1 Seminar EUROPEAN COMMUNITY REGULATION OF COMMERCIAL COMMUNICATIONS IN AUDIOVISUAL SERVICES IN THE AGE OF CONVERGENCE n Prof. Roberto Mastroianni n (Università degli Studi di Napoli “Federico II”) n WARSAW – 8th December 2005

2 Purpose and importance of qualitative and quantitative advertising rules envisaged in the Television Without Frontieres Directive

3 Advertising Rules in the TWFD n TWFD actual text – Chapter IV 1.Rules on recognition and separation (art. 10) 2.Rules on insertions (art. 11) 3.Rules on particular products and protection of minors (artt ) 4.Rules on sponsorship (art. 17) 5.Rules on the amount of advertising and teleshopping (artt a)

4 Need of Clarifications of Existing Provisions: examples –Isolated spots. When exceptional? –Programs consisting of autonomous parts. Notion of “interval”. –Insertion of advertising and “Matrioska” programs (audiovisual works) –Product placement and surreptitious advertising –Calculation of hourly duration for “other forms of advertising”. Telepromotions

5 The Procedure for Revision n 1997 Revision: –Only few changes (teleshopping, quantitative rules) n Current Revision Procedure –Rules on advertising are discussed at the Commission’s initiative (focus group 2 – Issue paper n. 4) –Partially anticipated by the Interpretative communications of April 2004 (e.g. product placement) –Text circulating in November 2005: distinction between linear and non-linear services

6 Which new rules? European Commission Issue paper n. 4 and new Proposal –In favour of more flexibility –No different rules for public broadcasters –MS still may choose deeper or stricter rules for domestic broadcasters –Two tiers Rules common to all audiovisual commercial communications Rules applicable only to linear services

7 The new framework: non-linear services Horizontal rules for all media services providers (new art. 3g): lighter approach 1.Principle of identification 2.General principles on h.r. protection 3.Basic principles on alcohol and minors 4.No provisions on pharmaceutical products or tobacco (other legislative instruments) Proper choices for non-linear services?

8 The new framework: “traditional” broadcasting –Basic question: do qualitative and quantitative rules for the “linear” transmission of advertising need amending? –Which interests are involved? (fair distribution of revenues, press, integrity of programs, protection of viewers) –Reasons given by the Commission in favor of flexibility : 1.New opportunities created by new advertising techniques – flexibility in applying the principle of separation 2.Increased choice for viewers – no need of detailed rules for the protection of viewers 3.Only some categories of programs which require specific protection against excessive interruptions

9 The new framework: A - Separation and identification of advertising (new art. 10) n Separation and Recognition rules remain unchanged n Rule of separation: derogated by legitimate product placement? Preamble n Repealing of the rule imposing exceptional use of isolated spots (art. 10, par. 2)

10 The new framework: B - Insertion of advertising (new art. 11) n Repealing of the general rule on the insertion between programs (par. 1, first part). n Repealing of the autonomous parts and intervals rule (par. 2) n Modification of the rule for audiovisual works (par. 3) n Repealing of the 20 minutes rule (par. 4): not envisaged by the Focus group n Repealing of the 30 minutes rule for children’s programs and news programs (par. 5)

11 The new framework C - “Qualitative” restrictions - Articles 13 to 16 n Are we satisfied with the existing rules? (minors, advs for food) n Proposal of the Commission: Extension of the basic rules to any audiovisual commercial communications. Existing rules for linear programs (but product placement!).

12 The new framework E - Hourly and daily advertising limits for linear services (new Art. 18) n Abolition of the daily limits (no added value – very high limits) n Maintaining hourly limits (20%) for any forms of advertising and teleshopping spots. No definition of teleshopping spots n Other forms of teleshopping (windows) meet no temporal limitations

13 Monitoring and sanctioning n Necessity of strict observance of the rules in the MS (distorsions of the advertising market) n Effective system of monitoring and sanctioning at the national level. Necessity of more detailed rules on sanctions

14 Virtual, interactive and split-screen advertising: examples of national legislations n Split screen and virtual advertising not permitted in Portugal and France. n Split screen allowed in Germany and UK n Virtual advertising allowed in Greece and Spain

15 Virtual, interactive and split-screen advertising n Split-screen –Simultaneous transmission of advertising and editorial content –Doubts on conformity with TWFD – Art. 10 (principle of separation) and 11 (interruption of programs for any insertions during programmes) –Council of Europe Standing Committee: covered by the European Convention but submitted to rules on separation, insertion and duration of advertising –Interpretative Communication of the European Commission (April 2004): compatible with the Directive. All the qualitative and quantitative rules are applicable in full.

16 Virtual, interactive and split-screen advertising n Virtual advertising –Use of virtual techniques for inserting advertising during broadcasts of sporting events, by replacing existing advertising boards on the field or by super-imposing new images –Interpretative Communication: compatible with the Directive (as sponsorship) if viewers are informed and with the permission of the organizers of the event –Only on sites normally assigned for advertising messages

17 New advertising techniques n Virtual advertising

18 Virtual advertising

19 n Thanks for your attention! n