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European Producers Club

EPC

L'EPC est une organisation qui regroupe plus de 100 des producteurs de cinéma les plus actifs en Europe.

Lobbying Activity

Response to New competition tool

30 Jun 2020

We, the European Producers Club, representing more than 130 independent producers across 28 countries in Europe and Canada, have witnessed over the last 5 years transformations bringing a revolution of our traditional business models. These transformations developed with the arrival of US platform and accelerated with the COVID19 Crisis. The business model on which the audiovisual sector is built relies on a multiplicity of local independent producers, which gather several financing sources: national support system, broadcasters investment, distributors minimum guarantee, all these participations organized around the licensing of rights, an allotment of windows of exclusivity and based on a territorial exploitation of the work produced. At the origin of the value chain, is the independent producer developing the intellectual property (IP) with their own financing (similarly to a research and development, R&D, process). This business model has been the guarantee of a vibrant cultural diversity, with the competition for creative talent and funding taking place between the independent players, and their need to always innovate, opening their doors to new talents, formats, genres. It is thanks to it that Europe is so culturally rich in its films and TV series. This ecosystem has been recognized and protected by the EU Cinema Communication 2013, which regulates the exceptions to the State Aid rules for our sector. Today, this business model is disrupted by the US platforms inserting themselves into the entirety of the value chain at all levels: producing, financing and distributing thus creating a vertically integrated ecosystem. Opposing the system based on licensing exclusive windows and on territorial exclusivity. We have seen by the past some concentration moves, leading to highly concentrated companies, controlling the producing, distributing and exploitation of the work (such as Pathe in France). But they were limited to a specific country, and allowing other windows of exploitation, even at national level, and the worldwide rights to be retained. On the contrary the streaming platforms buy all rights, all forms of exploitation, worldwide. Furthermore this has come with new business practices: • A lack of data transparency • Ownership of all the rights, even if they originated from an IP developed by the Independent Producer. • Revenues which aren’t linked to the success of the work created, but only to the cost of production of the work • A capture of national support funds and tax incentives through local producers for the sole advantage of the US streamers. The scope of intervention allocated to the DGComp through the articles 101 and 102 of the Lisbon Treaty could not have foreseen such changes nor the disruptions these changes can have on the audiovisual industry. For these reasons, we welcome today the creation of a new competition tool and with it a modernisation of the possible actions of the DGComp in regards to fair competition and entrepreneurship in the Single Market as well as adapting of the scope of the interventions to address structural market problems, such as we know now exist in the new landscape of our industry. These include an oligopoly lead by US giants that are introducing aggressive business models which fail to promote competition and cultural diversity as well as inhibiting entrepreneurship. Finally, we would like to bring to your attention that the independent audiovisual ecosystem benefits from State Aids which fall under the regime of exceptions under article 107 of the TFEU, first fully recognised by the Cinema Communication of 2001. Whilst we call for the audiovisual sector to be considered as being “especially prone to such concerns” we also call for measures to be taken when it comes to the extension of a competition driven ecosystem where the relationship between independent producer and OTT streaming services respects the creativity and enterprise of the independent producers.
Read full response

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21 Apr 2020 · Economic impact of COVID-19

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3 Apr 2020 · Impact du COVID-19 sur le secteur audiovisuel et media

Meeting with Günther Oettinger (Commissioner)

6 Sept 2016 · copyright

Meeting with Andrus Ansip (Vice-President) and

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Meeting with Friedrich Wenzel Bulst (Cabinet of Commissioner Margrethe Vestager), Linsey Mccallum (Cabinet of Commissioner Margrethe Vestager)

29 Jun 2015 · Digital Single Market and Copyright Reform and its implications for film production

Meeting with Andrus Ansip (Vice-President) and

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Meeting with Pauline Rouch (Cabinet of President Jean-Claude Juncker)

21 Jan 2015 · Digital Single Market