1. STUDY CONCERNING MULTI-TERRITORY LICENSING FOR THE ONLINE DISTRIBUTION OF AUDIOVISUAL WORKS IN THE EUROPEAN UNION Presentation Europa Distribution 7th July 2009

2. 2 FRAMEWORK OF STUDY Commissioned by DG Information Society and Media of the European Commission Conducted by KEA European Affairs (Brussels) and Cerna (Mines Paris Tech) Timeframe: January 2009 – March/April 2010 Stakeholder workshop in January/February 2010

3. 3 CONTEXT (I) Key question: Can multi-territory licensing unleash the true potential of a pan-European market for audiovisual content online? Broadband roll-out across the EU continues Audiences have to chance to access creative content from anywhere, anytime Opportunity to overcome bottlenecks in the value chain and develop new markets – inside and outside of a film’s country of origin (Long Tail theory)

4. 4 CONTEXT (II) For the Commission, the lack of licensing practices covering more than one Member State at a time makes it difficult for online service providers and users to fully benefit from the potential of the internal market Content service providers must enter into a large number of negotiations to purchase the right to make content available across Europe Different regulations and practices apply to various types of AV content in each country (release windows, consumer choice, etc.)

5. 5 POLICY BACKGROUND “i2010” – a European Information Society for growth and employment” initiative First Objective: Creation of a “Single European Information Space” Communication on Creative Content Online Development of “multi-territory licensing for creative content” is one of the four main horizontal challenges MEDIA Programme “Support to Video on Demand and Digital Cinema Distribution” 2005 Recommendation on online management of music rights

6. 6 OBJECTIVES OF THE STUDY Description of the structure of the online distribution sector and the relevant market in EU Member States Legal analysis concerning the licensing of audiovisual works for online distribution in Member States and at EU level Analyse cultural and economic impacts of a multi-territory license Assess challenges for the development of such license in the mid term (5/10 years) Policy options to foster MTL mechanisms and business models

7. 7 1. BUSINESS TRENDS Assess impact of digital distribution on audiovisual value chain Identify the most common commercial practices for the sale of online distribution rights Examine changes and challenges concerning the exploitation of release windows; film financing, VoD roll out, consumption, marketing and promotions, etc.

8. 8 2. ECONOMIC ANALYSIS Identify stakeholders in the value chain, analyse business models and market for online distribution of av works in all MS Assess the potential development of intra-Community online trade of av works online Present and analyse a sample of av works being distributed online, which demonstrates the economic aspects of the distribution of works in various channels

9. 9 3. LEGAL ANALYSIS Identify and analyse current legislation (civil law, administrative and fiscal laws, etc.) at MS level Identify and analyse EU regulations and policies that seek to improve cross-boarder av services and facilitate rights licensing Assess whether these measures sustain or support the development of pan-European licensing

10. 10 POINTS FOR DISCUSSION Does Video on Demand present an opportunity to further develop a pan-European market for EU films? How big is this opportunity? How does digital delivery impact on the role of independent distributors? Are there currently emerging new business models for distributors? How relevant is the Long Tail theory and what needs to be done to make it work for European film? How can we facilitate easier pan-European licensing? Should this be left to market forces or should it be subject to regulation? Do authors recover rights licenced to you on the expiry of initial producing agreements for older films?

11. THANK YOU For further questions and comments: jrunge@keanet.eujrunge@keanet.eu or evaisberg@keanet.eu www.keanet.eu