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All EU On-Demand Services Could be Regulated Like TV

The European Commission (EC) is eyeing oversight of Internet TV programming as part of a major overhaul of its 1989 TV Without Frontiers (TWF) directive. In preliminary conclusions published Tues. in advance of a Sept. conference, the Information Society & Media Directorate- General proposed bringing “non-linear” (on-demand) audiovisual services generally under the same rules as traditional content services, and easing advertising rules to account for new technologies. The move to regulate Internet and other new media is likely to spark strong criticism from some quarters.

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The TWF has been under review since 2003. EC issues papers published Tues. deal with: (1) Protection of minors and human dignity and the right of reply. (2) The EU role in media pluralism. (3) Cultural diversity and promotion of European and independent audiovisual production. (4) Rules for audiovisual content services. (5) Commercial communications.

Regulation of audiovisual services could go one of 2 ways, the EC said. It can revise the TWF directive to boost flexibility on advertising and other activities and update definitions so all services similar to TV are covered, or it could set up a comprehensive new regulatory framework for all e-delivery of audiovisual content.

Most experts supported the latter, with 2 tiers: (1) Set basic rules protecting minors and human dignity and similar principles that apply to all audiovisual services. (2) Subject scheduled programming to rules derived from the TWF but “lighter and modernized.” Under the 2nd option, rules for nonlinear audiovisual services would cover on-demand services where viewers can choose the content they want any time, such as Web-based news services or video on demand. Linear services would include traditional TV, webcasting and streaming. Basic rules also would cover identification of commercial communications, right of reply, minimum quality obligations regarding commercial communications, and basic identification or masthead requirements.

The TWF directive subjects broadcasters to regulation in the country in which they're established. Those outside the EU are regulated if they use a frequency granted by a member state, satellite capacity related to that country or a satellite link there. But the advent of the Internet and other technologies has raised questions of what to do about broadcasters outside the EU that circumvent those rules and transmit, say, programs intended to incite to violence. The EC proposed to reverse the technical criteria to make satellite uplink capacity more important, and to split responsibility for compliance between operators and member states.

If the new directive covers audiovisual content services in general, not just TV, the EC said, the question is where jurisdiction lies for on-demand programming. It tentatively proposed determining jurisdiction either by the place where editorial decisions for such programming originate, or the place where the content service provider is established.

The TWF directive contains several basic rules on TV advertising and teleshopping. Most experts agreed those rules should apply to on-demand programming as well, and there should be a new definition of audiovisual commercial communications covering all commercial communications, including conventional advertising slogans, split screens and interactive ads. While most commentators said existing bans and curbs on alcohol and tobacco advertising should extend to on-demand programming, the commission noted a split between advertisers, private broadcasters and telecom operators on one hand, and consumers and public service broadcasters on the other, over the need for such consumer protection online. The EC may also suggest maintaining the TWF’s hourly limit on advertising and teleshopping but dropping the daily one.

The directive now requires member states to take steps to keep TV broadcasters in their jurisdictions from transmitting -- outside times when minors aren’t likely watching -- programs that might harm youths’ physical, moral or mental development, particular shows with pornography and graphic violence. The commission is proposing to leave those rules in place for TV, and extend them to on-demand services by encouraging member states to establish co-regulatory or self-regulatory schemes, filtering, age verification, labelling and content classification.

European countries must ensure that broadcast programming doesn’t incite racial, religious or other hatred. Each country defines that based on national laws and moral values. Digital technologies have “complicated the task of the regulatory authorities given the increase in the number of programs,” the EC said. Commentators saw no need to change the rule for TV programs but said it also should apply to on-demand services, leaving it to each member state to define incitement to hatred.

Many measures aimed at protecting media competition are in place at the national and EU level, the EC said in an issues paper. The key question, then, is whether more European action is needed. Given the 25 member states’ differing rules for assessing a media company’s influence on the market, “it is difficult to propose any kind of harmonization of rules,” the EC said.

The TWF requires programmers to devote at least 10% of transmission time to European works. There’s no need to change that for traditional TV broadcasts, the EC said, but perhaps change is due, at the European level, “at least a political signal to the effect” that new, on- demand services would be expected to promote European content as well.

A U.K. Office of Communications official said TV broadcast rules don’t fit other media, London’s Times reported. Where possible, co-regulation or self- regulation should be used, said Tim Suter, Ofcom’s partner for content and standards. Comments on the issues papers are due Sept. 5 --avpolicy@cec.eu.int. After a Sept. 20- 22 conference in Liverpool, U.K., the EC will unveil its final proposal for new rules to replace the TWF. Dugie Standeford