Hollywood’s strategic moves in response to EU’s political shift
Navigating the new European landscape
Following the recent European Union elections, which saw a significant rise in far-right parties, Hollywood is taking proactive steps to ensure that the new EU regime does not introduce legislation that could negatively impact studios and streaming services. The Motion Picture Association (MPA) is at the forefront of these efforts, with its chief for Europe, Stan McCoy, emphasizing the importance of educating Brussels about the industry’s unique dynamics.
“We are at a moment when [EU] policies are not set in stone yet,” McCoy stated at the Venice Film Festival. “The industry always has a big job to do to educate Brussels about why the industry works the way it does.”
Key issues on Hollywood’s agenda
McCoy outlined several critical areas where the MPA is preparing to lobby in Brussels, aiming to protect the interests of the film and television industry.
Negotiating diverse production arrangements
One of the primary concerns is the potential imposition of rules that would require producers to always retain intellectual property (IP) rights. McCoy argues that such regulations could stifle deal-making opportunities.
“There are some people out there in the [EU] industry that advocate that there should be rules where the producer always retains the IP. Our position is: Don’t make that a rule across the board because that’s going to shrink the possibility of making deals,” McCoy explained. “We are advocating to leave the production partners the freedom to reach agreements regarding IP on projects in a way that reflects their appetite for risk.”
Preserving exclusive territorial licensing
The concept of a single market within the EU has been widely accepted, but McCoy warns against eliminating the ability to sell rights on a territory-by-territory basis.
“For years, the entire EU audiovisual system has been totally unified in saying: ‘We understand and embrace the single market,’” McCoy noted. “But the ‘single market’ should not mean that you no longer get to sell rights territory by territory. That’s going to grossly interfere with the business model of the industry.”
Adapting to consumer needs and preferences
Consumer advocates in Europe are pushing for regulations that could allow streaming service customers to exploit the system. McCoy stresses the need for rational consumer protection regulations.
“You don’t want to create a world where you wind up facilitating people who sign up for a streaming service, watch everything they want for two weeks, and then cancel, saying: ‘I didn’t like it,’ and get all their money back,” McCoy said. “We want to be sure that consumer protection regulations are rational.”
Supporting content creation and legal services
The MPA continues its ongoing battle against piracy, emphasizing the importance of copyright protection and enforcement.
“We are talking about copyright protection and enforcement. That’s no surprise. These are things that are bread and butter for us,” McCoy stated.
Maintaining a stable copyright system
The MPA advocates for the stability of the EU’s recently updated copyright law, which includes provisions for the use of artificial intelligence. However, there are concerns that these rules might be revised.
Opposing network fees
Telecom operators in various countries have been pushing for a fee that content providers should pay to the networks. McCoy argues that this is counterproductive.
“But in fact, they [the telecoms] are actually using the content to sell their product,” McCoy pointed out.
Inclusive definition of European works
The MPA is keen on maintaining the EU’s existing definition of “European works,” which currently includes U.K. works. There are moves to exclude U.K. works from this definition, which McCoy warns could harm the production ecosystem.
“This would damage the production ecosystem, reducing crucial opportunities for international co-productions, which provides a healthy framework for co-productions,” the MPA stated.
Enforcing principles of country of origin, proportionality, and non-discrimination
Under the EU directive called AVMS, streamers are required to make financial contributions calculated as a percentage of their turnover. These requirements vary across Europe, and the MPA is advocating for reasonable percentage obligations.
“What we are saying is: if countries chose to implement those rules, they should make sure that the percentage obligation is not excessively high,” McCoy said. “We are trying to discourage member states from going too far in imposing those kinds of financial contributions.”
Personal reflections for cinema, TV series, and music enthusiasts
As a cinema and TV series enthusiast, it’s fascinating to see how the industry’s intricate dynamics play out on a global stage. The MPA’s efforts to navigate the new political landscape in Europe highlight the delicate balance between creative freedom and regulatory frameworks. For those interested in the latest movies and series, check out the trailers and information pages for some of the most anticipated releases:
For music lovers, the ongoing discussions about copyright and content creation resonate deeply. The protection of intellectual property is crucial for artists to continue producing the music we love. Explore some of the latest albums and songs on Spotify:
In this ever-evolving landscape, it’s essential to stay informed and engaged with the policies that shape the entertainment industry. Whether you’re a fan of blockbuster movies, binge-worthy TV series, or chart-topping music, understanding the broader context can enhance your appreciation of the art forms you love.