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Promotion of European Works
Audio-visual communication must reflect the cultural and linguistic diversity of citizens. Closely connected to this right, we supervise and monitor the compliance of two types of obligations by audio-visual communication service providers, aimed at fostering and promoting the production and the European and Spanish audio-visual industry: These obligations described in Chapter III of Title VI of the LGCA are:
- 1. The annual broadcasting of European works
- 2. The pre-financing of European works
- 3. The prominence of European works, for catalog television providers.
What is understood as a European work? Article 111 of the Audiovisual Law establishes that European works are:
- Works originating from Member States.
- Works originating from third European States that are part of the European Convention on Transfrontier Television of the Council of Europe, provided they are not subject to discriminatory measures in that State.
- Works co-produced under audio-visual agreements concluded between the EU and third countries, provided that the latter do not impose discriminatory measures on EU works.
- Works produced under bilateral co-production treaties concluded between Member States and third countries, provided that the following conditions are cumulatively met:
- The contribution of community co-producers to the total production cost is majority
- The production is not controlled by any producer established outside the EU.
- The contribution of community co-producers to the total production cost is majority
- The production is not controlled by any producer established outside the EU.
Which body is responsible for monitoring the obligations of European works?
The control and monitoring of the obligations contained in this chapter will correspond to the CNMC in the case of state-level audio-visual communication service providers and providers established in another Member State of the European Union that direct their services to Spain, following a mandatory report from the Institute of Cinematography and Audiovisual Arts.
Obligation of annual broadcasting of European works (Section 2 of Chapter III of Title VI of Law 13/2022, of July 7, General Audiovisual Communication Law)
Linear television providers must reserve 51% of the annual broadcasting time of their programming to European works, of which 50% must be in any of the languages of Spain. From this last obligation, CRTVE is required to broadcast at least 15% of the previous percentage in official languages of the Autonomous Communities, taking into account their population weight and reserving a minimum of 10% for each of them.
Additionally, they must allocate 10% of the total broadcasting time to European works by independent producers, and of this percentage, 50% to works produced in the last 5 years. The broadcasting time will be calculated excluding time dedicated to news programs, sports events, games, and audio-visual commercial communications.
For their part, catalog program or on-demand television service providers must reserve 30% of the catalog to European works, and of that reserve, 50% to audio-visual works in any of the official languages of the State or the Autonomous Communities. From this sub-quota, a minimum of 40% must be reserved for audio-visual works in any of the official languages of the Autonomous Communities, taking into account their population weight and reserving at least 10% for each of them, considering their population weight.
Among the obligated providers, some may be exempt due to low audience, low turnover, and cases where the obligation is impractical or unjustified due to the nature or theme of the audio-visual communication service.
Obligation of pre-financing the production of European works (Section 3 of Chapter III of Title VI of Law 13/2022, of July 7, General Audiovisual Communication Law)
Obligated providers must contribute to the pre-financing of European production of certain audio-visual works with 5% of the revenues accrued in the previous fiscal year, according to their income statement (6% for public ownership providers).
The specific investment obligations vary depending on the provider:
- For the public provider, 6% of their computable revenues must be allocated to financing European works, with reserves for works by independent producers, documentaries, and animation, within which some works must be in any of the official languages of the Autonomous Communities, taking into account their population weight and reserving at least 10% for each of them.
For the private provider with revenues equal to or greater than 50 million euros in the Spanish audio-visual market, 70% of the 5% must be allocated to audio-visual works produced by independent producers, either on their own initiative or by commission, in the official language of the State or in any of the official languages of the Autonomous Communities. Of this percentage, a minimum of 15% must be allocated to audio-visual works in official languages of the Autonomous Communities, taking into account their population weight and reserving a minimum of 10% for each of them. Additionally, 30% of the 70% must be allocated to audio-visual works directed or exclusively created by women. This, considering that a minimum of 40% of the total must be allocated to cinematographic films produced by independent producers, in any of the official languages of Spain. - The private provider with revenues between 10 and 50 million euros in the Spanish audio-visual market must invest 5% of these revenues in European audio-visual works, of which a minimum of 70% must be invested in audio-visual works produced by independent producers in any of the official languages of the Autonomous Communities.
- Among the obligated providers, some may be exempt due to low audience, cases where the obligation is impractical or unjustified due to the nature or theme of the audio-visual communication service, and for having a computable revenue threshold below 10 million euros in Spain.
