“Culture should be something emblematic within the European idea” Christian Ehler MEP

“There won’t be a European single market without European content”

Pervenche Berès MEP

High-Level Conference

The Cultural & Creative Industries: Jobs, Growth

and Europe’s Digital Future12th October 2016

Main takeaways from the conference panels

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INTRODUCTION

Opening speech by Christian Ehler MEPIn his opening remarks, Christian Ehler MEP emphasised that the creative and cultural industries are amongst the most promising sectors in the EU and an embodiment of the European project. He stressed the substantial wealth created by these sectors, referring to the grants the EIB started allocating to these sectors as an illustration of their contributions to the European economy. Along this line of thought, he welcomed the latest Commission’s proposal on copyright, describing it as a “step in the right direction”, and called on the Parliament to adopt a collaborative approach when debating this proposal. He also welcomed the focus on creative and cultural industries added to the “Juncker plan”.

Keynote speech by Pauline Rouch, DSM advisor to President JunckerPauline Rouch was representing President Juncker at the conference. She presented the various proposals targeting the creative and cultural industries tabled by the European Commission since the

beginning of the mandate, including the so called “copyright package” and the regulation on portability. She outlined that the Juncker Commission focuses on

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growth and jobs in all policy and regulatory initiatives and stressed that the Commission is well aware of the cultural and creative sectors major contribution to the EU economy, quoting figures of € 500 billion Euro in added value to

the EU GDP or 4.4% of the EU GDP. She added that 3.8% of the European workforce is employed in the sector. Discussing the role of innovation, Pauline Rouch argued that “it is good, but it does not mean that copyright and taxes should not be respected”. In this vein, she stressed that the proposed revisions to the copyright regime aim at reinforcing the position of the right holders, creating a level playing field. Echoing Christian Ehler’s remarks, she said that the creative and cultural industries are much more than an economic activity: they are part of the European culture and thus all “creators” should be empowered with the ability to live out of their art. She summarised the Commission approach saying that the objective of the European Commission is to help protecting “European creators” by accompanying them towards a fairer and more sustainable market.

Pervenche Berès MEPPervenche Berès MEP stated that the fight to defend creators is a crucial one, stressing that culture and creativity are at the core of the European project.She discussed the role played by passive hosting services which are exonerated from copyright while making millions, exploiting illegally the work of the others. She called upon the EU to address existing market distortions to create a fair environment for creators and companies.

Per Strömbäck, NETOPIA Introducing the conference programme, Per Strömbäck reminded the audience that contrary to a popular belief, cultural and creative industries are ahead of the

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curve when it comes to digital. In fact, they were the first to meet the challenges of the internet age, while other industries – such as manufacturing – are slowly adapting to digitisation. He also addressed the misconception that technology comes first, arguing that “Without culture, content, and creativity, technology is pointless”.

Nima Sanandaji, President of the European Centre for Entrepreneurship and Policy Reform Nima Sanandaji presented his report “The value of IP in European economies”. The report’s main findings show that almost every European business depends, directly or indirectly, on immaterial value, be it copyright, patents or other forms of IP. 40% of jobs in the EU are highly dependent on IP. IP accounts for 51% of the added value in the EU, a figure which is quite telling of the impact of piracy on the European economy.

PANEL 1: A Bright Future in Digital: How Can Europe Guarantee the Future of its Young Creative

Professionals?

Keynote speech by Alban de Nervaux, Head of Legal and International Affairs, French Ministry of Culture

Alban de Nervaux opened his speech stressing that the AVMS reform and the new “copyright package” will be crucial in order to ensure that the EU secures a hopeful future for the young people who decided to work in the cultural and creative

sectors. The stakes, he argued, are not only about business, but also about 4

“Questioning territoriality would mean questioning the whole current economic model”. Virginie Rozière MEP

identity. Noting that fair remuneration and value sharing are addressed by the new pieces of legislation, he stressed it will be important to make sure they are not watered down by the Council. Moreover, he highlighted that a level playing field should be ensured in the audiovisual sector, as there is currently no such level playing field between “new” and “traditional” players. Finally, he stressed that territoriality and contractual freedom are key notions in the debate and have to be preserved, while a well defined portability regime would meet consumers’ needs.

Participants

Anthony Level, Digital Chief Policy Officer, TF1

Carlos Falcó, Chairman of Círculo Fortuny

Christian Schumacher-Gebler, CEO of Bonnier Media Deutschland

Reinher Karl, Copyright and Media Lawyer

Javier Mendez Zori, Head of Content Production, MEDIAPRO Group

Virginie Rozière MEP

Main challenges identified by the panellists:

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“We are hopeful: streaming services license more and more

our content” Reinher Karl

“A pan-European licensing system couldn’t work in the

audiovisual market – it is rooted in the local sphere”

- Anthony Level

“Some people think that digital content should be free. But how would you finance publishers and authors?” -–

Christian Schumacher-Gebler

“We need to keep territorial licensing. Without it, great series such as the Young Pope would not have been

possible”– - Javier Mendez Zori

- Copyright is an essential protection which allows creators to make a living – this is especially important in the current context of digitisation. The recent “copyright package” is a step in the right direction but the proposals need to be carefully assessed in order not to jeopardise the livelihood of the cultural and creative industries.

- The Value gap exists and hinders creation, as some large digital platforms make profit out of content which is not generated by them.

- A level playing field should be established between digital online

platforms and creators- Territoriality should be preserved. It is a

fundamental principle for the financing of the cultural and creative sectors, and allows producers to adapt their products to local markets. Furthermore, removing territoriality

would eventually make small, especially European, players disappear.

- Piracy must be fought through effective copyright enforcement

- It is normal that digital content is not free. Producers and creators must be remunerated for their work.

PANEL 2: No Time for Business as Usual: Creativity and the Creative Process in the Digital Age

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“The cultural and creative sectors have a huge impact on the EU economy” – Antti Peltomäki

Keynote speech by Antti Peltomäki, Deputy Director General, DG GROW

Antti Peltomäki argued that the cultural and creative sectors have a huge impact on the EU economy, as 11% of private companies in Europe are linked to it. When it comes to jobs, these sectors provide 12 million people with employment. “To put it simply”, he explained, “this is four times more than the automotive sector”. He added that creativity is more important than ever in the current context of digitisation: the World Economic Forum ranked creativity amongst the top 3 top skills to cope with the disruptive the labour market is facing. He then addressed IPR, noting that patents, trademarks, and similar protections are necessary shields against piracy and counterfeiting in a knowledge-based economy. Finally,

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““Producers want their films to travel, but want to make a profit in other countries as

well. This is why they support geo-blocking” – Dan Maag

“Creative content should not be consumed for free – its value must be shared fairly ” –

Angelika Niebler MEP

“Digital disruption has lowered the entry barriers to the music industry, which used to

be dominated by big corporations.– Annabella Coldrick

“I went into games because games have the DNA of the internet”

” – Johannes Sevket Gözalan

he discussed challenges faced by start-ups and talked about how the entrepreneurial spirit in Europe can materialise in new companies. He explained that scaling up a business is a difficult but important process, and that the biggest challenge for policy makers is to identify and support instruments which can help small businesses to do so.

Participants

Annabella Coldrick, Chief Executive, Music Managers’ Forum

Dan Maag, Founder, Pantaflix

Nick Yapp, President of the European Writers’ Council

Johannes Sevket Gözalan”, Founder and CEO of European Games Group AG

Angelika Niebler MEP

Main challenges identified by the panellists:

Creativity is not only important as regards our culture, it is also a driver of growth and fosters jobs creation

In order to make the most out of digital disruption, and to adapt to an ever-changing job-market landscape, providing training in specific and adapted skills is crucial

Copyright is a key tool to close the value gap

Several artists face serious challenges as they are not able to make aliving based on

the royalties they receive for work – this in turn undermines artists’ trust towards institutions

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“Digital technologies have made creativity but also piracy much

easier” – Nick Yapp

“In a fast-paced digital world, whatever the political decision is, it should be taken quickly.” – Johannes Sevket Gözalan

On the one hand, digital disruption made creativity easier than ever: today one needs a simple computer to start writing a book or creating music. On the other hand, piracy is tremendously easier than before – literally one click away.

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“We focus primarily on how to support European players, achieving a certain level playing field between countries

throughout the EU.” - Lucia Recalde

PANEL 2: No Time for Business as Usual: Creativity and the Creative Process in the Digital Age

Participants

Jan Orthey, incoming Chairman of Retail Committee, German Booksellers Association

Tomas Speight, Chief Executive Officer, Panther Media

Stephan Hutter, Managing Director and Director Distribution, Prokino.

Dr. Ildikó Török, Business Development Director at MOZAIK Education

Lucia Recalde, European Commission

Eva Kaili MEP

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“As regards geo-blocking, I think we should not be forced to distribute our content on a European-wide level.” -–

Jan Orthey

“We need a level playing field, in order to ensure competitiveness vis-à-vis extra

European players” – Tomas Speight

“It is important that we determine ourselves to which extent our content

is distributed in Europe.”- Stephan Hutter

“In a digital world educational publishers’ innovation has to be protected and compensated

fairly” - Dr. Ildikó Török

“We need to create a Digital Single Market respecting cultural diversity”- Eva Kaili MEP

“It is important that we determine ourselves to which extent our content

is distributed in Europe.”- Stephan Hutter

Main challenges identified by the panellists:

Creators and producers are not against the idea of their work being consumed cross-border – however they need the territoriality principle in order to finance effectively their creations

In a world were changes happen more and more frantically, decision-makers have to be extremely quick when they draft new regulations. Otherwise, their pieces of legislations will be outdated as soon as they are published.

Crowdsourcing is an alternative financing scheme which may be interesting for creative and cultural businesses.

Higher VAT rates for e-books hinder their mainstreaming as they cannot properly compete with their physical counterparts.

Stakeholders should engage in a dialogue with the European institutions in order to come up with joint solutions which will help the industry to thrive in the Digital Single Market.

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“We provide our users with what they enjoy - local and national content”. -

Casten Almqvist

PANEL 3: #MadeinEU: Strengthening the Market for Local Content

Participants

Casten Almqvist, CEO of Bonnier Broadcasting

Florent Souillot, Head of Digital, Madrigall (Gallimard-Flammarion)

Tobias Schmid, Executive Vice President Governmental Affairs, RTL Group

Nina George, Author

Kees Van Weijen, Managing Partner at PIAS Rough Trade distribution Benelux; Chairman, IMPALA

Main challenges identified by the panellists:

• In publishing, more and more advanced devices such as e-book readers and tablets are used – however interoperability is a great challenge, as the environment is highly innovative but weakly harmonized.

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“There is a clear threat when we talk about interoperability. We work in a

highly innovative and non standardised environment” - Casten

Almqvist

“There is a tremendous battle between companies generating local content and international companies not interested in it” - Tobias Schmid -

“Google will help you to find pirated work. But nobody asked me whether I

consented that my books were scanned!”- Nina George

“99% of music companies in Europe are SMEs. They are not organized but

they are in the field.” - Kees Van Weijen

• News broadcasters, especially of local news, face several challenges in an environment characterised by globalisation and digitisation at the same time. Democratic and ethical conundrums exist, as big foreign players have the power to decide what European consumers

receive as news.

• Authors are heavily affected by online piracy – throughout the years they experienced a sensible decline in their income and – subsequently – their capacity to create.

• Legal online platforms such as Spotify offer some hope to musicians, however the problem of the value gap is still very much present in the industry.

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In the Twittersphere - #CWEvent

Aims:We live-tweeted during the event. The aim was to create a buzz on Twitter not only to promote the event, but also to make use of theevent to increase the visibility of our communication platformswebsite www.creativityworks.eu

Methods: The #CWEvent Hashtag

We published the event hashtag in all communications materials: handbook, email, presentation for use before and during the event. This helps to promote the use of the hashtag.The hashtag was also mentioned by the moderator, so that participants were reminded again of the simultaneous conversation taking place on Twitter.

The Results: Impression RateWith 46 tweets, we have gained 16600 impressions over 10-15 October (as retweets and favourites continue to take place after 12 October). To provide you with a basis for comparison: the impression rate during the whole month of September was 30000.

Impression rate = the number of users who have seen our tweets:

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On the day itself, our tweets gained 9212 impressions:

Examples of our top tweets (both in terms of impressions and engagement rate):

During the day of the conference, we gained a significant number of retweets and likes:

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Attendance

204 people attended

• 29 speakers (9 from EU or national institutions and 20 from the industry)

• 27 attendees from the EU institutions (15 from the European Parliament and 12 from the

European Commission)

• 16 attendees from other regional or national representations

• 46 representatives from Creativity Works! members

• 59 representatives from the industry

• 27 from other backgrounds

European Parliament12%European Commission

9%

Industry34%

Other institutions10%

Other14%

Members CW21%

Breakdown of Attendance

Attendees from the Institutions: European CommissionAgnieszka Lach AuditorAgnieszka Wojdyr DG GROWAnsgar Held DG COMPAntti Peltomäki Deputy Director-General of the Enterprise and Industry

Directorate-General

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Barbara Stacher DG EAC – Economics of CultureCatherine Magnant Deputy Head Cultural policy Unit DG EACFlora Szigeti European CommissionGianpaolo Scacco DG EACGyöngyi Mikita DG EACHorvath Szabolcs Member of Cabinet of Tibor Navracsics Inna Garkova        DG EACKalman Deszeri DG CNECTLucia Recalde DG EAC, Head of the MEDIA UnitPauline Rouch DSM advisor to president JunckerSophie de Vinck DG COMPEuropean ParliamentAngelika Niebler MEP – EPPAnna Czerwoniec European ParliamentAxel Heyer DG Communications Christian Ehler MEP – EPP Constance Le Grip MEP – EPPEduard Ashworth European ParliamentEva Kaili MEP – S&DFabian Sperka Office Jakob von Weizsäcker MEPFrancesco Corti Office Luigi Morgano officeHelga Trüpel MEP – Greens-EFAHeinz Becker MEP – EPP Jakob Burkhardt Assistant to Viviane Reding MEPKatharina von Mangoldt MEP assistantMarco Rozek Office Ismail Ertug MEPMichael Struve MEP assistant Constance Le GripNiklas Schmalholz Office Dr. Christian EhlerPatrick Griesser MEP assistant – Heinz BeckerPatrick Waldraff MEP assistant - Markus FerberPervenche Berès MEP – S&DVéronique Le Clanche MEP assistant – Pervenche Berès Virginie Rozière MEP – S&DNational and regional representationsAlban de Nervaux French Ministry of CultureAndrea Valendiek State Chancellery of SaxonyAnja Boudon Joint Representation of the Free and Hanseatic City of

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Hamburgand the State of Schleswig-Holstein to the EU

Anja Lurson The Governing Mayor of BerlinAxel Leisenberg Perm Rep FranceCarolin-Charlotte Kosel Chamber of Trade and Crafts for Munich and Upper

BavariaEstelle Airault Ministère français de la culture et de la communication François Laurent Ministère français de la culture et de la communicationHeidi Meissnitzer Perm Rep AustriaHelene Scheller Staatskanzlei Mecklenburg-VorpommernIvana Krusec Rubic Ministry of Culture of the Republic of CroatiaLeonardo Lorusso Regione LombardiaNicole Poeck Europaburo, der bayerischen KommunenSéverine Fautrelle Représentation permanente de la France auprès de l’UESophie Derichs Representation of the Free State of Bavaria to the

European UnionWolfgang Rapberger German Federal Employment agency

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