Call to Action Gerhard Zeiler on Fair Market Conditions and Protection Against Piracy

4 February 2010 week 05 Call to action Gerhard Zeiler on fair market conditions and protection against piracy Germany / United States United Kingdom Christian Wilp reporting from Justin Lee Collins starts the White House Good Times on Five France Luxembourg Groupe M6 creates company RTL Lëtzebuerg launches foundation Games Portal week 05 the RTL Group intranet 4 February 2010 week 05 Gerhard Zeiler, RTL Group CEO, speaking at the VPRT symposium in Berlin. Call to action Gerhard Zeiler on fair market conditions and protection against piracy 2 Germany / United States United Kingdom Christian Wilp reporting from Justin Lee Collins starts the White House Good Times on Five France Luxembourg Groupe M6 creates company RTL Lëtzebuerg launches foundation Games Portal week 05 the RTL Group intranet “Fair market conditions and systematic protection against piracy” RTL Group CEO Gerhard Zeiler spoke at a symposium in Berlin about the overregulation of the TV industry, the importance of TV broadcasters for the creative economy, and its social responsibility. Luxembourg - 4 February 2010 Gerhard Zeiler (right) discussing with Thomas Ebeling, Sabine Leutheusser-Schnarrenberger and moderator Peter Limbourg (from left to right) The event under the heading “Perspectives that RTL Television broadcasts five hours a for creativity – broadcasting companies as an day of news and information programming, innovative and economic factor” was hosted Monday through Friday. This proves, he by the Verband Privater Rundfunk und said, “that even private broadcasters can be Telemedien (VPRT; Association of Private successful with viewers by running Broadcasters & Telemedia) and VG Media and high-quality news, and thereby make took place on 28 January. Other speakers a significant contribution to socio-political alongside Gerhard Zeiler included developments. Simply put, there are Thomas Ebeling, CEO of ProSiebenSat 1 hardly any other news programmes that Media AG, Federal Justice Minister Sabine are watched by young viewers; or take the Leutheusser-Schnarrenberger, VPRT Chairman news broadcaster N-TV; all of these are Jürgen Doetz and Justus Haucap, Chairman of examples that show we are fully aware the Monopoly Commission. of our responsibility: even if they cost money, and even though some of them are In his speech, Zeiler clearly spoke out on considerable loss-makers.” Ensuring that commercial broadcasters’ duty to society, commercial channels can continue to fulfil this especially in the area of news: “It is one of function in future requires no financial support our socio-political mandates to ensure the in the shape of fees or taxes, but “fair market communication of unbiased news − especially conditions and systematic protection against to younger target groups.” He pointed out piracy.” 3 week 05 the RTL Group intranet At the event, Federal Justice Minister Sabine Leutheusser-Schnarrenberger (left) expressed her sympathy for the commercial broadcasters’ position. She said that nothing had changed about her basic position: “Politically speaking, I think the demand for a share in the levy is well worth considering.” In this connection, Zeiler touched on four The imbalance in Germany’s dual broadcast- media policy issues: first, commercial television ing system was Zeiler’s fourth talking point: continues to be overregulated in Germany, “While the public-service broadcasters’ income despite an amendment to the European TV rises annually, the income of the commercial Directive in 2007. “Its objective was to promote channels has dropped significantly over the past liberalisation − the result, has, unfortunately, ten years.” Zeiler called on German legislators fulfilled this expectation only to a very limited to consider a system in which the public-service degree. But German legislators delayed putting channels had to do without advertising. “Without into action even this well-intentioned aid to a fair balance in the dual system, in the long term broadcasters by the EU,” says Zeiler. Another the diversity of media will be weakened and the source of concern are the recurring demands German production landscape damaged.” for advertising restrictions: “As if bans on TV advertising could replace consumer protection.” Zeiler had opened his speech by noting that the commercial TV companies’ views are often Zeiler also mentioned “content piracy, which given short shrift, while the film industry, produc- takes place in the audiovisual sector as well, ers and publishers often get a very open hearing and the parasitic use of our broadcasting from politicians and regulators. People often fail signal via new technologies.” On the Internet, to recognise, he said, that TV broadcasters are he said, there are plenty of sites on which not only the “engine, but also the focal point of users can find US series as free online downloads the creative industry in Germany.” Without TV immediately after or sometimes even before channels, there would be no producers and no their TV broadcast. In addition, on future film industry. Also, much of the creative work hybrid devices, Internet providers will be able to is done by TV broadcasters – be it drafting a use part of the TV screen to show ads directly programme concept, determining the optimal alongside the TV image throughout the broad- production process or ultimately finding the right cast, while TV broadcasters themselves are time slot for the programme. limited to twelve minutes per hour. “Obviously, this is not the way things were intended,” Zeiler After his speech, Gerhard Zeiler discussed added. the points he had mentioned with Justus Haucap, Thomas Ebeling, Sabine Leutheusser- Schnarrenberger and Jürgen Doetz. Copyright protection and its potential conflict with privacy protection were particular items of debate. Zeiler minced no words: “Piracy is theft. Theft is against the law. This law needs to be enforced.” 4 week 05 the RTL Group intranet Background: The German TV market The dual broadcasting system in Germany liaison offices in Berlin therefore aimed to raise consists of public-service broadcasters funded awareness of this, particularly in the political, by the mandatory licence fee such as ARD regulatory and professional community. and ZDF on the one hand and commercial television companies such as the Mediengruppe Do you feel the event was a success? RTL Deutschland on the other. Within certain Absolutely. We succeeded in presenting some limits, public-service broadcasters are allowed to very complex issues, putting them in the right carry advertising – unlike in Britain, for example. context and, especially important, offering There are currently 23 public-service television solutions which are not mere protectionism – all channels and 67 public-service radio stations, of it in a professional and appropriate way. It was which have a total licence fee income of nearly particularly enlightening for event participants EUR 8 billion per year. Public-service broadcast- to see the various challenges within the larger ers are also expanding their online offerings. economic and strategic context of the overall This fact in particular forms the backdrop for the European media industry thanks to Gerhard current debate about the role and importance Zeiler’s keynote address. His presentation of of advertising-funded commercial broadcasting the overall economic situation in conjunction within the dual system. with the essential need for adjustments in the individual sectors helped to ensure that the Technical developments have also given rise to subsequent discussion was both solution- some unresolved issues about copyright protec- oriented and serious. tion for channels. Content is now often available on illegal websites long before it is broadcast, How have the politicians reacted so far? and on new “hybrid” TV sets, TV footage now What needs to happen now? has to share the screen with Internet sites. During the event the Federal Justice Minister, Sabine Leutheusser-Schnarrenberger, At the same time, broadcasting companies – as well as the Parliamentary State Secretary unlike, say, music publishers – are still not at the Federal Ministry of Economics and sharing in the income from the Leermedi- Technology, Hans-Joachim Otto, both promised enabgabe, a mandatory surcharge imposed on specific support for our interests on all the storage devices and storage media to offset points that were most essential for us. This is an revenue losses due to private copying. Now unusually clear and encouraging commitment that a new federal government has been formed to the creative industries in general and in Germany, commercial radio and television broadcasters in particular. The task now is to stations hosted the event under the umbrella of work together with the Ministries to the VPRT, to remind politicians that they are major implement practical solutions for protection players in the creative market. The message of from parasitic exploitation, as well as to work the event was: commercial broadcasters can out the equitable sharing of flat-rate levies on only continue to fulfil their social mandate under such things as blank recording media, public appropriate economic conditions. Backstage viewings, and the commercial use of our content spoke with VPRT Vice President Tobias Schmid, in pubs – and create laws to back this up as soon who is also Head of Media Policy at RTL as possible. Television, about the symposium. What was the purpose of this event? The fact that technical convergence is not accompanied by any regulatory convergence

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