The development of the draft “CABLE-SATELLITE” decree

25/11/2021

Following the first public consultation on the draft decree on the film and audiovisual contribution of television and radio service publishers distributed by networks not using frequencies assigned by the Conseil Supérieur de l’Audiovisuel, the professionals expressed their opinions during the month of September 2021, following which modifications to the draft decree were made.

The analysis of these modifications and proposals will allow us to follow the evolution of the project and the responses of the professionals, in particular on the contribution base, the definition of independent production, the mutualisations within the same group, and a “Canal +” regime, proposed in the event that the channel leaves DTT.

The first title is dedicated to radio broadcasters, in particular to:

  • Setting the quota of French songs at 40% for the share of programmes devoted to French-language variety music;
  • Setting the maximum duration of advertising at 12 minutes per hour.

The provisions applicable to television service publishers then deal with the constitution of the annual turnover of the said services in Title 2, targeting the basis of revenue received in France, and providing for a regime for foreign publishers targeting France.

This second title devoted to television service publishers specifies the following points in particular:

  • The contribution to the development of the protection of cinematographic works, according to which services shall devote each year at least 3.2% of their net turnover for the previous financial year to expenditure contributing to the development of the production of European cinematographic works (of which at least 2.5% shall contribute to the development of the production of works of original French expression).
  • The definition of the said expenditure contributing to the development of the production of audiovisual works, whether European or of French original expression
  • The obligations to contribute to the development of independent production and the qualification of works as independent production.
  • The modalities of the obligations to contribute to the development of the production of audiovisual works, the eligible expenses, the obligations to contribute to the development of independent production as well as the qualification of work falling under independent production.
  • Concerning the contribution to the development of the production of audiovisual works, the services concerned will have to devote each year at least 16% of their net annual turnover for the previous financial year to expenditure contributing to the development of the production of French or European audiovisual works. At least 11.2% of the net annual turnover for the previous financial year must be spent on developing the production of heritage works. At least 85% of this amount shall be made up of original French-language works.
  • For services that devote more than half of their annual broadcasting time to recordings or recreations of live performances and music videos, which must represent at least 40% of annual broadcasting time, the rates mentioned in the first and second paragraphs are set at 8% and 7.5% respectively.
  • A new regime has been foreseen for “generalist cinema services”, if a cinema channel joins cable and satellite, i.e. a “Canal +” regime if the service leaves DTT.

Such generalist cinema services (except for derogations) shall devote each year a proportion of their annual net turnover for the current financial year to expenditure contributing to the development of the production of European cinematographic works, at least equal to :

  • 16% when they offer at least one feature film per year within nine months of its theatrical release in France, including 13% of original French-language films;
  • 14% when they offer annually at least one feature film within nine months or more and less than twelve months of its theatrical release in France, of which 11.5% are original French-language films;
  • 12% when they offer at least one feature film annually within 12 months or more of its theatrical release in France, including 10% of original French-language films

This is followed by other investment obligations.

This consultation will be the subject of a forthcoming publication which will include all the comments from professionals that can be submitted until 21 October.  Our team is at your disposal to decipher and analyse the details of the text.

By the IP/IT Media Law team of UGGC Avocats.

Sources :

https://www.contexte.com

https://www.culture.gouv.fr/Thematiques/Audiovisuel

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