Public broadcasting & state aid in the newPublic broadcasting & state aid in the newmedia environmentmedia environment

IES, 16 April 2008

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Brussels based trade association establishd in 1989 by fivebroadcasters

Currently representing 28 media groups active in 34 Europeancountries (up from 18 in 2003)

Operating over 380 free-to-air and pay-TV channels anddistributing 540 channels and 170 new services

The leading source of entertainment and information to millions ofEuropean citizens

The ACT The ACT

4

Until mid-1980s: non-existent;

Mid-1990s: the Dual System;

Now?

Public broadcasting & state aid in the new media environmentPublic broadcasting & state aid in the new media environment

51950 1960 1970 1980 1990 2000 2010

CINEMA

TELEVISIONVHS

ANALOGUE CABLE

ANALOGUE SATELLITEDIGITAL SATELLITE

DIGITAL CABLE

DVD

WEB

PODCAST

SVOD3G

MobileBroadcast TV

XXIth century

XXth century

DTT

TVoDSL

VOD

TheThe acceleratingaccelerating pacepace ofof new technologies new technologiesWaysWays to to distributedistribute electronicelectronic media content media content

TheseThese changes changes requirerequire a a fundamentalfundamental rethinkrethink ofof allall operatorsoperators´ ´ strategiesstrategies

PRODUCER/RIGHTSHOLDERPRODUCER/RIGHTSHOLDER

BROADCASTERBROADCASTER

ADVERTISERSADVERTISERS

100% financed

100% financed

Companies

Consumers

Regulators

Public [service] [sector] [financed] broadcasters

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The Remit

– “Should be as precise as possible”– “Educate, Inform & Entertain”

Compensation for Remit

– How much money is needed?

Supervision for Delivery

– Who decides whether the taxpayer is getting value for money?

Structural issuesStructural issues

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Specificity of the broadcasting sector

Liberalisation without privatisation;

Predominantly organised on national lines (language)

But competition issues still arise, especially in dual financedmarkets

Early wave of cases filed in 1992/93

But heavy political pressure from Member States, culminating inAmsterdam Protocol of 1997 …

… and the CFI decision on « failure to act » in Telecinco case

Commission solution : 1998 Guidelines (abandoned), 2001Communication (adopted)

A series of decisions have followed under the Communication,breaking the backlog of cases

The EU & competition in broadcastingThe EU & competition in broadcasting

Developments in the marketplace since 2001Developments in the marketplace since 2001

Internet Boom and Bust

Media Convergence: the Second Coming

Public Broadcasters’ Strategy (and their different financial cycle)

New Issues, New Competitors : from a linear “dual system” to an eraof multi-platform distribution of media content

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Greater clarity on remit (respecting the sensitivities)

What is the appropriate role and scale of public intervention in thenew media environment?

Independent regulation is essential

Ex-ante scrutiny (link to independent regulation)

ElementsElements for a for a revisedrevised communication communication

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«  The provisions of the Treaty establishing the EuropeanCommunity shall be without prejudice to the competenceof Member States to provide for the funding of publicservice broadcasting insofar as such funding is granted tobroadcasting organisations for the fulfilment of the publicservice remit as conferred, defined and organised byeach Member States, and insofar as such funding doesnot affect trading conditions and competition in theCommunity to an extent which would be contrary to thecommon interest, while the realisation of the remit of thatpublic service shall be taken into account »

Amsterdam Amsterdam protocolprotocol

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Unresolved structural issues from analogue broadcasting could, iftranslated into the new media world, lead to market distortion andforeclosure of new markets.

The review of the Broadcasting Communication is an opportunity toensure that this does not happen.

The broadly positive experiences with the 2001 text should allay someMember States’ concerns and allow for a more rational debate thistime round.

ConclusionConclusion

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Thank you!

ContactContactACT – Association of Commercial Television in EuropeRoss BiggamDirector GeneralRue Joseph II, 9-131000 BrusselsTel: +32 2 736 00 52Fax: +32 2 735 41 72Email: rb@acte.bewww.acte.be