Thursday, January 05, 2006

inscript sponsoring is to safe broadcast budgets

The new European directive for the audiovisual industry will 'loosen' the rules for product placement. This will help the broadcasters to grow their budgets and keep on pace in the market of emerging on-demand services is wat the commission expects. Because this will be more effective commercial communication thereby generating higher income for broadcasters (again).
Off course this will not be enough. Broadcasters will have to get into the on-demand field as well if they plan to keep their position at least almost stable. They have a big advantage opposed to newcomers, they are known and trusted brands to the public. What is very interesting is the 'country of origin' principle. Meaning your service has to be build to the rules of the country you are established in AND may not be hindered explicitely by the law of the country it is aiming at, besides the country of origin. If I look at the UK for instance, rules for lotteries and gambling are much more liberated then in the Netherlands. Off course the Dutch can hold on to many of their rules, claiming on public policy. However if harmonisation is required, these will have to be liberated too. Working from UK territory and offering services to the other Member States, what is the freedom to offer your service in the whole of the EU? Is Luxembourg still a good country of origin to be based? If so, it will be even busier in this small country (where Viviane Reding, commissioner of IST and Media originates from). On demand services will only have to conform to very basic rules regarding protection of minors and from discrimination and hatred etcetera. Because people decide themselves to consume this content rules are very basic. The consumer has to take his/her own responsibility on what to consume. One market that is definitely going to boom under these rules is the on demand market for adult content. A category per se that will be demanded by consumers. Short reporting (news and sports) are to be offered to other countries on reasonable terms. Foreign sales of news is a source of income under fire. What will be the role of the international news agencies? Will they see their positions harmed. Owners of sports rights may have to see into their estimates on income from short reporting too. In favour is the consumer in any case because more easily they will have access to relevant information.