EU Copyright and Cross-Border Access to Content
BT’s view on copyright
BT supports the protection of copyright as an important incentive to the creation of content
by ensuring creators and rights-holders are fairly rewarded - We believe this is best done by
industry actors collaborating as they have in the UK under the recently announce Creative
Content (VCAP) alliance between ISPs and rightsholders
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Territoriality is the cornerstone of value creation, jobs and growth the European
audiovisual industries.
There is no clear rationale for harmonisation of copyright laws across the EU and
there is no rationale for an EU-wide license
Commercial agreements can already assign multi-territorial or even EU wide rights.
The issue is lack of demand
EU-wide licensing would result in less choice for consumers and ultimately the
creation of less European content.
Enabling existing subscribers to access their services when travelling for short
periods is a logical market evolution.
Enabling or requiring cross border sales is highly problematic, if anything more so
than pursuing a single EU copyright title. Enabling true competition in the acquisition
of key rights is essential in ensuring consumers get best value (and reducing
territoriality will have the reverse effect).
However, sensible copyright evolution that reflects changing technology and
consumer demand should be considered – such as exceptions for private copying in
the cloud
EU Digital Single Market and Copyright Reform
BT shares the European Commission’s vision of a more effective Digital Single Market, but
we would like to warn of the unintended consequences – in terms of reduced retail
competition, undermining the strength of the creative industry and impeding innovative
business models – through harmonisation of copyright arrangements, up to and including a
single EU copyright title.
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The markets for many types of content are likely to remain national for a variety of
reasons, with limited cross-border demand (EC commissioned research by Plum
Consulting “The economic potential of cross-border pay-to-view and listen audiovisual media services” 2012 supports this view). In the few instances where there is
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sufficient demand, commercial arrangements have arisen to provide an effective
solution.
Investments in content made by market players such as BT (in sports rights for
example) reflect innovation and convergence, helping drive the Commission’s own
Digital Agenda goals for take-up of high-speed networks.
As observed by Enders Analysis “The value of territorial licensing to the EU”, any
action that prevents rights owners from following a market-led approach to the
monetisation of these rights “could disturb the foundations of the edifice of value
that has been established over time”.
Restructuring these markets along pan-European lines would lead to dominance by
those few players already positioned in several national markets. This would
undermine competition, narrow the range of content on offer to EU consumers and
ultimately destroy much of the investment in original European content.
BT does not believe that legislation is necessarily needed to achieve ‘portability’ of
existing subscribers services for short periods of travel, although the Commission will
want to keep up pressure on rights holders to offer sensibly priced rights extensions
to the market.
The rights market will very likely respond to measures enabling or requiring cross
border sales by selling only European wide licences in order to maintain prices and
investment returns in their primary key markets. This will price out local operators
such as BT and favour (mainly non-European) operators such as Google / YouTube,
Amazon and Netflix. Operators will focus on content which has the largest possible
audience / market and will result in increased prices and decreased choice for
European consumers. Enabling true competition in the acquisition of key rights is
essential in ensuring consumers get best value.
We would be very concerned about strong interventions designed to ensure content rights
are sold on a pan-EU basis and which go beyond eliminating territorial protection clauses
which may restrict competition. Our primary concern is that rights should be sold in a
manner that promotes retail downstream competition in PayTV markets, with new entrants
accorded the ability to outbid incumbents.
BT Group plc
4 Feb 2015