Report Warns EU Single-Market Plans Could Harm Film & TV Production

CANNES: A new report claims that audiences across the EU will “lose out substantially” if the European Commission moves forward with its plans to allow cross-border access to audiovisual content.

The report from economic consultancy Oxera and media consultancy Oliver & Ohlbaum was launched at an event in Cannes with the support of a broad group of sponsors, including film and TV producers, distributors, broadcasters, platforms and agencies throughout Europe and across the world.

It claims that changes to copyright and other initiatives at the EU level could result in substantially lower levels of investment in TV and film content, with consumer welfare losses worth up to 9.3 billion euros ($10.5 billion) a year. The move, the report states, threatens the cultural diversity both in production and distribution, thereby reducing the volume and quality of original content on offer in the EU. The group claims that up to 48-percent less local TV content in certain genres and 37-percent less local film production would be produced, with the most marginal/risky content at particular risk of being dropped.

John McVay, chief executive of Pact, said: “Today’s report underlines that the Commission’s plans will deliver the exact opposite of their stated intentions leaving audiences with a poorer range of content, higher prices and a devastating impact on cultural diversity both in production and distribution. It is vital that they urgently rethink their approach and work closely with industry and member state governments to ensure no changes are made that would end up leaving audiences worse off. We all want to develop a stronger digital economy for film and television. But the Commission must work with, not against the industry to deliver for audiences.”

Peter Dinges, president of the European Association of Film Agencies (EFADs), commented: “Every market, even a Digital Single Market, needs products. The EFADs annually invest more than 3 billion euros to foster a growing audiovisual economy with high quality films made in Europe. However, if the Commission tears a hole in the financing of European films, even the funds cannot fill the gap. High-quality products made in Europe would be highly endangered and thus cultural diversity compromised.”

Anders Kjaerhauge, managing director of Zentropa, said: “The study clearly demonstrates that undermining the freedom to use territorial exclusivity to raise film financing and to organize the optimal film distribution across various platforms and markets would harm audiences. The result would be a drastic reduction in the range and quality of films produced and distributed for audiences to enjoy across Europe.”

Michael Ryan, partner at GFM Films, added: “Our focus is always on producing great content and delivering it in a way that audiences can enjoy. We are deeply concerned that the Commission’s proposals will totally undermine the environment that has facilitated a flourishing film/TV market that delivers for consumers. Today’s findings highlight just what is at stake.”

Martin Moszkowicz, CEO of Constantin Film, said: “Filmmakers rely on the revenue generated from territorial exclusivity for film distribution. This report sends a clear warning to the European Commission that their ambitions for cross border access to content would do great damage to a key economic growth sector. The Commission is suggesting that we stop the idea of territorial sales just when the digital market is delivering sustainable models to deliver for audiences while successfully monetizing content, allowing continued reinvestment in new production.”