Study on the Rating Practice Used for Audiovisual Works in the European
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Empirical Study on the Practice of the Rating of Films Distributed in Cinemas Television DVD and Videocassettes in the EU and EEA Member States Prepared on behalf of the European Commission Final Report May 2003 Olsberg|SPI and KEA European Affairs in association with KPMG Table of Contents 1. Executive Summary........................................................................................................................... 4 1.1 Introduction............................................................................................................................... 4 1.2 The Consultants’ Process ........................................................................................................4 1.3 Consultancy Findings............................................................................................................... 6 1.4 Conclusions ............................................................................................................................. 16 2. Nature of Assignment..................................................................................................................... 20 2.1 The Study................................................................................................................................. 20 2.2 Methodology and Approach ................................................................................................. 21 2.3 Background to the Study ....................................................................................................... 23 3. Overview of Current Rating Legislation and Practice................................................................ 25 3.1 Overall Trends ........................................................................................................................ 25 3.2 Current State of Content Ratings......................................................................................... 28 3.3 Rating Practice in the EU and EEA Areas - Comparative Analysis by Sector.............. 46 3.4 National Practice in Context of EC Law ............................................................................ 67 3.5 Conclusion............................................................................................................................... 74 4. Presentation and Discussion of Samples...................................................................................... 76 4.1 Analysis of the Film Samples................................................................................................ 76 4.2 Sample and Standards Analysis............................................................................................. 79 4.3 Econometric Analysis of the Rating Heterogeneity .......................................................... 83 4.4 Conclusions ............................................................................................................................. 89 5. Key Observations ............................................................................................................................ 91 5.1 Economic Impact of Ratings Heterogeneity...................................................................... 91 5.2 Confusion Amongst Public................................................................................................... 95 5.3 Exhibition, Video and DVD Distribution Issues .............................................................. 98 5.4 Broadcast Issues.................................................................................................................... 101 5.5 Video Games......................................................................................................................... 103 5.6 Internet Page ......................................................................................................................... 104 5.7 Internet Distribution............................................................................................................ 105 5.8 State Intervention with Regard to Content Ratings – Self Regulation ......................... 107 6. Conclusions .................................................................................................................................... 110 6.1 Pressures for Change............................................................................................................110 6.2 Circulation Within the European Union........................................................................... 111 6.3 Potential Confusion of Persons Responsible For Minors.............................................. 111 6.4 Issues of Harmonising Rating Legislation ........................................................................ 113 7. Recommendations for EU Action .............................................................................................. 116 Glossary.................................................................................................................................................... 120 Appendices............................................................................................................................................... 123 May 2003 2 Legal Notice By the Commission of the European Communities Directorate-General for Education and Culture Neither the Commission of the European Communities nor any person acting on behalf of the Commission is responsible for the use, which might be made of the following information. The views expressed in this report are those of the authors. The report does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy of the information combined herein. Reproduction is authorised, provided the source is acknowledged. Important Notice By Olsberg|SPI This report is prepared on behalf of the European Commission Directorate-General for Education and Culture solely to encourage debate and discussion on the topic. As with any such discussion paper relating to trends in the market place, the outcome may well differ significantly. No liability shall accrue to Olsberg|SPI, KEA European Affairs or KPMG for any information contained within the report. Olsberg|SPI, KEA European Affairs and KPMG take no responsibility for any action taken by readers relating to this report. Nothing in this report shall constitute business, professional or investment advice and readers should seek independent professional advice prior to making decisions concerning matters addressed in this report. The cut-off for information in this report is the end of 2002. May 2003 3 1. Executive Summary 1.1 Introduction Olsberg|SPI (“SPI”) and KEA European Affairs (“KEA”), in association with KPMG, (referred to herein as “the Consultants”) have been retained by the European Commission (“EC”)1 to investigate ratings legislation and practice with respect to audiovisual works across the European Union (“EU”) and European Economic Area (“EEA”) Member States2. Ratings, which are set by various bodies and agencies throughout Europe, both government and industry, tend to be different between states and within states across different media and modes of distribution. The main aims of the assignment are: 1. To identify the economic impact of this ratings heterogeneity, and 2. To uncover any confusion that it may cause, particularly in parents, teachers, or others responsible for minors. The brief from the EC (“the Brief”) asks the Consultants to: • define two representative Samples of 50 films each • establish the individual ratings for each film in each territory across each distribution channel • draw conclusions on the impact of ratings heterogeneity on the distribution costs of films, circulation within the internal market, and confusion in the market • provide an overview of existing legislation and practice • examine attempts to harmonise ratings legislation within EU and EEA Member States and the possible need for co-ordination, with special regard to self-regulation. The assessment of the two Samples is to provide a practical illustration of how the different ratings systems affect the distribution of cinematic works across all media channels (cinema, video/DVD, and television) throughout the EU and EEA. The Samples allow different systems to be compared across and within territories. 1.2 The Consultants’ Process 1.2.1 Selection of the Feature Film Samples The Consultants were charged with the task of determining two representative Samples consisting of 50 films each. • The first Sample was to consist of European and non-European in origin feature films (referred to in the document as the “Global Sample”), distributed in all EU and EEA Member States. • The second Sample was to consist of feature films purely European in origin (referred to in the document as the “European Sample”), distributed in the majority of EU and EEA Member States. 1 A glossary, which can be found at the end of this document, includes definitions of all the terms used herein. 2 15 EU Member States (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the UK) and three EEA Member States (Iceland, Liechtenstein, Norway) – 18 Member States altogether. However, as no information pertaining to feature films, rating practice and legislation was available for Liechtenstein, this report will refer only to those 17 Member States for which the Consultants gathered information. May 2003 4 In the event, there were so few films