thanks to advanced digital compression techniques, the multi-channel capability (4-5
 standard definition TV channels in the same bandwidth as a single analogue channel) is a very
 commercially attractive proposition. This is especially so for pay-per-view channels. Rapid
 ***The aspect ratio is the width to height ratio of the displayed image. Standard defimtion systems such as PAL and
     SECAM have a 4:3 aspect ratio whilst advanced TV systems will have a 16:9 aspect ratio.
 ---pagebreak--- advances in digital coding and multiplexing, as well as compression, are now showing
promising results in the goal of achieving fully digital HDTV systems.
Another significant factor has been the growing credibility attaching to the work being done in
the USA on digital HDTV systems designed for the US terrestrial broadcasting environment.
It is now widely believed that the FCC process for selecting a digital terrestrial HDTV system
will lead to the introduction of such services by the end of the decade.
From all of these technical developments we can conclude that Europe's D2-MAC/HD-MAC
strategy for the introduction of HDTV is not the only possible one. It is important to recognise,
however, that despite the promise of digital technologies, D2-MAC and HD-MAC are still
judged by experts to have excellent performance and they are available today for those
broadcasters requiring wide-screen 16:9 and HDTV service capability.
4.     THE EUROPEAN RESPONSE
 In the light of these market and technical developments the debate in Europe has focussed
 increasingly on wide-screen 16:9 TV and digital TV.
 In order to accelerate the introduction of wide-screen 16:9 TV services the Community has
 recently adopted the Action Plan for the introduction of advanced television services in Europe.
 The Action Plan provides for 228MECU of Community funding (of an estimated total budget
 requirement of 405MECU) to be distributed over the period upto 30 June 1997. The Action
 Plan is neutral from the technology viewpoint requiring only that advanced TV services adopt
 the 16:9 wide-screen format (625 or 1250 lines) irrespective of the European TV standard used
 and irrespective of the broadcasting mode (cable, satellite, terrestrial).
 The aim is to help cushion the start-up costs for broadcasters and programme makers and the
 target is for tens of thousands of hours of wide-screen 16:9 broadcasting by the end of the
 Action Plan period.      The intention is to lay down a broad infrastructure of wide-screen
 reception capability and to facilitate programme makers in moving to wide-screen production in
 order to pave the way for HDTV in the longer term .
 ---pagebreak---                                                   -5-
At the same time as the adoption of the Action Plan, the Council invited the Commission to
bring forward the review of Directive 92/38/EEC by some months in order to ensure the
coherence of Community policy. In addition the Commission offered to bring forward in the
immediate future a Communication to the Council on Digital Television.
5.    REVIEW OF DIRECTIVE 92/38/EEC - RESULTS
Following all the consultations with the involved economic actors over the last two years -
including a formal consultation on 13 July 1993 - it is clear that:
i)    it is necessary to repeal Directive 92/38/EEC and to issue a new Directive to respond to
      the changed circumstances;
ii)   the new Directive should be such as to support the evolving Community policy and should
      on the one hand provide for an orderly regulatory environment while on the other hand
      avoiding unnecessary restrictions on operators and costs on consumers;
 iii) the immediate scope of application of the new Directive should be limited, particularly
      since the range and potential of digital technology is still unclear;
iv)   it should however be capable of responding to digital developments as required.
The provisions of the new Directive therefore address the following issues:
      5.1     Transmission Standards
              All television services in wide-screen format will have the 16:9 aspect ratio. This
              will apply no matter how the services are transmitted to the viewer - whether by
              cable, by satellite or by terrestrial means.
 ---pagebreak---                                         6-
    Service providers will be able to choose which European television system standard
    suits them best, whether this is analogue , fully digital or indeed hybrid. This
    means for standard definition services : the current D2MAC; or any new analogue
    system fully compatible with PAL or SECAM; or any new fully digital system
    standardised by a recognised European standardisation body. For high definition
    services : either HDMAC can be used; or a fully digital system standardised by a
    recognised European standardisation body.
5.2 Standard connector in television sets
    This is a minimum requirement on consumer products manufacturers. It should
    ensure flexibility by allowing the range of decoders now likely to be on the market
    to connect into the television set.     This should reassure customers that their
    decision to purchase a new advanced TV set will be easier knowing that it will
     have the necessary means to accommodate a range of television signals.        The
     inclusion of an open interface socket (as standardised by a recognised European
     standardisation body) in TV sets over a certain screen size should guarantee this,
     without unduly penalising either the manufacturers or the customers of smaller,
     simpler models.
 ---pagebreak---                                                 -7-
     5.3     Cable TV Networks
             The intention here is to ensure that there is an obligation on cable TV networks'
             operators throughout the Community, when they decide to redistribute television
             services, to re-transmit received wide-screen television services in wide-screen 16:9
             format regardless of the European television standard selected by the broadcaster.
     5.4     Review
             This provides that the Community's TV strategy is kept current with developments
             both in terms of the market and in terms of technological evolution and in
             particular those in the digital domain. The review period is every 2 years.
6.      SUBSIDIARITY
a)      What are the aims of the envisaged action with respect to the Community's obligations?
The aim of the action is to ensure an internal market for wide-screen 16:9 format television
production, transmission and receiving equipment, and broadcast services throughout the
Community by harmonising the format for transmission (articles 57(2), 66 and 100a).
b)      Is the envisaged action within the exclusive competetence of the Community, or is it
also within the member-States' competence?
The envisaged action falls exclusively within the competence of the Community (internal
market).
c)      What means of action are available to the Community (recommendation, financial
support, regulation, mutual recognition...)?
In order to achieve the internal market for broadcasting in wide-screen 16:9 format a Council
Directive is the most appropriate instrument.
d)       Is uniform regulation necessary or would a Directive stating the general objectives, and
leaving the implementation to the member-States, be sufficient?
 ---pagebreak---                                               -8
In order to exclude the possibility of diverging formats in wide-screen television services
developing in the member-States a Directive harmonising the 16:9 format is required.
7.    CONCLUSIONS
The Commission has reviewed Council Directive 92/38/EEC and concluded that change is
essential to reflect the changed market and technology realities of today.      The Commission
urges the Council, the European Parliament and the Economic and Social Committee to adopt
the proposed new Directive repealing Directive 92/38/EEC within the shortest time possible.
The Commission is confident that with the twin instruments of the new Directive and the
Community's Action Plan funding programme for advanced television services in place that
broadcasters, satellite service providers, consumer products manufacturers, cable network
 operators, TV production and facilities houses can all build on a steady base to offer new wide-
 screen services to viewers and customers more assured of that market stability.
 ---pagebreak---                                                -9-
                                           Proposalfora
                   Directive of the European Parliament and of The Council
                           on the use of standards for the transmission
                                       of television signals
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN
COMMUNITIES,
Having regard to the Treaty establishing the European Community, and in particular
Articles 57(2), 66 and 100a thereof,
Having regard to the proposal from the Commission1,
Having regard to the opinion of the Economic and Social Committee2,
Whereas the Community, through Council Decisions 89/337/EEC3 and 89/630/EEC4,
recognised the strategic importance of High Definition Television (HDTV) for the
European consumer electronics industry and for the European television and film
industries and established the strategy framework for the introduction of European HDTV;
Whereas the objectives of the strategy for the introduction of HDTV in Europe are an
integral part of the Community audio-visual policy, and whereas they must take into
account other objectives of this policy within the perspective of the development of
3
    O J. No L142,25.05.1989, p. 1
4
    O J. No L 363,13.12.1989, p. 30
 ---pagebreak---                                              -10-
Europe's audio-visual capacity, which comprise structural objectives such as the
development of production in countries or regions with more limited audio-visual capacity;
Whereas Council Directive 92/38/EEC on the adoption of standards for the transmission
of television signals5 set a regulatory framework of standards for advanced television
broadcasting services for television programmes based on HD-MAC6 as the European
satellite and cable transmission standard for non-fully digital HDTV and the D2-MAC7
standard for other not completely digital satellite and cable transmission in the wide-screen
16:9 aspect ratio format;
Whereas Council Decision 93/424/EEC on an Action Plan for the introduction of
advanced television services in Europe8aims at promoting the wide-screen 16:9 format (625
or 1250 lines), irrespective of the European television standard used and irrespective of the
broadcasting mode (terrestrial, satellite or cable);
Whereas Article 7 of Council Directive 92/38/EEC on the adoption of standards for the
transmission of television signals calls on the Commission to report on the effects of the
application of that Directive, on the evolution of the market, in particular on market
penetration measured by objective criteria, the use of the Community funding, and make
proposals to the Council to adapt that Directive to these developments if necessary;
 Whereas, in order to reach Community goals as set out in the above-mentioned Decisions
 and to contribute to the achievement of an internal market, as provided for in Article 8(a)
 of the Treaty, in the broadcasting of television signals, it is necessary to take steps to adopt
 a common format for wide-screen transmissions;
 5
     O J. No L137,20.05.1992, p. 17
 6   ETSI standard reference : prETS 300 352
 7   ETSI standard reference : prETS 300 250
 8   O J. No L196,5.08.1993, p.48
 ---pagebreak---                                                -11-
Whereas the wide-screen 16:9 aspect ratio has been adopted at world level by the
International Telecommunication Union (ITU)9 for HDTV and it is desirable and possible
to develop the market for advanced television services and products having the same wide-
screen 16:9 aspect ratio;
Whereas television services are currently delivered to the home by terrestrial systems, by
satellite systems and by cable systems and it is essential that advanced wide-screen services
should be made available to the largest possible number of viewers;
Whereas there is a need to establish common digital standards for the transmission of
television signals whether by cable, or by satellite, or by terrestrial means as an enabling
element for effective free-market competition and this is best achieved through the
activities of a recognised European standardisation body;
Whereas it is appropriate to repeal Council Directive 92/38/EEC and to issue a new
Directive in the light of these developments in the market and technology;
Whereas technologies for advanced television services are developing rapidly and a
common approach to their development is necessary; whereas separate and multiple
actions by the Member States could lead to undesirable fragmentation of the market for
products and services and to duplication of efforts; and whereas consequently such actions
could be better achieved at Community level;
9   COR Recommendation 709 defines "picture characteristics" including the wide-screen 16:9 aspect ratio
 ---pagebreak---                                              -12-
HAVE ADOPTED THIS DIRECTIVE:
Article 1
Member States shall take all appropriate measures to promote and support the accelerated
development of televisions services in the wide-screen 16:9 format and using 625 or 1250
lines;
Article 2
All television services transmitted to viewers in the Community whether by cable, satellite
or terrestrial means shall:
 i)             if they are in wide-screen format, only use a transmission system having the
                 16:9 aspect ratio;
 if)             if they are in wide-screen format and 625 lines, and are not fully digital, use
                 the D2MAC tiansmisaion system, ni n Inihsmlwluii «y«lem which to hilly
                compatible with PAL or SECAM;
 iii)           if they are in high definition, and are not fully digital, use the 11 DM AC
                transmission system.
 Article 3
 Completely digital television systems must use a transmission system which has been
 standardised by a European standardisation body but are otherwise not covered by this
 Directive.
Article 4
Any television set with an integral viewing screen of visible diagonal greater than 42 cms,
which is put on the market for sale or rent in the Community shall be fitted with at least
 ---pagebreak---                                                13-
one standardised (by a recognised European standardisation body) open interface socket
permitting simple connection of additional decoders or peripherals.
Article 5
Any wide-screen 16:9 television service which is received by and re-distributed on cable
television systems shall be re-distributed on such systems in the wide-screen 16:9 format.
Article 6
Before 1 January 1996 and every 2 years thereafter the Commission shall review this
Directive and submit a report to the European Parliament, to the Council and to the
Economic and Social Committee on market and technological developments, in particular
relating to developments in digital technology. If necessary, the Commission shall make
proposals to the Council to adapt this Directive to these developments.
Article 7
Directive 92/38/EEC is hereby repealed with effect from the date six months after the date
of notification of this new Directive.
Article 8
 1.      Member States shall bring into force no later than 6 months after the date of its
notification the laws, regulations and administrative provisions necessary to comply with
this Directive. They shall forthwith inform the Commission thereof.
2.       When Member States adopt these provisions, these shall contain a reference to this
Directive or shall be accompanied by such reference at the time of their official publication.
The procedure for such reference shall be adopted by Member States.
3.       Member States shall communicate to the Commission the texts of the provisions of
national law which they adopt in the field governed by this Directive
 ---pagebreak---                                          -14-
Article 9
This Directive is addressed to the Member States.
Done at Brussels, (date)
For the European Parliament                       For the Council
The President                                     The President
 ---pagebreak---                                                   -AS -
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