ANNEX
1.

MEASURES TO BE IMPLEMENTED
1.1.

In the development of audiovisual works sector
In order to respond to business strategies reflecting the diversity of production structures and of projects, the Programme measures aim to provide financial assistance for enterprises in the audiovisual sector submitting either:
1. proposals for developing project packages for companies with a larger investment capacity, or
2. proposals for developing project packages for companies with a smaller investment capacity, or
3. proposals for developing audiovisual works presented project by project.
The selection criteria will take account chiefly of the European and international nature of the projects, in particular of their:
- production potential;
- potential for transnational exploitation, and the marketing and distribution strategies envisaged;
- quality and originality.
Support for development will be granted on terms that require, once a project enters the production phase, the support for the project to be reinvested in the development of new production projects.
The contribution will generally be limited to 50 % of project costs but may be raised to 60 % for projects which contribute to the enhancement of European linguistic and cultural diversity.
In the report provided for in Article 12, the Commission will evaluate the comparative results of the systems referred to in this Annex with regard to the programme objectives. It will submit to the Committee, in accordance with the procedure laid down in Article 8(2), appropriate proposals for the implementing rules for the rest of the Programme.
1.2.

In the distribution and dissemination sector
1.2.1.

Cinema distribution
The following lines of action will be implemented in order to achieve the objectives outlined in Article 3:
1. a support scheme in the form of a conditionally reimbursable advance for distributors of European cinematographic works outside their production territory. The aim of this scheme is to:
  - encourage the networking of European distributors in conjunction with international producers and distributors, in order to promote joint strategies for the European market;
  - encourage distributors in particular to invest in promotion and adequate distribution for European films;
  - support the multilingual aspects of European film-making (dubbing, subtitling, multilingual production and international sound tracking). That part of the support intended to finance the linguistic diversity of works will take the form of a subsidy.
The criteria for selecting beneficiaries may include provisions to distinguish between projects according to their budget category. Special attention will be given to films which contribute to the enhancement of European linguistic and cultural diversity.
2. a system of
‘
automatic
’
support for European distributors proportional to the number of admission tickets sold for non-domestic European films in States participating in the Programme, up to a fixed ceiling per film and adjusted for each country. The support thus generated may be used by distributors only for investment in the following:
  - the coproduction of non-domestic European films;
  - the acquisition of distribution rights, for example by means of minimum guarantees, of non-domestic European films;
  - editing costs (prints, dubbing and subtitling), promotion costs and publicity costs for non-domestic European films.
Reinvestment arrangements will generally be limited to 50 % of project costs, but may be raised to 60 %, particularly for investment in the production stage and in films that are of interest in enhancing European linguistic and cultural diversity.
3. a system to assist European companies specialising in the international distribution of cinema films (sales agents) according to their performance on the market over a reference period of at least one year. This type of assistance may be used by sales agents for investment in acquisition (minimum guarantees) and in costs arising from the promotion of new European works on the European and international markets.
4. appropriate assistance to encourage operators to screen a significant proportion of non-domestic European films in première cinemas for a minimum screening period. The support shall be made conditional on showing a minimum number of European films. The level of support may take account of the number of admission tickets sold for non-domestic European films during a reference period up to a fixed ceiling.
Support may also be granted for the creation and consolidation of networks of European operators running joint schemes to encourage such scheduling.
Support may be used for the development of educational activities and for raising awareness amongst young cinema-goers.
As far as possible, support for cinemas and networks will encourage a balanced geographical distribution.
1.2.2.

Distribution of European works off-line
This is understood to mean the distribution of European works on media intended for private use.
Automatic support: a system of automatic support for editors and distributors of European cinematographic and audiovisual works, excluding games, on media intended for private use (e.g. videocassettes and DVD) according to market performance over a reference period of at least one year. The evaluation of that performance may take account of the specific features of different national markets through appropriate weightings. The support granted may be used by distributors only for investment in the following:
1. the costs of editing and distributing new non-domestic European works in digital form; or
2. the costs of promoting new non-domestic European works in non-digital format.
This system is designed to:
1. encourage the use of new technologies in the production of European works intended for private use (production of a digital master for use by all European distributors);
2. encourage distributors in particular to invest in the promotion and adequate distribution of non-domestic European films and audiovisual works;
3. support the linguistic diversity of European productions (dubbing, subtitling and multilingual production).
1.2.3.

Television broadcasting
Encourage independent producers to produce works (fiction, documentaries and animated films) involving no less than two broadcasters, and preferably more, in several States participating or cooperating on the programme, belonging to different language zones.
The criteria for selecting beneficiaries may include provisions that distinguish between projects by budget category and type. Special attention will be given to audiovisual works that contribute to the enhancement of European heritage and linguistic and cultural diversity.
That part of the support which is intended to finance the linguistic diversity of works (including production of the sound track - music and effects) will take the form of a subsidy.
1.2.4.

Distribution of European works on-line
This is taken to mean the distribution of European works on-line via advanced distribution services and new media (e.g. Internet, video-on-demand). The aim is to encourage the European audiovisual industry to adapt to the development of digital technology, particularly as regards advanced on-line distribution services.
Introduction of incentives to digitise works and create promotional and publicity material in digital form, so encouraging European companies (suppliers of on-line access, special-interest channels, etc.) to create catalogues of European works in digital format for exploitation via new media.
1.3.

Promotion
1.3.1.

In the field of promotion and access to professional markets
The programme measures aim to:
1. improve the conditions governing access by professionals to trade shows and professional audiovisual markets within and outside Europe and via specific technical and financial support schemes as part of events such as:
  - the main European and international cinema markets;
  - the main European and international television markets;
  - special-interest markets, particularly for animated films, documentaries, multimedia and new technologies;
2. encourage the creation of a database and/or a network of databases on catalogues of European programmes, intended for professionals;
3. whenever possible, encourage support to promote cinematographic works, as from the production phase of the work in question.
To this end, the Commission is encouraging the networking of operators at European level, notably by supporting joint initiatives involving public or private national promotional bodies.
Support will generally be limited to 50 % of project costs but may be raised to 60 % for projects that enhance European linguistic and cultural diversity.
1.3.2.

In the field of festivals
The programme measures aim to:
1. support audiovisual festivals realised in partnership that screen a significant proportion of European works;
2. encourage cooperative projects with a European dimension involving audiovisual events from at least eight States participating or cooperating in the programme, with a common action plan to promote European audiovisual works and their movement.
Particular attention will be paid to festivals which help to promote works from Member States or regions with a low audiovisual production capacity and works by young European directors, and which establish an active policy for promoting and encouraging the distribution of the European works featured.
Priority will be given to projects from networks which encourage lasting cooperation between events.
Support will generally be limited to 50 % of project costs but may be raised to 60 % for projects that contribute to the enhancement of European linguistic and cultural diversity.
1.3.3.

Activities to promote European films and audiovisual programmes
To encourage professionals, in close association with the Member States, to organise activities targeted at the general public and promoting European cinema and audiovisual productions.
1.4.

Pilot projects
Pilot projects, the objectives of which are defined in Article 10, may focus,
inter alia
, on the following areas, with a view to the enhancement, networking and promotion of:
1. cinematographic heritage;
2. European audiovisual programme archives;
3. catalogues of European audiovisual works;
4. digital dissemination of European content through, for instance, advanced distribution services.
The pilot projects will give rise to exchanges of experience; their results will be publicised widely in order to encourage the dissemination of best practices.
Once the programme has been implemented for two years, the Commission will verify the results of the pilot projects and propose adjustments to the programme.
1.5.

Breakdown of resources
The funds available will be broken down according to the following guidelines:
Development: | at least 20 %
Distribution: | at least 57,5 %
Promotion: | approximately 8,5 %
Pilot projects: | approximately 5 %
Horizontal costs: | at least 9 %
All the percentage figures are indicative and are subject to changes by the Committee provided for in Article 8, in accordance with the procedure referred to in Article 8(2).
Substituted by Corrigendum to Council Decision 2000/821/EC of 20 December 2000 on the implementation of a programme to encourage the development, distribution and promotion of European audiovisual works (MEDIA Plus — Development, Distribution and Promotion) (2001-2005) (Official Journal of the European Communities L 336 of 30 December 2000).