EUROPEAN COMMISSION
MEMO
Brussels, 24 April 2013
Green Paper: Preparing for a Fully Converged
Audiovisual World: Growth, Creation and Values
Frequently Asked Questions
See also IP/13/358
Why a Green Paper? Does the Commission plan to review the
Audiovisual Media Services Directive?
The Commission wants to open a broad, public discussion on the implications of the ongoing transformation of the audiovisual media landscape. The consultation does not
presuppose any specific outcome. Nonetheless, in the medium to long term it may have
an impact on a number of legal instruments, including the Audiovisual Media Services
Directive (AVMSD).
Does converging technologies mean that traditional broadcasting
is no longer relevant?
No. On average, people still watch 4 hours of traditional TV (also known as "linear"
broadcasting) a day across the EU. But our viewing habits are evolving. Connected devices
like PCs, smartphones, tablets and games consoles make it easier to create, distribute,
share and view all types of content no matter when or where you are. Converging
technologies and changing viewing patterns have pushed broadcasters, technology
companies and other players to develop and adapt business models.
What does this convergence mean for growth and innovation?
 Equipment manufacturers and technology developers can serve a growing
market with innovative devices including user-friendly interfaces and accessibility
solutions.
 Network operators will see increased demand for bandwidth with a positive impact
on investments in high-speed networks.
 Content creators can find new ways to increase their audience, monetise their
works and experiment with creative ways to produce and offer content.
 Broadcasters can find more platforms to distribute their content and enhance
their interactive offerings.
MEMO/13/371
And what could this mean for viewers?
For example, a Polish student spending her Erasmus year in London could watch TV series
and other content from Polish broadcasters on her tablet or connected TV. She could pay
with her Polish credit card — just like back home in Krakow - because Polish services were
provided to London. Imagine that her flatmate is from the UK and is writing a thesis on
films by Portuguese directors. During the day he watches material from Portuguese
broadcasters on online platforms. In the evening the flatmates often relax by watching
together sports events from various EU countries.
Isn't the European audiovisual market still very fragmented?
Europe's cultural and linguistic diversity give creators a competitive advantage in a global
market, but it also poses challenges for growth and consolidation in the EU-wide market.
So far, US-based media and internet players have taken advantage of the situation,
raising sizeable budgets and making economies of scale. However, European broadcast
and online companies do not seem able to seize the same opportunities. The Green Paper
seeks feedback on why this is so and what European players could do to improve their
position.
Limitations to consumer choice is also a problem. What consumers can view online is often
limited by national borders. Apps in smart TV are often restricted by national settings or
manufacturers’ pre-selected choices, often blocking access to content from other EU
countries.
How does the Green Paper link with other on-going consultations?
The Commission has launched in parallel two public consultations in the area of media
freedom and pluralism. One seeks feedback on the report of the independent High Level
Group (HLG) on Media Freedom and Pluralism. As this report also showed the need for a
separate debate regarding the independence of audiovisual regulatory bodies, a second
consultation is addressing this issue. Input from these consultations will also feed into the
debate on convergence.
What about copyright?
The Green Paper on the online distribution of audiovisual works (IP/11/868) focussed on
copyright and the results will be published this year. In December 2012, the Commission
re-affirmed its commitment to work for a modern copyright framework (see IP/12/1394).
It is pursuing two parallel tracks of action: a structured stakeholder dialogue in 2013 and
the completion of market studies, impact assessments and legal drafting work, with a view
to a decision in 2014 whether to table the resulting legislative reform proposals.
What about self-regulation?
This is addressed in the consultation, whose outcome may lead to promoting selfregulatory initiatives, like the on-going Coalition for a Better Internet for Kids
(IP/11/1485) and follow up to the High Level Group on Media Freedom and Pluralism
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Does the Commission plan to regulate the terms for licensing
sports events and the latest movies to content providers?
In today's competitive media landscape, market players (e.g. pay-TV operators, free to air
public service and commercial broadcasters, VoD distributors and device manufacturers)
fight for viewers' attention by offering live sports, the latest films or other premium
content. Certain Member States have examined whether broadcasters who have
purchased the exclusive rights for live top sports events and first-run Hollywood movies
should also be obliged to make these available to competitors. The Commission has no
plans to regulate in this area at the moment. However, there is a need to find out what
the situation is in the market and for a wide debate.
Who should contribute to content financing?
Millions of Europeans watch video on demand through websites like YouTube, Vimeo and
others. Many on-demand platforms are already contributing to the creation of original
content (short films, series etc). Currently, under the AVMSD, providers of on-demand
content media may be obliged to give prominence to or have a certain share of European
work in their catalogues. They may also be obliged to contribute to the production and
rights acquisition of European works. The AVMSD also obliges traditional broadcasters to
reserve the majority of their transmission time for European works. Some Member States
are discussing whether internet-based players that are not contributing so far should also
contribute to financing of European content as they are directly involved in its exploitation.
This might also raise specific issues regarding contributions from non-European players.
The Green Paper seeks feedback on how different actors in the new value chain are
contributing to financing.
Will the Commission encourage a specific standard for connected
TV?
The Commission is not taking any new position on standards, but is asking for feedback on
how to ensure interoperability and whether there is a need for new or updated standards.
Connected TV devices and services depend on a variety of standards in the broadcasting,
IT and telecom sectors:
 HbbTV is an ETSI standard applied by a number of broadcasters, content providers,
networks and consumer device manufacturers in Europe to link broadcast and
broadband content.
 Complete platform solutions where broadcasters and network operators cooperate,
such YouView in the UK.
 The MHP standard predominantly used in Italy, mainly for historical reasons.
There appears to be a risk of fragmentation in Europe with devices differing across
Member States even when they use the same standard. The regulatory framework on
electronic communications already includes certain provisions on TV technology, including
references to relevant standards in this area.
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Broadcasting and the internet are global. What about players or
websites based outside Europe?
The Commission is looking for feedback on the scope and definition of providers covered
by EU broadcasting rules (AVMSD).
The AVMSD applies to media service providers, including those who deliver content over
the internet. As long as a provider has responsibility for the choice of the content and
determines the manner in which it is organised, it has to follow EU broadcasting rules.
There are also debates on where these rules could apply. The AVMSD applies only to
providers under EU jurisdiction. In terms of satellite broadcasting, this jurisdiction relates
to the Member State in which the satellite up-link is located or the satellite capacity used
is 'appertaining to that Member State'. At the moment, the AVMSD does not apply to
content delivered over the internet from countries outside the EU, but aimed at EU
internet users. Even if many of the main non-EU internet players have offices or another
physical presence in Europe, questions are being raised about how services currently not
covered by the AVMSD should follow the same rules as traditional and EU-based
broadcasters.
Shouldn't traditional broadcasters and on-demand video platforms
follow the same broadcasting rules?
The AVMSD treats linear (television broadcasts) and non-linear (on-demand) services in
different ways. The rational is that since consumers have more choice and greater control
about what they view in on-demand services, there is a lesser need for regulation in this
area. However, convergence and connected TV are blurring these lines. Consumers may
sometimes find it hard to tell the difference. The Green Paper is seeking views and asking
for evidence on whether the current differentiated treatment is distorting the market
Do personalised search results and other filter mechanisms have
an impact on consumers choices?
The Green Paper looks at whether pre-defined choice through filtering mechanisms,
including in search facilities, should be subject to public intervention at EU level. Filtering
mechanisms, including personalised search results, make it easier for people to receive
the news they are interested in, from the sources they like and also help combat
information overload. However, some see these filters as a threat to the position of print
and online news media as independent news providers and curators. For example, filtering
means that online companies can determine what content is accessible. It can also limit
choices, for example by varying the prominence with which certain content is displayed,
limiting the citizen’s ability to change the menu or restricting certain applications. The
availability of various platforms providing valuable content to users, and the openness of
those platforms, are important conditions for a thriving media landscape.
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EU rules limit TV advertising to 12 minutes per hour, but there are
no limits for on-demand services. Is this fair?
Traditional and on-demand broadcasters have to follow EU rules related to the advertising
of certain products and advertising to children. However, rules which limit advertising to
12 minutes per hour transmitted only apply to TV broadcasters. In addition, video-ondemand and other online services are often offered by companies based outside the EU
and not necessarily subject to EU rules. Some European broadcasters fear this situation
puts them at a disadvantage. The Green Paper asks whether the existing AVMSD
regarding commercial communications will still be appropriate in a converged world
Who decides whether there should be commercial overlays on the
TV screen?
Some innovative advertising techniques put existing rules to the test. For example
commercial overlays- similar to pop-up windows on computer screens- offer a new
advertising outlet. These can sometimes be placed by the broadcaster, but technology
means that TV manufacturers can also place a commercial message over the picture
broadcast by the TV signal. The overlay could also provide links between the content of
the commercial message and the content of the broadcast programme. Some are
concerned that new developments such as this challenge the essential purpose of
advertising regulation, in particular whether such overlays could be shown with or without
the consent of users and broadcasters. Disguised commercial communications in the
online environment could also present challenges. The Green Paper seeks feedback on
who should have the final say on whether or not to accept commercial overlays or other
novel techniques on screen.
How can you protect children and teenagers in a progressively
converged world?
The Green Paper seeks feedback on areas such as the appropriateness of current rules,
mechanisms to ensure parental awareness of existing tools, effective age verification
measures and user information and empowerment.
With traditional broadcast and online content available on the same living room TV screen,
there are concerns that the current rules on children’s access to content may not be up-todate. Effective age verification also remains a challenge. Differences in the regulatory
approach to different types of content on screen might also make it difficult for users to
determine which authorities to complain to.
What about public service broadcasting?
Many public service broadcasters are moving into the online world with applications or
webpages. While some welcome this extension, others perceive this as direct competition
with commercial broadcasters who do not benefit from public funding. In 2009, the
Commission adopted a Communication on the application of state aid rules to public
service broadcasters in the light of new technological developments (see IP/09/1072). This
introduced the requirement for public consultations to be held regarding the launch of
significant new services by public service broadcasters. This would allow the Member State
to assess the impact of a new service on the market and to balance it against its value for
society.
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