Download ppt - Creative Content Online in the European Single Market

International Institute of Communications' Telecoms and Media Forum, Madrid24-25 June 2008

Simona Martorelli Information Society

and Media Directorate-General – Unit A.1

Creative Content Online in the Single Market


Convergence

• According to the study on "Interactive content and convergence"1 (covering EU 25), by 2010, revenues from online content, will more than quadruple from €1.8bn in 2005, to €8.3bn by 2010.

• Online content will also make up a sizeable part of total revenues in some sectors; about 20% for music and 33% for video games.


Convergence

• The transfer of creative content services to the online environment is an example of major systemic change.

• The availability and take-up of broadband, and the increasing possibility to access creative content and services everywhere and anytime, provide challenging new opportunities:– For consumers: new ways to access, and even to

influence, creative content available on worldwide networks such as the internet, both from home and using mobile devices.

– For companies: the possibility to offer new services and content and to develop new markets.


“i2010”

• The "i2010 – A European Information Society for growth and employment" initiative was launched as a framework for addressing the main challenges and developments in the information society and media sectors up to 2010.

• It sets as a first objective, the creation of a Single European Information Space, offering increased legal and economic certainty for rich and diverse content to develop and circulate in Europe.

• Ultimately, this will create a sound market basis for the European content sector to distribute its great variety of content on a European and global scale.


Communication on Creative Content Online in the Single Market

• On 03/01/2008, the Commission adopted a Communication on Creative Content Online.

• It launched further actions to support the development of innovative business models and the deployment of cross-border delivery of diverse online creative content services.


2006 public consultation on "Content Online in the Single Market"

• More than 175 written contributions from a great variety of stakeholders.

• Calls to show restraint and not intervene prematurely with further legislation in a nascent and fast evolving market.

• Calls for specific changes in the legal framework on issues such as intellectual property rights licensing, private copying levies and interoperability.

• Calls on the Commission to encourage cooperation between industry, right holders and consumers on issues such as DRMs, Content Online and Film Online.

• Calls for financial support• Various requests for promoting standards concerning

the interoperability of DRMs.


Cultural diversity

• Creative content online has a strong potential to enhance cultural diversity.

• Binding regulatory instruments (such as Directives and Decisions) fall outside EU competence in the area of culture, but, according to the Treaty, the EU shall take into account cultural aspects in its actions.


Commission staff working paper

• A Commission staff working paper, with the aim of giving a neutral survey of policy issues, was also prepared to accompany the Commission Communication on Creative Content online.

• The SWP intends to give an economic outlook, the legal framework and a view on the actions already undertaken by the Commission in the online sector together with an overview of different types of creative content online.

• The SWP also focuses on various issues raised during the public consultation that are not all part of the Communication.


Challenges

• The Commission deems that there are four main, horizontal challenges which merit action at EU-level, as highlighted in the Communication:– Availability of creative content– Multi-territory licensing for creative

content– Interoperability and transparency of

Digital Rights Management systems (DRMs)

– Legal offers and piracy


2008 Public consultation

• 2008 Public Consultation in preparation for the adoption of a Recommendation on Creative Content Online

• This public consultation was based on a questionnaire included in the Communication and the deadline for replies was 29 February 2008.

• The questionnaire focused on three issues:– Interoperability and transparency of Digital

Rights Management systems;– Multi-territory licensing for creative content;

and– Piracy and legal offers.

• More than 700 contributions received, currently being analysed


2008 Public consultation

• First impression after public consultation:– DRMs should become more user friendly and

transparent, need for interoperability and for easy and non discriminatory access of SMEs stressed

– Multi-territory licensing: no clear trend; frequently “one-stop-shop licensing” preferred

– EULAs to be simplified– Piracy recognized as major problem,

stakeholders’ cooperation/awareness raising favoured, French MoU: “wait and see”Filtering controversial: good solution/doubts on efficiency (“over blocking”), high costs


"Content Online Platform"

• The Commission has also platform, the so-called "Content Online Platform". The idea is to have a longer term reflection of a more general nature in the Content Online Platform.

• Issues for discussion in the Platform include: availability of content, improvement of rights clearance mechanisms, development of multi-territory licensing, management of copyright online, cooperation mechanisms to improve respect of copyright in the online environment, general interest objectives including cultural diversity.



• It is envisaged to have a discussion at two levels:– on the one hand expert working groups with

the personal involvement of Commissioner Reding

– on the other hand, a discussion with a broader participation at the conference which was organised by the Slovenian Presidency with the support of the European Commission in Brdo on 5-6 June 2008 and the conference to be organised by the forthcoming French Presidency in Paris/France on 18-19 September 2008.



• Content Online Platform1st meeting 17 April, Business models: “How can Europe’s assets as regards infrastructure and culture be exploited?”

• How is the market in different sectors of business?

• “Old and new markets”• Best practices for digital distribution• How to find adequate risk capital?• Subscriptions/advertising/other means• Is cross-border distribution a reality? How could

it be improved?• “Digital shift”• What actions to be taken at EU level?



• Issues identified: – Summary of obstacles to online content: Costs,

piracy, release windows– Great pressure on profit margins– Content is a high risk investment sector (“Box office

risk”)– “Old market pays new market”– Recovering of investments by “long tail principle”?– Where do online models best fit in the value chain?– How to move from “old media to new media”?“– Consumers’ demands / “Free/pay debate”– How to win a piracy market share of 40%? – Multi territory licensing, collecting societies


Next steps

• Further meetings Content Online Platform– 26 June: Piracy and legal offers– 18 July: Management of copyright

onlinePreparation of a Recommendation

> around the end 08


http://ec.europa.eu/avpolicy/other_actions/content_online/index_en.htm


Thank you for your attention!Simona Martorelli

Detached National ExpertEuropean Commission

Directorate-General InformationSociety and Media

Audiovisual and MediaPolicies

[email protected].: 0032 229 81488

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