By Chris Jones - 18th April 2006
Burgeoning audiovisual services could be irrevocably damaged by heavy-handed regulation from Brussels, according to British communications regulator Ofcom.
In December 2005, European media commissioner Viviane Reding announced that the 1989 Television without Frontiers (TWF) Directive was to be overhauled for the first time since 1997, taking into account the massive advances in technology over the last decade.
Reding’s new proposals cover a wide range of issues, including advertis-ing and cultural programming, but it is changes to the scope of the directive that are likely to prove the hardest to sell to European capitals.
This is because the commission wants to extend the scope of the directive to cover almost any form of audiovisual information, whether it is delivered via TV, mobile phone or the internet, an ambition that some experts argue is simply a step too far.
“The commission’s proposals are, for the most part, very sensible, and we welcome most of them,” says Tim Suter, partner for content and standards at Ofcom, the British communications regulator.
“But we are far from convinced that applying broadcast regulations to other platforms is the best way to proceed.”
“The problem is that the commission is trying to use one set of rules to regulate different things. So much audiovisual content is now non-linear, i.e. ordered by consumers when, where and how they want it, and this is clearly a different type of media consumption than linear services such as traditional TV broadcasting, where specific programmes are scheduled at specific times.
“The new text would not apply the TWF regulations to audiovisual content on an individual’s personal website – a video clip, for example. But if that same clip is then posted on another site which carries advertising – and is therefore deemed to be a commercial site – it would become subject to the EU rules.”
“The clip itself is exactly the same, yet in one case it would have to meet strict rules, in the other it would not.”
There are also concerns that the development of audiovisual content that is widespread on the internet, but not on traditional media platforms, could be hindered by the commission’s approach.
“Products such as Flash media clips, online newspapers and online video games published on commercial websites would be covered by the new proposals,” explains Alex Blowers, director of international operations at Ofcom.
“This brings potentially thousands of new businesses within the scope of the regulation, most of which are likely to be small companies. The EU’s future competitiveness as a region depends in part on the success of such nascent businesses, and they are uniquely vulner-able at this stage of their development to regulatory risk and uncertainty.”
The proposals do not follow the commission’s own pledge to reduce red tape, Blowers argues.
“Ofcom aims to impose regulation only when it is absolutely necessary and when no other, less intrusive, regulatory mechanisms would work. Our concern is that the proposed revisions to the directive would make it very difficult for any regulator to operate in such a way.”
Ofcom wants to see more British-style self-regulation across Europe. “The commission’s proposal recognises the importance of self-regulation, but it implies that member states must underpin any self-regulatory scheme with some system of enforcement, of which a licensing or authorisation regime seems the most likely.”
“This may disrupt existing self-regulatory systems already in place in some member states,” says Blowers.
“Self-regulation also allows the industry to ‘own’ its own development. Nobody knows what services will take off in the future as technology continues to develop, so it stands to reason that it is all but impossible to try to regulate them all in the same way.”
“Rules that are developed by service providers in consultation with national regulators are much more likely to be adopted quickly and correctly, and they can evolve more rapidly in line with technology.”
Ofcoms concerns are not shared by every country’s regulator, however. While everyone agrees that there is a need for tougher rules on protecting minors and ensuring that audiovisual content cannot be used to incite hatred, some countries are less concerned about damaging growing industries than protecting Europe’s cultural heritage or promoting freedom of speech.
Despite the wide range of opinions among the member states, Ofcom remains hopeful that a common position can be reached in early 2007 under the German EU presidency – but exactly what form that position takes is still very much up for debate.
This article was first published in the April 17 edition of Parliament Magazine.
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