interim evaluation of media 2007 - european commission · 2017-01-30 · the interim evaluation of...

Ref. Ares(2010)432696 - 15/07/2010

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Document status

The interim evaluation of the MEDIA 2007 Programme was commissioned by INFSO, the Information Society and Media Directorate General of the European Commission.

The evaluation was managed by Mr Ilias Sotirchos and Ms Isabella Tessaro (Media Unit). Progress was monitored by a steering committee consisting of members of the INFSO DG Media Unit, the EACEA Executive Agency, and the INFSO DG Evaluation Unit.

This document is a final report. It was preceded by the interim report which presented the first results of the data collection, and by the draft final report which was discussed with the steering committee.

It is accompanied by a technical report consisting of quantitative and qualitative data analysed in the framework of the evaluation.

The views expressed in this report are those of the authors and do not necessarily reflect the Commission’s point of view. The Commission cannot be held responsible for the accuracy of the information presented here.

Neither the Commission of European Communities nor anyone acting under its responsibility can be held responsible for the use made of the present report.

The evaluation team would like to thank all the members of the Steering Committee for the quality of the discussions at the various meetings, as well as all the individuals interviewed, for their time.

For further information:

This evaluation was carried out by a consortium of two companies: Euréval and Media Consulting Group. The team of evaluators was headed by Ms Virginie Besrest ([email protected]) and Mr Alain Modot ([email protected]) The other members of the team were Thomas Delahais ([email protected]), Karine Sage ([email protected]), Silvia Angrisani ([email protected]) and Héloïse Fontanel ([email protected]).

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Synthesis

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Introduction This document is the synthesis of the external and independent interim evaluation of the MEDIA 2007 Programme to support the audiovisual sector (period 2007-2013).

The evaluation was undertaken less than three years after the programme was launched. At that stage few of the projects had been concluded and not all of the effects of the programme had been felt yet.

The main aim of this evaluation was to:

■ check whether the programme objectives still matched the needs of the audiovisual sector;

■ assess the efficiency of the programme management; ■ obtain feedback on the innovations introduced in MEDIA 2007 (new

lines, administrative improvements); ■ check whether the first results were consistent with the intervention

logic of the programme; ■ assess the probability of effectively generating the global effects that are

expected from the programme, in view of its intervention logic; ■ propose adjustments for the second half of the programme

implementation.

Context

Public policies in the film and audiovisual sector are currently facing major challenges related to technological changes and their impact on modes of consumption, economic models, and the value chain.

Technological changes

These changes are partly due to the take-up of high-speed Internet in Europe. The situation and implementation of this technology has differed from one Member State to the next, and coverage is still not complete in spite of concerted efforts to accelerate the process.

Whereas films have traditionally been linked to a geographic location (the cinema), the gradual replacement of 35mm copies by digital ones has brought with it new possibilities for screening. Programming is likely to become more flexible (multiprogramming and diversity of language versions for the same film). Digital technology has also helped to boost the film industry, with the introduction of 3-D films.

High-definition DVD recently arrived on the European scene. It is still not clear whether DVD will be able to absorb the emergent technology and transform it into a lasting asset so that it can maintain its presence in the distribution chain.

Television, formerly a linear medium, is increasingly becoming a non-linear platform enabling the viewer to choose content as well as the time at which to consume it (catch-up TV, IPTV, Web TV).

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M îdia Consulting fj ГО U D Today Internet is no longer only a medium for

television but also a distribution platform through video-on-demand (VOD) and online social networks. Mobile phones are likewise concerned by this change; they are becoming distribution platforms for audiovisual content (personal mobile phone - PMP).

Changing modes of consumption

Viewers’ habits have changed along with technological innovations. Today, audiovisual content can easily be personalized, saved and transported. The environment has also changed: we are living in ‘digital homes’, that is, multiplatform distribution environments created by the interconnection of various media. Additionally, the portability of content via Internet and mobile phones means that the physical environment has become an opportunity rather than a constraint. Media content can circulate far more easily today, between different media and geographically.

Economic models

From an economic point of view, change is taking place gradually, with varying effects on the market, depending on the sector and the country. Changing economic models are witnessed in the relationship between television and film. For 30 years, national Hertzian television was the indispensable financial partner of the European film industry. Today, in a context of steep decline in revenue from TV advertising, the value of films on these channels is stagnating. Films are migrating to the digital channels and pay-TV film channels.

The non-linear offer is still struggling to generate sufficient revenue on the basis of existing models, including free-of-charge models based on advertising. These services still generate far less revenue than that derived from advertising on linear TV networks, despite its relative decline.

Managing rights

The European audiovisual industry is also facing the issue of managing rights. This has become a priority for two reasons: the entry into the market of new players in the fields of production and distribution; and piracy, which still has to be overcome as a model for the non-linear offer. The industry is searching for solutions to this unprecedented competition, through an offer based on low prices, the technical facility of modes of payment per unit, experiments with advertising-based ‘free offer’ models, and high quality.

In terms of the management of rights, effects of ‘cannibalization’, primarily due to the slow shift to a non-linear offer, are reportedly appearing throughout the value chain. In the long term, some observers foresee a simplification of the value chain, to the point of comprising no more than two segments: private consumption at home (or on a portable monitor) and public consumption in a cinema.

Description of the programme

Implementing the programme

Since the European Parliament and the Council adopted the MEDIA I programme in 1991, a coherent, long-term financial intervention policy has been implemented to enable the European audiovisual industry to benefit from a Europe-wide market. This policy was implemented first through the MEDIA

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M îdia Consulting fj ГО U D II Programme and then through MEDIA PLUS

and MEDIA Training (2001-2006).

In accordance with the principles of subsidiarity and complementarity, community action is concentrated on pre-production and post-production, leaving it up to national authorities to support production. The programme therefore intervenes in the following areas: training of professionals in the audiovisual industry, development, distribution, and promotion of works.

On 15 November 2006 the European Parliament and the Council adopted a new programme to support the European audiovisual sector: MEDIA 2007, with a budget of €755 million, for a period of 7 years (2007-13).

Whereas in the past an entire programme was devoted to training, MEDIA 2007 is an integrated programme grouping together various types of support, in both the pre-production and the post-production stages.

MEDIA 2007 has three global objectives:

1. preserving and enhancing European cultural diversity and its cinematographic and audiovisual heritage, guaranteeing its accessibility to European citizens, and promoting intercultural dialogue;

2. increasing the circulation of European audiovisual works inside and outside the European Union;

3. strengthening the competitiveness of the European audiovisual sector in the framework of an open and competitive market.

The support delivered by MEDIA 2007 is oriented by four priorities:

1. fostering creativity in the audiovisual sector and the value of Europe’s cinematographic and audiovisual heritage;

2. strengthening the production structure of the European audiovisual sector, particularly SMEs;

3. reducing the imbalances in the European audiovisual market between high production capacity countries and countries or regions with low production capacity and/or a restricted geographic and linguistic area;

4. monitoring and supporting developments in the market with regard to digitization.

What is new about MEDIA 2007

MEDIA 2007 has simplified its administrative procedures, generally, and introduced a clause of proportionality into the financial and administrative rules. The aim is to reduce the administrative burden and to make it proportional to the type and size of the subsidy, and to the nature of the applicant companies. Long-term partnerships have been implemented in training, promotion and operations.

In terms of activities supported, the majority of action lines (except for support for Distribution in VHS and DVD format) implemented under MEDIA Plus and MEDIA Training have been maintained. MEDIA 2007 however also intervenes in some new fields, including initial training, the development of interactive works, video-on-demand (VOD) and digital cinematographic distribution (DCD), the Web communities, and open media.

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M îdia Consulting Group Key figures on the programme

As regards the projects supported:

• over 5,000 projects were supported by MEDIA 2007 during the first three years of its implementation;

• European co-funding of these projects amounts to €296 million, accounting for 39% of the programme budget over the entire period.

As regards the applicants:

• during the first three years, over 3,000 organisations submitted proposals to the MEDIA 2007 programme (against fewer than 2,000 in the framework of MEDIA Plus over the entire period) and over 1,400 organisations received support;

• the number of organisations from the new Member States that submitted proposals increased slightly under MEDIA 2007;

• the organisations retained by MEDIA 2007 are producers (56%), distributors (31%) and promoters (11%)1;

• the beneficiaries of MEDIA 2007 are spread across Europe (98 regions out of 1052) but close to half the organisations that applied for support are in the ten regions with the most beneficiaries.

In terms of amounts, the overall situation was as follows for the period 2007-2009:

• the 5 countries in Group A (Germany, Spain, France, Italy, the UK) receive close to two thirds of the MEDIA support, and this proportion is growing;

• the Group B countries (the 10 other countries of Europe-15 as well as Switzerland, Iceland and Norway) receive on average 25% of the subsidies, but this share is shrinking;

• the share of Group C countries (the ‘new’ Member States) is stable, around 8%.

Scope and objectives of the evaluation

The interim evaluation covers the entire MEDIA Programme for the period 2007-2009. It is expected to provide answers to the following 5 questions:

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1 The category ‘promoters’ encompasses organizations that organize promotional events and festivals. The category ‘distributors’ also includes cinema exhibitors.

2 For practical purposes, the beneficiary countries have been divided into 105 regions, based on the NUTS nomenclature.





Q1. To what extent is the MEDIA 2007 Programme still suited to the needs of the European audiovisual sector and media professionals? (question concerning the relevance and added value of the programme)

Q2. To what extent is the MEDIA 2007 Programme designed to meet the set objectives? (question concerning the internal coherence of the programme)

Q3. In which cases do the first results of the programme confirm its intervention logic? (question concerning the effectiveness of the programme)

Q4. To what extent is the programme likely to generate the expected impacts? (question concerning the probable impacts of the programme)

Q5 – To what extent does the programme implementation present a good cost-benefit ratio? (question concerning the efficiency of the programme)

The steering committee gave priority to Questions 1, 2 and 3, respectively concerning relevance, internal coherence and effectiveness.

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Methodology

The evaluation mission started in September 2009 and ended in May 2010. It consisted of four phases:

• A first phase of structuring the evaluation approach, which made it possible to revise the intervention logic of the programme (ad hoc workshop), to define the evaluation questions and the related criteria and indexes, and to stabilize the evaluation method.

• A second phase of observation in which several data collection methods were implemented:

- collection of quantitative and qualitative contextual data

- collection of documents on the programme implementation

- collection and analysis of the Agency’s database

- individual interviews with the programme managers

- questionnaire administered to the 32 MEDIA Desks

- online survey on all the organizations (retained or not) that applied for MEDIA 2007 support.

During the evaluation, 550 people (programme managers, Media Desk officials, programme beneficiaries and non-beneficiaries, experts, etc.) were requested for their opinions on the programme.

• A third phase of analysis3:

- statistical analyses of the data collected

3 The results of each of these analyses are provided in the technical report attached to the present report.




M îdia Consulting Group 8 in-depth studies on specific

issues on which the Commission

wanted more in-depth evaluation

- a cartographic analysis

- an analysis of the network

- finally, all the data collected were cross-referenced by means of the ‘triangulation’ process

4 . Every finding presented in this

report i s therefore based o n several data sources .

• A fourth and final phase of judgment resulted in the production of

evaluation conclusions and recommendations. The conclusions were

discussed with the members of the Steering Committee in a workshop.

The recommendations were likewise the subject of group discussions.

The evaluation nevertheless encountered certain l i m i t s :

• in the collection and use of statistical and programme monitoring data,

due to problems of availability, exhaustiveness and comparability of

data (especially between statistics from the Executive Agency, the

European Audiovisual Observatory, and the national film agencies5);

• in the tools used to collect data (see the technical report);

• due to the complexity of the programme (multiple types of support

functioning in multiple ways and catering for multiple actors. The

global evaluation does not always afford a detailed, accurate and in-

depth view of certain specific aspects of a type of support and/or actor.)

Conclusions

The analysis yielded a number of findings, on the basis of which the following

conclusions were reached:

Conclusions Sources

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Conclusions o n the relevance of the MEDIA 2 0 0 7 Programme

Conclusion 1: The integrated logic of the programme (i.e. covering Findings 1, the entire value chain, including MEDIA Training), its anchorage on 2, 3, 4, 7, 10, the European audiovisual scene, and the fact that it is designed to 11, 12 and 42 support change in the sector, enable MEDIA 2007, inter alia, to of the provide an appropriate response to the needs of the sector. evaluation

Conclusion 2 : The added value of the MEDIA Programme is Findings 6, significant in so far as it introduces a strongly European dimension 13 and 14 into the supported projects, enabling them to be more ambitious, and is complementary to existing national support.

Conclusions o n the internal coherence of the programme

Conclusion 3 : Significant adjustments have been made to MEDIA Findings

2007 (new lines, evolution of existing lines) to enable it to meet new

4 This process is carried out via the production of a range of indexes based on the

evaluation grid and including all the data collected.

5 For example, the number of countries covered is not the same, depending on the source.





needs, especially those related to digital technology. However, the 2,3 and 11 timeframe of the programme (objectives, budgets and instruments set for 7 years) does not allow it to be reactive enough, throughout the entire period, to the extremely rapid changes in technology and the market.

Conclusion 4 : The steep increase in the number of applications Findings 4, for the various forms of support offered by the programme attests to 5, 19, 39 and the fact that it corresponds to the needs of the sector. However, this 43 entails an increasingly selective process leading to the exclusion of primo-participants and very small businesses, increasing management costs, and discouragement among potential participants.

Conclusion 5: The overall internal coherence of the programme is Findings 7, confirmed. However, developing the demand for European works by 8, 10, 24 the public, cinemas and TV broadcasters is not granted enough and 26 importance in comparison with that granted to the audiovisual supply.

Findings 9 Conclusion 6: The system of positive discrimination set up is

and 36 suited to achieving the cultural diversity objective but is insufficient to meet the objective of remedying the imbalance between countries with a low and those with a high audiovisual production capacity.

Conclusions o n the results produced by the programme during the

first three years of i ts implementat ion

Conclusion 7: Participation in the application process for MEDIA Findings

support enables applicants to significantly improve the design of the 13, 14, 15, projects presented (consolidation of finance plans, strengthening of 18 and 41 partnerships).

Conclusion 8 : MEDIA 2007 support for Continuous Training is Findings effective, on the whole, and generates a significant ‘quality label’ 11, 16, 17, effect. Support for initial training has not yet had time to prove itself. 28 and 29

Conclusion 9 : MEDIA 2007 support for Development, which has Findings been increasingly successful, is effective on the whole and allows for 5, 18, 19 the emergence of better structured projects that are more competitive and 30 in the international market. However, the effectiveness of support for interactive works needs to be improved.

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Conclusion 10: I2i support has allowed for an effective reduction of Finding financial costs. However, its size (marginal compared to the size and 20 needs of the market) is insufficient to generate a visible improvement in access to funds, which is still one of the main problems confronting professionals in the sector.

Conclusion 11: MEDIA 2007 support for Distribution is effective on Findings the whole; it contributes significantly to improving conditions of 22, 23, 24 distribution (automatic support) and to strengthening professional and 34 networks (selective support).

Conclusion 12: MEDIA 2007 support for Promotion (Access to the Findings

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Market, and Festivals) is effective on the whole; it allows for greater 25, 26, 27 visibility of NNE works both within Europe and beyond, and for a and 36 widening of professional networks.

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Conclusion 13: MEDIA 2007 support for TV Broadcasting Findings contributes significantly to securing producers’ rights but is still not 2, 10 and attractive enough to change practices in some countries where 21 broadcasters are unwilling to relinquish certain rights.

Conclusion 14: The modalities and scope of application of support Findings for Pilot Projects are too complicated to allow for optimal 11 and 33 effectiveness of this line.

Conclusion 15: Support for VOD does not yet contribute sufficiently Findings to the circulation of European works in so far as the market is still 11 and 31 weak and the pan-European approach to the exploitation of rights is not developed enough.

Conclusions o n the programme’s capacity to generate the expected

impacts

Conclusion 16: By supporting training for professionals, the Findings structuring of projects and the networking of actors, MEDIA 12, 13, 14, contributes to making the European audiovisual sector more 15, 18, 22, competitive. 25 and 35

Conclusion 17: In the continuity of MEDIA Plus, MEDIA 2007 Findings support probably contributes to better circulation of European works. 12, 22,

24, 31, and 34

Conclusion 18: The programme is likely to contribute to the Findings preservation of cultural diversity, especially if it remedies the 9, 36 and imbalances between countries with a low production capacity and 37 those with a high capacity.

Conclusions o n the efficiency of the programme’s implementat ion

Conclusion 19: On the whole the budget and resources of the Finding

programme are deployed efficiently. 38

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Conclusion 2 0 : The efficiency of the programme management has Findings been improved significantly (simplifications, adjustment of the 39, 40, schedule, long-term partnerships) but progress can still be made in 41, 42 reducing the administrative burden. and 43

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Recommendations

Several recommendations can be made, based on the evaluation conclusions. These recommendations are presented below by order of strategic importance, and refer to the conclusions on which they are based. Some recommendations (e.g. RS1 - 1, RS3 - 1) can evidently be implemented only in the medium/long term (for legal reasons) and will be taken into consideration in planning the next generation of the programme. The others can be taken into account in the remaining period of the implementation of MEDIA 2007 (2010-2013).

Strategic Recommendation (SR) 1: Broaden the modes of intervention mobilized by the programme

Sources: Conclusions 1, 3, 5 and 6 Timeline: medium/long term

1. Innovate in the programme’s modes of intervention or support measures, with regard to:

■ banking or financial guarantee tools for the development phase;

■ tools for monitoring the sector and its actors: thematic networks, pilot projects;

■ soft law tools (e.g. white papers, codes of conduct, charters, etc.);

■ tools facilitating interoperability and networking (e.g. dubbing or subtitles);

■ tools facilitating cooperation between territories;

■ constitution of a common framework of reference for competencies (for initial training);

■ tools for building consensus (VOD with a common approach to rights, for example).

2. Revise the modalities of implementation of positive discrimination (revise the typology of countries; more in-depth reflection on the most appropriate targets).

3. Envisage stronger intervention on the demand: studies, reflection on levers for intervening on the demand at the level of consumers, exhibitors and TV broadcasters, via education on the media in schools (e.g. film clubs).

SR 2: Strengthen the capacities for knowing the market and analysing the effects of the programme

Sources: Conclusions 1 and 3 Timeline: medium/long term

1. Optimise the contribution of the European Audiovisual Observatory (obtain statistical data and relevant analyses to ensure better knowledge of the market and to facilitate an analysis of the programme’s effects).

2. Undertake studies (on cohorts and/or econometric) on the audiovisual sector to enhance the programme’s capacity to anticipate change.

3. Carry out specific evaluations focused on sectors and/or action lines of the programme, to afford a more precise view of the effects of the programme’s interventions.

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M îdia Consulting Group SR 3: Maintain efforts to adapt to

the market

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Sources: Conclusions 4, 9, 11, 13 Timeline: medium/long term

1. TV Broadcasting (suggestions for the next programme):

■ envisage direct support for TV distributors (sales agents);

■ propose support for broadcasters committed to promoting non-national European works (‘Europa cinemas for television’);

■ support dubbing to get a foothold in the big non-European markets (USA/South-East Asia, Latin America);

■ promote projects that are also envisaged for the Web (or on two media of which one is online, like the Web, personal mobile TV, or new media.

2. Distribution and Exhibition

■ Grant additional points for the implementation of language versions (for Distribution) and screening (for Exhibition) for people with visual or hearing impairments.

SR 4: Optimise the programme management

Sources: Conclusions 4, 19 and 20 Timeline: short term

1. Simplify and improve the modalities of programme management:

■ revise the comitology procedure (threshold in relation to the allocation of Community funds, under which the comitology procedure no longer applies) in coherence with what was done for Media Mundus and exists at DG Education and Culture;

■ envisage stricter eligibility and/or selection criteria in order to limit the growing number of applications in the Development line and improve the quality of the projects received.

2. Maintain efforts to reduce the administrative burden:

■ set up a system of online applications that directly informs the MEDIA database;

■ introduce a single identification number so that the beneficiaries’ track and/or projects can be monitored, as well as their administrative documents.

3. Extend the pool of experts to streamline the selection procedures.

SR 5: Maintain efforts in communication and data sharing

Sources: Conclusions 9, 10, 14 and 20 Timeline: short term

1. Communicate clearly (‘MEDIA Programme’ rather than ‘MEDIA 2007’, revision of the name of the line I2i, replacement of the term ‘interactive’ by the term ‘cross media’ for the Interactive Works line).

2. Exploit the potential of the network of MEDIA desks and antennae (creation of a collaborative platform).

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