Skip to main content

The European Commission’s Approach to Film Funding: Striking a Difficult Balance

  • Chapter
  • First Online:
Handbook of State Aid for Film

Part of the book series: Media Business and Innovation ((MEDIA))

Abstract

Audiovisual works, in particular films, play an important role in shaping European identities and reflecting the EU’s cultural diversity. This chapter looks at the European Commission’s activities in relation to public film funding. It begins with a historic overview of the objectives of the European Commission in its approach to the audiovisual sector. It then turns to the concrete realizations of the Commission via its own funding programmes (the MEDIA programme) as well as through its State aid control of Member States’ financing schemes.

The chapter continues with a discussion of the digital transition, emphasizing the possibilities this may bring with it for the Commission to realize a more ambitious programme for the European film sector. However, various and sometimes opposing digital trends are added to an existing set of challenges. Therefore, the chapter concludes with a reality check in terms of what the Commission’s role in shaping the digital European film sector can amount to. The stated objective of realizing a digital single market for films does not seem to be achievable without giving up the carefully struck balance between the different (industrial and cultural, national and European) interests around the table. For the time being, the European film market looks to remain complex and fragmented.

The views expressed in this chapter are purely those of the authors and may not under any circumstances be regarded as stating an official position of the European Commission and/or its DG Competition.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 299.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Now Article 167 of the Treaty on the Functioning of the European Union (TFEU) (European Union, 2010).

  2. 2.

    The principle of subsidiarity is defined in Article 5 of the Treaty on European Union and refers to the principle that the EU only takes action (except in areas falling within its exclusive competence) when it is more effective than the national, regional, or local level.

  3. 3.

    It has to be noted that the EU’s own support schemes such as MEDIA fall outside the scope of the Commission’s State aid review (European Commission, 2013a).

  4. 4.

    That is, infractions of the principle that discrimination against nationals of another Member State is prohibited, e.g. when restricting possibilities for nationals of other Member States to work as producers or otherwise participate in supported films.

  5. 5.

    Creative Europe Desks are in place in every Member State. They form the link between the MEDIA programme and the professionals in their country by providing information and assistance.

  6. 6.

    NB: all three examples received MEDIA support.

  7. 7.

    A final evaluation of the MEDIA programme’s results for the period 2007–2013 will be integrated into the midterm evaluation of the Creative Europe programme, expected in December 2017 (Dossi, 2016).

  8. 8.

    See http://www.eurovod.org/

  9. 9.

    Release windows determine the order and timetable according to which a film can be released across different media “windows” after its theatrical release (Paris, 2014).

  10. 10.

    Geo-blocking refers to the practices that make it impossible for consumers to access websites or (content) offers in other Member States (European Commission, 2015).

  11. 11.

    Initially set down in Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid (OJ L 379, 28.12.2006, p. 5). In 2013, the Commission adopted a new de minimis Regulation, Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L 352, 24.12.2013, p. 1).

  12. 12.

    See State aid SA.38418 (2014/N) (ex 2014/N)—Germany Filmförderungsgesetz, http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_38418

  13. 13.

    E.g. Netflix, which targets the European Union from its offices in The Netherlands.

References

  • Anderson, C. (2006). The Long Tail: How endless choice is creating unlimited demand. London: Random House.

    Google Scholar 

  • APRIL & Euréval-C3E. (2006). Second interim evaluation of the MEDIA Plus and MEDIA Training programmes. Final report. Paris: Euréval-C3E.

    Google Scholar 

  • Barbato, J.-C. (2008). La diversité culturelle en droit communautaire. Contribution à l’analyse de la spécificité de la construction européenne. Aix-en-Provence: Presses Universitaires d’Aix-Marseille.

    Google Scholar 

  • Blaney, M. (2015a, December 9). EC unveils controversial content portability plans. Screen Daily. http://www.screendaily.com/news/digital/ec-unveils-controversial-content-portability-plans/5097809.article

  • Blaney, M. (2015b, March 5). Brussels copyright plans meet resistance. Screen Daily. http://www.screendaily.com/news/brussels-copyright-plans-meet-resistance/5083935.article

  • Blaney, M. (2015c, March 9). Oettinger under fire over copyright proposals. Screen Daily. http://www.screendaily.com/news/oettinger-under-fire-over-copyright-proposals/5084043.article

  • Competition Directorate-General of the European Commission. (2014, September). State aid rules for film and other audiovisual works. Competition Policy Brief, issue 13. http://ec.europa.eu/competition/publications/cpb/2014/013_en.pdf

  • Craufurd Smith, R. (2008). Balancing culture and competition: State support for film and television in European Community law. The Cambridge Yearbook of European Legal Studies, 10, 35–67.

    Article  Google Scholar 

  • Creative Europe. (2014). Creative Europe. A guide for audiovisual professionals. http://www.creativeeurope.be/sites/creativeeurope/files/MEDIA/creativeeurope-aguideforaudiovisualprofessionals-2014.pdf

  • De Vinck, S. (2011). Revolutionary road? Looking back at the position of the European film sector and the results of European-level film support in view of their digital future. A critical assessment. PhD dissertation, Vrije Universiteit Brussel, Brussels.

    Google Scholar 

  • Dossi, S. (2016). The creative Europe programme. European implementation assessment. Brussels: European Parliamentary Research Service (EU).

    Google Scholar 

  • EACEA – Education, Audiovisual and Culture Executive Agency. (2014). Creative Europe – MEDIA. List of selected projects – Support for online distribution – EACEA 16/2014. https://eacea.ec.europa.eu/sites/eacea-site/files/documents/vod-16-2014-results.pdf

  • EACEA – Education, Audiovisual and Culture Executive Agency. (2016). Creative Europe – MEDIA – Online distribution. http://eacea.ec.europa.eu/home/creative-europe/actions/MEDIA/online-distribution_en

  • Eliashberg, J., Elberse, A., & Leenders, M. (2006). The motion picture industry: Critical issues in practice, current research, and new research directions. Marketing Science, 25(6), 638–661.

    Article  Google Scholar 

  • EU MEDIA Futures Forum. (2012). Fast-forward Europe. 8 solutions to thrive in the digital world. Final report. A report for European Commission Vice-President Neelie Kroes to reflect on the future of the MEDIA industries from a global perspective. http://ec.europa.eu/information_society/MEDIA_taskforce/doc/pluralism/forum/report.pdf

  • Euréval & MEDIA Consulting Group. (2007). Final evaluation of the MEDIA Plus and MEDIA Training programmes. Synthesis of the final report. Paris, Lyon: Euréval/MCG.

    Google Scholar 

  • Euréval & MEDIA Consulting Group. (2010). Interim evaluation of MEDIA 2007. Paris, Lyon: Euréval/MCG.

    Google Scholar 

  • European Audiovisual Observatory. (2016, May 4). Press release: Box office hit record high in the European Union in 2015. Strasbourg: European Audiovisual Observatory.

    Google Scholar 

  • European Commission. (2001, February 16). Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on certain legal aspects relating to cinematographic and other audiovisual works. Official Journal of the European Union, C 43, 6–17.

    Google Scholar 

  • European Commission. (2006). European charter for the development and the take-up of film online. Brussels: European Commission.

    Google Scholar 

  • European Commission. (2007). MEDIA 2007. Call 16/2007. Guidelines – Development. Powerpoint presentation. http://ec.europa.eu

  • European Commission. (2009). State aid: Commission authorises €82 million of innovative film tax incentives; Opens investigation into Italian digital cinema support? Press release IP/09/1181. Press Release, July 23, 2009. http://europa.eu/rapid/press-release_IP-09-1181_en.htm?locale=en

  • European Commission. (2010). Europe’s digital agenda. http://ec.europa.eu/information_society/digital-agenda/index_en.htm

  • European Commission. (2011). Commission Staff Working paper. Impact assessment accompanying the document Regulation of the European Parliament and of the Council establishing a Creative European Framework Programme (SEC(2011) 1399 final). Brussels: European Commission.

    Google Scholar 

  • European Commission. (2013a, November 15). Communication from the Commission on state aid for films and other audiovisual works. Official Journal of the European Union, C 332, 1.

    Google Scholar 

  • European Commission. (2013b). Commission Decision of 27.3.2013 concerning the adoption of the 2013 work programme of the implementation of the Preparatory ActionCirculation of films in the digital era” (C(2013) 1780 final). Brussels: European Commission.

    Google Scholar 

  • European Commission. (2014a). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: European film in the digital era – Bridging cultural diversity and competitiveness (COM(2014)272 final). Brussels: European Commission.

    Google Scholar 

  • European Commission. (2014b). Commission Decision of 29.10.2014 on the Aid Scheme (Sa.27317 – C 25/2009 (Ex N 673/2008)) which Italy is planning to implement for digital projection equipment. Brussels: European Commission. http://ec.europa.eu/competition/state_aid/cases/232435/232435_1611684_187_2.pdf

  • European Commission. (2014c, June 26). Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty. Official Journal of the European Union, L 187, 1.

    Google Scholar 

  • European Commission. (2015). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A digital single market strategy for Europe (COM(2015)192 final). Brussels: European Commission.

    Google Scholar 

  • European Commission. (2016a). Creative Europe: Cross-sector strand. https://ec.europa.eu/programmes/creative-europe/cross-sector

  • European Commission. (2016b). The European film forum. https://ec.europa.eu/digital-single-market/en/european-film-forum

  • European Commission. (2016c). Proposal for a Regulation of the European Parliament and of the Council on addressing geo-blocking and other forms of discrimination based on customers’ nationality, place of residence or place of establishment within the internal market and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (COM(2016) 289 final). Brussels: European Commission.

    Google Scholar 

  • European Commission. (2016d). Proposal for a Regulation of the European Parliament and of the Council on ensuring the cross-border portability of online content services in the internal market (COM(2015)627 final). Brussels: European Commission.

    Google Scholar 

  • European Commission. (2016e). Preparatory action on “Circulation of European films in the digital era”. http://ec.europa.eu/culture/tools/digital-circulation_en.htm

  • European Commission. (2016f). EU MEDIA Programme 1991-2016. https://ec.europa.eu/digital-single-market/en/news/eu-MEDIA-programme-1991-2016

  • European Commission. (2016g, May 13). Factsheet. 25 years of the MEDIA programme. http://europa.eu/rapid/press-release_MEMO-16-1709_en.htm

  • European Union (2010). Consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union. Official Journal of the European Union, 53 (C83), 1–388.

    Google Scholar 

  • Grece, C. (2016). How do films circulate on VoD services and in cinema in the European Union? A comparative analysis. Strasbourg: European Audiovisual Observatory.

    Google Scholar 

  • Gubbins, M. (2012). Digital revolution: Active audiences and fragmented consumption. In D. Iordanova & S. Cunningham (Eds.), Digital disruption: Cinema moves on-line (pp. 67–100). St Andrews: St Andrews Film Studies.

    Google Scholar 

  • Harcourt, A. (2005). The European Union and the regulation of MEDIA markets. Manchester: Manchester University Press.

    Google Scholar 

  • Heidsiek, B. (2014). Day and date: Experiment in progress. Europa distribution news & blog. http://www.europa-distribution.org/day-and-date-experiment-in-progress/

  • Held, A. (2016). Culture and sport. In N. Pesaresi, K. Van De Casteele, L. Flynn, & C. Siaterli (Eds.), EU competition law (2nd ed., pp. 921–952). Deventer, Leuven: Claeys & Casteels Law Publishers.

    Google Scholar 

  • Herold, A. (2008). European film policies and competition law: Hostility or symbiosis? In D. Ward (Ed.), The European Union and the culture industries. Regulation and the public interest (pp. 33–57). Aldershot: Ashgate.

    Google Scholar 

  • Herold, A. (2010). European film policies in EU and international law: Culture and trade – Marriage or misalliance? Groningen: Europa Law Publishing.

    Google Scholar 

  • Littoz-Monnet, A. (2007). The European Union and culture: Between economic regulation and European cultural policy. Manchester, New York: Manchester University Press.

    Book  Google Scholar 

  • MEDIA. (2011). Selected actions: Call for proposals Pilot Projects EACEA/04/2010. Brussels: European Commission.

    Google Scholar 

  • Media Consulting Group. (2016). Research for CULT Committee – Creative Europe – MEDIA: Implementation, first experiences. Study. Brussels: European Parliament.

    Google Scholar 

  • MEDIA Salles. (2015). Audiences increase slightly in Europe’s cinemas: +1.3% as digitization comes to 91% of screens. Press release of 7 February, presented in Berlin. http://www.MEDIAsalles.it/ybk2015/berlin/pr.htm

  • Paris, T. (2014). New approaches for greater diversity of cinema in Europe? Analyses of experimetns launched in the context of the Preparatory Action “Circulation of European films in the digital era” (European Parliament & European Commission). Brussels: European Parliament & European Commission.

    Google Scholar 

  • Pauwels, C. (1995). Grenzen en mogelijkheden van een kwalitatief cultuur-e n communicatiebeleid in een economisch geïntegreerd Europa. Een kritische analyse en prospectieve evaluatie aan de hand van het gevoerde en te voeren Europese omroepbeleid. PhD dissertation, Vrije Universiteit Brussel, Brussel.

    Google Scholar 

  • Pauwels, C., Biltereyst, D., & De Vinck, S. (2007). Our policies keep on reinventing the past: An overview of the EU policy-making in the audiovisual domain. In L. D’Haenens & F. Saeys (Eds.), Western broadcast models: Structure, conduct and preformance (pp. 25–59). Berlin, New York: Mouton de Gruyter.

    Google Scholar 

  • Talavara Milla, J., Fontaine, G., & Kanzler, M. (2016). Public financing for film and television content. Strasbourg: European Audiovisual Observatory.

    Google Scholar 

  • Theiler, T. (1999). Viewers into Europeans? How the European Union tried to Europeanize the audio-visual sector, and why it failed. Canadian Journal of Communication, 24(4). http://www.cjc-online.ca/index.php/journal/article/view/1126/1035

  • Ulin, J. C. (2010). The business of MEDIA distribution: Monetizing film, TV and video content in an online world. Burlington, Oxford: Focal Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sophie De Vinck .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer International Publishing AG, part of Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

De Vinck, S., Pauwels, C. (2018). The European Commission’s Approach to Film Funding: Striking a Difficult Balance. In: Murschetz, P., Teichmann, R., Karmasin, M. (eds) Handbook of State Aid for Film. Media Business and Innovation. Springer, Cham. https://doi.org/10.1007/978-3-319-71716-6_11

Download citation

Publish with us

Policies and ethics