Jean-Claude Juncker President European Commission Rue de la Loi 200 B - 1049 Brussels 28th April 2015 Dear President of the European Commission, Dear Mr. Juncker, We are writing as public service media organisations (PSM) from across Europe to express our support for the Commission’s aim of developing the EU digital single market and to set out some shared views on copyright. Through their broadcast and online services, European PSM are playing a fundamental role in creating the conditions for EU growth and jobs in the cultural and creative industries and beyond. PSM are the largest producers of European content in the EU and the main contributors to the European public sphere. European PSM are vital for building and sustaining fair, pluralistic, open and tolerant democratic societies in Europe. The EU audiovisual sector is a global success story in many ways. European PSM are by far the biggest direct investors in original EU content, with EUR20 billion per year in a sector worth EUR 130 billion in total, while the European cultural and creative industries account for over 4.2% of the EU’s GDP and employ nearly 7 million people. This is a vital source of revenue and opportunity for contributors like writers, journalists and engineers. We also invest directly in goods and services (including from the digital and high tech sectors), innovative technology

and standards (PSM are at the forefront of developing digital radio, connected TV and digital terrestrial broadcasting), and in training and skills. This investment and innovation stimulates demand and output in related industries. In particular, our online services are instrumental in encouraging broadband take-up and the use of digital services like VOD, while setting high standards and promoting digital skills. Many Europeans citizens quote that it was, above all, the online services of PSM that first inspired their interest in the internet and their wish for home broadband. This economic value is an important result of PSM's primary purpose, which is public. We exist to provide distinctive, quality services that deliver social, cultural and civic benefits. This includes impartial news, objective documentaries, drama that is relevant to citizens’ lives, children’s programmes, and sporting and other events that bring us together. PSM exist to reflect cultural and linguistic diversity and to foster informed democratic debate, social cohesion and social participation. To meet the needs and expectations of our audiences, PSM rely on robust and up to date regulatory frameworks. Proposals made under the Digital Single Market will be an essential part of this, including on spectrum, telecom regulation and eCommerce. Focusing on copyright for now, in order to facilitate a greater cross-border offer of online content from broadcasters, it is essential to modernise the copyright framework by streamlining the licensing process. European PSM already play a vital role in the circulation of audiovisual content and information across the EU. We do this through cross-border copyright agreements with third party channels and VOD providers and through the cross-border traditional offer of PSM channels as well as online and VOD offers to end-users, wherever possible. It is our ambition to further this activity as part of the Digital Single Market. However, in the online world, providing services cross-border triggers deadweight administrative costs from the process of clearing rights. For one programme there is a number of contributor rights and right holders and for a service, a multiplicity. A tried and tested solution for cross-border access to content already exists in the Satellite and Cable Directive. By extending the satellite rules to broadcasters’ online services, only one legal system would apply to rights clearance instead of a potential 28: that of the broadcaster’s place of establishment or ‘country of origin’. The country-of-origin principle can also be a solution in the context of the portability of online services. In addition, the (cable) retransmission rules of this directive – protecting the right of broadcasting organisations to authorize retransmissions - should be developed in a technologically neutral manner, covering at least all linear retransmissions irrespective of the used technology. Also the introduction of so-called Extended Collective Licensing Systems in the Member States according to the Nordic examples would help broadcasters to make their VoD services available on IPTV platforms across borders. All these proposals would guarantee adequate remuneration for those secondary exploitation rights for the right owners by payments of the platform operators. This is a solution for all broadcasters content, whether free-to-air or pay. It would support the production and distribution of new EU content, meaning more choice for EU citizens and an increased contribution to the EU economy. Lastly, we turn to pan-EU licensing. In practice, this would have the same outcome as requiring broadcasters to acquire rights across the EU. To mention just two concerns, publicly funded PSM could not afford and would not be justified in consistently acquiring such licenses. The fragile funding of quality EU programmes relies on being able to offer territorially exclusive rights in exchange for upfront funding. Audiovisual production is high risk and hit-based with a

short product lifecycle, and audience preferences for distribution platforms and content varies. Pan-EU licensing would increase investor risk. In our shared view, the current contractual flexibility to clear rights and offer services in a single country, regionally, or Europe-wide should be maintained. We ask the Commission to carefully consider the economic and cultural specificities and necessary safeguards for PSM before making any detailed proposals in this area. The risks for EU citizens are lower volumes of new content, more homogenous content, and less competitive EU creative industries. The solution proposed above based on the principles of the Cable and Satellite Directive would help to achieve both: It would help fostering a digital single content market with more access and choice for EU citizens without destroying the current eco-system and maintaining at the same time contractual freedom. It would not be limited to problems like portability and passive sales (as identified by the Commission) but would provide truly future-proof solutions for the whole audiovisual sector, including the services of PSM. We hope to have the opportunity to discuss these issues in person, if possible before publication of the Strategy. Anticipating your general agreement, our Brussels offices will contact your services. Yours sincerely,

Thomas Bellut, ZDF

Ulrich Wilhelm, ARD/BR

Roger de Weck, SRG/SSR

Thor Gjermund Eriksen, NRK

Erik Fichtelius, UR

Magnus Geir Thoradson, RÚV

Hanna Stjärne, SVT

Cilla Benkö, SR

Tom Buhrow, ARD/WDR

Lauri Kivinen, YLE

Maria Rørbye Rønn, DR

Alexander Wrabetz, ORF