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SECTION 3 - INOVATIVE CREATION: THE DIGITAL SHIFT
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Abstract
The relationship of European civilisation to democracy and culture is deeply complex and intellectually
challenging. Cultural creation and production only mix with politics in a lopsided manner. The cultural
dimension, however, is a fundamental tenet of the European Union (EU) and an indispensable foundation
for strengthening its institutions and the performance and achievement of all European realities. A
number of initiatives have been taken to allow the cultural dimension to support the European project.
We examine here the status of one important part of European contemporary culture: the creation
of audio-visual content, specifically how it is shaped by European civilisation and reciprocally shapes
it. While total investments in original European content sharply increased with the entry of global
streamers on the European market, these investments came as a net addition.
The EU is succeeding in having ‘internationals’ play by the rules in European creation. While they bring
productions from around the world to European viewers, they also expand the viewership for European
productions far beyond Europe itself. This has generated welcome opportunities for local job creation
and audio-visual development.
ARTICLE
European Culture:
Diversity in Action
The Case of Audio-Visual Cultural
Production
−
GERARD POGOREL
Profesor emeritus of Economics, Institut Polytechnique Paris-Telecom;
ELF Senior Felow
AUGUSTO PRETA
CEO, IT Media Consulting, Roma
Citation suggestion: Gerard Pogorel & Augusto Preta, Gp & AP (2024). European Culture: Diversity in Action The Case of Audio-Visual Cultural
Production. Future Europe, 4(1), 70–78.
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Introduction
The campaign for the June 2024 European
Parliament elections and the next mandate calls
for reflection on the status of Europe’s cultural
evolution – where we are, what has been achieved,
and possibly what lies ahead. The analysis of cultural
developments is delicate. It touches on European
citizens’ current state of mind pertaining to Europe
as a ‘civilisation’, on institutional considerations, and
on the multi-faceted Arts of Culture, ranging from
literature to visual arts to cinema. Cultural creation
and reception work in mysterious ways, defying
analysis and, even more so, politics. The vision
of a European culture runs through centuries of
European history. The baroque painter Peter Paul
Rubens (1577–1640), justly called ‘Mr. Europe’ and
‘a committed partisan of humanist internationalism’
(Schama, 1997), waged a multi-front fight for
the arts, peace, and culture. George Mathieu
(1921–2012), the indefatigable proponent of lyrical
abstraction and performance painting, embraced
European history and the idea of a Europe-wide
cultural policy as part of European education.100
In shaping and defining their vision of Europe, the
peoples of the Union, their institutions, and their
governments have come up with complex trade-
os between high-flying federalist inspiration, its
thinkers, the founding fathers, on the
one hand, and the post-Second World
War pragmatic industry and market
approach, on the other. Progressive
shifts have affected institutional
power issues, the democratic nature
of the Union, the rise of the European
Parliament, and the power balance
between the Council, Commission,
and Parliament.In the aftermath of
recent crises (the 2008 financial crisis,
COVID-19, climate, energy), policies
that were put in motion by material necessities
have built upon, questioned, and comprehensively
reinforced the cultural dimension of the European
conscience. This evolution has culminated with
the Russian war of aggression in Ukraine and the
escalation of the unresolved territorial disputes in
the Middle East. These dramatic developments
have put front and centre the fundamental values
of a common universal democratic civilisation
and culture, emphasising human rights and the
rule of law and opposing not only autocracy and
obscurantism but also indierentism.
The relationship of European civilisation to
democracy and to the Arts of Culture is deeply
complex and intellectually challenging.
It was only in 1973 that the notion of a European
identity, promoted by members of the European
Parliament, was introduced into the definition of
what Europe is and intends to be (CVCE, 1973).101
It states in the first paragraphs that this identity is
defined internally as ‘cultural diversity’ and that
Europeans intend to preserve ‘the rich variety of their
national cultures’. Considering this variety ‘in relation
to the world’, the paragraph devoted to the United
States emphasises Europe’s intent ‘to establish [itself]
as a distinct and original entity’. In 1993, the term
‘cultural exception’ was introduced in the context
of international trade talks and agreements at the
GATT. It wasused to denote that cultural goods
and services were of a special nature connected to
European identity and should be treated dierently
from other goods and services. Then, to mitigate
the bland ‘exception’ and emphasise the end more
than the means, a semantic shift occurred and
‘cultural diversity’, which had been championed
since 1954 by the Council of Europe, prevailed.102
Cultural creation and production, however, only
mix with politics in a lopsided manner, always
more at this junction, as the European level is
the appropriate one to address political, military,
economic, social, and sustainability imperatives. The
cultural dimension remains a fundamental tenet
of the Union. Its significance is to be emphasised
in fair proportion to the growing institutional
strength of the Union, as an essential, indispensable
foundation for the performance and achievement
of all European realities.
It can safely be said that, when Europe faces diculties
or impotence, they are still somewhat related to
European cultural dimension shortcomings, but a
stream of initiatives have taken place to allow the
cultural dimension to support the European project.
We examine here the status of one important part
of European contemporary culture: the creation of
audio-visual content, specifically how it is shaped
by European civilisation and reciprocally shapes
it. The audio-visual sector is very popular and is
The relationship of European civilisation to
democracy and to the Arts of Culture is deeply
complex and intellectually challenging.
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7
representative of an interactive dynamic with the European
project. It is strongly rooted in the definition of cultural diversity
and exemplifies the complexity of its practical implementation.
The European audio-visual sphere is a vital
cultural area
The audio-visual sector in the EU employs around 490,000
people. Audio-visual creation is not only an industry. It is
also a central element of a society that debates and shares
common values, a society where diversity defines its core
cultural identity (Horvilleur, 2020). Nuanced, multi-faceted,
black and white audio-visual narratives, like Stendhal’s novels,
are mirrors to the roads travelled by Europeans:
A novel is a mirror that travels on a highway. Sometimes
it reflects to your eyes the azure of the skies, sometimes
the mire of the quagmires of the road. And the man who
carries the mirror in his hood will be accused by you of
being immoral! His mirror shows the mire, and you blame
the mirror! Rather blame the highway where the quagmire
is, and even more the road inspector who lets the water
stagnate and the quagmire form. (Stendhal, 1830: 357)
Film and television fiction play a fundamental role, specifically
for popular culture. They shape in a multi-dimensional way
social perceptions of Europe and European identities. They
encourage the development of engaging narrative formats
which either reflect the values of diversity, mobility, and
transcultural exchange in the constitution of a European
identity or defy bad omens and play an apotropaic role of
warding o the unmistakable dark side of humankind. The
European Commission has introduced itself as a positive ‘road
inspector’ of audio-visual content, always keeping in mind
that European culture may accommodate opposing visions
and facts, but that freedom of creation is its primary driver.
Cultural diversity as an imperative applied
to the audio-visual sector
Recent developments in the audio-visual industry in Europe
are the result of evolving consumer tastes and technology,
market evolutions, and the establishment of public objectives
and policies at Member State and EU levels. As a result, it oers
a rich landscape that includes films, shows, and series produced
and distributed in the EU, encompassing both European and
national productions, with a strong role by non-EU players,
especially powerful American media actors.
Although its share of audio-visual consumption is decreasing
sharply, television remains Europeans’ preferred source for films
and series. However, the most remarkable recent market trend
is the shift in the audio-visual sector from linear broadcasting
to streaming. National broadcasters in European countries do a
fine job in proposing high-quality streaming platforms, reaching
their own domestic markets, but they are far from matching
the scale of their transatlantic competitors. Europe has not
succeeded in making its streaming services truly competitive
vis-à-vis their giant American counterparts. Attempts to create
the ‘European Netflix’ have all failed because they have been
unable to overcome Europe’s internal barriers – linguistic,
legal, and moral – and intra-European industry rivalries.
Streaming, the fastest growing segment of the audio-visual
industry, is largely dominated by the US global players. By
the end of 2022, three US streaming incumbents accounted
for 71 per cent of Europe’s 189 million subscribers (European
Commission, 2023a). US films and TV series dominate on
streaming platforms, accounting for 47 per cent of catalogues
and 59 per cent of viewing time. By the end of 2022, 88 per
cent of all households in Western Europe had access to at
least one of the top three streaming services – Netflix (33 per
cent), Amazon Prime (29 per cent), and Disney+ (27 per cent).
Consequently, the EU has embraced the need for a strong
policy framework for its film and TV industries at the European
level in line with its cultural diversity vision to establish a level
playing field for European and international actors.
The EU’s Audio-visual Media Services Directive (AVMSD),
adopted in 2018, as well as its predecessor the Television
Without Frontiers Directive of 2008, and the Directive on
copyright in the Digital Single Market of 2019, reflect the
belief that, due to linguistic and market fragmentation, cultural
diversity within Europe requires specific rules.
Legislative measures have evolved progressively to address
the changing technical and international landscape, such that
emerging international streamers are required to comply with
the fundamental principles of the EU’s audio-visual creation
support obligations of European entities. To support European
creation and creators, quotas imposed on broadcasters (linear
services) have also been extended to streamers (non-linear
services).
Under the AVMSD, these aspects are regulated by Article 13
and its several provisions. Article 13(1) concerns programming
obligations and extends the previous Directive’s quotas (at least
30 per cent of European works) to non-linear services. Article
13(2) concerns investment in production. It provides that,
where Member States require media service providers under
their jurisdiction to contribute financially to the production
of European works. This can occur through direct investment
in content and contributions to national funds. They may
also require media service providers targeting audiences in
their territories, while being established in other Member
States, to contribute financially through proportionate, non-
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discriminatory contributions to the production of European
works. Article 13(6) states that the provisions of paragraphs
1 and 2 shall not apply to media service providers whose
turnover or audience is low.
Therefore, while the Directive extends the quota regime on
programming to non-linear streaming services, it does not
provide for any specific investment obligation in production,
leaving this choice to the Member States because it recognises
the nuances among them regarding policy interference in
cultural matters. Thus, implementation of Article 13(2) of
the Directive and its transposition to national law does not
provide a common framework but presents dierent solutions,
sometimes even opposing ones, based on country-specific
implementation. Table 1 provides examples of how some
Member States have chosen to implement the Directive.
France places the most onerous obligations on streamers,
building on its long tradition of championing l’exception
culturelle. Here streamers must contribute a minimum of 5.15
per cent of their net revenues as a levy to the cinema agency
Centre National du Cinema et de l’Image Animée (CNC). This
levy is added to public funding and then redistributed to French
and European audio-visual productions. The streamers must
also invest a minimum of 20 per cent of their net national
revenue directly into European works, 85 per cent of which
must be in works of ‘French expression’ totally or mainly in
French or regional languages of France. In total, more than
25 per cent of a streamer’s net revenue from France must
be spent on European content. Italy also places significant
obligations on streamers. From 2025, they must invest 20 per
cent of net revenues directly into European works (50 per cent
of which must go towards productions of ‘Italian expression’).
Conversely, most EU Member States have very minimal
obligations in this regard. The UK and Germany have no such
obligation at all. Germany has a blanket tax on film revenues,
of 1.8 per cent for non-linear services up to €20 million in
turnover and 2.5 per cent over €20 million. Spain, meanwhile,
allows companies to choose between a 5 per cent levy or an
investment obligation. So too does Greece (1.5 per cent). Croatia
and Portugal – like France – have introduced both a levy and
a direct investment obligation, while Poland has imposed a
1.8–2.5 per cent levy and Romania’s is set at 4 per cent.
Complicating matters further, some countries – including
Croatia, Greece, and Portugal – have set rules stating that
total investment must go to national works. Others – including
France, Spain, and Italy – say that a certain proportion must be
spent on national works with the rest going to European titles.
In some countries, rules further specify what kind of content
must be supported. In Spain, 70 per cent of direct investment
must be dedicated to works by independent producers; in
France, three-quarters must be spent on independent film
production.
The discrepancies among Member States illustrate varied
attitudes regarding the intercultural mix in audio-visual
creation, protective measures for local small and medium-
sized producers, as well as varied stances towards government
intervention in cultural matters.
Table 1 Production investment obligations in the Big 5 European markets
Source: ITMedia Consulting
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As can be expected from a top-down, somewhat
delicately protective architecture steering major
funding, some talented people – creators, artists,
and producers – take advantage of beautiful
speeches and acquired positions to bypass minimal
financial accountability. As demonstrated in a 2023
report by the French Cour des Comptes (CNC,
2023), they benignly neglect viewers’ interests: only
2 per cent of funded films break even in theatres.
Public policy support and taxpayers’ contributions
are treated with contempt, as in the case of the
Cannes 2022 Palme d’Or acceptance speech
(Vulser, 2023), contrasting sharply with François
Truaut’s professed respect for the financial role
of producers and the public. As in some kind of
art noir film procedural, we can consider this
deviation an acceptable price to pay to maintain
a consistent number of local productions in the
European audio-visual cultural landscape and its
notable influence worldwide.
To summarise, among the main countries, two – Italy
and France – impose strict financial contribution
obligations on producers; one – Spain – imposes
very low obligations, corresponding to the current
investments of all operators; and two – Germany
and the United Kingdom – impose no obligations
at all.
The evolution of audio-visual
production in Europe
On-demand services are now the largest audio-
visual producers in Europe. Their role will also
be increasingly central in the coming years. It is
therefore essential to attract the investments of
these video-on-demand operators to ensure the
development of national industry.
The international operator determines its
investments based on a planning process that
considers the dierent options available. In our
case these are, on the one hand, the value it can
expect on a market and, on the other, the investment
obligations set out in the regulations. Operating
internationally, these companies tend naturally to
invest where they find the best conditions (structural,
economic, fiscal, and regulatory) and expectations.
They also tend to base local productions in Europe
on European sources or inspiration, whether it is
literature, history, or notable places. European
literature has been a constant source of inspiration
for international creators. For decades, Disney has
‘proudly brought to you’ tales by the Grimm and
Perrault, neglecting to mention the original authors
in the process.103
Table 2 Major European producers (production/year)
Source: ITMedia Consulting elaboration, 22
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In 2022, Amazon Prime Video took another step
in its creative expansion: the first season of the
J.R.R. Tolkien-inspired Lord of the Rings: The
Rings of Power attracted more than 100 million
viewers worldwide, making it the most-watched
Amazon Original series in all regions of the world.
Netflix’sLupinandAll Quiet on the Western Front,
Prime Video’s The Gryphon, Greek
Salad,andCulpa Mia, and Disney+’sThe
Good Mothersand Kaiser Karl are other
examples. Netflix co-founder Reed
Hastings, on a visit to Netflix Amsterdam
European headquarters, pointedly
described the streamer as the ‘biggest
builder of cross-European culture in the
EU’ for its success in getting Germans
to tune into French series and Italians
to watch Spanish films (Dams, 2023).
While total investments in original
European content sharply increased
with the entry of the global streamers on
the European market, these investments
came as a net addition. The global streamers’
investments in European original content started
in 2015 and their share grew rapidly, reaching 16
per cent in 2021. Netflix accounted for 92 per cent
in 2019, then only half in 2021, as other streamers,
notably Amazon Prime, increased their investments.
Facing new competition and new standards for
TV shows, private broadcasters also increased
their investments. Meanwhile, public broadcasters
faced budget constraints. As a whole, the volume
of European audio-visual production has benefited
from the international streamers’ financial and
creative contributions, which have been heartily
welcomed by the industry.
Assessing the overall impact of
operators’ obligations on audio-
visual production
What is the bottom line if we compare local Member
States’ investment obligations and the status of
European audio-visual production? Table 5 shows
that there is no direct relationship between the level
European literature has been a constant source
of inspiration for international creators. For
decades, Disney has ‘proudly brought to you’
tales by the Grimm and Perrault, neglecting to
mention the original authors in the process.
Table 3 Volume of AV fiction produced in Europe (2015–2021)
Source: European Audiovisual Observatory, 22
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of investment obligations and the size of domestic production.
The UK and Germany are the two largest producers but are
not subject to such obligations.
It would seem that there is no apparent benefit from regulation
imposing investment obligations in production. Alternatively,
as international actors have increased their investments
in Europe in the last decade on their own accord, purely
based on market considerations, it can also be argued that
countries with high audio-visual production levels have not
felt the need to impose investment obligations. Spending on
local content in new markets has been central to streaming
platforms’ strategies to push growth in subscription numbers.
The EU is succeeding in having ‘internationals’ play a role
in European creation. While they bring productions from
around the world to European viewers, they also expand
the viewership for European productions far beyond Europe
itself. As a whole, this has generated welcome opportunities
for local job creation and audio-visual development, which
are greatly appreciated by the European industry.
The European Commission’s support for the European audio-
visual sector is unrelenting. In December 2020, it adopted the
Media and Audio-visual Action Plan,104 and further initiatives are
being taken by the European Commission and the European
Investment Fund. For example, four investment agreements
were signed in September 2023 at the San Sebastian Film
Table 4 Investments in European original content, € billion
Source: Ampere Analysis, 22
Table 5 Production investments (€ million) and obligation in production: a comparison
Source: ITMedia Consulting
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Festival. Worth €68.25 million, they are expected to mobilise
around €500 million worth of new private and Member State
financing for audio-visual and creative companies and projects.
EU-supported films are gathering nominations and awards at
international film festivals in Berlin (European Commission,
2023c), Cannes,105 Venice (European Commission, 2023d), and
San Sebastian (European Commission, 2023b), among others.
Conclusions: the open-ended nature and
specificities of European culture in audio-
visual production
Timothy Garton Ash (2023) justly notes that the European
Union has its roots in the post-Second World War and 1992,
post-Wall history. As a land of disasters of its own making,
beyond understanding, where millions have died, it would
certainly be naïve to adopt a rosy, peaceful view of European
culture and history. High points of European cultural creation,
such as the Italian Renaissance, have also been periods of
long-running violent wars and bloody political fights. Thanks
to notable thinkers, in the second half of the twentieth
century this gave rise to a land of lessons learned as Europe
positioned itself internationally as a beacon of hope and
righteousness. European audio-visual cultural creation, much
like contemporary European culture in general, explicitly aims
to learn the lessons of the past and overcome their legacy.
This does not go without a dose of reproach and resentment
towards the EU, or certain perceived aspects of the EU, from
quarters having had varied historical experiences of their
own and regarding European powers. Europe must deal with
millions of sons and daughters who look for their missing
‘fatherly’ figures in illiberal democratic or authoritarian politics.
Europe’s relationship with American culture is also a theme that
has recurred since the Second World War. We in Europe feel a
burning urge to measure ourselves with – or against – America.
Very dierently from Europe, the US receives a continuous
flow of immigration (largely from Europe), forcing a tabula
rasa of natives, coldly taking care of their own business and
their own interests, although the debt Europe’s freedom owes
to America is a constant remembrance it is the ‘land of the
brave’ and, even more, the land of the strong, or supposedly
so, as ideologically exemplified by certain recent presidents
who certainly are not fatherly figures.
It would be debatable to generalise from these dierences,
but European creation congregates more around the intimate,
albeit social, side, often exploring moral dilemmas. In contrast,
it seems to these authors that, in the spectacular, big-budget
US productions that tend to dominate the box oce, violent
power struggles, lavishly nurtured by talent and money, are
often the sole narrative elements, making cultural values
often hard to identify.
If we summarise and extrapolate from this picture of the EU
audio-visual sector, what is intended today by European culture
and related policies is an emphasis on freedom of creation,
openness, and diversity. There is no censorship, no imposition
of pre-defined European cultural values. International players
are not being kept at bay. On the contrary, their contribution is
highly welcome, as long as their compliance and integration
within EU common cultural diversity rules is achieved through
quotas and investments.
European culture is not defined intrinsically as a set of
characteristic patterns or values. Rather, it is defined extrinsically
by its governing principles of freedom of creation, open
borders, and free spaces, which are essential to culture today.
This is paradoxically exemplified by the film Oppenheimer:
J. Robert Oppenheimer was an American of European origin
who achieved success in America. The film, directed by an
American, had its greatest success in Europe, overcoming
market fragmentation.7
Globalisation and digital transformation are double-edged.
They may bring cultural standardisation and a lack of diversity,
not to mention threats to culture and possibly civilisation.
Other threats, not to be underestimated, come from the inside.
Thus, a large section of beneficiaries of cultural and artistic
freedom as well as public financial support, without which they
would not survive as artists, publicly express their rejection
of universal European values, democratic governments,
and their policies, providing support to autocracies and
obscurantism. European culture is subject to criticism from
the outside, resentment against Western domination, and
post-colonialism. From the inside, some of those involved in
extreme politics in Europe indulge in self-inflicted wounds,
waging a wholesale cultural war against European history (see,
for example, Weller, 2021). This is also peculiar to European
culture (Taguie, 2024).
Europe is not a cultural identity but a coalition of identities, as
expressed in the European Union’s motto adopted in 2000:
‘United in diversity’. It is uncontrollable, unpredictable, and not
easily definable, and it should remain that way. A challenge
for media companies and culture in Europe is the younger
public moving away from television or cinema in favour of
Europe’s relationship with
American culture is also a theme
that has recurred since the Second
World War. We in Europe feel a
burning urge to measure ourselves
with – or against – America.
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8
online or virtual spaces, and the planned aggregation into
mob eects they encourage.
Reflecting on the impact of the current crises and related
policies on the European conscience through the lens of
audio-visual creations, we find that a trend is emerging. It
contributes to the interplay between European ‘civilisation’, the
domain of liberal democratic values, and European ‘culture’,
the domain of arts and cultural creations. Numerous existing
EU initiatives promote this interplay, and the leeway enjoyed
by Member States in audio-visual policy implementation
also reflects the plurality of identities that characterises the
Union. Culture in Europe reflects the uncompleted nature of
European construction: a mix of strong traditions, laissez-faire
orientation, and regulation which rebalances fragmentation
without imposing uniformity.
European culture exists. It has existed across history, across
empires. It flourishes by sticking to its extrinsic principles. For
those of us dissatisfied with the shortcomings of European
cultural awareness, it is comforting to measure the progress
from the cigarette papers on which Altiero Spinelli and Ernesto
Rossi, in captivity, wrote the Ventotene Manifest in 1941, to
the credits to European Union programmes that appear on
innumerable screens in films and audio-visual creations today.
All the resources of European culture will be needed in the
coming years as Europe brings the fight for liberal democracy
and against populism and authoritarianism to a higher level.
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