The new directive would extend the benefits of the “country of origin” principle – which has helped Europe’s broadcasting industry to flourish since 1989 – to new non-linear (on-demand) audiovisual services (in particular video on demand), so as to improve their prospects for commercial success. For such on-demand services, the “country of origin” principle would apply across Europe with a minimum of necessary harmonisation. This would allow audiovisual media service providers to offer audiovisual content complying with the laws of their own Member State for reception in other Member States, without having to vary this content to comply with the laws of each Member State concerned.
Relaxing rules on the insertion of advertising in TV programmes and daily advertising limits, as well as openness to new forms of advertising (such as split- screen, virtual or interactive advertising), would benefit not only advertisers but the whole audiovisual industry in Europe, by strengthening their economic base. Providing a clear legal framework for product placement would secure new revenues for Europe’s audiovisual industry, help to boost Europe’s creative economy and thus reinforce cultural diversity."
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