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Support Programmes for the European Audiovisual Sector

MEDIA Programmes and Media Literacy

European Commission - MEDIA Programme and Media literacy Unit

Matteo ZACCHETTI European Commission

June 2010

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Content

1. The European audiovisual industry current situation

2. European Cinema success stories

3. The MEDIA Programme

4. A changing and difficult market context

5. New opportunities and challenges

6. A new programme beyond 2013

7. MEDIA International and MEDIA Mundus

8. Media Literacy

The current situation of the European Audiovisual

Industry

1.

• employment and economic potential

• key role in building a European common identity

• intercultural dialogue and mutual understanding, which are key elements of European citizenship

The European audiovisual sector

A fragmented market

The production structures and the general framework in which the European audiovisual industry operates are fragmented

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Historical structural weaknesses

MEDIA is historically an INDUSTRIAL programme: supporting the audiovisual industry partly to help it achieve a cultural impact

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Box office dominated by US filmsUS films account for 65% market share with only 20% of the number of films released

NUMBER OF FILM FIRST RELEASES IN EU 25

BY REGION OF ORIGIN 2002-2006Source: European Audiovisual Observatory – LUMIERE Database

EU 25 US OtherEU 25 inc

18,5%

1 324 films

0,4%

7 161films

61,3%

19,8%

Total Films 2002-2006 Total Admissions 2002-2006

EU 25 US OtherEU 25 inc

3 589million €

25,2%

65,3%

2,3%

7,3%

In 2009

Europe: 26,7%

Eur Inc: 4,2%

US: 67,1%

Other 2%

European cinema success stories

2.

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European cinema success stories

Dancer in the Dark 2000 La stanza del Figlio - 2001

The Pianist - 2002 L’Enfant - 2005 The Wind that shakes the Barley - 2006

4 months, 3 weeks and 2 days - 2007

Entre les Murs - 2008 Das Weisse Band - 2009

Palme d’Or

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Cannes 2010

21 films supported by MEDIA selected in Cannes

Official competition: 7 out of 19 films received MEDIA support

Grand Prix du Jury Des Hommes et des Dieux Xavier Beauvois

Best actress Juliette Binoche Copie conforme Abbas Kiarostami

Best director Mathieu Amalric Tournée

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European Film Awards 2009

• Out of 48 films nominated across all categories, 46 have received MEDIA support for a total of €11,300,000

• The European Film Academy has been supported by MEDIA for 20 years

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Academy Awards Oscars

Best film 2008 Best foreign film 2007

Best foreign film 1997Best actress 2007 Best documentary 2006

Best foreign film 2006

EU Audiovisual Policy and MEDIA Programme

3.

EU Audiovisual Policy

Objectives

– the competitiveness of the European industry– the realisation of a zone for the free circulation

of AV and media works– the development of cultural diversity

Instruments

1. The Audiovisual Media Services Directive

2. The MEDIA Programme

http://ec.europa.eu/media

EU Audiovisual Policy

20 years of MEDIA Programme

Five multi-annual programmes support since 1991 the European cinema and TV programmes industry

• MEDIA I (1991-1995)

• MEDIA II (1996-2000)

• MEDIA Plus and MEDIA Training (2001-2006)

• MEDIA 2007 (2007-2013)

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Scope of MEDIA Programmes

MEDIA 2007

31 countries

Budget MEDIA 2007-2013

75

9397

100103

105 107

50

60

70

80

90

100

110

2007 2008 2009 2010 2011 2012 2013

€ m

illio

ns

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Cultural diversity and

heritage

Transnational circulation of

films

Sector competitiveness

3 global objectives

Fostering creativity in the audiovisual sector

Strengthening the structure of SMEs

Reducing imbalances between European audiovisual markets

Supporting digitisation4 c

ros

scu

ttin

g p

rio

riti

es

MEDIA 2007 objectives

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MEDIA 2007 Action lines

Pre-production Production Circulation

Development

Training

Pilot projects

Distribution

Promotion

Single projects and catalogues

Financing & co-productions

Interactive works

Scriptwriting

Management

Digitaltechnologies

Sales agents

TV broadcasting

Online distribution

Distributors

Exhibitors

Access to markets

Festivals

Commonactions

Information tools

20%

55%

9%

7%

4%Media Desks

5%

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Number of projects supported 2008

ACTION LINE MEDIA 2007

TOTAL FUNDING AWARDED

NUMBEROF PROJECTS

Training 6.826.692 46

Development 23.669.395 365

Distribution 55.412.540 1.149

Promotion and Festivals 10.718.393 138

Pilot Projects 701.750 3

Video on Demand 6.259.139 18

TOTAL € 103.587.910 1.719

Number of projects supported by MEDIA in 2008 per action line

A changing and difficult market context

4.

23Distribution and consumption

Economic situation

Sources of finance

New global market context

Credit crunchFinancial crisis

Reduced broadcasters advertising revenues

Reduced broadcasters contribution to cinema

Reduced investments in new content

New digital services are booming

New ways of producing and

consuming content

New market context for AV

works

Public money is getting scarcer

Second digital revolution

New technologies New opportunities

New financing sources

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Traditional markets are saturated

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The digital revolution brings about changes…

• The digital revolution means profound changes for the cinema economy, equivalent in 10 years to a century of previous changes– Mutations in distribution, exhibition and

production sectors– Booming number of distribution channels

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… and opportunities

• These changes can mean great opportunities

– Facilitate circulation of AV works– Particularly important for European works who

have little space in the traditional model

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• But these important transformations have a high cost in the short term

• The economic situation makes it difficult for the European industry to meet these costs

• Which reinforces US films competitive advantages

The cost of adaptation

Second Digital revolution

Summary and conclusion

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Booming number of services

New ways of consuming

Economic and financial crisis

Shrinking sources of finance for cinema

New market context for AV works

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New technologiesNew opportunities

Need to adapt

Structural weaknesses of European AV sector

Important costs

involved

Need to provide structural

industrial support to the European

AV sector

New opportunities for the sector and

challenges for MEDIA

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New opportunities favourable to European films

Old modelTraditional Media

Gatekeeper Model

Restricts Audience Access

Limited Space

Suits Blockbusters

Expensive Delivery

One-Size-Fits-All Strategy

One Version

Territorial release

Exclusive Rights Deals

Value = Unit Sales

Little Connection to AudiencesSource: Power to the Pixel

New modelDigital Media

Creator Consumer Led Model

Enables Audience Access

Unlimited Space

Suits Niche & Specialist

Low Cost Delivery

Tailored Strategies

Unlimited Versions/ New Formats

Global Release

Non-Exclusive and Exclusive Deals

Value = Data, non-copiable items

Direct Relationship With Audience

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Changing context but same challenges

But the key challenges for the creation of audiovisual works remain the same

Finding sources of finance

Creating compelling and

attractive content

Art of story-telling

Reaching the audience

The old traditional model underlying cinema production

and distribution is in crisis but is still dominant

New emerging business models have not taken over yet

Need for new sources (ex: Investment funds,

crowd-sourcing)

More complex environment Interactive story-telling

Interdependence between supports

Multiplication of channels

New business models

A new Programme beyond 2013

6.

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Television

A larger scope for a new programme

Cinema

3 main interacting areas of intervention

Competitiveness

Cross-media

Circulation and new forms of distributionStr

ate

gic

iss

ues

Interactive

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Roadmap 2013 and beyond

2010 2011 2012 2013

IA for new programme after

31/12/2013

Draft decision and decision process

Adoption by EP and Council

2014

Launch new programme

1/1/2014

MEDIA International and MEDIA Mundus

7.

Strategic Objectives

• Respond to global economic context• Reinforce the action of MEDIA and vice versa• Provide opportunities for all European

professionals to benefit from international cooperation opportunities

• Preparatory Action MEDIA International : to test keenness of international operators to cooperate

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Basic Principles

• Strengthen cooperation between professionals from Europe and from third countries

• Mutual benefit & partnership

• International networking effect

• Coordinated by European professional

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Preparatory Action MEDIA International

• Voted by the EP• 2008-2010• Designed to test actions

and to prepare for MEDIA Mundus

• Projects supported – 20 projects in 2008– 40 projects in 2009

2

5

1

0

1

2

3

4

5

2008 2009 2010

€ m

illio

ns

• Lines of action 2009– Training– Promotion– Distribution– Cinema network– Audience / Film Literacy

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MEDIA MUNDUS

• Fully-fledged programme with a legal base

• 2011-2013• Decision adopted in

September 2009 with a budget of € 15 million over 3 years

5 5 5

0

1

2

3

4

5

2011 2012 2013

€ m

illio

ns

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MEDIA Mundus action lines

Pre-production Production Circulation

Training

Circulation(Finished films)

Market Access

(Work in progress)Development /

Pitching

Digital Technologies

Internationalmarkets

Sales agents

TV broadcasting

Online distribution

Distributors

Cinemanetwork

Events and film literacy

Right holders

Distribution

FinancingCo-producing

Markets, events & pitching

Media Literacy

8.

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Media Literacy

• Media Literacy is about being able to access all media, to fully exploit their potential and to use them in a critical, active and creative manner.