1. MEDIA Programmes and Media Literacy
Support Programmes for the European Audiovisual Sector
Matteo ZACCHETTI
European Commission
June 2010
European Commission - MEDIA Programme and Media literacy Unit

2. Content The European audiovisual industry current situation
European Cinema success stories
The MEDIA Programme
A changing and difficult market context
New opportunities and challenges
A new programme beyond 2013
MEDIA International and MEDIA Mundus
Media Literacy 2

3. The current situation of the European Audiovisual Industry1.
The current situation of the European Audiovisual Industry

4. The European audiovisual sector
employment and economic potential
key role in building a European common identity
intercultural dialogue and mutual understanding, which are key elements of European citizenship

5. A fragmented market
The production structures and the general framework in which the European audiovisual industry operates are fragmented

6. Historical structural weaknesses
MEDIA is historically an INDUSTRIAL programme: supporting the audiovisual industry partly to help it achieve a cultural impact
The European audiovisual sector is fragmented in terms of both production structure and the cultural framework in which it operates.
Fragmentation has resulted in culturally diverse and highly independent production industry and is providing a voice for the different cultural traditions that make up our European heritage
HOWEVER: the fragmentation has prevented European industry from achieving a larger market share with respect to non-European imports both within the Union and worldwide. We struggle to match the high competitiveness of our American counterpart.
SO:
Action at a European level is needed to achieve this, at the stages of pre and post production.
National support for the audiovisual sector concentrates on national works and, moreover, on the production phase. The phases of pre and post production are nevertheless the most critical to integrate a European dimension.

7. Box office dominated by US films
US 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 Source: European Audiovisual Observatory – LUMIERE Database
Total Films
Total Admissions
3 589 million €
25,2%
65,3%
2,3%
7,3%
18,5%
1 324 films
0,4%
7 161
films
61,3%
19,8%
In 2009
Europe: 26,7%
Eur Inc: 4,2%
US: 67,1%
Other 2%
Data refers to first releases only and covers all films having been released between 2002 and 2005.
EU 25 US
Other
EU 25 inc
EU 25 US
Other
EU 25 inc

8. European cinema success stories2.
European cinema success stories

9. European cinema success stories
Palme d’Or
Dancer in the Dark 2000
La stanza del Figlio
The Pianist
L’Enfant
The Wind that shakes
the Barley
Dancer in the dark – Lars von trier
La stanza del figlio – Nanni Moretti
The pianist – Polanski
L’enfant – frères Dardenne
The wind that shakes the barley – Ken Loach
4 mois, 3 semaines et 2 jours – Cristian Mungiu
Entre les murs – Laurent Cantet
Das weisse band – Michael Hanneke
4 months, 3 weeks
and 2 days
Entre les Murs
Das Weisse Band

10. Cannes 2010 21 films supported by MEDIA selected in Cannes
Official competition: 7 out of 19 films received MEDIA support
Best actress
Juliette Binoche
Copie conforme
Abbas Kiarostami
Grand Prix du Jury
Des Hommes et des Dieux
Xavier Beauvois
Best director
Mathieu Amalric
Tournée 10

11. 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

12. Academy Awards Oscars Best film 2008 Best foreign film 2007
Best actress 2007
Best documentary 2006
Best foreign film 1997

13. EU Audiovisual Policy and MEDIA Programme3.
EU Audiovisual Policy and MEDIA Programme

14. 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
5 générations de programmes se sont succédées, s’adaptant au fil du temps à l’évolution des marchés et aux besoins des professionels de l’audiovisuel européen, qui sont les bénéficiaires du programme.

15. EU Audiovisual Policy Instruments
The Audiovisual Media Services Directive
The MEDIA Programme

16. 20 years of MEDIA Programme
Five multi-annual programmes support since 1991 the European cinema and TV programmes industry
MEDIA I ( )
MEDIA II ( )
MEDIA Plus and MEDIA Training ( )
MEDIA 2007 ( )
5 générations de programmes se sont succédées, s’adaptant au fil du temps à l’évolution des marchés et aux besoins des professionels de l’audiovisuel européen, qui sont les bénéficiaires du programme.

17. Scope of MEDIA Programmes
31 countries 17

18. Budget MEDIA
€ millions

19. MEDIA 2007 objectives 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 digitisation
4 crosscutting priorities
3 objectifs globaux:
préserver et mettre en valeur la diversité culturelle européenne et son patrimoine cinématographique et audiovisuel
accroître la circulation des œuvres audiovisuelles européennes à l'intérieur et à l'extérieur de l'Union européenne
renforcer la compétitivité du secteur audiovisuel européen dans le cadre d'un marché ouvert et concurrentiel
4 priorités transversales
soutenir la création et le patrimoine
renforcer les structures de production des PME
réduire les déséquilibres au sein du marché européen
soutenir les développements liés à la numérisation à tous les stades de la chaîne de production et de distribution 19 19

20. Financing & co-productions
MEDIA 2007 Action lines
Distributors
Pre-production
Production
Circulation
Sales agents
Distribution TV
broadcasting
Scriptwriting
55%
Online
distribution
Training
Management
Exhibitors 7%
Digital
technologies
Access to
markets
Single projects
and catalogues
Promotion
Festivals
Development
Financing & co-productions 9%
Common
actions
20%
Interactive
works
Information
tools
Pilot projects
Media Desks 4% 5% 20 20

21. Number of projects supported 2008
ACTION LINE
MEDIA 2007
TOTAL FUNDING AWARDED
NUMBER
OF PROJECTS
Training 46
Development
365
Distribution
1.149
Promotion and Festivals
138
Pilot Projects 3
Video on Demand 18
TOTAL €
1.719
Number of projects supported by MEDIA in 2008 per action line 21

22. A changing and difficult market context4.
A changing and difficult market context

23. New global market context
Economic situation
Financial crisis
Credit crunch
Sources of finance
Reduced broadcasters advertising revenues
Second digital revolution
New technologies New opportunities
New financing sources
New market context for AV works
Reduced broadcasters contribution to cinema
Reduced investments in new content
Public money is getting scarcer
Distribution and consumption
New digital services are booming
New ways of producing and consuming content
Traditional markets are saturated 26

24. 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

25. … 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

26. The cost of adaptation
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

27. Summary and conclusion
Economic and financial crisis
Structural weaknesses of European AV sector
New market context for AV works
Shrinking sources of finance for cinema
Second Digital revolution
Need to adapt
New technologies
New opportunities
Need to provide structural industrial support to the European AV sector
Booming number of services
New ways of consuming
Important costs involved 27 26

28. New opportunities for the sector and challenges for MEDIA5.
New opportunities for the sector and challenges for MEDIA

29. New opportunities favourable to European films
Old model
Traditional Media
New model
Digital 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 Audiences
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
Source: Power to the Pixel

30. Changing context but same challenges
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
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
Need for new sources (ex: Investment funds, crowd-sourcing)
More complex environment
Interactive story-telling
Multiplication of channels
Interdependence between supports
New business models

31. 6.
A new Programme beyond 2013

32. A larger scope for a new programme
3 main interacting areas of intervention
Cinema
Television
Interactive
Strategic issues
Competitiveness
Cross-media
Circulation and new forms of distribution

33. Roadmap 2013 and beyond
2010
2011
2012
2013
2014
IA for new programme after 31/12/2013
Draft decision and decision process
Adoption by EP and Council
Launch new programme
1/1/2014
The European audiovisual sector is fragmented in terms of both production structure and the cultural framework in which it operates.
Fragmentation has resulted in culturally diverse and highly independent production industry and is providing a voice for the different cultural traditions that make up our European heritage
HOWEVER: the fragmentation has prevented European industry from achieving a larger market share with respect to non-European imports both within the Union and worldwide. We struggle to match the high competitiveness of our American counterpart.
SO:
Action at a European level is needed to achieve this, at the stages of pre and post production.
National support for the audiovisual sector concentrates on national works and, moreover, on the production phase. The phases of pre and post production are nevertheless the most critical to integrate a European dimension.

34. MEDIA International and MEDIA Mundus7.
MEDIA International and MEDIA Mundus

35. 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 35

36. Basic Principles
Strengthen cooperation between professionals from Europe and from third countries
Mutual benefit & partnership
International networking effect
Coordinated by European professional

37. Preparatory Action MEDIA International
Voted by the EP
Designed to test actions and to prepare for MEDIA Mundus
Projects supported
20 projects in 2008
40 projects in 2009
€ millions
Lines of action 2009
Training
Promotion
Distribution
Cinema network
Audience / Film Literacy

38. 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
€ millions

39. MEDIA Mundus action lines
Pre-production
Production
Circulation
Co-producing
Financing
Market Access
(Work in progress)
Markets, events & pitching
Development /
Pitching
Distributors
Training
Digital
Technologies
Sales agents
International
markets
Right holders
Distribution
Circulation
(Finished films) TV
broadcasting
Online
distribution
Cinema
network
Events and film literacy

40. 8.
Media Literacy

41. 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.