EU Proposes TV Rules for Online Broadcasts

> http://www.infoworld.com/article/05/12/13/HNeutv_1.html?source=NLC-BUS2005-12-14


EU proposes extending TV rules to online film and video


New rules criticized by the European Internet Service Providers
Association


By Simon Taylor, IDG News Service

December 13, 2005


The European Union's top regulator proposed extending rules for
traditional television broadcasters to the fast developing area
of online film and video providers on Tuesday.


Under new rules proposed by the European Commission, the E.U.
overall regulator, some of the requirements currently imposed on
traditional broadcasters would be applied to film and
video-on-demand providers.

While this would not include some of the requirements traditional
broadcasters face, such as bans on advertising certain types of
products like tobacco or medicines or quotas on the amount of
European-produced films they offer, it would include some
measures such as having to provide a "culturally diverse" range
of content. "This might involve requirements in terms of the
catalogue they offer," said Martin Selmayr, a European Commission
spokesman.

Other requirements to be applied to online service providers
include proposals protecting children from unsuitable material
and preventing online racial hatred.

The new rules have come under fire from the European Internet
Service Providers Association (EurISPA). The Commission failed to
justify why it needed to extend the current rules to new service
providers, according to Richard Nash, secretary-general of
EurISPA. He quoted a recent report by the U.K.'s
telecommunications regulator OFCOM, saying that the risks of
applying the traditional rules to new forms of service providers
"outweighed the benefits."

He also criticized the way that the Commission proposed new basic
rules for all 25 E.U. member states, but left it up to each
national government to decide how to enforce those rules. "To
build a single market for online services across the E.U. you
need consistency. The Commission's approach will put a major
obstacle in the way of businesses developing new products." The
online services market is still in its infancy, he said, but the
sector needs "business certainty" to have incentives to develop
new services and content for consumers.

He said that his section of the industry was not sufficiently
consulted by the Commission when it drew up the new rules. "The
online service provider world is desperate to be a part of the
process and get our views across. But this isn't happening," Nash
said.

However, the rule changes proposed by the Commission are much
more beneficial for traditional broadcasters and their
advertisers. Under the changes outlined Tuesday, product
placement would be allowed in program broadcast in the E.U.
provided viewers are informed at the start of the program.
Advertisers would also have more flexibility over when to place
ads during film and programs, although the maximum limit of 12
minutes of advertising for every hour of broadcasting would
remain. Quotas for the percentage of European-made films and
program in a broadcaster's output will also remain at the same
level.

The new rules will have to be approved by representatives of the
E.U.'s member state governments and members of the directly
elected European Parliament before coming into force.


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