Project 25

1
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education Culture Directorate of the
European Commission
2
PRESENTATION OF STUDY OBJECTIVES
PRESENTATION ONE
PRESENTATION OF STUDY OBJECTIVES
David Graham Managing Director, David Graham And
Associates
3
PRESENTATION OF STUDY OBJECTIVES
PROJECT TEAM
Oliver Ohlbaum Associates
Carat Expert
Arena Audiovisual
4
PRESENTATION OF STUDY OBJECTIVES
IMPACT STUDY TIMETABLE
NOVEMBER 2003
APRIL 2004
JULY 2004
OCTOBER 2004
DECEMBER 2004
DESK RESEARCH
TV SAMPLING
INTERVIEWS
REPORT WRITING
START OF STUDY
WORKSHOP
END OF STUDY
5
PRESENTATION OF STUDY OBJECTIVES
ARTICLES 4 AND 5
Member states shall ensure where practicable and
by appropriate means
ARTICLE 4
that broadcasters reserve a majority proportion
of their transmission time for European works
ARTICLE 5
that broadcasters reserve at least 10 of their
transmission time or 10 of their programming
budget for European works created by producers
who are independent of broadcasters
EXCLUSIONS
news, sport, games, advertising, teletext and
teleshopping
6
PRESENTATION OF STUDY OBJECTIVES
MEASURING THE IMPACT OF ARTICLES 4 5 OF THE
DIRECTIVE
DIRECT IMPACT
INDIRECT IMPACT
7
PRESENTATION OF STUDY OBJECTIVES
OBJECTIVES OF THE DIRECTIVE
(Article 2)
OBJECTIVES OF THE ARTICLES 4 AND 5
(Recitals 28 and 31 of the 1997 Directive)
8
PRESENTATION OF STUDY OBJECTIVES
INDICATORS TO MEASURE PERFORMANCE OF BROADCASTING
INDUSTRY
9
PRESENTATION OF STUDY OBJECTIVES
GROWTH OF TV CHANNELS IN THE EUROPEAN UNION
NUMBER OF CHANNELS
500
450
432
PRIMARY CHANNELS
SECONDARY CHANNELS
400
350
295
300
250
200
154
150
85
100
71
66
59
57
50
0
1993
1996
1999
2002
10
PRESENTATION OF STUDY OBJECTIVES
DAILY HOURS OF QUALIFYING EUROPEAN WORKS
BROADCAST IN THE EU
HOURS PER DAY
432000
4,050 hrs
384000
3,650 hrs
336000
SECONDARY CHANNELS COMPOUND ANNUAL GROWTH RATE
18.7
288000
240000
2,100 hrs
192000
144000
1,150 hrs
96000
PRIMARY CHANNELS COMPOUND ANNUAL GROWTH RATE
7.4
48000
000
1993
1996
1999
2002
11
PRESENTATION OF STUDY OBJECTIVES
TURNOVER AND PROFITABILITY OF PRIMARY CHANNELS -
1997-2001
BROADCASTER MARGIN
CAGR
CHANNEL REVENUE - M
COMMERCIAL CHANNELS ONLY
ALL PRIMARY CHANNELS
50,000
25.0
6.0
44,781
44,093
45,000
41,371
39,498
20.2
40,000
20.0
35,531
35,000
16.8
30,000
15.0
25,000
12.0
10.8
16.3
20,000
10.0
8.4
15,000
6.4
10,000
5.0
4.6
4.2
3.9
2.9
5,000
-3.5
0.0
1997
1998
1999
2000
2001
12
PRESENTATION OF STUDY OBJECTIVES
INDICATORS TO MEASURE PERFORMANCE OF PRODUCTION
INDUSTRY
13
PRESENTATION OF STUDY OBJECTIVES
EUROPEAN CONTENT PRODUCTION SECTOR (1997 TO 2002)
bn TURNOVER
CAGR
12
OPERATING
PROFITS
11..6
11.0
10.2
172
10
159
8.7
TURNOVER
8
7.1
124
6.4
6
82
-19.8
4
2
0
1997
1998
1999
2000
2001
2,410
2,897
3,064
3,003
NUMBER OF COMPANIES
Source European Observatory , Survey of European
production rights and distribution companies
14
PRESENTATION OF STUDY OBJECTIVES
TRADE IN TV PROGRAMMES BETWEEN THE EU AND NORTH
AMERICA 1995-2000
CAGR
Value Of Trade m
European Trade Deficit m
1,000
1,000
1995
1996
1997
1998
1999
2000
EU EXPORTS
16.3
313
284
266
275
161
129
0
0
EU IMPORTS
-1,000
-1,000
-1933
-2,000
-2,000
-2062
-2484
-2614
-2645
-2874
-3,000
-3,000
-2880
-3187
-3497
TRADE DEFICIT
-3781
-4,000
-4,000
16.3
-4109
16.3
-4384
-5,000
-5,000
Source OBS
15
PRESENTATION OF STUDY OBJECTIVES
DYNAMIC GROWTH IN THE TV INDUSTRY
60bn industry
16
PRESENTATION OF STUDY OBJECTIVES
SUMMARY

• Directly, the impact on TV schedules
• Indirectly, the impact on the economics of the
  broadcasting and production industries

17
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education and Culture Directorate of the
European Commission
18
DATA SOURCES AND METHODOLOGY
PRESENTATION TWO
PRESENTATION OF DATA SOURCES AND METHODOLOGY
David Candlin Associate Oliver Ohlbaum
Associates Ltd
19
DATA SOURCES AND METHODOLOGY
FOUR DATA SETS
Transmission Sample Data
Legal Measures
Expert Opinion
20
DATA SOURCES AND METHODOLOGY
ECONOMIC DATA SOURCES
Company Reports and Accounts
Market Research
21
DATA SOURCES AND METHODOLOGY
TV REVENUE IN EEA AREA (EXCLUDING HOUSEHOLD
CONSUMER EQUIPMENT) - 2002
GROWTH 1995 to 2002
61.1 BN
6.5
OTHER BROADCASTER/ PLATFORM REVENUE
4.3
6
6.3
3
CABLE RELAY
12.7
15
PAY TV
22.6
ADVERTISING AND SPONSORSHIP
5
15.2
LICENCE FEES
3
REVENUE
Sources European Observatory, TBI Yearbook,
Company accounts, national regulators, OO
analysis
22
DATA SOURCES AND METHODOLOGY
TRANSMISSION SAMPLE DATA
Two Week Sample Period Chosen to be
Representative
Coverage of at least 75 of viewing in each
Member State
23
DATA SOURCES AND METHODOLOGY
CHANNEL SEGMENTATION
FUNDING MODEL
PUBLICLY FUNDED
ADVERTISER FUNDED
PAY TV FUNDED
SHARE OF AUDIENCE
PRIMARY gt3 SAMPLE BASE 73
ARD 1 BBC 1 SAMPLE BASE 31
TF1 ANTENA 3 SAMPLE BASE 40
CANAL PLUS SAMPLE BASE 2
SECONDARY lt3 SAMPLE BASE 5
BBC CHOICE SAMPLE BASE 1
-
SKY ONE SAMPLE BASE 4
24
DATA SOURCES AND METHODOLOGY
DISTRIBUTION OF PRIMARY CHANNEL SAMPLE BY
AUDIENCE SHARE
CHANNELS IN SAMPLE
10
9
9
8
7
7
7
6
6
5
5
4
4
0
3-5
5-8
8-11
11-14
14-17
17-21
21-24
24-27
27-30
30-33
33
NATIONAL MARKET AUDIENCE SHARE
25
DATA SOURCES AND METHODOLOGY
CLASSIFYING THE SCHEDULE
26
DATA SOURCES AND METHODOLOGY
GENRE CLASSIFICATION OF PROGRAMMES
GENRE
CLASSIFICATION
NEWS SPORT GAMES
NON QUALIFYING
27
DATA SOURCES AND METHODOLOGY
CLASSIFICATION INTO STOCK AND FLOW
GENRE
CLASSIFICATION
NEWS SPORT GAMES FACTUAL MAGAZINE
FLOW
28
DATA SOURCES AND METHODOLOGY
DEFINING INDEPENDENT PRODUCTIONS
29
DATA SOURCES AND METHODOLOGY
FLOW CHART FOR PROGRAMME CLASSIFICATION
GENRE
QUALIFYING PROGRAMMES
STOCK OR FLOW
COUNTRY OF ORIGIN
PRODUCER
NON-EUROPEAN
NON-QUALIFYING PROGRAMMES
30
DATA SOURCES AND METHODOLOGY
KEY RATIOS
HOURS OF QUALIFYING EUROPEAN WORKS
gt 50
TOTAL QUALIFYING HOURS
HOURS OF QUALIFYING EUROPEAN WORKS BY INDEPENDENT
PRODUCERS
10
TOTAL QUALIFYING HOURS
31
DATA SOURCES AND METHODOLOGY
ARTICLE 4 ALL CHANNELS IN OUR SAMPLE QUALIFYING
EUROPEAN WORKS AS A OF QUALIFYING PROGRAMMES
80
PUBLICLY FUNDED
70
60
ADVERTISING FUNDED
50
50
40
PAY TV
30
20
10
0
1993
1996
1999
2002
32
DATA SOURCES AND METHODOLOGY
ARTICLE 5 ALL CHANNELS IN OUR SAMPLE QUALIFYING
INDEPENDENT WORKS AS A OF QUALIFYING HOURS
25
PUBLICLY FUNDED
20
ADVERTISING FUNDED
PAY TV
15
10
10
5
0
1993
1996
1999
2002
33
DATA SOURCES AND METHODOLOGY
SAMPLE DATA
Consistent sampling and programme classification
in each Member State
Results are therefore comparable across the
Community
Results sometimes differ from Member State
reports on the application of Articles 4 and 5
34
DATA SOURCES AND METHODOLOGY
SAMPLE DATA
35
DATA SOURCES AND METHODOLOGY
LEGAL MEASURES IN EACH MEMBER STATE TO IMPLEMENT
ARTICLES 4 AND 5
36
DATA SOURCES AND METHODOLOGY
IMPLEMENTATION MODES
APPLICATION OF DIRECTIVE
FLEXIBLE
STRICT
Netherlands Norway Spain Sweden
Belgium France Finland Italy Portugal UK
HIGH
ADDITIONAL REQUIREMENTS
Austria Denmark Germany Ireland
Greece Luxemburg
LOW
37
DATA SOURCES AND METHODOLOGY
EXPERT OPINION
Interviews requested with Industry Experts
38
DATA SOURCES AND METHODOLOGY
EXPERT OPINION
39
DATA SOURCES AND METHODOLOGY
FOUR DATA SETS
ROBUST EMPIRICAL BASE FOR FINDINGS

40
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education Culture Directorate of the
European Commission
41
THE SUPPLY CHAIN
PRESENTATION THREE
THE ECONOMICS OF EUROPEAN BROADCASTING AND
CONTENT CREATION SECTORS
Mark Oliver Managing Director Oliver Ohlbaum
Associates Ltd
42
SUMMARY
43
(No Transcript)
44
THE SUPPLY CHAIN
we have reviewed three basic activities,
reflecting three basic sectors
CONTENT CREATION
BROADCASTING
DELIVERY INFRASTRUCTURE
TV PROGRAMME MAKING AND RIGHTS TRADING
CHANNEL CREATION
RETAILING, DISTRIBUTION AND RECEPTION
45
THE SUPPLY CHAIN
but we have also reviewed TV programme
production in the wider context of a broader
content creation sector
CONTENT CREATION
BROADCASTING
DELIVERY INFRASTRUCTURE
TV PROGRAMME MAKING AND RIGHTS TRADING
CHANNEL CREATION
RETAILING, DISTRIBUTION AND RECEPTION

• CHANNEL INDENTS
• CHANNEL/ PROGRAMME PROMOTIONS

• ADVERTISING PRODUCTION
• FEATURE FILM PRODUCTION
• INTERACTIVE A-V CONTENT
• MUSIC VIDEOS
• COMPUTER ANIMATION

46
THE SUPPLY CHAIN
and we have covered a wide range of activities
and segments
RETAILING, DISTRIBUTION AND RECEPTION
CHANNEL CREATION
PROGRAMME MAKING AND RIGHTS TRADING
RIGHTS HOLDERS
CONTENT PROVIDERS
RIGHTS DEALERS
PROGRAMME PACKAGERS
CHANNEL AGGREGATORS
NETWORKS
ACCESS PROVIDERS
CPE PROVIDERS
FREE TV CHANNELS
PUBLICLY FUNDED PRIMARY CHANNELS
TRANSMISSION
SCHEDULES
ADVERTISER FUNDED PRIMARY CHANNELS
UHF/VHF TERRESTRIAL
STOCK PROGRAMME PRODUCTION
DRAMA
PUBLICLY FUNDED SECONDARY CHANNELS
FREE ACCESS TV
INTERACTIVE ENHANCEMENTS
DIRECT TO HOME SATELLITE
FORMAT AND SCRIPT DEVELOPMENT
COMEDY
ADVERTISER FUNDED SECONDARY CHANNELS
CABLE RELAY
ANIMATION
FLOW PROGRAMME PRODUCTION
HOME SHOPPING AND GAMING
NEW AND REPEATS
FACTUAL
INDEPENDENT LOCAL STATIONS
NEWS
ENTERTAINMENT
PAY TV CHANNELS
ENCRYPTION
PAY TV PACKAGES
DOMESTIC FEATURE FILMS PRODUCTION
PREMIUM TV CHANNELS
SATELLITE PACKAGE RETAILING
DIGITAL TERRESTRIAL ENCRYPTION CONDITIONAL
ACCESS SYSTEMS
SPORTS EVENTS
CONDITIONAL ACCESS TV
BASIC PAY TIER CHANNELS
RIGHTS SALES
CABLE PACKAGE RETAILING
DIRECT TO HOME SATELLITE ENCRYPTION CONDITIONAL
ACCESS SYSTEM
FEATURE FILMS
ACQUIRED RIGHTS
PREMIUM PAY PER VIEW SERVICES
TERRESTRIAL CHANNEL PACKAGES
CABLE SYSTEM ENCRYPTION CONDITIONAL ACCESS
SYSTEM
TV FICTION IMPORTS
FILM LIBRARY OWNERS
INTERACTIVE SERVICES
47
(No Transcript)
48
THE FLOW OF FUNDS
the EEA TV area sector generated over 60bn in
revenue in 2002 and revenue has been growing at
6.5 per year since 1995
TOTAL TV REVENUE IN EEA AREA (Excluding household
consumer equipment) - 2002
ANNUAL GROWTH 1995 to 2002
6.5
61.1 BN
OTHER BROADCASTER/ PLATFORM REVENUE
4.3
6
6.3
3
CABLE RELAY
12.7
15
PAY TV
22.6
5
ADVERTISING AND SPONSORSHIP
15.2
3
LICENCE FEES
REVENUE
Sources European Observatory, TBI Yearbook,
Company accounts, national regulators, OO
analysis
49
THE FLOW OF FUNDS
about 47bn of the revenue flows through to
broadcasters, of which about 29bn was spent on
programmingand 15.4bn on new TV programme
commissionswhich when subsidies and ancillary
rights income are added, yield a 16.1bn TV
content creation sector
RETAILING AND DISTRIBUTION
TRANSMISSION
CHANNEL CREATION
PROGRAMMING AND RIGHTS TRADING
61.1bn
6.3
6.3
LESS
CABLE RELAY
12.7
5.1
LESS
49.8
2.5
47.3
18.2
7.6
PAY TV
NET PAY TV FEES
4.4
OTHER
22.6
13.7
29.1
8.4
ADVERTISING AND SPONSORSHIP
FEATURE FILMS AND TV FICTION IMPORTS
INCOME TO PRODUCERS FROM ANCILLARY RIGHTS
EXPLOITATION 0.4
SPORTS RIGHTS
5.3
16.1
15.4
15.2
DIRECT SUBSIDY 0.3
LICENCE FEES
CONSUMER PAYMENTS
RETAILER PLATFORM REVENUE SHARE
BROADCASTER REVENUE
TRANSMISSION COSTS
NET BROADCASTER REVENUE
PROFITS, MANAGEMENT AND ADMIN
PROGRAMME CONTENT EXPENDITURE BY BROADCASTER
RIGHTS ACQUISITION SPENDING
COMMISSIONS BY BROADCASTERS
TOTAL TV CONTENT CREATION INCOME
Sources European Observatory, TBI yearbook,
national regulators, Company Accounts OO
analysis
50
FLOW OF FUNDS
the proportion of TV revenue that flows to
broadcasters and the proportion of broadcasters
revenue that flows to new TV programme
commissions varies across countries
TOTAL TV REVENUE IN 2002
TOTAL TV REVENUE PER HEAD IN 2002
BROADCASTER REVENUE IN 2002
NEW TV COMMISSION SPENDING IN 2002
NEW TV COMMISSION SPENDING AS A OF BROADCASTER
REVENUE
UK
12.9bn
542
10.5bn
4.0bn
38
GERMANY
12.7bn
361
9.0bn
3.9bn
43
FRANCE
8.0bn
390
6.4bn
1.6bn
25
ITALY
6.3bn
315
5.75bn
1.35bn
23
SPAIN
4.5bn
364
3.8bn
1.0bn
26
NETHERLANDS
2.2bn
352
1.35bn
0.6bn
44
BELGIUM
2.0bn
476
1.2bn
0.4bn
33
SWEDEN
1.8bn
418
1.0bn
0.35bn
35
51
(No Transcript)
52
TV DISTRIBUTION
the growth of new cable and satellite delivery
platforms has meant that by 2002 about 25 of EEA
TV households had access to pay TV - mostly
offering at least 60 channels - and about 35 of
EEA TV households had access to an extended
choice of free TV channels
TV HOUSEHOLDS (M)
156m
PAY ANALOGUE TERRESTRIAL
1 CHANNEL
5
19
80 TO 200 CHANNELS
PAY SATELLITE
PAY TV 40m
16
PAY CABLE
60 TO 150 CHANNELS
FREE DIGITAL TERRESTRIAL
17
30 to 40 CHANNELS
FREE SATELLITE
EXTENDED CHOICE FREE TV 58m
31
20 TO 40 CHANNELS
CABLE RELAY
67
ANALOGUE TERRESTRIAL ONLY
4 TO 7 CHANNELS
LIMITED CHOICE FREE TV 67m
TV HOUSEHOLDS IN EEA 2002
Sources European Observatory, TBI Yearbook,
Company accounts, national regulators, OO
analysis
53
TV DISTRIBUTION
but the role of pay TV and extended choice free
TV varies considerably by market, which has
implications for the economic model within each
territory
CABLE RELAY,FREE SATELLITE AND FREE DTT AS OF
ALL FREE TV
EEA AVERAGE
100
BELGIUM
NETHERLANDS
GERMANY
AUSTRIA
DENMARK
80
SWEDEN
60
NORWAY
FINLAND
EEA AVERAGE
IRELAND
40
20
GREECE
FRANCE
UK
ITALY
SPAIN
PORTUGAL
0
0
5
10
15
20
25
30
35
40
45
50
FREE TO AIR CHOICE
PAY TV PENETRATION
54
(No Transcript)
55
BROADCASTING
there are a number of broadcasting market
segments based on different funding models and
audience share
FUNDING MODEL
FREE TV
PAY TV FUNDED
PUBLICLY FUNDED
ADVERTISER FUNDED
BROAD
TARGETED
BROAD
TARGETED
PREMIUM
BASIC TIER
SHARE OF AUDIENCE
PRIMARY CHANNEL (AUDIENCE SHARE GREATER THAN 3)

• ARD I
• BBC 1
• FR2
• RAI 1

• BBC 2
• FR3
• NL3

• ITV
• TF1
• ITALIA 1
• ANTENA 3

• C4
• M6
• YORIN
• LA 2
• Rete 4

• CANAL PLUS

• NONE

SECONDARY CHANNEL (AUDIENCE SHARE LESS THAN 3)

• BBC CHOICE

• ARTE
• Kika

• VOX
• RTL II
• La 7

• EURONEWS
• FOX 8

• SKY SPORTS
• CALCIO

• SKY ONE
• PLANETE

Substantial public funding (greater than 25 of
income)
Significant contribution to channel finances
from pay TV (40 or more)
Home shopping channels and gaming channels
which derive their revenue from the sale of
goods or telephone calls and participation fees
are not included within this framework
56
BROADCASTING
there has been a large expansion in the number
of channelsespecially secondary TV channels
GROWTH OF CHANNELS IN EUROPE 1993 TO 2002
(including non EEA Countries and home shopping
channels)
CHANNELS IN EUROPE 2002 (Including non EEA
countries and home shopping channels)
NUMBER OF TV CHANNELS
1200
1,102
1,102
1,102
1,102
268
139
229
268
OTHER (NON EU/EEA)
PREMIUM PAY TV SECONDARY CHANNELS
1000
OTHER
PREMIUM PAY CHANNELS
117
PAN EUROPEAN
PORTUGUESE
GREEK
19
27
174
DUTCH
146
146
30
800
718
34
SWEDISH
OTHER EU/EEA
PRIMARY CHANNELS
PRIMARY CHANNELS
99
170
228
ITALIAN
94
116
688
ITALY
OTHER SECONDARY CHANNELS (INCL. SHOPPING
CHANNELS)
600
SPANISH
119
142
122
SPAIN
LIFESTYLE
GERMAN
TRAVEL
116
14
RELIGION
15
GERMANY
18
164
400
NEWS
405
50
63
ENTERTAINMENT
ALL OTHER SECONDARY CHANNELS
FRENCH
145
68
FRANCE
241
BASIC SPORTS
262
190
53
74
MUSIC
200
198
122
25
114
77
CHILDRENS
ENGLISH
UK
66
81
DOCUMENTARIES
51
0
NATIONAL MARKET
GENRE
LANGUAGE
2002
1996
1999
1993
Sources Screen Digest, OBS
57
BROADCASTING
but primary channels still control most of the
audience and most of the revenue
REVENUE BY TYPE OF BROADCASTER - 2002
AUDIENCE SHARE BY TYPE OF BROADCASTER - 2002
OF VIEWING
BN
45.0 BN
100
6.0
6
8
12
15
ALL OTHER SECONDARY CHANNELS (advertising and
some sub fees)
ALL OTHER CHANNELS
34
50
7.0
48
46
PREMIUM PAY TV SECONDARY CHANNELS
(Sub fees plus advertising)
15.0
PRIMARY COMMERCIAL CHANNELS (Advertising and
sponsorship)
PRIMARY COMMERCIALLY FUNDED CHANNELS
60
42
17.0
40
39
PRIMARY PUBLICLY FUNDED CHANNELS
PRIMARY PUBLICLY FUNDED CHANNELS
1990
1995
2000
2002
BROADCASTER REVENUE (EXCL OTHER)
Sources Screen Digest, European Observatory, OO
Analysis
58
BROADCASTING
primary channels account for 35bn in
broadcaster revenue, about 70 of the total - and
14.2bn of new TV commission spending over 90
of all such spending
PRIMARY CHANNELS FLOW OF FUNDS EEA - 2002
CHANNEL CREATION
TRANSMISSION
PROGRAMME MAKING AND RIGHTS TRADING
35.3 BN
13.5 BN
3.4
1.5
OTHER
(PROGRAMME SALES,
PUBLISHING, TECHNICAL SERVICES)
TRANSMISSION COSTS
11.9
17.4
ADVERTISING
7.2 BN
5.0
FILMS AND TV FICTION
SPORTS RIGHTS
2.2
14.2 BN
14.5
5.7
COMMERCIAL
8.5
LICENCE FEES
PUBLIC
BROADCASTER NET REVENUE
MANAGEMENT, TRANSMISSION , MARKETING PROFITS
RIGHTS ACQUISITIONS
COMMISSIONED TV PRODUCTION
EXCLUDING LICENCE FEES FOR EXTRA SECONDARY
CHANNELS
Sources European Observatory, TBI Yearbook,
National Regulators, Company Accounts OO
Analysis
59
BROADCASTING
while primary channel markets differ markedly
across Europe in terms of the number of channels
and the revenue per channel, this is only loosely
related to the proportion of spending on new TV
commissions and the use of imports
PRIMARY CHANNEL MARKET STRUCTURE AND COMMISSION
SPENDING - 2002
COMMISSIONED PROGRAMME SPEND AS OF INCOME
NUMBER OF PRIMARY CHANNELS
CONCENTRATION RATIO MAX 100
TOTAL PRIMARY CHANNEL REVENUE (ADVERTISER FUNDED)
REVENUE PER PRIMARY CHANNEL
REVENUE PER ADVERTISER FUNDED PRIMARY CHANNEL
IMPORTS
45
GERMANY
67
8.9bn (4.0bn)
0.98bn
0.8bn
47
9.5
ARD/ZDF
RTL
SABAN
50
NETHERLANDS
69
1.2bn (0.7bn)
0.15bn
0.12bn
25
9.0
NOS
SBS
HMG/RTL
25
ITALY
82
4.8bn (3.0bn)
0.75bn
0.7bn
35
6.7
RAI
MEDIASET
La7
25
SPAIN
56
3.4bn
0.7bn
0.7bn
33
FORTA
5.0
RTVE
A3
TV5
45
UK
58
7.7bn (4.1bn)
1.58bn
1.4bn
23
4.8
BBC
ITV
C4
C5
30
FRANCE
81
4.4bn (2.5bn)
0.98bn
1.25bn
33
4.5
FRTV
TFI
M6
SOURCE FROM OBS
Source OO analysis
60
BROADCASTING
secondary channels account for about 30 of
broadcaster income at 13.2bn, but only about 7
of all spending on new TV commissions tending
to spend proportionally more on films, sports
rights and archive TV programmes
RETAILING
TRANSMISSION
CHANNEL CREATION
PROGRAMMING MAKING AND RIGHTS TRADING
CABLE RELAY
18.2bn
6.0
6.0
INTERACTIVE REVENUE
1.0
0.4
0.6
1.0
13.2bn
PAY TV
12.2
4.7
5.0
11.6
4.0
ADVERTISING
7.6
6.7bn
7.5bn
0.6
DOMESTIC TV
7.6
0.2
1.0
TV FICTION IMPORTS
2.3
FILM RIGHTS
PUBLIC FUNDING OF SECONDARY CHANNEL CONTENT 0.4
3.2
SPORTS RIGHTS
1.2m
0.8
NEWS 0.1
SPORT 0.3
OTHER 0.4
CONSUMER PAYMENTS
RETAILER REVENUE
NET INCOME
SECONDARY CHANNEL INCOME
TRANSMISSION COSTS
NET SECONDARY CHANNEL INCOME
MANAGEMENT, MARKETING ADMIN AND PROFITS
BROADCASTER SPENDING ON CONTENT
BROADCASTER SPENDING ON COMMISSIONS
NEW CONTENT SPEND
Sources European Observatory, TVI Yearbook,
National Regulators, Company Accounts OO
Analysis
61
BROADCASTING
many companies operate portfolios of secondary
channels, sharing overhead costs across a number
of services
AB GROUPE (12 CHANNELS)
MULTITHEMATIQUE (10
CHANNELS)
FLEXTECH TV (4 CHANNELS)
m
188m
25
159m
1
157m
102
69
26
63
69
54
46
20
15
14
REVENUE
PROFITS
ADVERTISING TRANSMISSION AND
MARKETING
COMMISSIONS
COMMISSIONS
PROGRAMME ACQUISITIONS
REVENUE
PROFITS
ADVERTISING TRANSMISSION AND
MARKETING
REVENUE
PROFITS
ADVERTISING TRANSMISSION AND
MARKETING
PROGRAMME ACQUISITIONS
COMMISSIONS
PROGRAMME ACQUISITIONS
Sources European Observatory, Company Accounts
OO Analysis
62
(No Transcript)
63
CONTENT CREATION
the number and turnover of external TV content
producers (independent and trading subsidiaries
of broadcasters) has grown over the last 5 years,
but profitability has declined
PROGRAMME PRODUCERS TURNOVER AND PROFITABILITY
2002 - INDEPENDENTS AND TRADING SUBSIDIARIES
bn TURNOVER
m OPERATING PROFIT
12
OPERATING PROFITS
200
11.0
11.0
7.15
10.2
180
172
10
159
160
8.7
TURNOVER
140
8
OTHER
7.1
124
6.4
120
6
100
82
80
CANAL PLUS (EXPAND ETC)
4
0.3
60
0.6
GRANADA (ITV)
0.75
MEDIATRADE
40
1.3
2
ENDEMOL
20
0.9
FREMANTLE
0
0
1997
1998
1999
2000
2001
1
2
3
4
NUMBER OF COMPANIES
Source European Observatory , Survey of European
production rights and distribution companies
64
CONTENT CREATION
TV accounts for almost 60 of audio-visual
production in Europe
ESTIMATED AUDIO-VISUAL CONTENT CREATION BY SECTOR
EEA AREA - 2002
BN
18
16.1BN
PUBLIC SUBSIDY
16
0.3
15.8
Total 27.5BN (TV Programming 59)
14
12
10
MARKET REVENUE
8
6
3.7BN
4
0.8
2.4BN
2.9
2.0BN
1.8BN
1.5BN
2
0
COMMISSIONED TV PROGRAMMING
COMMISSIONED FEATURE FILMS
TV ADVERTISEMENT PRODUCTION
CORPORATE VIDEO AND COMMUNICATIONS
TV CHANNEL ON-SCREEN IDENTS AND PROMOTION
INTERACTIVE AND INTERNET AUDIO-VISUAL CONTENT AND
MATERIAL
Source European Observatory , TVI Yearbook,
Screen Digest, OO Analysis
65
(No Transcript)
66
FINANCIAL PERFORMANCE
along the supply chain, content creation tends
to be less risky than broadcasting but also
offers fewer prospects of high margins
PAY TV FUNDED CHANNELS
TV DELIVERY/RETAIL PLATFORMS
PUBLIC FUNDED CHANNELS
ADVERTISER FUNDED CHANNELS
PREMIUM PAY TV SECONDARY CHANNELS
TV CONTENT
TV TRANSMISSION
INCOME
ALL OTHER SECONDARY CHANNELS
12BN
56.8BN
CABLE RELAY
6.3
12.7
17BN
PAY TV
22.6
15BN
ADVERTISING
ANCILARY RIGHTS INCOME 0.4
16.1BN
SUBSIDY 0.3
7BN
1.2
15.2
SECONDARY CHANNEL COMMISSIONS
14.2
LICENCE FEES
6BN
PRIMARY CHANNEL COMMISSIONS
2.5BN
EBIT MARGINS (Excluding start ups)
-10 TO 20
-10 TO 10
-5 TO 30
-40 TO 20
-15 TO 25
0 TO 15
10 TO 30
Sources European Observatory, TBI Yearbook,
National Regulators, Company Accounts OO
Analysis
67
CONCLUSION
68
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education Culture Directorate of the
European Commission
69
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
PRESENTATION FOUR
FINDING FROM SURVEY OF CHANNEL TRANSMISSION
SCHEDULES
Arnaud Dupont Carat Expert
70
STRUCTURE OF PRESENTATION
71
FINDINGS FROM SURVEY OF CHANNEL TRANSMISSION
SCHEDULES KEY TERMS
KEY TERMS
72
FINDINGS FROM SURVEY OF CHANNEL TRANSMISSION
SCHEDULES KEY TERMS
CHANNEL SEGMENTATION
FUNDING MODEL
PUBLICLY FUNDED
ADVERTISER FUNDED
PAY TV FUNDED
SHARE OF AUDIENCE
PRIMARY gt3 SAMPLE BASE 73
ARD 1 BBC 1 SAMPLE BASE 31
TF1 ANTENA 3 SAMPLE BASE 40
CANAL PLUS SAMPLE BASE 2
SECONDARY lt3 SAMPLE BASE 5
BBC CHOICE SAMPLE BASE 1
-
SKY ONE SAMPLE BASE 4
73
FINDINGS FROM SURVEY OF CHANNEL TRANSMISSION
SCHEDULES KEY TERMS
GENRE CLASSIFICATION OF PROGRAMMES
GENRE
CLASSIFICATION
NEWS SPORT GAMES
NON QUALIFYING
74
FINDINGS FROM SURVEY OF CHANNEL TRANSMISSION
SCHEDULES KEY TERMS
CLASSIFICATION INTO STOCK AND FLOW
GENRE
CLASSIFICATION
NEWS SPORT GAMES FACTUAL MAGAZINE
FLOW
75
STRUCTURE OF PRESENTATION
76
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
Qualifying programmes make up 62 on average of
the transmission time of channels in our survey
QUALIFYING HOURS AS A PERCENTAGE OF ALL
TRANSMISSION HOURS
49
BELGIUM
50
PORTUGAL
53
NETHERLANDS
54
SPAIN
55
FINLAND
55
IRELAND
61
SWEDEN
62
ITALY
62
EU AVERAGE
66
FRANCE
69
UNITED KINGDOM
72
DENMARK
72
GREECE
74
GERMANY
82
AUSTRIA
0
10
20
30
40
50
60
70
80
90
77
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
A majority proportion of qualifying works are of
European origin except in Ireland, Sweden and
Spain
QUALIFYING EUROPEAN WORKS AS A PERCENTAGE OF
QUALIFYING HOURS
50
43
IRELAND
45
SWEDEN
47
SPAIN
50
DENMARK
50
BELGIUM
56
UNITED KINGDOM
57
GERMANY
58
AUSTRIA
59
EU AVERAGE
65
PORTUGAL
67
FRANCE
68
ITALY
68
NETHERLANDS
72
GREECE
74
FINLAND
87
LUXEMBOURG
0
10
20
30
40
50
60
70
80
90
100
78
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
The national picture hides significant
differences between types of channel, as shown by
UK data
QUALIFYING EUROPEAN WORKS AS A PERCENTAGE OF
QUALIFYING HOURS (UK CHANNEL SAMPLE)
15
LIVING TV
PAY CHANNEL
19
SKY ONE
47
E4
AD FUNDED CHANNEL
59
EU AVERAGE
PUBLICLY FUNDED CHANNEL
64
CHANNEL 4
73
BBC1
80
ITV1
BBC CHOICE
80
84
BBC2
0
10
20
30
40
50
60
70
80
90
79
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
The requirements of Article 5 are met in most
Member States
QUALIFYING INDEPENDENT WORKS AS A PERCENTAGE OF
QUALIFYING HOURS
10
0
LUXEMBOURG
5
PORTUGAL
ITALY
12
16
DENMARK
17
SWEDEN
18
IRELAND
18
NETHERLANDS
18
AUSTRIA
19
GREECE
19
SPAIN
BELGIUM
19
20
EU AVERAGE
20
FINLAND
23
UNITED KINGDOM
24
GERMANY
43
FRANCE
0
5
10
15
20
25
30
35
40
45
50
80
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
French channels show a substantial commitment to
independent production
QUALIFYING INDEPENDENT WORKS AS PERCENTAGE OF
QUALIFYING HOURS (FRANCE CHANNEL SAMPLE ONLY)
10
20
EU AVERAGE
PAY CHANNEL
33
CANAL PLUS
AD FUNDED CHANNEL
38
M6
47
TF1
PUBLICLY FUNDED CHANNEL
FRANCE 3
48
52
FRANCE 2
0
10
20
30
40
50
60
81
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
A typical schedule comprises a majority of
fiction and cinema film during qualifying hours
ALL QUALIFYING HOURS BY GENRE
100
16
21
9
13
21
29
34
CINEMA FILM
50
37
80
43
11
40
37
60
14
FICTION
16
34
40
11
11
24
7
22
ENTERTAINMENT
22
22
23
20
FACTUAL MAGAZINE
10
8
7
4
3
DOCUMENTARY
0
2
EU AVERAGE
GREECE
FINLAND
BELGIUM
GERMANY
SPAIN
82
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
2002 data
There are significant variations between Member
States in the proportion of stock and flow
programmes
PROPORTION OF STOCK AND FLOW PROGRAMMES IN
QUALIFYING HOURS
100
40
35
40
65
34
27
FLOW
80
38
52
41
60
38
33
NON-EUROPEAN STOCK
40
35
23
6
17
NON-DOMESTIC EUROPEAN STOCK
20
6
20
DOMESTIC STOCK
15
2
12
12
6
0
EU AVERAGE
AUSTRIA
FRANCE
GREECE
SPAIN
UNITED KINGDOM
83
STRUCTURE OF PRESENTATION
84
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
Primary channels have fewer hours of qualifying
programmes in the schedule than secondary
channels. The proportions are stable over time...
QUALIFYING HOURS AS A PROPORTION OF ALL
TRANSMISSION HOURS
OF TRANSMISSION HOURS
100
ADVERTISING
90
NON-QUALIFYING PROGRAMME HOURS
80
76
75
73
70
71
67
63
62
60
61
50
40
QUALIFYING PROGRAMME HOURS
30
20
10
0
1993
1996
1999
2002
1993
1996
1999
2002
PRIMARY CHANNELS
SECONDARY CHANNELS
85
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
But primary channels tend to show a higher
proportion of European works although not
independent productions
QUALIFYING EUROPEAN AND INDEPENDENT WORKS AS A
PERCENTAGE OF QUALIFYING HOURS
70
60
PRIMARY CHANNELS
EUROPEAN WORKS AS A PERCENTAGE OF QUALIFYING
PROGRAMMES
50
40
SECONDARY CHANNELS
30
INDEPENDENT PRODUCTIONS AS A PERCENTAGE OF
QUALIFYING PROGRAMMES
20
10
0
1993
1996
1999
2002
86
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
OF QUALIFYING INDEPENDENT PRODUCTIONS LESS THAN
FIVE YEARS OLD
90
SECONDARY
80
PRIMARY
70
60
50
40
30
20
10
0
1993
1996
1999
2002
87
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
The number of secondary channels has grown
rapidly since 1993
GROWTH OF TV CHANNELS IN THE EUROPEAN UNION
NUMBER OF CHANNELS
500
450
432
PRIMARY CHANNELS
SECONDARY CHANNELS
400
350
295
300
250
200
154
150
85
100
71
66
59
57
50
0
1993
1996
1999
2002
88
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
Qualifying programme hours of both primary and
secondary channels have increased since 1993
GROWTH IN QUALIFYING PROGRAMME HOURS
TOTAL TRANSMISSION HOURS
2400
ADVERTISING
1800
NON-QUALIFYING PROGRAMMES
1747
1615
1549
1409
1334
1304
1245
1200
1036
QUALIFYING PROGRAMMES
600
000
1993
1996
1999
2002
1993
1996
1999
2002
PRIMARY CHANNELS
SECONDARY CHANNELS
89
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
The proportion and hours of non-domestic
qualifying European works has increased slightly
TREND IN NON-DOMESTIC QUALIFYING EUROPEAN WORKS
OF EUROPEAN QUALIFYING WORKS
HOURS
48000
16
44916
43101
43200
14
38400
12
33600
10
27755
28800
24000
8
19200
6
16341
14400
4
9600
2
4800
000
0
1993
1996
1999
2002
90
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
trends 1993 - 2002
A smaller proportion of childrens qualifying
programmes are European works but a similar
proportion are by independent producers as the
mix for all qualifying programmes
CHILDRENS PROGRAMMES COMPARISON OF KEY RATIOS
60
EUROPEAN WORKS AS A PERCENTAGE OF QUALIFYING
PROGRAMMES
50
All qualifying programmes
40
Children's programmes
30
INDEPENDENT PRODUCTIONS AS A PERCENTAGE OF
QUALIFYING PROGRAMMES
20
10
0
1993
1996
1999
2002
91
STRUCTURE OF PRESENTATION
92
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
primary channels
Publicly funded channels tend to show more
European works than advertising funded channels
QUALIFYING EUROPEAN WORKS AS A PERCENTAGE OF
QUALIFYING HOURS
93
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
primary channels
EUROPEAN QUALIFYING WORKS AS A PERCENTAGE OF
QUALIFYING HOURS (2002)
TV4 (SWEDEN)
35
TV3 (IRELAND)
40
VTM (BELGIUM)
50
EU AVERAGE
51
PUBLICLY FUNDED CHANNELS
55
RTE1 (IRELAND)
57
TVE (SPAIN)
73
BBC1 (UNITED KINGDOM)
ADVERTISING FUNDED CHANNELS
ANTENNA (GREECE)
74
RTL (GERMANY)
76
76
EU AVERAGE
ITV1 (UNITED KINGDOM)
80
88
SVT1 (SWEDEN)
89
ARD (GERMANY)
89
TV1 (FINLAND)
0
10
20
30
40
50
60
70
80
90
100
94
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
primary channels
Publicly funded channels also show more
independent works
QUALIFYING INDEPENDENT WORKS AS A PERCENTAGE OF
QUALIFYING HOURS
25
21
20
19
20
17
16
16
15
10
5
0
1993
2002
1993
2002
1993
2002
ALL PRIMARY CHANNELS
PUBLICLY FUNDED CHANNELS
ADVERTISING FUNDED CHANNELS
95
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
primary channels
QUALIFYING INDEPENDENT WORKS AS A PERCENTAGE OF
QUALIFYING HOURS (2002)
4
SIC (PORTUGAL)
11
RAI1 (ITALY)
12
LA1 (BELGIUM)
12
DR1 (DENMARK)
13
ANTENNA (GREECE)
14
CAN5 (ITALY)
PUBLICLY FUNDED CHANNELS
19
EU AVERAGE
21
EU AVERAGE
31
ET1 (GREECE)
ADVERTISING FUNDED CHANNELS
TV1 (BELGIUM)
34
44
SAT1 (GERMANY)
47
TF1 (FRANCE)
CHANNEL FOUR (UNITED KINGDOM)
48
F2 (FRANCE)
52
0
10
20
30
40
50
60
96
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
primary channels
Publicly funded channels in countries that share
a language with a larger neighbour tend to show a
higher proportion of imported European programmes
TREND IN NON-DOMESTIC QUALIFYING EUROPEAN WORKS
OF QUALIFYING EUROPEAN WORKS
60
ORF1 (AUSTRIA)
50
RTE1 (IRELAND)
40
LA1 (BELGIUM)
30
20
PUBLICLY FUNDED CHANNELS
10
0
1993
1996
1999
2002
97
STRUCTURE OF PRESENTATION
98
FINDINGS FROM SURVEY OF CHANNEL TRANSMISSION
SCHEDULES SECONDARY CHANNELS
SECONDARY CHANNEL SAMPLE
MEASURES TO IMPROVE SECONDARY CHANNEL SAMPLE
RESULT Secondary channel findings are less
robust than primary channels
99
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
SECONDARY CHANNELS
Secondary channels have a higher proportion of
qualifying works but fewer European works and
independent works.
SECONDARY CHANNEL COMPARISONS
SECONDARY CHANNELS
ALL CHANNELS
80
72
70
62
59
60
50
40
34
30
20
19
20
10
0
QUALIFYING HOURS
EUROPEAN WORKS
INDEPENDENT WORKS
100
FINDINGS FROM STUDY OF TRANSMISSION SCHEDULES
SUMMARY
SUMMARY
101
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education and Culture Directorate of the
European Commission
102
FINDINGS FROM INTERVIEWS
PRESENTATION FIVE
FINDINGS FROM INTERVIEWS
David Candlin Associate Oliver Ohlbaum
Associates Ltd
103
DATA SOURCES AND METHODOLOGY FINDINGS FROM
INTERVIEWS - OVERVIEW
EXPERT OPINION
Provides comment and opinion on
104
DATA SOURCES AND METHODOLOGY FINDINGS FROM
INTERVIEWS - OVERVIEW
EXPERT OPINION
Interviews requested with Industry Experts
105
FINDINGS FROM INTERVIEWS - OVERVIEW
106
FINDINGS FROM INTERVIEWS - OVERVIEW
AREAS COVERED IN INTERVIEWS
107
FINDINGS FROM INTERVIEWS - BROADCASTERS
INTERVIEW BASE - BROADCASTERS
CHANNEL SEGMENT
INTERVIEWS SOUGHT
INTERVIEWS OBTAINED
PUBLICLY FUNDED CHANNELS
16
5
ADVERTISING FUNDED CHANNELS
14
5
PAY TV CHANNELS
4
1
REPRESENTATIVE ORGANISATIONS
2
2
TOTAL
36
13
108
FINDINGS FROM INTERVIEWS BROADCASTERS
PRESENTATION OF FINDINGS IN THREE AREAS
109
FINDINGS FROM INTERVIEWS - BROADCASTERS
2002 PROGRAMME SPEND ALLOCATION (EXCLUDING
SPENDING ON NEWS, SPORTS AND GAMES)
100
17
49
95
90
25
80
70
60
58
ACQUIRED
50
29
40
30
22
20
COMMISSIONED (INTERNAL)
10
5
COMMISSIONED (EXTERNAL)
0
PUBLICLY FUNDED CHANNELS
AD FUNDED CHANNELS
PAY TV CHANNELS
110
FINDINGS FROM INTERVIEWS - BROADCASTERS
More of the programme budget is going on
programmes produced externally
CHANGE IN PROGRAMME SPEND ALLOCATION (1993 2002)
IN HOUSE PRODUCTION
-100
0
50
100
EXTERNAL PRODUCTION
ACQUIRED PROGRAMMES
-50
67
-150
-100
-50
0
50
100
150
-50
0
50
100
PUBLICLY FUNDED CHANNELS
ADVERTISING FUNDED CHANNELS
Charts show percentage of broadcasters spending
more minus percentage of broadcasters spending
less in each category
111
FINDINGS FROM INTERVIEWS BROADCASTERS
INFLUENCES ON COMMISSIONING DECISIONS BY PUBLICLY
FUNDED BROADCASTERS
80
AUDIENCE TASTE
NATIONAL PUBLIC SERVICE OBLIGATIONS
77
77
EDITORIAL POLICY
67
PROGRAMME BUDGET
60
ARTICLES 4 AND 5
57
COMPETITIVE ADVANTAGE
37
PUBLIC SUBSIDY
20
ADVERTISER NEEDS
0
10
20
30
40
50
60
70
80
90
100
BASE PUBLICLY FUNDED BROADCASTERS
112
FINDINGS FROM INTERVIEWS BROADCASTERS
Different priorities for advertising funded
broadcasters
INFLUENCES ON COMMISSIONING DECISIONS BY
ADVERTISING FUNDED BROADCASTERS
96
AUDIENCE TASTE
NATIONAL PUBLIC SERVICE OBLIGATIONS
24
84
EDITORIAL POLICY
80
PROGRAMME BUDGET
20
ARTICLES 4 AND 5
84
COMPETITIVE ADVANTAGE
20
PUBLIC SUBSIDY
44
ADVERTISER NEEDS
0
10
20
30
40
50
60
70
80
90
100
BASE ADVERTISING FUNDED BROADCASTERS
113
FINDINGS FROM INTERVIEWS BROADCASTERS
INFLUENCES ON BROADCASTER COMMISSIONING FROM
INDEPENDENT PRODUCERS
95
QUALITY AND APPEAL
64
PRICE
55
PRIMARY RIGHTS
55
SECONDARY RIGHTS
NATIONAL PUBLIC SERVICE OBLIGATIONS
53
38
ARTICLE 5
COMMERCIAL REVENUE STREAMS
35
0
10
20
30
40
50
60
70
80
90
100
BASE ALL BROADCASTERS
114
FINDINGS FROM INTERVIEWS BROADCASTERS
INFLUENCE OF ARTICLE 4 ON COMMISSIONING DECISIONS
100
7
YES
33
90
Does the requirement that a majority of your
schedule (excluding news, sport, advertising,
teletext and teleshopping) is filled with
European works influence your decision whether to
commission European fiction or acquire US feature
films?
80
MAYBE
70
60
60
50
40
30
NO
20
10
0
ARTICLE 4
BASE ALL BROADCASTERS
115
FINDINGS FROM INTERVIEWS BROADCASTERS
INFLUENCE OF ARTICLE 4 ON PROGRAMME ACQUISITION
DECISIONS
100
30
90
YES
Does the requirement that a majority of your
schedule (excluding news, sport, advertising,
teletext and teleshopping) is filled with
European works influence your decision to
purchase acquired programmes made in Europe or
the US?
80
70
70
60
50
40
NO
30
20
10
0
ARTICLE 4
BASE ALL BROADCASTERS
116
FINDINGS FROM INTERVIEWS BROADCASTERS
INFLUENCE OF ARTICLE 5 ON COMMISSIONING DECISIONS
100
22
90
YES
Does the requirement that at least 10 of your
schedule (excluding news, sport, advertising,
teletext and teleshopping) is filled with
European works by independent producers influence
the decision about who you commission from?
80
78
70
60
50
40
NO
30
20
10
0
ARTICLE 5
BASE ALL BROADCASTERS
117
FINDINGS FROM INTERVIEWS BROADCASTERS
MONITORING OF ARTICLES 4 AND 5
100
36
90
ITS LEFT UP TO BROADCASTERS
How would you characterise the approach adopted
in your Country to monitoring the achievement by
broadcasters of the requirements of the TV
Without Frontiers Directive?
80
70
18
60
PRIMARY CHANNELS ONLY
50
45
40
30
20
STRICTLY MONITORED
10
0
BASE ALL BROADCASTERS
118
FINDINGS FROM INTERVIEWS BROADCASTERS
SANCTIONS FOR NON-COMPLIANCE
100
20
90
SOMETIMES
Are sanctions (warnings, fines etc) ever
threatened by the regulator against channels that
do not meet the requirements of the Directive?
80
80
70
60
50
40
NEVER
30
20
10
0
BASE ALL BROADCASTERS
119
FINDINGS FROM INTERVIEWS BROADCASTERS
SANCTIONS FOR NON-COMPLIANCE
100
25
90
YES
80
In your view, are those sanctions an effective
means to deter broadcasters from future
non-compliance?
50
70
60
50
NO
40
30
25
20
NOT SURE
10
0
BASE ALL BROADCASTERS
120
FINDINGS FROM INTERVIEWS - PRODUCERS
RESULTS BASED ON INTERVIEWS WITH 16 INDEPENDENT
PRODUCERS AND REPRESENTATIVE ORGANISATIONS
121
FINDINGS FROM INTERVIEWS PRODUCERS
Primary rights deals are typically between 3
years and perpetuity
AVERAGE PERIOD THAT CONTROL OF PROGRAMME RIGHTS
IS ASSIGNED TO COMMISSIONING BROADCASTER
7.0
PRIMARY RIGHTS
6.2
SECONDARY RIGHTS IN HOME MARKET
SECONDARY RIGHTS IN OVERSEAS MARKETS
6.4
4.9
ANCILLARY RIGHTS
6.1
NEW MEDIA RIGHTS
0
1
2
3
4
5
6
7
8
122
FINDINGS FROM INTERVIEWS - PRODUCERS
123
FINDINGS FROM INTERVIEWS PRODUCERS
Producers are retaining more rights than they did
ten years ago
RETENTION OF RIGHTS
100
20
NO, WE RETAIN FEWER RIGHTS THAN TEN YEARS AGO
90
Do you retain more rights to programmes you have
produced than you did 10 years ago?
80
80
70
60
50
40
YES, WE RETAIN MORE RIGHTS THAN TEN YEARS AGO
30
20
10
0
BASE ALL INDEPENDENT PRODUCERS
124
FINDINGS FROM INTERVIEWS PRODUCERS
But margins have shrunk
MARGINS ON PROGRAMME RIGHTS
100
33
90
ABOUT THE SAME
Has the margin you earn on programme rights
grown, shrunk, or stayed the same over the last
10 years?
80
70
67
60
50
40
SHRUNK
30
20
10
0
BASE ALL INDEPENDENT PRODUCERS
125
FINDINGS FROM INTERVIEWS PRODUCERS
Producers are confident they can exploit their
intellectual property better than broadcasters
PAYMENT FOR RIGHTS
100
100
90
Does the payment you receive for the rights
exceed the value that you could create from them
yourself over the same period?
80
70
60
50
NO
40
30
20
10
0
BASE ALL INDEPENDENT PRODUCERS
126
FINDINGS FROM INTERVIEWS PRODUCERS
A limit on how long broadcasters retain programme
rights is seen as a means of improving
profitability
100
RETENTION OF RIGHTS
8
NO
92
90
Would you like to see a statutory limit on the
period that a broadcaster can have exclusive use
of primary rights to a programme it has funded?
80
70
60
50
YES
40
30
20
10
0
BASE ALL INDEPENDENT PRODUCERS
127
FINDINGS FROM INTERVIEWS PRODUCERS
MONITORING OF ARTICLES 4 AND 5
100
73
90
How would you characterise the approach adopted
in your Country to monitoring the achievement by
broadcasters of the requirements of the TV
Without Frontiers Directive?
80
70
ITS LEFT UP TO BROADCASTERS
60
50
40
30
27
20
PRIMARY CHANNELS ONLY
10
0
BASE ALL INDEPENDENT PRODUCERS
128
FINDINGS FROM INTERVIEWS PRODUCERS
SANCTIONS FOR NON-COMPLIANCE
100
18
90
SOMETIMES
Are sanctions (warnings, fines etc) ever
threatened by the regulator against channels that
do not meet the requirements of the Directive?
80
82
70
60
50
40
NEVER
30
20
10
0
BASE ALL INDEPENDENT PRODUCERS
129
FINDINGS FROM INTERVIEWS PRODUCERS
SANCTIONS FOR NON-COMPLIANCE
100
18
YES
90
80
82
In your view, are those sanctions an effective
means to deter broadcasters from future
non-compliance?
70
60
50
40
NO
30
20
10
0
BASE ALL INDEPENDENT PRODUCERS
130
FINDINGS FROM INTERVIEWS - REGULATORS
AREAS COVERED IN INTERVIEWS
131
FINDINGS FROM INTERVIEWS - SUMMARY
132
FINDINGS FROM INTERVIEWS - SUMMARY
133
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education Culture Directorate of the
European Commission
134
SUMMARY OF FINDINGS
PRESENTATION SIX
SUMMARY OF FINDINGS
David Graham Managing Director, David Graham And
Associates
135
SUMMARY OF FINDINGS
SIZE OF EUROPEAN TV INDUSTRY
136
SUMMARY OF FINDINGS
OVERALL PICTURE OF MORE CHANNELS AND MORE HOURS
OF TELEVISION
137
SUMMARY OF FINDINGS
EUROPEAN WORKS IN THE SCHEDULE
138
SUMMARY OF FINDINGS
EUROPEAN WORKS BY INDEPENDENT PRODUCERS
139
SUMMARY OF FINDINGS
FINDINGS FROM INTERVIEWS
140
SUMMARY OF FINDINGS
BROADCASTER FINANCES
141
SUMMARY OF FINDINGS
TRADE AND PROFITABILITY
142
Impact Study of Measures Concerning the Promotion
of TV Programmes
(Community and National)
Provided for Under Article 25 (a)
of the
TV Without Frontiers Directive
Workshop
14th October 2004
David Graham and Associates Limited
For the Education Culture Directorate of the
European Commission