Territoriality and the Internal Market
The principle of territoriality, where a film’s rights are sold and exploited in different territories separately, is a cornerstone of film financing in Europe. However, this principle is being challenged by the EU’s drive to create a Digital Single Market, which aims to enable consumers to access digital content across borders.
Recent Regulatory Challenges to Territoriality
Recent regulatory developments in the EU, including the ‘Country of Origin’ principle in the revised Audiovisual Media Services Directive and the Geo-blocking Regulation, have posed challenges to the principle of territoriality. These regulations aim to enhance cross-border access to digital content, which could potentially undermine the territorial exclusivity of film rights.
Limits to Territorial Grants of Rights by EU Competition Law
EU competition law also poses challenges to the territorial grants of rights. The European Commission has been scrutinizing the film industry’s practices of granting exclusive territorial rights, considering them as potential breaches of EU competition rules.
Market Challenges for Current Film Financing Practices
Rise of Non-EU On-Demand Distribution Platforms
The rise of non-EU on-demand distribution platforms, such as Netflix and Amazon Prime, has significantly disrupted the traditional film financing and distribution models. These platforms have been investing heavily in European content, creating new opportunities but also intensifying the competition for local producers and distributors.
Online Piracy
Online piracy continues to be a major challenge for the film industry, causing significant financial losses and undermining the value of legal distribution channels. The EU has been actively working on combating piracy through legislative measures and cooperation with industry stakeholders.
Changing and Alternative Film Financing Models
In response to these challenges, the European film industry has been exploring new and alternative financing models. Crowdfunding has emerged as a promising alternative, allowing filmmakers to raise funds from a large number of individuals, usually via the internet. Other innovative models include equity financing, where investors acquire a stake in the film project, and slate financing, where multiple film projects are bundled together to spread the risk.
The Future of EU-Funded Projects in European Cinema
Looking ahead, EU-funded projects in European cinema are expected to continue evolving and adapting to the changing landscape of the industry. The EU’s commitment to supporting the development, distribution, and promotion of European works will remain a priority, with a focus on embracing technological advancements and addressing emerging trends.
As the digital environment continues to shape the way audiences consume content, EU-funded projects will likely explore new avenues for distribution and audience engagement. Additionally, the EU will continue to promote diversity and inclusion in European cinema, supporting projects that reflect the multicultural and multilingual nature of Europe.
The EU’s funding initiatives will also adapt to the evolving needs of the industry, taking into account emerging formats such as virtual reality (VR), augmented reality (AR), and other immersive experiences. By embracing innovation and supporting projects that push the boundaries of storytelling, the EU aims to position European cinema at the forefront of global audiovisual innovation.
Conclusion
EU-funded projects have had a transformative impact on European cinema, fostering cross-border collaboration, supporting the development of European works, and promoting innovation in the digital landscape. With a continued commitment to funding initiatives that enhance the competitiveness of the European audiovisual industry, the EU will play a vital role in shaping the future of European cinema. Through its funding programs, the EU will continue to support diverse and high-quality productions, ensuring that European cinema remains vibrant and relevant in the global film landscape.