Advertising space regulation
From the "Television Without Frontiers" Directive to a legislative proposal on “Audiovisual Media Services”
In December 2005, the European Commission unveiled its legislative proposal for a directive on “Audiovisual Media Services”. This proposal aims at amending the “television without frontiers” directive to give Europe a new regulatory framework better adapted to fundamental economic and technological evolutions of the audiovisual industry. To that end, the proposed directive would cover all audiovisual media services regardless of their delivery platform and establish a distinction between “linear services” (scheduled, such as traditional television broadcasting) and “non-linear“ ones, e.g. on-demand services.
What's at stake for advertising sales houses?
egta was largely involved in the discussions on this piece of legislation all along the legislative process, since some provisions directly impact sales houses' core business. One chapter of the proposal is entirely devoted to television advertising with limitations on the amount of advertising, rules on the insertion of breaks, provisions on sponsorship, etc.
In 2006 and early 2007, the legislative proposal made its way through the European Parliament and the Council of the EU. These steps were essential for egta and sales houses to make sure that a modernized and flexible framework on advertising could be established. It was notably very important that a clear European legal basis for newly existing forms of audiovisual commercial communications, such as product placement, be put in place. At a time when broadcasters face the immense challenges of convergence and digital switchover, the future of traditional free-to-air television services is largely dependent from a new and liberalized regulatory framework.
A simplification of television advertising rules:
In May 2007 a compromise text was agreed between all EU institutions. Fundamentally, the core approach of the European Commission has been secured: preservation of the country of origin principle, extended scope via a technology-neutral approach, etc. Most importantly for sales houses, both the European Parliament and the Council of the EU called for further liberalization of advertising rules. egta is particularly pleased that many of its policy suggestions form part now of the future legislation:
- enhanced flexibility for insertion and quantitative rules on advertising
- a genuine and workable legal basis for product placement
- the prominence of the identification principle which does not hinder the development of creative advertising formats
- the recognition of the added-value of advertising self-regulation
The compromise text still needs to be formally adopted during the second half of 2007. It will then be up to Member States to adjust their national legislations in the same spirit so that this modernized regulatory framework becomes fully operational across the European Union.
For more information please see
- compromise text agreed between all EU institutions
- egta positions papers and press releases
- the European Parliament overview of the legislative procedure
The future of the European Convention on Transfrontier Television
Council of Europe
The Council of Europe is closely following the TV Directive revision process, as any review of the European Convention on Transfrontier Television would need to be coordinated with the EU legislative developments (25 of the 46 countries of the Council of Europe are EU Member States).
Reflections within the Council of Europe's standing committee on transfrontier television started ahead of the European Commission's discussions. egta contributed to the public consultation and sent a written reply to their questionnaire. It now closely monitors the Council of Europe's debates on these points