EC single market would ‘hit content’

Investment in TV and film content across Europe is set to dive if the European Commission’s (EC) plans to erode territorial exploration rights goes ahead, a new report has claimed.

The study, compiled by economic consultancy Oxera and media consultancy Oliver & Ohlbaum and released today at the Cannes Film Festival, condemns the EC’s proposal to create a digital single market across the continent.

The report finds that there would be up to 48% less local TV content in certain genres and 37% fewer local film productions, with the most marginal content more likely to be axed.

It adds that consumer welfare losses could be worth up to €9.3bn (US$10.5bn) a year as a result of consumers losing access to content or being priced out completely.

The report further claims that cultural diversity of content would be at risk and production values would suffer.

The EC is determined to create a digital single market across the continent – a plan that has already been met with concern from the international TV industry.

The proposals, outlined in the European Commission’s Digital Single Market strategy last year, would erode the established territorial exploitation of TV and film rights in Europe.

But the new report, titled The Impact of Cross-Border Access to Audiovisual Content on EU Consumers, warns that rather than improving consumer choice, eroding territorial exploitation would lead to a huge cost to audiences as well as to the European creative economy.

The study has again triggered reaction by a number of senior figures across the European film and television sectors.

John McVay, chief executive of UK producers trade association Pact, said the proposals would leave 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,” McVay said. “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), added: “Every market, even a digital single market, needs products.

“The EFADs annually invest more than €3bn 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.”

Meanwhile, Michael Ryan, partner at GFM Films, said: “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 and TV market that delivers for consumers. Today’s findings highlight just what is at stake.”