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The U.K. Audiovisual Sector and the new trade deal with the EU / 1
The U.K. AV sector is worth about £15bn so ten times the size of the fishing sector /2
The AV sector is carved out of the trade deal /3
In effect a “no deal” for the sector. But no real surprise as AV services are usually excluded from trade deals /4
But the comparator is being part of a single market which mean AV services were included /5
So what does it mean for the U.K. film and TV industry which is key way the U.K. gets to present itself to the world? /6
Well the trade deals provides for strong IP protection which is to be welcomed /7
But the exclusion of the sector from the trade deal raises real problems too/8
The removal of free movement and requirement for more paperwork makes it harder to move people and filing equipment cross border for filming productions /9
For broadcasters it means they no longer benefit from the country of origin principle (a broadcast in a EU member state is deemed cleared across the EU)/10
The U.K. was a popular place for broadcasters to broadcast across the EU but due to the likelihood of the AV sector being outside of a deal U.K. based broadcasters haven been moving channels into the EU - mainly getting licenses from the Bavarian media regulator /11
Some broadcasters could try and rely on the European Convention of Transfrontier Television to still broadcast but it does not cover all of the EU /12
For streaming services, they will need to be based in the EU. So the streaming giants like Netflix will not be based here nor come here /13
Indeed OFCOM won’t seek to regulate streaming services from the EU so there is no incentive for streaming services to base themselves in the U.K. /14
Why does this matter? Well because of the Audiovisual media services directive (EU law and which the U.K. has implemented)/15
The AVMS directive requires each streaming service to carry at least 30% of “European works”. /16
Currently the AVMS directive includes U.K. productions as European works because of the ECTT (See earlier tweet) - see here
So the good news is for now U.K. works are European. This is good because as streaming services grow in the EU to meet their quota obligations they should invest in U.K. productions /18
But because the AV sector is outside the trade deal, there is nothing to stop the EU changing the AVMS to exclude U.K. works from being European works /19
France has just announced content made by French subsidiaries of US companies will now be considered European so the race to attract investment is already on /20
Ah so the U.K. could compete by tax credits and other incentives as the AV sector is outside the state aid/ subsidy regime of the trade deal /21
Good point but let’s go back to Tweet 17 - look at the photo - para 2 includes a non- discrimination obligation on the U.K. /22
So if the U.K. seeks to support the AV sector with aid beyond what it currently does under EU law, another member state can say U.K. works no longer qualify as European works under the AVMS directive /23
So while a no deal Brexit (which is what the AV sector now has) is not a disaster for the U.K. AV sector it does put the U.K. in a weaker position regarding a successful sector /24
Producing content becomes harder and investment in U.K. production becomes more risky if it is or may not be classed as a European work /25
And the U.K. risks U.K. works no longer being European the more it seeks to support the sector /26
So simply put the trade deal puts the U.K. AV sector in a less competitive position and gives U.K. GOV less room to support it as it faces increased competition from the EU/ 27
A microcosm of the overall deal really - in return for the mirage of sovereignty (which it never lost) the U.K. has made key sectors that generate jobs, investment and truly represent Global Britain, worse off /ends
