Media 2007 Interim Evaluation 2010 en

Ref.
Ares(2010)432696 - 15/07/2010
MEDIA 2007 interim evaluation
E u r o p e a n C o m m i s s i o n – DG INFSO
Document status
The interim evaluation of the MEDIA 2007 Programme was commissioned by
INFSO, the Information Society and Media Directorate General of the
European Commission.
The evaluation was managed by Mr Ilias Sotirchos and Ms Isabella Tessaro
(Media Unit). Progress was monitored by a steering committee consisting of
members of the INFSO DG Media Unit, the EACEA Executive Agency, and the
INFSO DG Evaluation Unit.
This document is a final report. It was preceded by the interim report which
presented the first results of the data collection, and by the draft final report
which was discussed with the steering committee.
It is accompanied by a technical report consisting of quantitative and
qualitative data analysed in the framework of the evaluation.
The views expressed in this report are those of the authors and do not
necessarily reflect the Commission's point of view. The Commission cannot be
held responsible for the accuracy of the information presented here.
Neither the Commission of European Communities nor anyone acting under
its responsibility can be held responsible for the use made of the present
report.
The evaluation team would like to thank all the members of the Steering
Committee for the quality of the discussions at the various meetings, as well as
all the individuals interviewed, for their time.
For further information:
This evaluation was carried out by a consortium of two companies: Euréval
and Media Consulting Group. The team of evaluators was headed by Ms
Virginie Besrest (besrest@eureval.fr) and Mr Alain Modot (am@mediacg.tv)
The other members of the team were Thomas Delahais (delahais@eureval.fr),
Karine Sage (sage@eureval.fr), Silvia Angrisani (sa@mediacg.tv) and Héloïse
Fontanel (hf@mediacg.tv).
04/06/2010 – page 2
Synthesis
Introduction
This document is the synthesis of the external and independent interim
evaluation of the MEDIA 2007 Programme to support the audiovisual sector
(period 2007-2013).
The evaluation was undertaken less than three years after the programme was
launched. At that stage few of the projects had been concluded and not all of
the effects of the programme had been felt yet.
The main aim of this evaluation was to:
■ check whether the programme objectives still matched the needs of the
audiovisual sector;
■ assess the efficiency of the programme management;
■ obtain feedback on the innovations introduced in MEDIA 2007 (new
lines, administrative improvements);
■ check whether the first results were consistent with the intervention
logic of the programme;
■ assess the probability of effectively generating the global effects that are
expected from the programme, in view of its intervention logic;
■ propose adjustments for the second half of the programme
implementation.
Context
Public policies in the film and audiovisual sector are currently facing major
challenges related to technological changes and their impact on modes of
consumption, economic models, and the value chain.
Technological changes
These changes are partly due to the take-up of high-speed Internet in Europe.
The situation and implementation of this technology has differed from one
Member State to the next, and coverage is still not complete in spite of
concerted efforts to accelerate the process.
Whereas films have traditionally been linked to a geographic location (the
cinema), the gradual replacement of 35mm copies by digital ones has brought
with it new possibilities for screening. Programming is likely to become more
flexible (multiprogramming and diversity of language versions for the same
film). Digital technology has also helped to boost the film industry, with the
introduction of 3-D films.
High-definition DVD recently arrived on the European scene. It is still not clear
whether DVD will be able to absorb the emergent technology and transform it
into a lasting asset so that it can maintain its presence in the distribution chain.
Television, formerly a linear medium, is increasingly becoming a non-linear
platform enabling the viewer to choose content as well as the time at which to
consume it (catch-up TV, IPTV, Web TV).
04/06/2010 – page 3
Today Internet is no longer only a medium for television but also a distribution
platform through video-on-demand (VOD) and online social networks. Mobile
phones are likewise concerned by this change; they are becoming distribution
platforms for audiovisual content (personal mobile phone - PMP).
Changing modes of consumption
Viewers' habits have changed along with technological innovations. Today
audiovisual content can easily be personalized, saved and transported. The
environment has also changed: we are living in 'digital homes', that is,
multiplatform distribution environments created by the interconnection of
various media. Additionally, the portability of content via Internet and mobile
phones means that the physical environment has become an opportunity rather
than a constraint. Media content can circulate far more easily today, between
different media and geographically.
Economic models
From an economic point of view, change is taking place gradually, with varying
effects on the market, depending on the sector and the country. Changing
economic models are witnessed in the relationship between television and film.
For 30 years, national Hertzian television was the indispensable financial
partner of the European film industry. Today, in a context of steep decline in
revenue from TV advertising, the value of films on these channels is stagnating.
Films are migrating to the digital channels and pay-TV film channels.
The non-linear offer is still struggling to generate sufficient revenue on the
basis of existing models, including free-of-charge models based on advertising.
These services still generate far less revenue than that derived from advertising
on linear TV networks, despite its relative decline.
Managing rights
The European audiovisual industry is also facing the issue of managing rights.
This has become a priority for two reasons: the entry into the market of new
players in the fields of production and distribution; and piracy, which still has
to be overcome as a model for the non-linear offer. The industry is searching
for solutions to this unprecedented competition, through an offer based on low
prices, the technical facility of modes of payment per unit, experiments with
advertising-based 'free offer' models, and high quality.
In terms of the management of rights, effects of'cannibalization', primarily due
to the slow shift to a non-linear offer, are reportedly appearing throughout the
value chain. In the long term, some observers foresee a simplification of the
value chain, to the point of comprising no more than two segments: private
consumption at home (or on a portable monitor) and public consumption in a
cinema.
Description of the programme

Implementing the programme
Since the European Parliament and the Council adopted the MEDIA I
programme in 1991, a coherent, long-term financial intervention policy has
been implemented to enable the European audiovisual industry to benefit from
a Europe-wide market. This policy was implemented first through the MEDIA
04/06/2010 – page 4
II Programme and then through MEDIA PLUS and MEDIA Training (2001-
2006).
In accordance with the principles of subsidiarity and complementarity,
community action is concentrated on pre-production and post-production,
leaving it up to national authorities to support production. The programme
therefore intervenes in the following areas: training of professionals in the
audiovisual industry, development, distribution, and promotion of works.
On 15 November 2006 the European Parliament and the Council adopted a
new programme to support the European audiovisual sector: MEDIA 2007,
with a budget of €755 million, for a period of 7 years (2007-13).
Whereas in the past an entire programme was devoted to training, MEDIA
2007 is an integrated programme grouping together various types of support,
in both the pre-production and the post-production stages.
MEDIA 2007 has three global objectives:
1. preserving and enhancing European cultural diversity and its
cinematographic and audiovisual heritage, guaranteeing its accessibility
to European citizens, and promoting intercultural dialogue;
2. increasing the circulation of European audiovisual works inside and
outside the European Union;
3. strengthening the competitiveness of the European audiovisual sector
in the framework of an open and competitive market.
The support delivered by MEDIA 2007 is oriented by four priorities:
1. fostering creativity in the audiovisual sector and the value of Europe�s
cinematographic and audiovisual heritage;
2. strengthening the production structure of the European audiovisual
sector, particularly SMEs;
3. reducing the imbalances in the European audiovisual market between
high production capacity countries and countries or regions with low
production capacity and/or a restricted geographic and linguistic area;
4. monitoring and supporting developments in the market with regard to
digitization.
What is new about MEDIA 2007

MEDIA 2007 has simplified its administrative procedures, generally, and
introduced a clause of proportionality into the financial and administrative
rules. The aim is to reduce the administrative burden and to make it
proportional to the type and size of the subsidy, and to the nature of the
applicant companies. Long-term partnerships have been implemented in
training, promotion and operations.
In terms of activities supported, the majority of action lines (except for support
for Distribution in VHS and DVD format) implemented under MEDIA Plus and
MEDIA Training have been maintained. MEDI A 2007 however also intervenes
in some new fields, including initial training, the development of interactive
works, video-on-demand (VOD) and digital cinematographic distribution
(DCD), the Web communities, and open media.
04/06/2010 - page 5
Key figures on the programme

As regards the projects supported:
• over 5,000 projects were supported by MEDIA 2007 during the first
three years of its implementation;
• European co-funding of these projects amounts to €296 million,
accounting for 39% of the programme budget over the entire period.
As regards the applicants:
• during the first three years, over 3,000 organisations submitted
proposals to the MEDIA 2007 programme (against fewer than 2,000 in
the framework of MEDIA Plus over the entire period) and over 1,400
organisations received support;
• the number of organisations from the new Member States that
submitted proposals increased slightly under MEDIA 2007;
• the organisations retained by MEDIA 2007 are producers (56%),
distributors (31%) and promoters (11%)1;
• the beneficiaries of MEDIA 2007 are spread across Europe (98 regions
out of 1052) but close to half the organisations that applied for support
are in the ten regions with the most beneficiaries.
In terms of amounts, the overall situation was as follows for the period 2007-
2009:
• the 5 countries in Group A (Germany, Spain, France, Italy, the UK)
receive close to two thirds of the MEDIA support, and this proportion is
growing;
• the Group B countries (the 10 other countries of Europe-15 as well as
Switzerland, Iceland and Norway) receive on average 25% of the
subsidies, but this share is shrinking;
• the share of Group C countries (the 'new' Member States) is stable,
around 8%.
Scope and objectives of the evaluation

The interim evaluation covers the entire MEDIA Programme for the period
2007-2009. It is expected to provide answers to the following 5 questions:
1
The category „promoters� encompasses organizations that organize promotional events
and festivals. The category „distributors� also includes cinema exhibitors.
2
For practical purposes, the beneficiary countries have been divided into 105 regions,
based on the NUTS nomenclature.
04/06/2010 – page 6
Q1. To what extent is the MEDIA 2007 Programme still suited to the needs of
the European audiovisual sector and media professionals?
(question concerning the relevance and added value of the programme)
Q2. To what extent is the MEDIA 2007 Programme designed to meet the set
objectives?
(question concerning the internal coherence of the programme)
Q3. In which cases do the first results of the programme confirm its
intervention logic?
(question concerning the effectiveness of the programme)
Q4. To what extent is the programme likely to generate the expected impacts?
(question concerning the probable impacts of the programme)
Q5 – To what extent does the programme implementation present a good cost-
benefit ratio?
(question concerning the efficiency of the programme)
The steering committee gave priority to Questions 1, 2 and 3, respectively

concerning relevance, internal coherence and effectiveness.
Methodology
The evaluation mission started in September 2009 and ended in May 2010. It
consisted of four phases:
• A first phase of structuring the evaluation approach, which made it
possible to revise the intervention logic of the programme (ad hoc
workshop), to define the evaluation questions and the related criteria
and indexes, and to stabilize the evaluation method.
• A second phase of observation in which several data collection methods
were implemented:
- collection of quantitative and qualitative contextual data
- collection of documents on the programme implementation
- collection and analysis of the Agency's database
- individual interviews with the programme managers
- questionnaire administered to the 32 MEDIA Desks
- online survey on all the organizations (retained or not) that applied
for MEDIA 2007 support.
During the evaluation, 550 people (programme managers, Media Desk
officials, programme beneficiaries and non-beneficiaries, experts, etc.)
were requested for their opinions on the programme.
• A third phase of analysis3:
- statistical analyses of the data collected
- 8 in-depth studies on specific issues on which the Commission
wanted more in-depth evaluation
3
The results of each of these analyses are provided in the technical report attached to the
present report.
04/06/2010 – page 7
- a cartographic analysis
- an analysis of the network
- finally, all the data collected were cross-referenced by means of the
‘triangulation’ process 4 . Every finding presented in this
report is therefore based on several data sources.
• A fourth and final phase of judgment resulted in the production of
evaluation conclusions and recommendations. The conclusions were
discussed with the members of the Steering Committee in a workshop.
The recommendations were likewise the subject of group discussions.
The evaluation nevertheless encountered certain limits:
• in the collection and use of statistical and programme monitoring data,
due to problems of availability, exhaustiveness and comparability of
data (especially between statistics from the Executive Agency, the
European Audiovisual Observatory, and the national film agencies5);
• in the tools used to collect data (see the technical report);
• due to the complexity of the programme (multiple types of support
functioning in multiple ways and catering for multiple actors. The
global evaluation does not always afford a detailed, accurate and in-
depth view of certain specific aspects of a type of support and/or actor.)
Conclusions
The analysis yielded a number of findings, on the basis of which the following
conclusions were reached:
Conclusions Sources
C o n c l u s i o n s o n t h e r e l e v a n c e of t h e MEDIA 2 0 0 7 P r o g r a m m e
Conclusion 1: The integrated logic of the programme (i.e. covering Findings 1,

the entire value chain, including MEDIA Training), its anchorage on 2, 3 , 4, 7, 10,
the European audiovisual scene, and the fact that it is designed to 11, 12 and 42
support change in the sector, enable MEDIA 2007, inter alia, to of the
provide an appropriate response to the needs of the sector. evaluation
Conclusion 2 : The added value of the MEDIA Programme is Findings 6,

significant in so far as it introduces a strongly European dimension 13 and 14
into the supported projects, enabling them to be more ambitious,
and is complementary to existing national support.
C o n c l u s i o n s o n t h e internal c o h e r e n c e of t h e p r o g r a m m e
Conclusion 3 : Significant adjustments have been made to MEDIA Findings

2007 (new lines, evolution of existing lines) to enable it to meet new 2,3 and 11
needs, especially those related to digital technology. However, the
timeframe of the programme (objectives, budgets and instruments
set for 7 years) does not allow it to be reactive enough, throughout
4
This process is carried out via the production of a range of indexes based on the
evaluation grid and including all the data collected.
5
For example, the number of countries covered is not the same, depending on the source.
04/06/2010 – page 8
the entire period, to the extremely rapid changes in technology and

the market.
Conclusion 4 : The steep increase in the number of applications Findings 4,

for the various forms of support offered by the programme attests to 5, 19, 39 and
the fact that it corresponds to the needs of the sector. However, this 43
entails an increasingly selective process leading to the exclusion of
primo-participants and very small businesses, increasing
management costs, and discouragement among potential
participants.
Conclusion 5 : The overall internal coherence of the programme is Findings 7,

confirmed. However, developing the demand for European works by 8, 10, 24
the public, cinemas and TV broadcasters is not granted enough and 26
importance in comparison with that granted to the audiovisual
supply.
Findings 9
Conclusion 6 : The system of positive discrimination set up is
and 36
suited to achieving the cultural diversity objective but is insufficient
to meet the objective of remedying the imbalance between countries
with a low and those with a high audiovisual production capacity.
C o n c l u s i o n s o n t h e r e s u l t s p r o d u c e d by t h e p r o g r a m m e during t h e
first t h r e e y e a r s of its i m p l e m e n t a t i o n
Conclusion 7: Participation in the application process for MEDIA Findings

support enables applicants to significantly improve the design of the 13, 14, 15,
projects presented (consolidation of finance plans, strengthening of 18 and 41
partnerships).
Conclusion 8: MEDIA 2007 support for Continuous Training is Findings

effective, on the whole, and generates a significant 'quality label' 11, 16, 17,
effect. Support for initial training has not yet had time to prove itself. 28 and 29
Conclusion 9: MEDIA 2007 support for Development, which has Findings

been increasingly successful, is effective on the whole and allows for 5, 18, 19
the emergence of better structured projects that are more competitive and 30
in the international market. However, the effectiveness of support for
interactive works needs to be improved.
Conclusion 10: I2i support has allowed for an effective reduction of Finding
financial costs. However, its size (marginal compared to the size and 20
needs of the market) is insufficient to generate a visible improvement
in access to funds, which is still one of the main problems confronting
professionals in the sector.
Conclusion 11: MEDIA 2007 support for Distribution is effective on Findings

the whole; it contributes significantly to improving conditions of 22, 23, 24
distribution (automatic support) and to strengthening professional and 34
networks (selective support).
Conclusion 12: MEDIA 2007 support for Promotion (Access to the Findings
Market, and Festivals) is effective on the whole; it allows for greater 25, 26, 27
visibility of NNE works both within Europe and beyond, and for a and 36
widening of professional networks.
Conclusion 13: MEDIA 2007 support for TV Broadcasting Findings
04/06/2010 – page 9
E u r o p e a n C o m m i s s i o n – DG INFS O
contributes significantly to securing producers� rights but is still not 2, 10 and

attractive enough to change practices in some countries where 21
broadcasters are unwilling to relinquish certain rights.
Conclusion 1 4 : The modalities and scope of application of support Findings

for Pilot Projects are too complicated to allow for optimal 11 and 33
effectiveness of this line.
Conclusion 15: Support for VOD does not yet contribute sufficiently Findings
to the circulation of European works in so far as the market is still 11 and 31
weak and the pan-European approach to the exploitation of rights is
not developed enough.
C o n c l u s i o n s o n t h e p r o g r a m m e ’ s capacity t o g e n e r a t e t h e e x p e c t e d
impacts
Conclusion 1 6 : By supporting training for professionals, the Findings

structuring of projects and the networking of actors, MEDI A 12, 13, 14,
contributes to making the European audiovisual sector more 15, 18, 22,
competitive. 25 and 35
Conclusion 17: I n the continuity of MEDI A Plus, MEDI A 2007 Findings

support probably contributes to better circulation of European works. 12, 22,
24, 31,
and 34
Conclusion 1 8 : The programme is likely to contribute to the Findings

preservation of cultural diversity, especially if it remedies the 9, 36 and
imbalances between countries with a low production capacity and 37
those with a high capacity.
C o n c l u s i o n s o n t h e efficiency of t h e p r o g r a m m e ’ s i m p l e m e n t a t i o n
Conclusion 1 9 : On the whole the budget and resources of the Finding

programme are deployed efficiently. 38
Conclusion 2 0 : The efficiency of the programme management has Findings

been improved significantly (simplifications, adjustment of the 39, 40,
schedule, long-term partnerships) but progress can still be made in 41, 42
reducing the administrative burden. and 43
04/06/2010 – page 10
Recommendations
Several recommendations can be made, based on the evaluation conclusions.
These recommendations are presented below by order of strategic importance,
and refer to the conclusions on which they are based. Some recommendations
(e.g. RS1 - 1, RS3 - 1) can evidently be implemented only in the medium/long
term (for legal reasons) and will be taken into consideration in planning the
next generation of the programme. The others can be taken into account in the
remaining period of the implementation of MEDIA 2007 (2010-2013).
Strategic Recommendation (SR) 1: Broaden the modes of

intervention mobilized by the programme
Sources: Conclusions 1, 3, 5 and 6 Timeline: medium/long term
1. Innovate in the programme's modes of intervention or support
measures, with regard to:
■ banking or financial guarantee tools for the development phase;
■ tools for monitoring the sector and its actors: thematic networks,
pilot projects;
■ soft law tools (e.g. white papers, codes of conduct, charters, etc.);
■ tools facilitating interoperability and networking (e.g. dubbing or
subtitles);
■ tools facilitating cooperation between territories;
■ constitution of a common framework of reference for competencies
(for initial training);
■ tools for building consensus (VOD with a common approach to
rights, for example).
2. Revise the modalities of implementation of positive discrimination
(revise the typology of countries; more in-depth reflection on the most
appropriate targets).
3. Envisage stronger intervention on the demand: studies, reflection on
levers for intervening on the demand at the level of consumers,
exhibitors and TV broadcasters, via education on the media in schools
(e.g. film clubs).
SR 2: Strengthen the capacities for knowing the market and

analysing the effects of the programme
Sources: Conclusions 1 and 3 Timeline: medium/long term
1. Optimise the contribution of the European Audiovisual Observatory
(obtain statistical data and relevant analyses to ensure better
knowledge of the market and to facilitate an analysis of the
programme's effects).
2. Undertake studies (on cohorts and/or econometric) on the audiovisual
sector to enhance the programme's capacity to anticipate change.
3. Carry out specific evaluations focused on sectors and/or action lines of
the programme, to afford a more precise view of the effects of the
programme's interventions.
04/06/2010 - page 11
SR 3: Maintain efforts to adapt to the market

Sources: Conclusions 4, 9, 11, 13 Timeline: medium/long term
1. TV Broadcasting (suggestions for the next programme):
■ envisage direct support for TV distributors (sales agents);
■ propose support for broadcasters committed to promoting non-
national European works ('Europa cinemas for television');
■ support dubbing to get a foothold in the big non-European markets
(USA/South-East Asia, Latin America);
■ promote projects that are also envisaged for the Web (or on two
media of which one is online, like the Web, personal mobile TV, or
new media.
2. Distribution and Exhibition
■ Grant additional points for the implementation of language versions
(for Distribution) and screening (for Exhibition) for people with
visual or hearing impairments.
SR 4: Optimise the programme m anagem ent

Sources: Conclusions 4, 19 and 20 Timeline: short term
1. Simplify and improve the modalities of programme management:
■ revise the comitology procedure (threshold in relation to the
allocation of Community funds, under which the comitology
procedure no longer applies) in coherence with what was done for
Media Mundus and exists at DG Education and Culture;
■ envisage stricter eligibility and/or selection criteria in order to limit
the growing number of applications in the Development line and
improve the quality of the projects received.
2. Maintain efforts to reduce the administrative burden:
■ set up a system of online applications that directly informs the
MEDIA database;
■ introduce a single identification number so that the beneficiaries'
track and/or projects can be monitored, as well as their
administrative documents.
3. Extend the pool of experts to streamline the selection procedures.
SR 5: Maintain efforts in communication and data sharing

Sources: Conclusions 9, 10, 14 and 20 Timeline: short term
1. Communicate clearly ('MEDIA Programme' rather than 'MEDIA 2007',
revision of the name of the line I2Ì, replacement of the term 'interactive'
by the term 'cross media' for the Interactive Works line).
2. Exploit the potential of the network of MEDIA desks and antennae
(creation of a collaborative platform).
04/06/2010 – page 12
Sommaire
Synthesis 3
Introduction 3
Context 3
Description of the programme 4
Scope and objectives of the evaluation 6
Methodology 7
Conclusions 8
Recommendations 11
List of illustrations 15
1. Introduction 17
A fast-changing audiovisual sector 17
Presentation of the MEDIA 2007 Programme 19
Objectives of the study 26
Key features of the methodology 29
2. Adaptation of the MEDIA programme to the

needs of the sector 33
The programme objectives still match the needs and challenges of
the sector 33
Traditional action lines that, on the whole, meet the needs of the
sector 36
New action lines for meeting new needs 38
A recognized added value 41
3. Internal coherence of the MEDIA programme 45

General coherence confirmed 45
But a weakness of actions in favour of developing the demand ... 46
Positive discrimination to reduce imbalances and preserve cultural
diversity: an appropriate but incomplete approach 47
On the whole the action lines and selection criteria match the
programme objectives 48
4. First effects of the MEDIA Programme 51

Expected effects of the traditional MEDIA lines on the target
organisations 51
Expected effects on the target organisations of the new MEDIA
lines 64
Effects on the design of the participants’ projects 68
Effects on the participants’ behaviour and know-how 69
04/06/2010 – page 13
5. Capacity of the programme to ultimately

produce the expected impacts 73
Contribution to the improvement of the circulation of non-
national European works 74
Contribution to strengthening competitiveness in the sector 76
Contribution to the preserving and enhancing cultural diversity 79
6. Efficiency of the programme implementation 83

On the whole the budget and resources of the programme are used
appropriately 83
Efficiency reinforced by the simplification of the modalities of
participation in the programme 85
The frequency and timing of calls is generally suited to the
constraints of the sector 89
A globally efficient selection process but the interval before
notification is too long 90
7. Conclusions 93
8. Recommendations 96
Strategic Recommendation 1: Broaden the modes of intervention
mobilised by the programme 96
SR 2: Strengthen the capacities for knowing the market and
analysing the effects of the programme 99
SR 3: Maintain efforts to adapt to the market 100
SR 4: Optimise the programme management 102
SR 5: Maintain efforts in communication and data sharing 103
9. Annexes 104
Annex 1 – Programme intervention logic 104
Annex 2 – Distribution of programme resources 112
Annex 3 – Number of works supported by MEDIA Distribution
that were commercially successful (admissions) outside of their
country of origin 115
04/06/2010 – page 14
List of illustrations
Table 1 : Number of projects supported by MEDIA between 2007 and 2009,
and corresponding budget 21
Figure 2 : (map) Number of organisations retained per participant country,
MEDIA 2007 Programme (period 2007 - Nov. 2009) 23
Figure 3 : (map) Main locations of the organisations retained by MEDIA 2007
in Europe 23
Figure 4: Budget share granted to the organisations engaged in the MEDIA
programme by group of countries 24
Figure 5: Budget granted to the organisations engaged in the MEDIA
programme in Group A countries, Denmark and Belgium 25
Figure 6: (map) Budget trends per region between MEDIA Plus and MEDIA
2007 25
Figure 7 : Relevance and evolution of the MEDIA Programme 35
Figure 8: Relevance of the MEDIA programme lines with regard to the needs of
the professionals and of their country 36
Figure 9: Added value of MEDIA 42
Figure 10: Judgment on the complexity of the MEDIA programme with existing
national support 43
Figure 11: Trainees and place of continuous training: network analysis 53
Figure 12 : Contribution of MEDIA to the importance granted to Development
55
Figure 13: Effects of MEDIA i2i 56
Figure 14 : Effects of MEDIA support to Distribution 58
Figure 15: Number of film shows in the Europa Cinema network – Source:
Europa Cinema 61
Figure 16: (map) The markets supported by MEDIA 2007 (in Euros) 63
Figure 17: Effects of MEDIA support to promotional events in Europe 63
Figure 18: Trainees and places of initial training, network analysis 65
Figure 19: Added value of MEDIA 68
Figure 20: Behavioural additionality – effects in terms of partnerships 69
Figure 21: Effects of the programme 73
Figure 22: Number of films supported by the MEDIA Programme under
Distribution 74
Table 23: Share of releases in Europe of non-national European works
supported by MEDIA Distribution (2007 and 2008) 75
Table 24: Market shares – Source: Excerpt of Table T.13.8 of the EAO directory
for 2009 77
04/06/2010 – page 15
Table 25: Distribution of people who benefited from training supported by

MEDIA Training 80
Figure 26: Budget granted to organisations engaged in the MEDIA Programme
by group of countries 81
Table 27: Comparison of budget, resources and contracts (period 2007-2009)
84
Figure 28: Perception of changes to the Training and Distribution lines 86
Figure 29: Perception of the reduction of the „administrative burden� 88
Figure 30: Correspondence between the frequency and timing of calls for
projects, and the annual cycles of the audiovisual sector 90
Figure 31: Selection process 91
Figure 32: Notification time 91
Table 33: Distribution of the budget 112
Table 34 : Distribution of the number of contracts supported 113
Table 35: Distribution of human resources 114
Table 36: Number of works supported by MEDI A Distribution that were
commercially successful (admissions) outside their country of
origin 115
04/06/2010 – page 16
1 . Introduction
A fast-changing audiovisual sector

Public policies in the film and audiovisual sector are currently facing major
challenges related to technological changes and their impacts on economic
models, modes of consumption and the value chain.
These changes – explored in more detail in the following sections – are partly a
result of the take up of high-speed Internet in Europe and the gradual
reduction of the digital divide with a view to bridging the gaps in broadband
technology between Member States.
The situation and implementation of high-speed technology differs from one
Member State to the next, and coverage is still incomplete despite concerted
efforts to accelerate its take up in Europe 6 .
A report published by the European Commission on 18 November 2009, on the
situation of access to high-speed Internet in the EU on 1 July 2009, showed
that 24% of the EU population were subscribed to high-speed Internet, against
21.6% a year earlier. The report also indicated that high-speed mobile services
were spreading in Europe, with a penetration rate of 4.2% of the population.
High-speed Internet connections in Europe have also become faster: 80% of
the high-speed lines in the EU now have download speeds of 2 megabits per
second (Mbps) or more, thus allowing for use of the Web 2.0.
On 1 July 2009 the penetration rate of broadband in Europe was 23.9%.
However, this average hides substantial differences between Member States.
Denmark and the Netherlands have the best penetration rate, since close to
40% of the population of these countries have a high-speed connection, while
others such as Bulgaria, Romania and Poland have a rate ranging from 10 to
15%.
Technological changes
In terms of distribution platforms, cinema, traditionally linked to a geographic

site (the cinema theatre) is faced with new screening possibilities as 35mm
copies are gradually replaced by digital ones. Programming is likely to become
more flexible (multiprogramming and diversity of language versions for the
same work). Digital technology is also a factor of revival, owing to the
introduction of 3D film-shows which have led to increased cinema attendance
in Europe over the past few years.
Yet digital projection also has risks, especially for European cinema. By
substantially reducing the price of copies, digital technology gives high-budget
films the possibility of occupying many more screens. This is especially so in
6
Communication from the Commission to the Council, the European Parliament, the
European Economic and Social committee and the Committee of the Regions - Bridging the
Broadband Gap {SEC(2006) 354} {SEC(2006) 355}, final version of 20 March 2006.
04/06/2010 – page 17
the best cinemas, which traditionally account for the highest numbers of
admissions for European films.
As high-definition DVD has entered the European market only very recently, it
is difficult to predict the capacity of DVD to absorb the emergent technology
and to transform it into a lasting asset so that it can maintain its presence in the
distribution chain. DVD nevertheless remains a highly popular audiovisual
product, with 778.2 million units sold in Europe in 2008.
Television, formerly a linear medium, is now increasingly becoming a non-
linear platform which enables the viewer to choose the content as well as the
time at which to consume it (catch-up TV, IPTV, Web TV).
In this respect, Internet is no longer only a medium for television but also a
distribution platform through video-on-demand (VOD) and online social
networks. Mobile phones are likewise concerned by this change and are
becoming distribution platforms for audiovisual content (personal mobile
television - PMP).
Modes of consumption
Viewing habits have changed along with technologies. Audiovisual content can
now easily be personalized, saved and transported. The environment has also
evolved considerably: we are now living in 'digital homes', that is,
multiplatform distribution environments created by various interconnected
media. Thanks to Internet and mobile phones, the portability of content is
ensuring that the physical environment is no longer a constraint but an
opportunity. Works can circulate more easily today between media, between
territories, and between cultures.
Economic models
From the economic point of view, change is taking place gradually, with varying
effects on the market, depending on the sector and the country Certain
traditional modes of exhibition (e.g. cinema theatres, linear television) seem to
be integrating technological change in a far more complex relationship than
simply a dynamics of opposition. The Members States do not all have the same
levels of technological innovation. For instance, at the end of 2008, 58.2% of
European (Europe-27) households had digital TV7, yet this figure concealed
wide disparities: 15% of Latvian households were equipped, as opposed to
100% of Finnish and Luxemburg and 55.2% of Italian households.
Changing economic models are witnessed in the relationship between television
and cinema. For 30 years, national Hertzian television was the indispensable
financial partner of the European film industry Today, the value of cinema on
these channels is stagnating as films continue to migrate towards digital
channels and pay-TV film channels. Television channels are becoming
increasingly cautious when it comes to pre-acquisitions, which are steadily
being replaced by acquisitions. The prices of pre-acquisitions are even tending
to be based on those of acquisitions. This situation is creating tensions in the
relationship between producers and channels, as the latter often consider films
to be less strategic than sports programmes or other entertainment.
We also have to take into account the steep decline in advertising revenue from
TV channels, a consequence of the general economic crisis. The weakening of
7
Source: Screen Digest / European Audiovisual Observatory.
04/06/2010 – page 18
the system of pre-financing makes commercial funding increasingly necessary

for recouping investments. The European and international markets are
therefore unavoidable if the small and medium-sized businesses constituting
the core of Europe's audiovisual industry are to survive.
The non-linear offer is still struggling to generate sufficient revenue on the
basis of existing economic models, including advertising-based free-of-charge
models. These services generate far less revenue than that derived from
advertising on linear TV networks, despite its relative decline.
The market actors' uncertainty in a phase of intense change is a challenge for
European public authorities. However, it is also an opportunity to adopt new
orientations that can offset the effects of temporary fragility and support a
competitive offer of European origin.
Managing rights
The European audiovisual industry also faces the issue of managing rights, now
a priority for two reasons: the entry into the market of new players in the fields
of production and distribution; and piracy, which still has to be overcome as a
model for the non-linear offer. The industry is searching for solutions to this
unprecedented competition, through an offer based on low prices, the technical
facility of modes of payment per unit, experiments with advertising-based 'free-
offer' models, and high quality.
In terms of management of rights, media professionals are divided with regard
to effects of'cannibalization' throughout the value chain. These effects are said
to be due primarily to the slow shift to a non-linear offer. They include catch-up
TV, which is claimed to have detrimental effects on the potential to generate
revenue, notably in DVD distribution, without providing the industry with
compensatory revenue. In the long term, some observers foresee a
simplification of the value chain, to the point of comprising no more than two
segments: private consumption at home (or on a portable monitor) and public
consumption in a cinema.
This new approach would open the door to private non-linear consumption and
to the demand, from the very beginning of the cycle of exhibition and with
constant availability throughout, in parallel with other media. It is deemed to
be an effective strategy to minimize illicit use through P2P and pirate sites. It is
however also believed to entail significant risks, as the permanent availability of
the non-linear offer could cannibalize revenue on other modes of distribution
currently protected by a sequential value chain based on exclusivity, notably in
cinemas.
Presentation of the MEDIA 2007 Programme

Implementation of the programme
Since the European Parliament and the Council adopted the MEDIA I
Programme in 1991, a coherent, long-term financial intervention policy has
been implemented to enable the European audiovisual industry to benefit from
a Europe-wide market. This policy was perpetuated with the MEDIA II and
then the MEDIA Plus and MEDIA Training Programmes (2001-2006).
04/06/2010 – page 19
In accordance with the principles of subsidiarity and complementarity,

Community action is concentrated on pre-production and post-production,
leaving it up to the national authorities to support production.
On 15 November 2006, the European Parliament and the Council adopted a
new programme to support the European audiovisual sector: MEDIA 2007,
with a budget of €755 million, for a period of 7 years (2007-13).
Whereas in the past an entire programme was devoted to training, MEDIA
2007 is an integrated programme grouping together all types of support, in
both the pre-production and the post-production stages.
Prior to the publication of the new programme (MEDIA 2007), a series of
consultations was held with the stakeholders to assess the evolution of the
sector and its new needs. The evaluations of the MEDIA Plus and MEDIA
Training programmes (first interim evaluation 2000-2003; second interim
evaluation 2000-2006) also provided information and recommendations on
which to base a new programme.
The MEDIA 2007 Programme accordingly took into account the changes and
new challenges in the audiovisual industry, notably digitisation and
enlargement of the European Union.
MEDIA 2007 is based on three global objectives:
1. preserving and enhancing European cultural diversity and its
cinematographic and audiovisual heritage, guaranteeing its accessibility
to the public, and promoting intercultural dialogue;
2. increasing the circulation of European audiovisual works both inside
and outside the European Union;
3. strengthening the competitiveness of the European audiovisual sector
in the framework of an open and competitive market.
Comparison with the eight objectives of MEDIA Plus and MEDIA Training
shows that with the new Programme the focus has shifted: while some of the
objectives of earlier programmes have become priorities (e.g. digitisation),
others have been eliminated (e.g. improving training skills).
The support delivered by MEDIA 2007 is oriented by four priorities:
1. fostering creativity in the audiovisual sector and the value of Europe�s
cinematographic and audiovisual heritage;
2. strengthening the structure of the European audiovisual sector,
especially SMEs;
3. reducing the imbalances between the European countries with a high
capacity for audiovisual production and those with a low capacity
and/or situated in restricted geographic and linguistic areas;
4. monitoring and supporting developments in the market with regard to
digitization.
The types of support implemented in the framework of the MEDI A 2007

Programme and their intervention logic are presented in Annex 1 of the present
report.
04/06/2010 – page 20
What is new about MEDIA 2007

MEDIA 2007 has simplified its administrative procedures, generally, and
introduced a clause of proportionality into the financial and administrative
rules. The aim is to reduce the administrative burden and to make it
proportional to the type and size of the subsidy, and to the nature of the
applicant companies.
The implementation and management of the programme has been entrusted to
the Education, Audiovisual and Culture Executive Agency (EACEA) since
January 2006, in collaboration with the MEDIA Unit of the European
Commission which is responsible for audiovisual policy.
In terms of the activities supported, whereas the majority of action lines under
MEDIA Plus and MEDIA Training have been continued in the new programme
(with exceptions such as a discontinuation of support for Distribution in VHS
and DVD format), new initiatives have also been launched:
- in the Training action line, a new approach has been developed to
support initial training as well as continuous training;
- in the Support to Producers action line, a specific action now concerns
European companies that develop interactive works;
- a Video-On-Demand (VOD) and Digital Cinematographic Distribution
(DCD) action line has been created;
- in the Pilot Projects action line, activities concerning Web communities
and open media were recently introduced, following the annual
recommendations of the Technical Group for the programme;
- long-term partnerships have been implemented in the Training,
Promotion and Distribution action lines.
Key figures on the programme8

As regards the projects supported:
• approximately 5,000 projects were supported by MEDIA 2007 during
the first 3 years of its implementation;
• the European co-funding of these projects accounts for some €296
million, that is, 39% of the programme's budget over the entire period.
Table 37 : N u m b e r o f projects s u p p o r t e d by MEDIA b e t w e e n 2 0 0 7 a n d 2 0 0 9 ,
and c o r r e s p o n d i n g budget ( s o u r c e : EACEA)
N° of projects 1631 1,719
84,655,551.87 102,234,310.45 108,992,983.80 295,882,846.12
As regards the applicant organisations 9 :
8
A detailed statistical analysis is provided in the technical report.
9
The following data cover the years 2007 and 2008 but not the whole of 2009. For further
details, see the introduction to the statistical analysis in the technical report.
04/06/2010 – page 21
3,091 applied to MEDIA 2007 for support (against 1,885 under MEDIA
Plus);
the number of organisations from the new Member States that applied
for support increased slightly under MEDIA 2007;
1,421 organisations were retained for funding under MEDIA 2007
(approximately 1,900 organizations were retained at least once by
MEDIA between 2000 and 2009, 1,020 of which were under MEDIA
Plus and 688 under both);
over half the organisations retained under MEDIA 2007 were also
retained under MEDIA Development;
half of the organisations that applied for MEDIA funding were
eventually retained for at least one project. This rate dropped slightly
between MEDIA Plus and MEDIA 2007 (54% against 46%);
the rates of retention of companies10 are generally stable between
MEDIA Plus and MEDIA 2007, and vary within a range of 10 points,
except for Festivals (65% to 45%);
the organisations retained by MEDIA 2007 are producers (56%),
distributors (31%) and promoters (11%)11;
the beneficiaries of MEDIA 2007 are spread across Europe (98 regions
out of 10512) but close to half the organizations that applied for support
are in the 10 regions with the most beneficiaries.
10
The rate of retention of companies is the percentage of companies selected at least once in
one of the MEDIA Programme lines.
11
The category „promoters� consists of those organisations that describe their activities as
promotional and festivals. The category „distributors� also includes exhibitors. For further
details see the technical report.
12
For cartographic purposes, the beneficiary countries have been divided into 105 regions,
generally based on the NUTS nomenclature.
04/06/2010 – page 22
Figure 3 8 : ( m a p ) N u m b e r of o r g a n i s a t i o n s r e t a i n e d p e r participant country,

MEDIA 2 0 0 7 P r o g r a m m e ( p e r i o d 2 0 0 7 - N o v . 2 0 0 9 ) 1 3
Figure 3 9 : ( m a p ) M a i n l o c a t i o n s of t h e o r g a n i s a t i o n s r e t a i n e d by MEDIA 2 0 0 7
in Europe
13
The categories cover the following countries: countries in Group A are the 5 leaders in the
audiovisual field in Europe (Germany, Spain, France, Italy, UK); countries in Group B are
the 10 other countries of the former Europe-15 as well as Switzerland, Iceland and
Norway; and countries in Group C are the others.
04/06/2010 – page 23
In terms of amounts, the situation was globally as follows in the period 2007-
2009:
• the 5 Group A countries (Germany, Spain, France, Italy, UK) receive
close to two-thirds of the support granted by MEDIA, and this
proportion is growing;
• Group B countries (the ten other countries of Europe-15 as well as
Switzerland, Iceland and Norway) receive on average 25% of the
support granted, but this share is shrinking;
• the share of Group C countries (the 'new' Member States) is stable, at
around 8%.
C o m p a r i s o n w i t h t h e w e i g h t of c o u n t r i e s i n t h e s e c t o r
In the framework of this evaluation we wanted to compare the weight of the Member States
in MEDIA with their weight in industry.
There are two possible ways of doing so: based on the turnover of the sector in the Member
States or based on their market share. Neither of these methods is satisfactory, however, for
with the former the data are the preliminary results of Eurostat and cannot be considered as
entirely reliable 14 , and with the latter it is the success of the sector that is measured, rather
than its weight. The data are moreover largely incomparable.
Eurostat data show that French firms account for 20% of the turnover of the sector (15% of
the jobs) whereas their market share (compared to other European players) is closer to
40%. Likewise, Group A countries account for 8 0 % of the turnover in the sector (70% of the
jobs) whereas their market share is 74%, according to Screen Digest. Thus, it seems that the
values of MEDIA support tend to be within the norm, although with a significant change in
the balance between countries compared to MEDIA+, and substantially different situations,
depending on the lines.
Figure 4 0 : Budget s h a r e granted t o t h e o r g a n i s a t i o n s e n g a g e d i n t h e MEDIA

p r o g r a m m e by g r o u p of c o u n t r i e s
overall, the average annual budget received per organisation remained

stable between MEDIA Plus (€116,000) and MEDIA 2007 (€112,000);
the projects of organisations in the new Member States generally
received a smaller grant than the average of all the beneficiaries, and
this amount is tending to decrease;
14
The indicator used is the turnover of the nomenclature code J59.1 of the NACE Rev.2 for
2008.
04/06/2010 – page 24
• the region Ile-de-France alone accounts for 20% of the MEDIA 2007
budget, and this share increased between MEDIA Plus and the new
programme;
• a growing distinction, accentuated under MEDIA 2007, appeared
among the main beneficiary countries of the programme, between
France and Germany, on the one hand (over 20% of the annual budget),
and the UK, Italy, Spain, Denmark and Belgium, on the other (5-10%,
on average).
Figure 41: Budget granted to t h e organisations e n g a g e d i n t h e MEDIA
p r o g r a m m e in Group A countries, D e n m a r k a n d B e l g i u m
Figure 4 2 : ( m a p ) B u d g e t t r e n d s p e r r e g i o n b e t w e e n MEDIA P l u s a n d MEDIA

2007
04/06/2010 – page 25
Objectives of the study

Validating the intervention logic of the programme
This interim evaluation was carried out only two years after the programme
was launched, which meant that few projects had been completed and that
most of them were still in their early stages of implementation. I t would
therefore have been premature to make a final judgment on the effectiveness of
MEDIA 2007.
The team consequently focused on the following objectives:
■ checking whether the programme objectives were still suited to the
needs of the audiovisual sector;
■ evaluating the efficiency of the programme management and
implementation;
■ checking whether the first results matched the intervention logic of the
programme;
■ estimating the probability of effectively generating the global effects
expected from the programme, according to its intervention logic.
These objectives required the following:
■ definition of the key conditions of success of the programme in the first
stage of its implementation;
■ identification of the first observable effects among the participants at
the very beginning of their participation, including among non-retained
participants (changes of representations and behaviours - cf.
behavioural a dditiona lity);
• identification and stabilisation of the intervention logic of the
programme at a specific workshop.
Proposing adjustments (prospective approach)

An important objective of this interim evaluation was to make proposals for
adjustments and recommendations for the second half of the programme's
implementation.
The findings and conclusions and the strategic and operational
recommendations attached to them have provided data for the preparation of
the next generation of the programme (prospective dimension of the
evaluation). Whereas the strategic recommendations concern 'the spirit' of the
programme (identified needs, intervention logic), the operational
recommendations concern its implementation.
Updating the data and concepts used in the preceding

evaluations
This interim evaluation was an opportunity to draw on past evaluations of the
MEDIA programmes in order to update the tools and concepts used and to
focus on new subjects. This involved:
updating the intervention logic;
updating the survey on beneficiaries (and comparing the answers
obtained, where possible and relevant).
It was also an opportunity to develop new approaches and thus to lay the
foundations for subsequent evaluations.
04/06/2010 – page 26
More in-depth analysis of new subjects

In addition to this updating, new subjects were considered in greater depth. For
this purpose specific and targeted data were collected, so that precise results
could be obtained.
These in-depth studies were on:
1. the economic challenges facing the audiovisual sector, due to
technological changes and their repercussions on the value chain;
2. the methodologies of certification of cinema admissions, used in the
Member States participating in the MEDIA Programme;
3. the contribution of the European Audiovisual Observatory to the
objectives of the MEDIA Programme
4. zooming in on the VOD/DCD line
5. zooming in on the TV Broadcasting line
6. zooming in on the Initial Training line
7. administrative simplifications
8. the partnership framework agreements.
The 8 in-depth studies are provided in the technical report attached to the
present report.
Answering the evaluation questions

In accordance with the terms of reference, the evaluation team and Steering
Committee reorganised, completed and ranked the evaluation questions
proposed during the first phases of the evaluation.
Five questions were retained:
Q1. To what extent is the MEDIA 2 0 0 7 Programme still suited to the

n e e d s of the European audiovisual sector and professionals in
the sector?
(question of relevance and added value)
Q2. To what extent is the MEDIA 2 0 0 7 Programme designed to meet
the objectives set?
(question of internal coherence)
Q3. In which cases d o the first results of the programme confirm its
intervention logic?
(question of effectiveness)
Q4. To what extent i s the programme likely to generate the expected
impacts?
(question of impacts)
Q5 – To what extent d o e s the programme implementation present a
good cost-benefit ratio?
(question of efficiency)
The Steering Committee gave priority to Questions 1, 2 and 3, respectively

concerning relevance, internal coherence and effectiveness.
04/06/2010 – page 27
Once these evaluation questions had been formulated, success criteria were
associated with them.
The following table synthesizes the evaluation questions and their criteria.
Evaluation Question 1 Criteria to take into account
To what extent is the 1. The programme objectives still match the sector's needs.
2. The traditional action lines of the programme are still suited to
MEDIA 2 0 0 7 Programme meeting the sector's needs.
still suited to the needs of 3. The new action lines of the programme are suited to meeting the
the European audiovisual sector's needs.
sector and media
professionals?
Evaluation Question 2
To what extent is the 1. The traditional action lines implemented are suited to the
programme objectives.
MEDIA 2 0 0 7 Programme 2. The new action lines implemented are suited to the programme
designed to meet the set objectives.
objectives? 3. The eligible activities and implementation mechanisms of the
programme are the most suitable ones for meeting the objectives.
In which cases d o the first 1. The target communities responded appropriately to the
traditional MEDIA action lines.
results of the programme 2. The target communities responded appropriately to the new
confirm its intervention MEDIA action lines.
logic? 3. The financial support and regulatory framework of the
programme influenced the design of the candidates' projects.
4. The financial support and regulatory framework of the
programme influenced the behaviours and know-how of the
candidates who were retained and those who were not.
1. The programme is likely to contribute to increasing the
To what extent is the
circulation of non-national European works.
programme likely t o 2. The programme is likely to contribute to strengthening the
generate the expected competitiveness of the sector.
impacts? 3. The programme is likely to contribute to preserving and
enhancing Europe's cultural diversity and heritage.
To what extent d o e s the 1. The budget and resources of the programme are used
appropriately in relation to the expected outputs and results.
programme 2. The modalities of participation in the programme have been
implementation present a simplified.
good cost-benefit ratio? 3. The frequency and rhythm of calls match the needs and
constraints of the sector.
4. The selection process presents a good cost-benefit ratio.
Throughout the evaluation, a strong distinction has been made between the
traditional action lines of the programme, that is, those which already existed
in the preceding generation of the programme and have therefore already been
evaluated, and the new lines of action which are being evaluated for the first
time.
04/06/2010 – page 28
These lines are distributed as follows:
New lines
Support for continuous training Support for initial

Training
training
Support for Support for the development of Support for the

independent individual projects development of online
producers Support for the development of and offline interactive
catalogues of projects (or Slate works
Funding)
Support for access to i2i funding
Support for TV broadcasting
Distribution of Automatic support Support for video-on-

cinematographic and Selective support demand (VOD) and for
audiovisual w o r k s Support for sales agents digital cinematographic
Support for exhibitors (via distribution (DCN)15
support for distribution in the
network of cinemas that show
European films)
P r o m o t i o n of Access to the market

cinematographic and Promotion of European films in
audiovisual w o r k s the world
Festivals
Horizontal Pilot projects, including support Recent introduction of

actions/pilot for new means of creation and activities for the
projects distribution of content via non- development of new tools
linear services in an open media
environment
Recent introduction of
activities for the
development of
cinematographic web
communities
Key features of the methodology

The evaluation mission started in September 2 0 0 9 a n d ended in May 2010.
15
The VOD-DCN line is part of the „New Technologies� sector. I t has been placed here with
the Distribution sector for the sake of coherence with the intervention logic discussed with
the evaluation Steering Committee and illustrated by the logigram in annex.
04/06/2010 – page 29
Method
The structuring phase
The mission required a first phase of structuring the evaluation approach. I n
this phase:
• preliminary interviews were held;
• the programme intervention logic was reviewed and revised, based on a
documentary analysis and a workshop with members of the Unit and
the Agency (cf. the logigrams presented in annex);
• the objectives of the mission, the evaluation questions and related
criteria and indexes (descriptors and indicators) were defined;
• the evaluation method was stabilized.
This phase was concluded with the writing of an inception report and a
meeting with the evaluation Steering Committee on 14 October 2009.
The collection phase
The collection phase took place mainly in November and December 2009.
Several modes of collection were used:
• collection and analysis of quantitative and qualitative contextual data;
• collection and analysis of the Agency�s database (over 1.8 million cells
analysed);
• questionnaire administered to 32 MEDIA desks (31 answers)16;
• online survey on all the organisations (retained or not) that had applied
for support from the MEDI A 2007 Programme (rate of response for
retained organisations: 36% (474); rate of response for non-retained
organisations: 12% (167); overall rate of response 24%);
individual interviews with programme managers (8 individuals
interviewed);
• collection and analysis of documents.
Analytical phase
This phase took place between January and March 2010. It consisted of:
• 8 in-depth studies on specific issues on which the Commission wanted
more in-depth evaluation (see Technical report) ;
• complementary statistical cross-analyses of the survey results;
• complementary statistical analyses of the programme database;
• a cartographic analysis;
• an analysis of the network.
The results of each of these analyses are supplied in the technical report
attached to the present report.
16
Note that we approached officials at the MEDI A Desks in two ways: as experts of the
programme in direct contact with the beneficiaries, particularly with regard to the
Development and Promotion lines; and as experts of the national or regional markets and
industries in which the beneficiaries were operating.
04/06/2010 – page 30
Note that all the data collected were cross-referenced by m e a n s of a

process known a s triangulation. This process consists in producing
a range of indexes based o n the evaluation grid and all the data
collected. Each finding presented in this report is thus derived from
several data sources, unless otherwise indicated.
Judgement phase
The evaluation conclusions and recommendations were produced during this
phase which took place in April and May 2010.
The conclusions were discussed with the members of the Steering Committee at
a workshop on 20 April 2010.
Brainstorming on the recommendations was held on the same day.
Over 550 individuals (managers, Media Desk officials, programme
beneficiaries, non-beneficiaries, experts, etc.) were requested for their opinions
on the programme.
Limits
Limits of the collection and use of statistical and programme
monitoring data
The collection and use of statistical data, both on the audiovisual sector in
Europe as a whole and on the outputs of the MEDIA 2007 programme in
particular, encountered several limits.
> Availability and exhaustiveness of the data

Certain data required for the evaluation indicators could not be used, either
because they were not collected in the framework of the programme monitoring
or because they were collected but not coded17 or aggregated in the MEDIA
2007 database.
> Comparability of data

The differences between the definitions and methods employed by the various
information sources limit the possibilities of comparison. This is particularly
the case of the statistics obtained from the Executive Agency, the European
Audiovisual Observatory, and the national film agencies18. The results derived
from indicators based on these different sources must be interpreted with
caution.
17
For example, firms whose employees were trained with MEDIA Training support were
not coded.
18
For example, the number of countries counted is not the same, depending on the source.
The 30 countries participating in the MEDIA programme do not correspond to the 36
countries that the EAO sees as comprising Europe, or the 44 countries sometimes classified
as such in the Lumière database. When the statistics of each of the countries concerned in
the EAO Directory are not detailed but provided in an aggregated form, it is not possible to
make comparisons on the same geographic base.
04/06/2010 – page 31
Despite 20 years of European programmes to support the audiovisual sector,

no comparable data or data on the weight of the audiovisual sector in the
various European countries exist yet. The revision of the European statistical
nomenclature of so-called NACE Rev.2 activities proposes a category
„Cinematographic, video and television activities� (J 59.1) but this nomenclature
is still recent and not yet available for all European countries19.
Limits related to the collection tools used
The limits to take into account in using the data collected are specified in the
introduction to the chapters of the technical report attached to the present
report. Each chapter focuses on a data collection tool used.
Limits inherent to the MEDIA 2007 Programme
Complete answers on the first effects obtained in the new action lines
implemented in the framework of MEDIA 2007 have not always been possible,
as some of these lines require time before reaching maturity and being
properly structured.
The MEDIA 2007 Programme is complex in that it articulates multiple types of
support functioning in multiple ways and catering for multiple actors. The
global evaluation does not always afford a detailed, accurate and in-depth view
of certain specific motivations for a type of support and/or actor.) Evaluations
of certain lines in particular (apart from the evaluation of the programme as a
whole) would be necessary to obtain more specific judgements.
19
I n particular, the amounts for France, Spain and Denmark were reconstructed on the
basis of national data.
04/06/2010 – page 32
2 . Adaptation of the MEDIA programme

to the needs of the sector
The following five chapters each answer one of the five evaluation questions.
Each chapter opens with a reminder of the question and the selected judgment
criteria.
Evaluation question 1 Criteria to take into account
To what extent i s the 1. The programme objectives still match the sector's needs.
MEDIA 2 0 0 7 Programme
still suited to the needs of 2. The traditional action lines of the programme are still suited to
the European audiovisual meeting the sector's needs.
sector a n d media
3. The new action lines of the programme are suited to meeting the
professionals? sector's needs.
The programme objectives still match the needs

and challenges of the sector
The programme has a sound capacity for adaptation
The MEDIA 2007 Programme (2007-2013) is the fourth multi-annual
programme since 1991. On the whole, its three main objectives have remained
unchanged:
• preserving and promoting a stronger European audiovisual sector that
reflects and respects Europe's cultural identity and heritage;
• increasing the circulation of European audiovisual works both within
the European Union and beyond;
• strengthening the competitiveness of the European audiovisual sector
by facilitating access to funding - especially for SMEs - and the use of
digital technologies.
The main challenges identified during the ex-ante evaluation of MEDIA 2007
are still just as relevant in 2010:
• imbalance in the European audiovisual market between European
countries with a high production capacity and those with a low
production capacity and/or a limited linguistic area, and the associated
risk of threatened cultural diversity;
• insufficient presence of European films in European and international
markets;
• structural difficulties related to the fragmentation of the market
(especially SMEs, need to strengthen production structures) and
worsened by the effects of the financial and economic crisis;
• profound changes linked to the introduction of new technologies and
technological innovations (difficulty of fully exploiting the possibilities
04/06/2010 – page 33
MEDIA 2007 interim eva lua tion
afforded by digita l technology, need to integra te it throughout the

production cha in from design to the ma rketing of a udiovisua l works);
proliferation a nd diversification of audiovisual products a nd services;
• evolution of the structura l, economic a nd cultura l la ndsca pe of the
audiovisual industry in general;
• chronic lack of private funding in the sector, especially for SMEs.
These challenges ha ve intensified since 2007 from a technological a s well as a n
economic point of view, due to:
1. the ra pid growth of digitiza tion which is impa cting on forma ts,
equipment, rights and modes of consumption;
2. the generalisation a nd multiplication of the uses of the Internet:
■ new channels of broadcasting a re emerging on the Web, nota bly
via social networks
■ new modes of funding a re now a ccessible, such a s crowd-
funding, subscription systems, pa y-a s-you-view, or a dvertising,
but still represent sma ll percentages of production budgets
■ the value chain is disrupted a nd the remuneration of copyrights
has become more complex;
3. increa singly difficult a ccess to funding, notably with a reduction of
national development a id;
4. a phenomenon of finding solutions to difficulties of distribution,
through festiva ls. These a re now 'a lterna tive distribution cha nnels' for
films tha t ha ve not found distributors in the country in which the
festival is held.
These new cha llenges ca n be ta ken into a ccount under the objectives of the
MEDIA 2007 Progra mme.
Audiovisual professiona ls moreover genera lly consider tha t the objectives of
the progra mme correspond to the needs of the a udiovisua l sector. 95% of the
respondents in the survey on a pplica nts for MEDIA 2007 support (whether
retained or not) 20 sa id tha t they were fa irly or very sa tisfied with the
programme a s regards the needs of the European a udiovisua l sector. They even
considered tha t MEDIA 2007 responded better to the needs of the sector tha n
did MEDIA Plus and MEDIA Training.
20
Online survey carried out by Euréval and MCG in December 2009 on all th e
organisations (retained and not retained) ht at tendered for MEDIA 2007 support
(response rate of retained organisations: 36% (474); response rate of non-retained
organisations: 12% (167); global response rate: 24%). Details on th e composition of th e
corpus of respondents and th e results of th e survey can be found in th e tech nical report
attached to th e present report.
04/06/2010 – pa ge 34
Figure 4 3 : R e l e v a n c e a n d e v o l u t i o n of t h e MEDIA P r o g r a m m e
The problems that they are most concerned about generally still concern access to
funding and difficulties of reinventing current models or of designing and
implementing a new, viable economic model 21 .
A constant challenge: updating and improving knowledge of

the sector and its needs
The evaluation highlighted the need to have precise and reliable data on trends in
the sector. The contribution of the European Audiovisual Observatory to the
programme objectives was studied in-depth 2 2 . The main findings are summarized
below.
The C o m m i s s i o n , a m e m b e r of t h e EAO ‘club’

The Observatory is not compelled to meet the objectives of the MEDIA 2007 Programme as
it is not contractually committed to the European Commission except through an
agreement of participation in and funding of the MEDI A Programme. The aim of this
agreement is rationalization, in line with the Commission�s policy of administrative
simplification. The participation of the Commission and of other members of the
Observatory can be likened to „membership of a club� whose internal rules apply to all its
members. As a member, the Commission applies the existing rules.
Partial a n d disparate data
The analysis of the EAO�s research and other activities reveals that the available, supplied
data are disparate and partial in certain cases. It is therefore difficult to cross-reference
them and to identify the information required for monitoring the programme�s specific
needs and objectives. The directory evolves slightly from one year to the next and does not
always publish the same tables with the same data, concepts and indicators. This relative
lack of consistency, along with the lack of availability for the MEDIA Programme of specific
indicators, as such, can hinder their use.
These comments are applicable to audiovisual professionals as well, as the EAO�s studies
cannot be used directly as simple, easy-to-use tools without being processed to meet their
needs.
Possibilities for o p t i m i s a t i o n
The EAO is nevertheless still the only organisation that supplies quantified data on a
European scale, broadly-speaking, which national organizations neither collect nor supply.
Finally, note that since 1 March 2010 the MEDIA 2007 Programme has been under DG
1
Source: exploitation of the answers to the open questions of the survey.
2
The full version of the in-depth study is available in the technical report.
04/06/2010 – page 35
Education and Culture, whereas the „Audiovisual, Media, Internet� Directorate and notably
its Unit A1 – in which the official in charge of the Commission�s relations with the EAO is
situated – remains in DG INFSO.
Even though the funding of the EAO is not challenged by this transfer between the DGs of
the European Commission, what about the Observatory�s relationship with the MEDI A
2007 Programme, from which it is thus separated?
The possibility of directly entering into contracts with the Observatory on an ad hoc basis,
over and above the annual and tri-annual action plans, could be envisaged to enhance the
contribution of the Observatory�s activities to the MEDIA Programme.
Traditional action lines that, on the whole, meet

the needs of the sector
A response adapted to the needs, according to the
professionals
Audiovisual professionals' answers to questions on how the traditional action
lines meet their individual needs and those of their country23 were very
positive. Although some reservations were found with regard to the Festivals
line, these were relatively marginal.
Figure 4 4 : Relevance o f t h e MEDIA p r o g r a m m e lines w i t h regard to t h e n e e d s
of t h e p r o f e s s i o n a l s a n d o f t h e i r country
Growing success among SMEs

The number of applications for the various lines of the programme is another
sign that these lines are suited to the needs of professionals in the sector. I n
this respect there has been a distinct change between MEDIA Plus and MEDI A
2007.
2
3 The so-called 'traditional' or 'classical' action lines are those that already existed under
MEDIA Plus and MEDI A Training: Continuous Training, Development of I ndividual
Projects, Development of Project Catalogues, Access to i2i Funding, TV Broadcasting,
automatic and selective support for Distribution, support for Sales Agents, Cinema Owners
(network of cinemas), Access to Markets, Festivals, Promotion of Films throughout the
World, and Pilot Projects.
04/06/2010 – page 36
Source: Analysis of the MEDIA database24

3,525 organisations applied for support from the MEDIA Programme at least once between
2001 and 2009. Of these, 1,885 were under MEDIA Plus (2000-2006) and 3,091 were
under MEDIA 2007 (2007-2009).
MEDIA 2007 encouraged 1,640 new organisations (i.e. that had never applied to a MEDIA
programme) to apply for a grant. This is almost half the organisations listed.
1,870 organisations have been retained by the MEDIA Programme since 2 0 0 0 , of which
1,020 under MEDIA Plus (selection rate: 54%) and 1,421 under MEDIA 2007 (selection
rate: 46%).
This massive increase in the number of applications received is particularly

visible in the Development line and is a clear indication of the programme's
success. Several explanations can be suggested25:
• the types and modes of support proposed by the programme are well-
suited to the needs of professionals in the sector;
• the communication was more effective (role of the desks and antennae,
of the website, and of the info-days during festivals, in particular);
• the guidelines were understood better because simpler;
• the new Member States are more and more involved26.
Success filled with risks?

Analysis of the database reveals a drop in the success rate of the projects
presented. Newcomers - close to half the organisations listed - that applied to
the MEDIA Programme for the first time with MEDIA 2007 have a particularly
low rate of selection (23%), compared to the general rate (46%), whereas those
organizations that had already applied to MEDIA Plus tend to show a better
success rate (over 70%)27.
The risk of discouragement is particularly high here as these organisations are
very small enterprises 28 that often find it difficult to reapply after a first
refusal29.
Many MEDIA Desks confirm this phenomenon, which they consider as a 'risk:
increasing competition between candidates from different participant countries
to obtain MEDIA support, and 'discouragement' among professionals.
Some needs are not adequately covered

The professionals and the Media Desks report on different types of needs that
are not adequately covered:
24
The full analysis is provided in the technical report attached to the present report.
25
Source: interviews with managers.
26
The share of the projects from new Member States is tending to increase (about 20%) but
with a constant budget (9% in 2008). Source: analysis of the MEDIA database.
27
Source: analysis of the MEDIA database.
28
Category A, <€1.5m of the turnover.
29
Cf. analysis of the MEDIA database. This finding also appeared in other studies and
notably the one undertaken recently by Euréval on the FP7 Programme (study of the future
of projects/applicants not retained, which showed the very large over-representation of
SMEs, especially the most inexperienced, among those organisations that gave up their
European projects subsequent to a refusal).
04/06/2010 – page 37
1. by definition certain lines are inaccessible to professionals in countries

with a weak audiovisual capacity (e.g. Bulgaria, Slovenia, Czech
Republic, Malta) because the criteria are difficult to meet and are ill-
suited to the structure of their national audiovisual sector;
2. certain costs are not eligible, whereas their eligibility seems to be
important to the professionals concerned, e.g. support for VPF (virtual
print fees) in Distribution and TV Broadcasting, for the costs of inviting
European professionals who have no direct connection with the films
presented, or for renting equipment for festivals;
3. certain categories of professionals are not targeted, e.g. distributors for
training sessions, or even producers who should be considered as
„generators of content� and supported in their innovation efforts, not
only in the production phase but also in marketing and management.
The fact that the programme does not cover some of these needs (e.g. eligibility
of certain activities or types of cost) is a deliberate choice (for strategic reasons
or management costs). It seems, however, that this is not the case of needs
pertaining to accessibility for countries with a weak audiovisual production
capacity and to the targeting of certain categories of actors.
New action lines for meeting new needs

The MEDIA Programme seeks to meet the challenges of technological changes
and their impacts on the audiovisual value chain by regularly adjusting the
guidelines of existing actions and, where relevant, opening new lines of support
to meet the emergent needs of the industry.
Enhancing competencies upstream

The introduction of the new action line Initial Training corresponds to a
need expressed by professionals in the sector 30 .
Since the training delivered by cinema schools does not always correspond to
the needs of the market or provide the skills needed for students� subsequent
professional insertion, the MEDIA Programme offers specific support for initial
training.
On the whole, the profession seems to have welcomed this new action line
designed to foster cooperation between higher education institutions and
between these institutions and the film and audiovisual industry31.
Yet, even though the inclusion of support for initial training was met with
enthusiasm by the institutions concerned, it may also have caused confusion in
the programme�s positioning with regard to the established actors of the
audiovisual sector. This is because it is available for the first time to cinema
schools and other higher education institutions linked to the sector, to provide
training for future professionals32.
30
Source: I nterviews with the MEDI A 2007 programme managers.
31
Source: I nterviews with the MEDI A Desks.
32
Source: I nterviews with the Media Desks.
04/06/2010 – page 38
The beneficiaries of this action recognise the relevance of the themes chosen for
intervention, especially those concerning training and management, marketing,
international markets and new technologies33.
In certain Member States this action is complementary to existing national
support for initial training which generally receives little or no support for
international outreach. This action therefore offers added value of a truly
European dimension, via exchanges between training institutions, their
students and their trainers from various Member States.
Meeting the challenge of digitisation

Problems related to the digitisation of content in distribution and exhibition
have been taken into account by MEDIA 2007 through various tools34:
• to facilitate the presence of European audiovisual content in the non-
linear offer circulating in Europe, MEDIA 2007 has made support for
Video on Demand (VOD35) an action line in its own right36. This
support is designed to promote the diversity of audiovisual works
circulating in Europe via VOD platforms;
• to foster cinemas' evolution towards digital technologies, MEDIA 2007
supports the creation of catalogues of digitised works, for exhibitors
(Digital Cinematographic Distribution line);
• by supporting the network of Europa Cinemas, MEDIA 2007 also
supports the programming of European digital films. This support is
designed to make European films available to cinemas already
equipped with digital technology.
These lines have been welcomed by professionals in the sector. Beneficiaries of
the VOD line who participated in the survey expressed real satisfaction that
their needs had been met. This was reinforced by the fact that national support
in these areas is rare.
In the period 2007 to 2009, 46 of the 126 projects that applied for support
under the VOD/DCD line were retained. The line was adjusted in 2008 to focus
more on the economic models of VOD. The amounts concerned were
substantial; in terms of grants per project, VOD projects received the most
support, on average37.
The DCD line generated less enthusiasm, with 11 applications and 4 projects
retained. This raised the question of its relevance. As not all cinemas are
equipped with digital technology, these catalogues of supported programmes
are not immediately exploitable everywhere, which may explain the lack of
enthusiasm among candidates (who may not yet perceive the benefits of this
action).
33
The sector�s traditional professions have evolved and most of the media groups today
want specialists in marketing and communication, as well as graphic artists and experts in
web design.
34
Source: Documentary analysis, interviews with managers, and in-depth studies on the
evolution of the context and VOD.
35
VOD: Video On Demand
36
Support for VOD existed already under the Pilot Project in MEDI A Plus but was
individualised to meet new needs in the sector. Hence, it is owing to these pilot projects that
the VOD/DCD line was launched.
37
Source: Analysis of the MEDI A database.
04/06/2010 – page 39
Developing interactive works

In parallel, in the 'Support for Independent Producers' sector, an action line
was devoted to the development of Interactive Works.
The specificity of the support evolved by shifting from the 'Multimedia Support'
line, under Development, to the 'Interactive Works' line, whose budget was
increased. The eligibility criteria were expanded, especially in terms of types of
applicants38, but the concept of interactive works seems to raise questions.
Support for interactive works implies a common understanding of the concept
of a 'narrative interactive work', which has yet to be achieved (30% of the
applications received are ineligible, for this reason). The conditions on which
support is granted to interactive works have been revised in order to encourage
the creation of multiplatform projects and the establishment of synergies
peculiar to this type of approach. Support is now for projects consisting of
interactive works specifically designed to be complementary to an audiovisual
work (animation, documentary or fiction).
There is a large demand from operators in the field of video games. However,
they show little interest in the support in its current form because it fails to
cover all their financial needs and to cater for all the actors in this sector
characterized by sub-contracting.
90% of the supported projects are nevertheless games.
Support for the development of interactive games has generated much criticism
in the participant Member States39:
• many professionals seem to be opposed to the change in the type of
works classified as eligible; most criticism is against the change itself,
even more than the actual content of the guidelines for support 40 ;
• games publishers feel that the obligation to apply in association with an
audiovisual work reduces their chances of participating in the
programme and therefore also their independence as actors in the
audiovisual field.
Development of the ‘laboratory’ line: the pilot projects

In addition to providing many funding opportunities for the European
audiovisual industry, the MEDIA 2007 Programme also endeavours to ensure
that the latest technologies and trends are integrated into the economic
practices of the programme beneficiaries.
Support for pilot projects aims to contribute to the development of new,
feasible economic models in the market, including new technologies suited to
developments in the audiovisual sector. It contributes to the emergence of new
relations between professionals of the European audiovisual sector and
especially more dialogue between traditional audiovisual media and the new
38
The line is open to any independent European company, not only those operating in the
audiovisual sector. The production of interactive works (or equivalent) is accepted.
39
Source: Interview with the Media Desks.
40
The interactive works supported by the action have to be the fruit of a synergy and
collaboration between the actors of the video game sector and those of the audiovisual
sector.
04/06/2010 – page 40
media/new technologies/E-marketing/social networks/engineers who are not

used to working together.
Different types of action are concerned:
• distribution: new methods of creation and distribution of European
content through non-linear services;
• support for the development of new tools in the open media
environment;
• support for the development of cinematographic web communities (use
of web techniques to develop communities of local cinemas);
• 'Junction Media Portal': expanding and improving access to and use of
structured information on European audiovisual content.
Since support for VOD has become an independent line, it appears that the
Pilot Projects line has not been particularly successful. There have been very
few applications and the projects have not yet been shown to be viable,
although it would take no more than one or two really innovative projects to
validate the relevance of this exploratory line.
Synthesis of the new action lines

The two preceding evaluations also concluded with the overall relevance of the
programme objectives but highlighted the fact that the questions of the use of
new technologies and of the switch to digital technology had not been taken
into account adequately. With the integration of the new action lines this limit
has tended to weaken under MEDIA 2007.
In general, these new action lines correspond to needs that had indeed not been
taken into account adequately in the preceding generation of the programme.
The success of the calls for projects (excluding the Digital Cinema Distribution
(DCD) and Pilot Project lines) shows that they do correspond to real needs in
the sector.
Certain fields and approaches nevertheless still need to be explored to meet the
sector's evolving needs (e.g. links between new and traditional media). As the
new interventions have been limited to restricted fields, it would be interesting
to make a global assessment of the value chain and the issues of rights and of
the new economic models emerging at the initiative of professionals in the
sector.
A recognized added value

The MEDIA 2007 Programme and its action lines show three complementary
forms of added value:
introduction of a European dimension into the co-funded projects,
compared to actions carried out at national level
complementarity with national support
incentive effects on national policies.
MEDIA Programme support enhances the scale 4 1 and the European
dimension of the projects.
41
The phenomenon is more limited in the Selective and Automatic Distribution and the TV
broadcasting lines.
04/06/2010 – page 41
Figure 4 5 : Added value of MEDIA 4 2
In fact, training activities appear to be strongly dependent on European

support. The respondents� answers indicate that close to 60% of training
activities would disappear without it.
In a large majority of cases, MEDI A is deemed to be complementary to
existing national support, in so far as the programme supports elements
which receive little or no national support.
42
Source: Survey on professionals who applied for MEDI A support. The answers obtained
when the question was asked differently („Had you not received support from MEDIA,
could you have carried your project through?�) confirm these findings. The applicants
describe a project that generally would have been less ambitious or even non-existent
(Training, Pilot Projects, Access to the Market). The graph presented does not cover all the
MEDIA beneficiaries, especially in so far as the wording of the question differed, depending
on the type of support.
04/06/2010 - page 42
Figure 46: Judgment on the complexity of the MEDIA programme with existing national
support
As far as your situation is concerned, would you say that national and European
support for funding are complementary?
Development
ъ ■
-¡ Conflict
VOD
J MEDIA strengthens national support (it

Access to markets supports the same elements)
-ļ ~ ~
MEDIA is complementary (it supports
f
Training
elements that are not covered by national
support)
Festivals I No national support offered
L
íl
0% 20%
ŕ
40%
ŕ
60%
ŕ
80%
<
100%
Finally, the programme seems to ‘inspire’ national policies, and a number

of trends have been identified in various countries43:
• new laws and regulations are being debated or have been passed in
Hungary, Italy, Lithuania, Norway and Slovenia, for example, which
alter the conditions of activity in the audiovisual sector (strategic
guidelines and conditions for support, tax measures, etc.);
• institutions such as national cinema institutes or funds:
o creation for the first time of this type of institution with a view
to structuring the national audiovisual sector, e.g. in Croatia,
Slovakia and Malta;
o increase in the funds allocated to this type of institution for the
purpose of developing the national audiovisual sector: in
Austria, Cyprus and Czech Republic;
• finally, but less unanimously, some Desks point out an effect of MEDIA
on the structuring of national support (e.g. in Malta).
However, it has also been found that certain national authorities reduce the
funds allocated to support for the audiovisual sector (e.g. the UK and Bulgaria),
believing that the regional authorities and the MEDIA Programme will
compensate (e.g. Germany and Italy).
43
Source: Media Desks
04/06/2010 – page 43
On the MEDIA Programme’s adaptation to the n e e d s of the sector

Note: I n order to facilitate the reading of the report and reflection on it, the
findings (Fg) drawn from the analysis are synthesised, numbered and
presented in a grey box at the end of each section of this report. The
evaluation conclusions are based on these findings and refer to their
numbers.
Fg 1 The programme objectives do correspond to the needs of the

audiovisual sector. Professionals in the sector consider that
MEDIA 2007 more adequately fulfils the sector�s needs than did
MEDIA Plus and MEDIA Training.
Fg 2 The action lines are on the whole suited to the needs of the
sector, even though some needs are not covered. These concern
the eligibility of costs, organisations or activities, depending on
the action line.
Fg 3 The new action lines implemented in the MEDI A 2007
Programme do indeed meet needs that were not adequately
taken into account in the preceding generation of the
programme. However, some fields and approaches still need to
be explored to cater better for the needs of the market which is
evolving in pace with new technologies, that is, very fast.
Fg 4 The increase in the number of applications to the programme,
for the same number of countries and geographic field, (3,091
over three years, compared to 1,885 under MEDIA Plus over the
entire period 2000-2006) is evidence that the action lines are
suited to the needs of professionals in the sector.
Fg 5 The increase in the number of applications (especially in
development) implies a growth of competition and more severe
selection, which can result in discouragement among
professionals, especially very small businesses.
Fg 6 The MEDIA 2007 Programme presents a significant added value
reflected in the introduction of a European dimension in the
projects, in the complementarity with national support, and in
incentive effects on national policies.
04/06/2010 – page 44
3. Internal coherence of the MEDIA

programme
To what extent is the 1. The traditional action lines implemented match the programme
MEDIA 2 0 0 7 Programme objectives.
designed to meet the
2. The new action lines implemented match the programme
objectives?
objectives.
3. The eligible activities and the mechanisms of implementation of

the programme are the most suitable ones for meeting the
objectives.
General coherence confirmed

The preceding two evaluations (the second interim evaluation 44 and the
final evaluation 45 of the MEDIA Plus and MEDIA Training Programmes)
concluded that the programme was internally coherent. However, a lack of
prioritisation between the two main programme objectives – out of 8 set at
the time: competitiveness of the sector and promotion of cultural and
linguistic diversity – were identified as generating contradictions in the
implementation of certain action lines (especially promotion) 46 . By the end
of the programme this was no longer a problem 47 .
A choice was made among the objectives of the MEDIA 2007 Programme,
limiting them to three:
1. preserving and enhancing European cultural diversity;
44
http://ec.europa.eu/information_society/media/docs/overview/evaluation/reports/me
dia%20plus/rapport_finale_m_plus.pdf
45
http://ec.europa.eu/information_society/media/docs/overview/evaluation/reports/med
ia%20plus/rapport_finale_m_plus.pdf
46
The second interim evaluation: “The introduction of respect for and promotion of
cultural and linguistic diversity as an objective of the MEDIA Programme can lead to
contradictions with the main objective of improving the competitiveness of the sector. In
certain fields (mainly promotion, as well as the distribution line – selective support), the
promotion of cultural diversity does not automatically support the objective of improving
the competitiveness of the European audiovisual sector as a whole.”
47
The final evaluation: “The ambiguity between the objectives of diversity and
competitiveness, pointed out in the second mid-term evaluation, tended to disappear at the
end of the programme, even though no measures in favour of cultural and linguistic
diversity were clearly put forward within the MEDIA Programme.”
04/06/2010 – page 45
2. increasing the circulation of European audiovisual works within and

outside the European Union;
3. strengthening the competitiveness of the European audiovisual sector.
Some of the objectives of preceding programmes thus became priorities (e.g.
digitisation or the narrowing of the gap between 'large' and 'small' countries on
the European audiovisual scene), while others were excluded (e.g. enhancing
training skills).
This exercise contributed to clarifying the intervention logic of the programme
and its legibility from the stakeholders' point of view.
The general architecture of the programme was gradually improved over the
years and has now attained a high level of sophistication. The various tools and
the conditions of their implementation have been adjusted many times to in
relation to three constraints: their appropriateness for meeting the sector's
needs, their effectiveness, and their management 'cost'. The MEDIA 2007
Programme has been revised accordingly several times since its inception.
Collective reflection on the action theory of the programme, conducted in the
framework of the present evaluation with 15 members of the EACEA Media
Unit, confirmed the overall coherence of the intervention logic.
But a weakness of actions in favour of

developing the demand
This reflection, the results of which are presented in annex to the present
report, clearly shows the intervention logic of the programme and highlights
the existence of a shortcoming in the approach.
Many action lines contribute to structuring the sector (skills acquisition,
networking, organisation of distribution channels) and to improving the
European audiovisual offer (new skills acquisition, development of diversified
and attractive products, improvement of distribution and promotion and thus
of circulation) but few actions target the demand. It seems however that
this is an important aspect in developing the audiences of non-national
European works, and thus of furthering the objectives of circulation,
competitiveness and preservation of the diversity of European works.
Clearly, little is done in this respect, apart from actions media literacy, usually
intended for a young public and present (to a small extent only) in the following
lines: Network of Cinemas, Promotion of European Films in the World, and
Festivals.
Many Media Desks have pointed out this shortcoming and suggested the need
to reinforce actions to support cinema education and actions directly aimed at
stimulating the demand for European works.
The Pilot Projects line concerning the development of local cinematographic
Web communities has interesting potential in this respect.
04/06/2010 – page 46
Positive discrimination to reduce imbalances

and preserve cultural diversity: an appropriate
but incomplete approach
The objective of preserving/enhancing cultural diversity and European works is
largely based on actions aimed at reducing imbalances between 'small' and
'large' countries on the European audiovisual scene. To that end, the
programme provides for measures of positive discrimination in favour of
countries with a low production capacity and/or a limited linguistic area. This
is a mainstreaming approach that does not have specific action lines.
The final evaluation of the MEDIA Plus programme showed that the criteria of
positive discrimination, designed to encourage professionals in the main
producing countries to collaborate with the 'smallest' countries, did really
favour the best integration of these players and of their works in European
distribution networks and channels, respectively48.
This finding is tending to be confirmed as positive discrimination measures
contribute substantially to meeting the objective of diversity, especially on the
Access to Markets, Development, and Festivals lines49, generally via the
allocation of additional points.
Examples:
For the ‘Access to t h e Market’ line, the objective is twofold: to create a
geographical balance for the small markets of these supported countries, so that
they can attract professionals from large countries; and, conversely, to help the
large European markets to invite professionals from these small countries.
For the ‘Development’ line, two points are automatically attributed in the
evaluation grid to projects from countries with a weak production capacity (new
guidelines in 2008). But there are few projects from these countries in the 'Slate'
line, and more in the 'Single' line, in which the number of applications from
countries with a low production capacity has increased.
As regards support for ‘Festivals’, positive discrimination is a barrier to entry.
From the eligibility stage positive discrimination is taken into account, as at least
70% of the works programmed by festivals receiving support have to be European.
The European dimension is compulsory even for the participants of the Training
programmes that receive support. Generally, training programmes whose
geographic scope and positioning is oriented primarily towards the new Member
States are at an advantage.
As regards the ‘Sales Agents’ line, positive discrimination is particularly strong;
depending on the rules, the distributors must reinvest in non-national European
films.
But while the proportion of organisations in Group C countries has been

increasing since their entry into the programme (20% more projects in 2009),
the proportion of the budget allocated to them has remained constant (8%).
The average budget per organisation in these countries is therefore gradually
declining.
Many of the actors concerned (professionals, Media Desks) therefore
emphasise the necessity t o rebalance the programme in favour of
48
Conclusion 10 of the final evaluation
49
Source: Analysis of the MEDIA database.
04/06/2010 – page 47
countries with a low production capacity, by guaranteeing accessibility to all the

lines and accentuating positive discrimination.
On the whole the action lines and selection

criteria match the programme objectives
In general, the action lines implemented match the objectives and priorities of
the programme.
Over the years, the amendments to the former action lines (those in the
preceding generation of the programme) have contributed to maintaining their
relevance and ensuring the conditions of their effectiveness50.
The attribution criteria are generally deemed to be well-suited to the objectives
of the programme; they are designed to ensure that selection is competitive, by
evaluating projects from a quantitative and qualitative point of view so that
only the best ones are selected51.
Examples:
. With regard to Development, the 'Slate Development' action line meets the
objectives of competitiveness, while the 'Single Development' action line meets
those of cultural diversity.
. With regard to ‘Festivals’ there are three main families of criteria:
o rich and varied programming from a geographic and cultural point of
view;
o the public must be broad and structured: a large audience but also
qualitative aspects such as media literacy and interaction with the public;
o the professionals must be targeted and varied, with a particular focus on
young talent and young film-makers, and must favour a broader
distribution of films.
. With regard to VOD, criteria of competitiveness include marketing, content, and
business models. Qualitative criteria have been developed (e.g. a clear editorial
line) to meet the objectives of circulation of works and cultural diversity.
Some weaknesses nevertheless limit the capacity of certain lines to meet the
objectives set, especially among the new action lines. These weaknesses may
concern deadlines, communication, or the targeting of actions or players.
Examples:
• Often there is a long interval between the publication of the guidelines and the
selection of projects (generally over six months) 5 2 and this is a problem, notably in
fast-evolving sectors with high demands in terms of reactivity, such as VOD.
• The circulation of information is sometimes inappropriate. This is notably the case
of the Pilot Projects, where the question of types of eligible candidates is a problem.
The Media Desks cater only for the classical/traditional players in the sector and are
known only to them, whereas this line is intended for all kinds of candidates. The
very nature of this support makes its 'promotion' more complex.
50
Sources: Preceding evaluations; interviews with the managers.
51
Idem.
52
Source: Interviews with the managers.
04/06/2010 – page 48
As regards initial training, the lack of the capacity of firms in the sector to
accommodate young professionals appears to be a problem. These young
professionals are consequently tempted to set up their own businesses, which can
lead to saturation in the s e c t o r . In this respect, the importance of working on the
relationship between training institutions and firms is confirmed.
With regard to continuous training, distributors and producers of animation hardly
seem to be targeted. Training projects intended for producers, especially on subjects
pertaining to the management of production companies, would be welcome54 and
would contribute to structuring the profession.
A problem of targeting has been identified in support for VOD. As the guidelines
support those who already have rights, there tends to be a proliferation of platforms
rather than the circulation of rights on the various platforms, which would optimise
the potential of the long-tail economy. Although this is not an objective of the
programme, the projects supported tend to reinforce national dimensions rather
than large markets. The fact that rights are granted to countries individually is a
complicating factor .
Support for TV Broadcasting also has several limits:

■ the ineligibility of TVbroadcasters, even though they are the main agents of the
circulation of audiovisual works;
■ the contradiction between the requirement of a large number of broadcasters and
the value attributed to a large minimum guarantee (MG) provided by a
distributor. These two criteria may be in conflict because a large MG implies the
possibility of selling a work in several countries. A MG is an advance on sales
receipts which enables beneficiary producers to complete their financing. The
agent who proposes the MG is remunerated on the basis of a commission on
programme sales (usuahy 30%). This means that to recoup a €500,000 MG on a
90-minute fiction film, the agent has to have a turnover of at least €l.5m.
Considering the average sales prices of programmes 55 on European markets, by
type of broadcaster (and by type of programme), it is necessary to sell the
programme in four big territories (average turnover for TV rights only, a
maximum of €250-300,000) and in a large number of other territories. It is also
necessary to sell the home-video rights within and outside Europe;
■ the gap between price trends in the market (amounts allocated by a broadcaster
for acquisitions or co-productions for a particular time-slot 56 ) and the
investments required by the MEDIA score grid;
■ the line does not really highlight support for specific expenditures on sales and
circulation of works (commercial dubbing into English, HD transfers for DVD
and VOD publishing, etc.) but includes them in post-production;
■ promotion, especially on the W eb - which is currently a laboratory of the
traditional TV market for the development of more innovative ideas and lower-
cost production - is not supported.
53
Source: Interviews with managers.
54
Only 20 firms p er year receive training in this resp ect. Source: Interviews with
managers.
55
These p rices are p rovided in the case study.
56
These amounts vary from one time-slot to another (e.g. p rime time as op p osed to the
afternoon, or mainstream broadcasters as op p osed to theme-sp ecific or small channels).
04/06/2010 – page 49
On the internal coherence of the MEDIA programme:

Fg 7 The overall internal coherence of the programme is confirmed.
Fg 8 It seems however that one lever has not been treated adequately:
actions to promote the development of the demand.
Fg 9 The system of positive discrimination is suited to the objectives
of reducing the imbalances between 'small' and 'large'
audiovisual-producing countries and preserving cultural
diversity, but some action lines are still not readily accessible for
'small' countries.
Fg 10 The 'traditional' action lines (those that already existed in the
preceding generation of the programme) are fairly well suited to
the objectives of the programme. The TV Broadcasting line
would be more relevant if the support were also open to the main
agents circulating works, i.e. distributors of TV programmes.
Fg 11 The new action lines do meet needs that were not previously
covered, but still have shortcomings in terms of communication,
prioritising, and targeting of players and actions.
04/06/2010 - page 50
4. First effects of the MEDIA Programme
In which cases d o the first 1. The target communities responded appropriately to the classical
results of the programme MEDIA action lines.
confirm its intervention
2. The target communities responded appropriately o the new
logic? MEDIA action lines.

programme influenced the design of the applicants� projects.

programme influenced the behaviours and know-how of the
retained and non-retained applicants.
Expected effects of the traditional MEDIA lines

on the target organisations
Sound benefits derived from the preceding generation of the
MEDIA Programme
The so-called traditional action lines are those that were already implemented
in the preceding generation of MEDI A. They have therefore been evaluated
several times and it is interesting to examine those evaluations.
The evaluations of MEDI A Plus and MEDI A Training57 provided positive
answers to the question of the effectiveness of the traditional lines of the
programme:
“The main mechanisms of MEDI A contribute effectively towards enhancing competencies
(Training), developing the European dimension of works from the pre-production phase
(Development), improving the competitiveness of the sector (Distribution, mainly, by
reducing risks and strengthening the beneficiaries� financial capacities) and promoting the
cross-border circulation of works (Distribution and Promotion).”
Final evaluation of the MEDI A Plus and MEDI A Training Programmes
Larger projects with a strongly European dimension

The survey on participants in MEDI A 2007 highlighted the fact that in almost
all cases (with the exception of marginal reservations concerning the
Development line), the discontinuation of MEDI A support would negatively
affect the applicant�s project/activity, essentially in terms of scale and
European dimension.
First and second mid-term evaluations and final evaluation.
04/06/2010 – page 51
Continuous Training: an enhanced and recognised European

offer
An enhanced offer
The analysis of the data collected on the Continuous Training line showed up
four noteworthy facts:
1. The distribution of trainees reflects the usual weight of countries in the
programme, with the five main countries in the lead. By comparing
these figures with the number of inhabitants, the analysis shows the
benefits not only for 'small countries' (a classical bias in this type of
weighting) but also for a fair number of'average countries'.
2. The analysis of the network reveals two types of actor:
У 'client' countries, beneficiaries of the Programme for their
nationals (e.g. Ireland, Portugal, Slovakia, Estonia, Cyprus, etc.)
in which there is little or no available training offer;
'provider' countries which host training programmes and whose
nationals do not receive training abroad (e.g. Luxemburg58,
Denmark or Greece).
3. A core of denser relations between countries appears, with Germany
and the UK at the centre, surrounded by France, Italy, Spain and the
Netherlands. The citizens of these countries who received training with
MEDIA support are characterized by their numbers and the diversity of
their destinations for training.
In general, all the training institutions supported that participated in
the survey claimed that MEDIA had a 'network effect' which enabled
them to build relations with other European organisations.
58
For obvious statistical reasons.
04/06/2010 – page 52
Figure 4 7 : Trainees a n d place of c o n t i n u o u s training: n e t w o r k a n a l y s i s 5 9
4. The training activities appear to be relatively dependent on European

support. According to the respondents in the survey, 60% of the
training activities would not have been possible without MEDIA
support.
It therefore appears that MEDIA contributes to enhancing the offer in the
European audiovisual sector. It ensures the existence of an offer that partially
depends on its support, that benefits all the countries differently, depending on
their positioning, and that benefits from a structuring network effect that is
important for their consolidation.
A consolidated European dimension
The European dimension of continuous training is clearly visible in the analysis
of the network and dynamics between the countries shown above. A large
majority of the training actions supported by MEDIA draws a public of
professionals or future professions towards foreign countries. By comparison,
the proportion of non-national European teachers is slightly lower but still
exceeds 50%, on average. Close to 70% of the training organisations state that
this share of the non-national European trainees and teachers would have been
smaller without the support of MEDIA. The Programme has thus contributed
59
In this diagram, the thickness of the lines is based on the number of people trained in a
country. The links are red when they exceed 25 relationships. The diameter of circles is
based on the number of incoming links (hence, the number of people trained in a country).
The colour depends on the number of outgoing links (the countries with the highest number
of trainees are shown in red).
04/06/2010 – page 53
to strengthening the European dimension of training actions, already well-

integrated by training institutions and participants.
A largely recognised quality label
MEDIA training is still considered as a label of quality. This is the opinion of
close to 90% of the respondents in the inquiry60 (slightly up from 82% in
2005).
Recognised link between support for training and support for
development
We undertook an exploratory analysis of the companies whose employees had
been trained with the support of the MEDIA Programme between 2006 and
2008. A total of 353 businesses were identi fied61:
■ 228 had been retained at least once since 2000 (according to the data
available per action line), that is, over 12% of the organisations
retained;
■ 173 had been retained under MEDIA 2007, that is, also 12% of the
organisations retained.
An overwhelming majority of these firms are independent audiovisual
producers, 85% of which had applied at least once to MEDIA Development
since 2001. Hence, links clearly exist between participation in support for
training and the other lines of support. An in-depth study would be required to
determine the specific drivers of this multiple participation.
Points requiring vigilance
The actors nevertheless express some reservations, which point to possibilities
for improvement:
■ support for the mobility of professionals and future professionals is the
determining factor in the decision to undergo training in a foreign
country;
■ some professionals still have a negative perception of continuous
training; this action line will therefore need to be strongly promoted;
■ the overall legibility of supported training does not seem to be optimal
(training poorly recorded, redundant, cancelled from one year to the
next).
Support for development: more importance granted to pre-

production and more open internationally
More investment in the pre-production stage
In close to 90% of the cases, the respondents in the survey stated that MEDIA
support enabled them to become more involved in development, to varying
degrees (slightly, for a third of them; significantly, for just over half of them -
cf. the graph below).
All professionals except training institutions.

61
It is impossible to say exactly how many firms have employees who benefited from
training, nor how many employees per firm (several, in many cases), as these data were
not coded. The figure given here is a low estimate.
04/06/2010 – page 54
The effect of MEDIA is greater in the case of organisations located outside the
five main countries (61% of them attribute a significant effect to MEDIA,
against 47% of the organizations situated in those five countries). Moreover, the
smaller the firm, the greater the effect of MEDIA on its investment in
Development tends to be.
Figure 4 8 : Contribution of MEDIA t o t h e i m p o r t a n c e g r a n t e d t o D e v e l o p m e n t
Without MEDIA support, would your involvement in development be the same?
1%
12%
No, it would be much lower

No, it would be slightly lower
Yes, it would be the same
33% No, it would be higher
87 %
All of the MEDIA Desks emphasise the success of support for Development.
According to them it meets professionals' real needs and has contributed to the
increasing importance granted to this phase.
A recognised positive effect on increasing activity and its
internationalisation
Respondents in the survey almost unanimously stated that MEDIA had
contributed to:
increasing their activity (97 % of the respondents)
in increasing their development projects oriented towards the
international market (92%).
On the latter point, incentives inherent in MEDIA support directly explain the
increasing development of projects with a strongly European dimension.
Support that is a victim of its success?
Notwithstanding its recognised effectiveness, the line is often described,
especially by the MEDIA Desks, as „a victim of its success�. As it has become
extremely competitive, the cost of access is high, while the chances of obtaining
support have declined.
Support for access to funds: barely perceptible effects

Support for access to funding is particularly important to producers who are
affected by declining public grants (including European, in so far as
competition between applicants has increased), the reluctance of banks to grant
loans, and persistent difficulties in mounting co-productions.
04/06/2010 – page 55
The beneficiaries of i2i all describe the value of MEDIA support in the same
terms: they emphasise the reduction of their financial costs, which is the main
aim of the support, and to a lesser degree the fact that they receive more
support from their banks (see the graph below – weak base = 8).
Figure 4 9 : Effects of MEDIA i2i
In terms of the structuring of projects, it is interesting to note that the

beneficiaries of support for Development (individual projects and catalogue of
projects) are highly satisfied with the improvement of their conditions of
production, the consolidation of their financial arrangement and, to a lesser
extent, greater facility in finding partners. On the other hand, access to bank
loans remains a difficulty emphasized by three-quarters of the respondents 62 .
Support for TV Broadcasting: cooperation still difficult but
effective security for rights
A twofold objective that is difficult to meet
While all the respondents consider, to varying degrees, that MEDIA contributes
to strengthening commercial cooperation between producers and distributors
(slightly over half of them answered „Yes, definitely� and slightly under half
„Yes, partly�), other data show persistent difficulties.
Co-production is still a mode of functioning that is difficult to set up, especially
in projects with large budgets.
Almost all the countries of the European Union benefited from this line during
the period 2006-2009, except for the Czech Republic, Cyprus, Luxemburg and
Malta, possibly owing to a points system favouring small countries and the new
Member States. On average, the projects retained each brought together just
over 16 countries.
On the TV Broadcasting line, the domination of the French and German
audiovisual sectors is evident (respectively 29.3% and 22.5% - data transmitted
by the MEDIA Unit), followed by Britain and Sweden (over 10%). However, it is
the position of the other two in the „Big 5� that distinguishes this line, since Italy
and Spain each account for only 2% of the line.
62
This major difficulty is confirmed by the results of the study conducted by Peacefulfish
for DG INFSO (Study on the role of banks in the film industry, May 2009).
04/06/2010 – page 56
Many of the other countries (8 of the 31 MEDIA countries) benefited from

support for only one or two projects (e.g. Bulgaria, Estonia, Slovenia). One of
the challenges of MEDI A 2007 is not only to be able to support ambitious
European projects capable of generating revenue to recoup the guaranteed
minima (GM), but also to circulate works and to support the projects of
countries with a weak production capacity or limited geographical area. This
twofold objective is not being met by the current mechanism of the line. For the
same number of distributors, this mechanism favours projects which receive
large GMs but that are unlikely to be recouped. Only the strongest projects and
more aggressive sales agents are able to recover the GM, which is moreover
generally seen as additional funding rather than an encouragement to sell.
Strengthened rights
More conclusive results were obtained with regard to the strengthening of
independent producers� rights. On the whole, the respondents in the survey
stated that they were satisfied with the way in which their producers� rights had
been secured (over 75% positive answers).
The fact that MEDI A support is not linked to national or local expenditures
means that producers have greater freedom and facility in creating and filming,
in addition to having the means to secure their rights. Since the creation of this
action line, MEDI A has provided for the sale of rights to distributors for a
maximum of seven years. Once this period has expired, producers can recover
these strategic rights and attempt to extract value from them again on other
media.
Points requiring vigilance
The effectiveness of the line does not seem to be optimal, primarily for the
following reasons:
■ there is clearly a gap between the type of works supported by MEDIA in
the Support for TV Broadcasting, and European channels�
programmes63;
■ the main agents circulating audiovisual works - TV distributors - are
not eligible;
■ there is a contradiction between the large number of broadcasters
required and the presence of a MG by a distributor;
■ there is a gap between the market price trends (costs of the grid) and
the investments required by the MEDI A score grid. Market prices are
low and are decreasing further, due to the abundant offer and the
competition on the markets. Apart from a few prestige products that the
national channels want to have in co-production, or some pre-
acquisitions for the channels of the secondary market that develop an
editorial policy (Orange fiction in France), the market is characterised
by simple acquisitions (not dubbed);
63
The percentage of animation products and documentaries supported by the TV
Broadcasting line is not correlated with their place in the channel grids. Of the 80 projects
supported during the last three calls, 60% (48 projects) are documentaries, 17.5% (14) are
animation works, and 22.5% (18) are fictions. Of the programming of the 133 European
broadcasters, fiction accounted for 49.55% of the hours broadcast (569,462 hours) and
animation 8.04% (91,779 hours) – Source: MCG/Peacefulfish, Study on dubbing and
subtitling need and practices of the European audiovisual industry, European Commission,
2007.
04/06/2010 – page 57
many channels of small countries or new channels have no access to the

best of European production, due to the gap between these
broadcasters� financial capacities and the related costs (especially
dubbing which can double or even triple the purchase price of the
programme);
the line concerns expenditures on promotion and access to the market
in the post-production budget line (for the production of the final
master or ready to broadcast) and does not really emphasise support for
specific expenses incurred by the sale and circulation of works
(commercial dubbing into English, HD transfers for DVD and VOD
publishing, etc.);
promotion, especially on the Web - currently a laboratory of the
traditional TV market for the development of more innovative ideas and
low-cost production - is not supported 64 .
Support for distribution: the best conditions of distribution

and a definite network effect
Automatic support: improved conditions of distribution
On the whole, the respondents in the survey, beneficiaries of support for
Distribution, asses the contribution of MEDI A in the distribution sector
positively, especially in terms of reducing risks inherent in the distribution of
non-national European (NNE) films.
They are slightly less unanimous when it comes to the contribution of MEDI A
to increasing private investments in NNE films (cf. distributors weak choice of
reinvestment in the coproduction module).
Figure 5 0 : Effects of MEDIA s u p p o r t t o Distribution
Would you say that MEDIA support made it possible ...

/1
to favour the distribution and release of non national European
films on the European market ? ι ^^_
^
the increase of private investment in non national European
films?
É ^ ^ ^^_ p Not at all
^ ^ _
No, not really
to reduce the risks inherent to the distribution of non national 1. Yes, partly
European works? Yes, definitely
1
to improve the release conditions on the market of the NNE you
invested in?
K
¿—À—¿—À—4—¿—¿—/
0% 10% 20% 30% 40% 50% 60% 70%
The number of countries in which NNE films are distributed varied little
between MEDIA Plus (30) and MEDIA 2007 (31).
64
NATPE Conference 2010.
04/06/2010 - page 58
Selective support: an enlarged and sustainable network

The answers in the online survey show that the fact of applying for MEDIA
support led to new contacts65, especially in the case of distributors located in
the 5 largest countries. Networking is probably less crucial for these
distributors, and/or limited to known partners from other 'Big 5' countries,
and/or oriented more towards the international scene (see the graph below).
While the majority of respondents consider that increased contact with other
European distributors is on the whole satisfactory, contact with the production
sector seems to generate more problems. Just under half the respondents,
mostly situated outside the 5 big countries, state that MEDIA has been of little
help in solving these problems.
The networks constituted could be sustainable since 93% of the respondents
envisage renewed cooperation with their partners in the near future ('definitel/
for just under one third and 'probably' for close to two thirds).
The network analysis based on distribution data-selective support over the
period 2000-2008 corroborates this idea of a network open to new
collaboration and characterised by lasting relations.
Main l e s s o n s l e a r n e d f r o m t h e analysis of t h e n e t w o r k o f selec tive distribution
■ The 409 6 6 organisations involved are all connected to one another.
■ There are close to 10,000 combinations between these organisations, 3,500 of
which were renewed at least once. 225 firms make pairs appearing at least three
times. These relations are lasting and are renewed every two to three years, on
average.
■ The diameter of the network (that is, the maximum distance between two actors) is
4, which means that there are always fewer than 4 hops to make to link up two
actors, although on average there are only 2 jumps to make. This is generally
characteristic of so-cahed 'smah-world networks.
■ Each node has an average of 46 neighbours, which means that each actor has
generally been in a consortium with over 10% of all the actors.
■ The core of the network (that is, the densest zone) consists of some 50
organisations, and its crown consists of about 200. In total this is close to two
thirds of the actors presented.
■ The analysis of the 50 most connected actors - apart from consortiums (see below)
- reveals several groups with capitalistic relations, e.g. 5 'SPI International', 3
'Sandrew Metronome', 2 'Cinéart' and 2 'Continental Film'.
■ It would be wrong to believe however that the most connected actors only have
relations with one another. The analysis of the differences in connectivity between
members of consortiums shows a degree of amplitude that is generally between 0.4
points and 0.8 points (given that the average of the network is 2 and that the
points vary between 1.4 and 2.8 jumps between two actors).
■ The analysis by the actors' country of origin shows: (l) that the line allows for
collaboration on a European scale, for actors of all the countries concerned (the
actors of a given country collectively had relations with actors from 27 - 29 out of
30 other countries); and (2) the densest relations in geographical terms for film
distribution, notably between Germany, the Netherlands, Belgium, Spain and
France.
65
In nearly 3 out of 5 cases, the majority of partners in the consortium constituted by
selective support were not acquainted prior to that.
66
This figure is slightly lower than the total number of actors involved, as consortiums
with only one actor were excluded from the database used.
04/06/2010 – page 59
Support for sales agents: uncertain effects

The evaluation team was unable to obtain sufficiently reliable data on the
effectiveness of this support.
It is nevertheless probable that this support contributes to the circulation of
NNE works, in so far as it makes it possible to offer a market to the commercial
agents for the constitution of networks, and to reduce promotion costs in third
countries. The link between MEDIA support and the increase of sales in Europe
and in third countries has not been established, due to the lack of available
data.
Support for networks of cinemas: positive effects

Europa Cinemas has allowed for the networking of cinemas, as it covers 42
countries and concerns 475 towns, 816 cinemas and 2,070 screens (1,916
screens in the countries participating in MEDIA), and the number of members
is tending to increase.
By comparison, for the year 2008 the EAO recorded 29,225 screens in Europe-
27 and 33,845 in Europe-3467. Therefore, by definition, the effects linked to the
existence of this support are valid for a marginal proportion of all the cinemas
in Europe.
Yet, if we take into consideration only art cinemas, the results differ. In Europe
there are 2,476 such cinemas and 4,167 screens 68 . Thus, Europa Cinemas
accounts for 39.4% of the art cinema screens in Europe.
Data for 2007 and 2008 show a decline in 2008 in the number of national film
shows (from 24.1% to 22.76%), as well as non-national European film shows
(from 38.99% to 33.48%). This drop in the number of film shows is
accompanied by a decreasing number of admissions.
The explanation for this decrease depends on the beneficiary:
■ 2008 was a good year for American filmmakers (No Country for Old
Men and Burn after Reading by the Coen Brothers, Into the Wild by
Sean Penn, Changeling by Clint Eastwood, Juno by Jason Reitman,
There will be Blood by Paul Thomas Anderson, The Darjeeling Limited
by Wes Anderson, etc.);
■ some films co-produced with Europe, which could have been box-office
successes (Caramel, The Band's Visit, Lemon Tree, In Bruges), did not
obtain European qualification on the basis of MEDIA criteria;
■ expansion of the network in regions that were weaker in terms of
European programming (new cinemas on 01/01/2008 in Czech
Republic, Finland, Portugal, Slovakia, Ireland and UK ) also contributed
to a decrease in the number of film shows and admissions.
The year 2007 was particularly positive in terms of programming of non-
national European films, which accounted for 38.99% of all film shows in 2007,
against 36.24% in the following year. Over the period 2000-2008, the best
performance of cinemas in the network, in terms of programming of NNE
films, was in 2007 (see the graph below).
67
In 2007, MEDIA Salles included 31,480 screens in Western, Central and Eastern
European countries.
68
MEDIA Salles figures for 2008.
04/06/2010 - page 60
European Commission – DG INFSO
Figure 51: Number of film shows in the Europa Cinema network – Source:
Europa Cinema
MEDIA 2007 strengthened its incentives aimed at enhancing the quality of

educational actions and raising awareness among young audiences. The
guidelines of support for programming devoted to young audiences changed in
2008: cinemas in the network wishing to receive this support can no longer
simply programme films for young audiences; they also have to propose
„animation� to promote the films chosen. More severe guidelines are probably
one of the factors explaining poorer results in 2008 compared to 2007 (lower
number of film shows and admissions – see the table below69).
Number of film shows Number of admissions

for young audiences of young audiences
2007 11,523 2,225,062

2008 10,745 2,172,111
Support for promotion: more visibility for films and an

extended network of professionals
More visible NNE films
Just over 80% of the professionals questioned in the online survey considered
that the MEDI A promotional events enabled them to enhance the visibility of
their NNE works.
In particular, in the Festivals line, applications for support contributed
significantly to structuring the programming. On average, slightly more than
20 European countries were presented in the programming, of which 10-50%
were countries with a weak production capacity. Close to 90% of the
69
Source: Europa Cinemas – Screenings of European films (national and non-national).
04/06/2010 – page 61
respondents stated that this proportion would be smaller without MEDIA

support.
Support for Festivals - Keywords70
■ The number of non-national European films remains close to 120 per festival;
■ The average number of European countries represented in supported festivals is
still around 20 (as opposed to 16-18 in the period 2003-2005): an annual increase
of 2-3%.
More professional opportunities, especially for C countries

Events organisers recognise that MEDIA contributes substantially in terms of
attendance. Most beneficiaries of the Access to the Market and Festivals lines
recognize that MEDIA support attracts more professionals, especially from
outside the 'Big 5' countries, and small independent producers.
In t h e framework o f E u r o p e a n Film P r o m o t i o n (EFP) a c tion ( F i l m Sales
Support), it is pointed out that often countries with a weak production capacity do not
have the means to offer their producers or sales agents the financial support needed to
promote their films in the US or Asia. MEDIA support enables sales agents to promote
small films with unknown actors, and producers to personally attend the festival of a third
country so that they can build up a network of contacts with local buyers.
The professionals themselves are less categorical on this point: over half of the
respondents in the online survey say they would have attended the event
without MEDIA support, especially the distributors.
Our analysis of the profiles of beneficiaries of support for promotion does
however enable us to confirm that Group C countries are adequately taken into
account:
■ at regional level, the main beneficiaries of the Festivals line are Portugal
(6% of the budget), followed by a group of 5 regions: Brussels, Prague,
France West, Rest of the Czech Republic, and France Mediterranean
(4%), which confirms the dispersion of the beneficiaries, by comparison
with other lines;
■ this line has the particularity of devoting close to 30% of its budget to
Group C countries. In this respect it is far ahead of the other lines. For 4
regions of Group C countries (3 in Poland, 1 in Hungary), this is the
only MEDIA 2007 funding;
■ as regards the Markets line, the map below shows the geographical
dispersion of the supported markets in Europe.
The monitoring data show some continuity between MEDIA+ and MEDIA 2007.
04/06/2010 – page 62
Figure 5 2 : ( m a p ) The m a r k e t s s u p p o r t e d by MEDIA 2 0 0 7 ( i n Euros) 7 1
With regard to European events, the respondents tend to see the added value of
MEDIA support in relation to its capacity to ensure the existence of the event
and thus to the network contributions that it is likely to provide: new contacts,
business opportunities, visibility of works (see the graph below).
Figure 5 3 : Effects of MEDIA s u p p o r t t o p r o m o t i o n a l e v e n t s i n E u r o p e
Events IN EUROPE : Did MEDIA support allow you .
íj I
to increase the visibility of your European works ?
to have business opportunities

Not at all
= No, not really

= Yes, partly
r
to improve your professional network? Yes, definitely
to attend events you would not have attended otherwise ?
ľ ■ A A S
0% 10% 20% 30% 40% 50% 60% 70%
The network effect generated around events supported by MEDIA is confirmed

by the Desks. They have found that there is an extension and better structuring
of the network of professionals, especially on the occasion of training sessions
The map shows the location of the market and not that of the beneficiaries.
04/06/2010 – page 63
and the events supported, leading to the creation of a partnership and the
mounting of co-productions, which are increasingly frequent.
Some actors raise the question of the complementarity of'Access to the Market'
events supported, and notably of their synergy with bridges between events.
A circulation of works favoured
The contribution of MEDIA support to the promotion of a better circulation of
European and non-European works is visible in:
■ the programming of the supported festivals: 20 European countries
represented (against 16-18 in the period 2003-2005);
■ the increase in the number of films and copies in circulation in third
countries: for Europa Cinemas, an increase from an average of 3 copies
released (2004) to an average of 8 copies (2009); for EFP, the number
of films sold in the framework of Film Sales Support increased
annually72.
More film shows for young audiences
A very large majority of beneficiaries of the Festivals line who responded in the
survey organise film shows for young audiences as well as actions to promote
the European cinema heritage (opportunities to meet film-makers,
retrospectives, talks, etc.).
In the case of 2 out of 5 organisations - mostly organizations that had already
benefited from MEDI A + support and which we can assume were 'established'
festivals - these film shows for young audiences were not linked to MEDI A
support. On the other hand, a similar proportion of organizations (2 out of 5)
said that they had increased the number of these sessions for young audiences
owing to MEDI A support. These were generally the first-time participants in
the programme, which we can assume were recently initiated festivals.
Expected effects on the target organisations of

the new MEDIA lines
Initial Training: definite encouragement of mobility
More formalised cooperation with the industrial sector
MEDIA has effectively supported initial training that maintains relations of
proximity with the industrial sector. More than half the respondents included
one or more actors from the audiovisual sector, other than a training
organization, in their consortium. These actors are generally associated with
the proposed courses and sometimes propose internships in addition to the
training course, or provide for students� participation in the markets or festivals
in which they can present their projects (Thessaloniki Film Festival, Rotterdam,
Cannes or Berlin).
In all cases, collaboration with these actors existed prior to MEDI A 2007
support. It is therefore not entirely a result of incentives in the guidelines of the
call for projects.
35 films in 2007, 50 films in 2008 and it is predicted that there will be more in 2009.
04/06/2010 – page 64
Effective incentives in favour of mobility

In terms of mobility, network analysis applied to the Initial Training line
enabled us to highlight the following:
■ the majority of trainees are concentrated in a small number of
countries, especially France, the UK and Lithuania;
■ a substantial proportion of the training courses delivered in Lithuania
and, to a lesser extent, in the UK served to train nationals (half of the
trainees at the Summer Media Studio in Lithuania);
■ training organised in France is the most successful in drawing students
from across Europe;
■ the analysis revealed patterns of relations, especially between France,
the UK and Denmark (the countries in the bottom right-hand corner),
which seem to show situations of interaction, contrary to what happens
with the other countries (top part of the diagram).
Figure 5 4 : Trainees a n d plac es o f initial training, n e t w o r k analysis73
73
Note: the size of the circles is based on the indicator of the number of incoming relations
(indegree): the larger the circle, the more the country hosted trainees from several
countries. The arrows point towards the place where the training had taken place.
04/06/2010 – page 65
The criteria of attribution of points strongly encourage diversity in the

participants' and teachers' nationalities.
Likewise, the multiplicity of training institutions from various countries
gathered together in the consortium makes it possible to organise interaction,
especially when the project has several locations. This means that the
participants have the possibility of living a 'European' experience abroad
during one or more training workshops.
The line is still young and very little if any monitoring data are available on the
former trainees' insertion in the labour market. The beneficiaries questioned
during our in-depth study nevertheless considered that almost all the
participants found their first job in their home country. Very few tried their
luck abroad.
Support for Interactive Works: the professionals don’t

understand
No sufficiently reliable data was found on the effectiveness of this support.
Note however that this support triggered many comments, especially by the
Media Desks:
■ the professionals regret the 'turnaround' with regard to games
publishers74;
■ games publishers may participate in the programme to a limited degree
only, in so far as their application has to be complementary to an
audiovisual work;
■ the notion of interactivity is difficult to understand and these difficulties
cause a high rate of ineligibility (over 30%).
The participants in the survey emphasised the difficulty of accessing support
for those without previous experience of an interactive work - a condition of
eligibility.
It is important to remember that, from the programme managers' point of view,
the turnaround with regard to support for video games is explained by the fact
that this support was deemed to be too limited to interest operators in the
sector (high costs of projects) and by the concern to maintain a direct link with
the audiovisual sector.
VOD and DCD support: persistent difficulties

The in-depth analysis of the subject reveals certain difficulties in achieving the
objectives.
VOD has developed in Europe with the expansion of high-speed access, even
though broadband coverage is not yet uniform across the European Union.
Some Member States are still partially excluded from this new mode of
distribution (e.g. Greece, as opposed to Denmark).
As the exploitation of online rights is managed on a national basis, most
existing services can operate in one country only. European professionals
import European works on VOD platforms (through classical distribution
74 Similarly, many professionals regret the 'sudden disappearance' of the VHS/DVD line,
which in their opinion has damaged the programme's credibility.
04/06/2010 – page 66
mechanisms) but are not able to export them outside their country. The
potential for transnational distribution is thus seriously undermined.
Most films present on platforms supported by MEDIA in a given country are
works for which all the distribution rights have been acquired in that same
country75. Even though the MEDIA Programme has made it possible to change
mentalities in favour of'communities of rights-holders', the potential of VOD to
make works accessible to the European public has not yet been exploited.
The time and costs associated with freeing these rights76, and the lack of
knowledge and interest of the holders of the rights in this respect, are major
obstacles. As a result, content does not legally cross borders, as it was expected
to with the development of Internet.
The main problem of VOD is not technological and does not directly concern
the question of platforms, in so far as many licit services exist in Europe
oriented to the offer of content. It is necessary to work on making content
available on a larger number of platforms by supporting innovative marketing
and promotion initiatives.
The persistence of major obstacles in the circulation of works across national
borders must be seen in relation to the importance granted to the VOD/DCD
line in the MEDIA Programme: 8% of the programme budget (that is, as much
as the Training line - 51% of which is captured by France).
The network analysis carried out on this line showed signs of the beginning of a
network between the actors of VOD/DCD in Germany, France, the UK and
Belgium, in which Germany is the main player. Italy is very poorly integrated
into these networks because VOD rights are not available in that country.
As regards support for DCD, it is difficult to assess its effectiveness because the
infrastructure has not been fully deployed. The effective distribution of content
via these networks has therefore not been able to materialise.
Support for Pilot Projects: a line with little visibility

No sufficiently reliable data could be obtained on the effectiveness of this
support.
Due to the complexity of the subject, the MEDIA desks were instructed to refer
professionals' requests on it directly to the Agency. However, some of them
reported on the professionals' skepticism: the guidelines and objectives of the
support were said to be largely incomprehensible and the results uncertain,
whereas the share of the budget granted to them was relatively large.
According to the programme managers, the problem of this line stemmed
primarily from the fact that the beneficiaries were not known to the programme
officials or to the MEDIA Desks. The Desks focused only on the
classical/traditional actors in the sector and were known only to them, whereas
this line is intended for all kinds of applicants. Even the Agency had not
identified the addressees of this line with any precision. It is the very nature of
this support that makes it complex.
75 This is the case of the UniversCiné project which groups together national platforms
under the same project name (France, Belgium).
76 'Clearing rights'.
04/06/2010 – page 67
Effects on the design of the participants’

projects
A stronger European dimension
In almost all cases (with the exception of marginal reservations concerning the
Development line), it is believed that the discontinuation of MEDI A support
would have negative effects on beneficiaries� projects/activities, essentially in
terms of scale and the European dimension (see the graph below).
Figure 5 5 : Added value of MEDIA
The effect in terms of reinforcing the European dimension is also strongly

present in the responses of participants in MEDI A training. Many Desks
highlight an improvement in professionals� competencies in the sense of them
acquiring a European and international way of thinking („cross-border
thinking�).
Unusual partnerships
For over 50% of the respondents in the survey77, participation in the process of
applications for MEDIA support influenced the structure of the partnership by
comparison with similar, previous projects (see graph below).
The most noteworthy changes concerned the number of partners, the number
of European partners outside the country of origin, and the number of different
countries represented, which was high in just over 60% of the cases. This
tendency was slightly more marked on the Training, TV Broadcasting, and
Selective Distribution lines.
77
Reminder: base = 641.
04/06/2010 – page 68
Figure 5 6 : Behavioural additionality – effec ts i n t e r m s of p a r t n e r s h i p s
As compared to the management of previous similar projects carried out by your

organisation, how far has the MEDIA application process changed:
- the number of countries with a low audiovisual

production capacity involved in the partnership?
- the number of different countries involved in the

partnership? It has made it much smaller
It has made it smaller
It has had no influence
It has made it higher

- the number of your foreign European partners?
It has made it much higher
- the total number of your partners?
0% 10% 20% 30% 40% 50% 60%
Effects on the participants’ behaviour and know-

how
Participation in the MEDIA Programme enables professionals to improve their
know-how on project development. Thus, 3 out of 5 respondents considered
that their participation in the application process enabled them to improve
their project design (see the verbatims below).
Effects o n t h e projec t d e s i g n - i n t h e partic ipants’ w o r d s
■ The MEDIA application process contributed “to take some distance with the process
of individual development and to consider the line up of the company and to figure
the coherence of this line up and the opening for European partnerships”.
■ It allows for “more thorough planning, more details, better design, more research
into financing needs, coproduction, investor search”.
■ “We had an English dossier right from the start and could communicate our project
better to possible international partners, we were thinking more international right
from the start.”
■ “All the data required for the MEDIA calls are more or less exactly the items we
need for co-producers, distributers and sales agents; the finished application can
easily be used for many other occasions during the development process; the work
on the application gives the opportunity to have a very good structured overview of
the project from a very early stage.”
Opinions were particularly positive on the Support for Producers, Festivals and
Training lines. Above all, respondents valued the effort required by MEDIA as
regards clarification and anticipation.
04/06/2010 – page 69
Overall, would you say that the MEDIA application process (and its requirements) contributed to a better design
of your project?
New technologies - Pilot projects
New technologies – Video On Demand and Digital Cinema …
Distribution – Sales agent
Distribution – Selective support
Distribution – Automatic support
Support to producers - Access to finance i2i

No, not really / Not at all
Support to producers – TV Broadcasting
Yes, definitely / Yes, partly
Training
Festivals
Support to producers – Development
Promotion –Worldwide promotion of European films

Low
base Promotion –Access to markets
Low
base 10% 20% 30% 40% 50% 60% 70%
0%
Moreover, 7 out of 10 respondents considered that their application to MEDIA

enabled them to benefit from a sounder financial plan, by comparison with
other comparable projects.
On the first effects of the MEDIA Programme:

In general
Fg 12 The MEDI A Programme can be based on sound results of the
preceding generation, in terms of effectiveness.
Fg 13 The MEDIA Programme favours support for larger projects with
a stronger European dimension than the projects usually run by
professionals in the sector.
Fg 14 The supported projects frequently mobilize unusual partners
with a strongly European dimension.
Fg 15 Participation in the application process favours better project
design and especially a consolidation of applicants� finance
plans.
Traditional action lines
Fg 16 Support for Continuous Training made it possible to strengthen
the offer of the European audiovisual training sector, notably by
generating a structuring network effect. The participation of
professionals nevertheless frequently remains linked to the
existence of individual grants.
Fg 17 Training supported by MEDIA benefits from broad recognition
(quality label effect) but the training offer lacks legibility.
Fg 18 Support for Development enabled professionals to increase their
investment in this phase and to further develop projects oriented
04/06/2010 – page 70
towards the international market.

Fg 19 Support for Development has been increasingly successful. This
has intensified competition between applicants, and therefore
also increased the cost of access to the line, while reducing the
chances of obtaining support (constant budget) and, finally,
discouraging certain professionals.
Fg 20 Support for Access to Funds does effectively help to reduce
financial costs.
Fg 21 Support for TV Broadcasting is unable to ensure satisfactory
cooperation but does secure the rights of independent producers.
Fg 22 Automatic support for Distribution helps to improve the
conditions of distribution (risk reduction, better conditions of
release on the market).
Fg 23 Selective support for Distribution has enabled beneficiaries to
expand their networks by forming lasting relationships with new
partners.
Fg 24 Support for Networks of Cinemas contributes effectively to
networking exhibitors, to circulating NNE films, and to
educating and raising the awareness of young audiences. This
effect is however marginal in comparison with the total number
of cinemas.
Fg 25 Support for Promotion contributes effectively to greater visibility
of NNE films, to the expansion of professional networks, and to
facilitating professionals� access to business opportunities.
Fg 26 Support for Promotion encourages festivals participating for the
first time in the programme to develop actions for young
audiences.
Fg 27 The overall coherence of support for Promotion (development of
complementarities and synergies) could be improved.
New action lines
Fg 28 Support for I nitial Training has little or no effect on training
institutions� cooperation with the industrial sector, in so far as
their collaboration existed before their participation in the
programme.
Fg 29 I ncentives in favour of mobility, contained in the guidelines to
support for I nitial Training, guarantee the effective mobility of
teachers and students even if their impact in terms of
professional insertion (first job outside the country of origin) has
not been shown.
Fg 30 Support for I nteractive Works that has replaced more open
support for games publishers has caused discontent among some
professionals and threatens the credibility of the programme in
this field.
Fg 31 I n so far as support for VOD does not directly target the process
of rights clearing, and in the context of a market that is still weak
in this segment of the value chain, it does not obtain the desired
results in terms of dissemination of European works across
04/06/2010 – page 71
national borders.
Fg 32 Support for DCD has not yet resulted in an effective distribution
of content.
Fg 33 Support for Pilot Projects is a line with little legibility and which
arouses scepticism among many professionals.
04/06/2010 – page 72
5. Capacity of the programme to

ultimately produce the expected
impacts
To w h a t e x t e n t i s t h e 1. The programme is likely to contribute to increasing the

p r o g r a m m e likely t o g e n e r a t e circulation of non-national European works.
the expected impac ts
2. The programme is likely to contribute to strengthening the
competitiveness of the sector.
3. The programme is likely to contribute to preserving and

enhancing Europe's cultural diversity and heritage.
In the preamble to the answer on the programme's capacity ultimately to

produce the expected impacts, it is interesting to note that on the whole the
beneficiaries are optimistic.
Generally the respondents' opinions are positive, with the noteworthy
exception of the programme's possible contribution to the increase in the
demand for non-national European works, where opinions are divided. This is
consistent with the variance between the percentage of NNE films disseminated
in Europe and their market share.
Figure 57: Effec ts o f t h e p r o g r a m m e
Would you say thatthe MEDIA 2007 programme is likely to contribute to
í 1 1
an increase in the competitiveness of the European audiovisual sector? ^ ^B
'1
a better preservation and promotion of European cultural and linguistic diversity?
^-1
the increase of the demand for non national European works?
^Ц
the improvement of transnational circulation of European works? l_ Not at all

No, not really
stronger distribution channels?

^ — , Yes, partly
Yes, definitely
1
^^^"
a stronger network of professionals?
^
1
<
an increase in the commercial potential of European works?
^
į
an increase in the skills of professionals? ^ 1—
У ^
0% 10% 20% 30% 40% 50% 60%
04/06/2010 – page 73
Contribution to the improvement of the

circulation of non-national European works
An essentially positive tendency
The respondents' answers to the question on the first effects of the programme
were essentially positive, owing mainly to:
■ the gain in visibility generated by support for Promotion;
■ the wider dissemination generated by the support for Distribution.
Encouraging indicators of circulation

In 2007 and 2008 the MEDIA Programme supported respectively 213 and 266
films under Distribution78, which is close to the average of 215 over the past 7
years.
Figure 5 8 : N u m b e r o f films s u p p o r t e d by t h e MEDIA P r o g r a m m e u n d e r
Distribution
About 700 releases of European films79 are supported every year. By comparing
these data to those of the European Audiovisual Observatory, it appears that,
within the limits of reliability that the method used permits, over o n e third
of the releases of non-national European films are supported every
year by MEDIA 80 .
78
Both Automatic and Selective. A film is allocated to a single year (that of the first
contract), even when it has been funded several times and over several years.
79
A release = a film in a European country. For a single release we have therefore counted
the films supported by Automatic Distribution and Selective Distribution.
80
This proportion is valid for the countries for which the data of the Observatory are
available (all countries except Cyprus, Greece, Croatia, Ireland, Iceland, Luxemburg,
Romania and Sweden). As the year of release selected is the year of the contract, the two
years may not coincide exactly. The proportion given must therefore be understood as an
04/06/2010 - page 74
Table 5 9 : Sh a r e of r e l e a s e s i n E u r o p e of n o n - n a t i o n a l E u r o p e a n w o r k s
s u p p o r t e d by MEDIA Distribution ( 2 0 0 7 a n d 2 0 0 8 )
Countr 2007 N° of % of 2008 N° of % of

y (source releases releases of (source releases releases of
MEDIA) of NNE in NNE MEDIA) of NNE NNE
2007 supported in 2008 supported
(Source by MEDIA (Source by MEDIA
OEA) OEA)
AT 56 137 41% 55 109 50%
BE 54 315 17% 47 280 17%
BG 52 48 108% 22 50 44%
CH 59 186 32% 58 185 31%
CY 2 X 0 X
CZ 22 74 30% 21 54 39%
DA 23 73 32% 15 49 31%
DE 41 99 41% 46 105 44%
EE 13 43 30% 15 46 33%
ES 52 161 32% 31 128 24%
FI 21 48 44% 16 44 36%
FR 47 78 60% 40 98 41%
GR 37 X 31 X
HR 0 X 5 X
HU 36 74 49% 40 67 60%
IE 10 X 9 X
IS 0 X 4 X
IT 28 28 100% 24 33 73%
LT 13 36 36% 14 28 50%
LU 1 X 1 X
LV 18 28 64% 16 27 59%
NL 42 101 42% 33 100 33%
NO 29 97 30% 25 60 42%
PL 54 103 52% 33 95 35%
PT 34 66 52% 28 68 41%
RO 18 X 19 X
SI 24 55 44% 14 34 41%
SK 20 69 29% 20 68 29%
SU 32 X 19 75 25%
UK 23 80 29% 19 88 22%
761 1999 38% 651 1891 34%
estimation of the extent of the MEDI A Programme�s influence on the circulation of NNE
films in Europe.
04/06/2010 – page 75
Considering these data and the effects observed during the final evaluation of
MEDIA Plus and MEDI A Training, it is therefore probable that MEDI A 2007
generates the expected effects as regards the circulation of European works.
Contribution to strengthening compe titive ne ss

in the sector
An essentially positive trend
In the survey, the beneficiaries' answers to the question of the first effects of the
programme are essentially positive, owing primarily to:
■ the increase of investments in the development phase;
■ the improvement of professionals' competencies, favouring an
orientation towards the international scene (support for training);
■ the effect on behaviours of participation in the application process
(integration of the need to give a European dimension to the project
presented).
The MEDI A Desks have noted the emergence of sounder projects that are of
better quality and more competitive in the international market.
But a potential effect on competitiveness that is difficult to

measure
To evaluate the contribution of MEDIA to strengthening the competitiveness of
the sector, two indicators of context were selected: 'Evolution of the share of
works distributed in Europe of European/American/other origin' and
'Evolution of the market share of non-national European films in the European
market'.
• The indicator 'Evolution of the share of works distributed in Europe of
European/American/other origin' cannot be informed by existing
sources. The data provided by the Observatory give the origin of works
distributed in each European country; however, as the data are
quantified and the titles of the films do not appear, it is difficult to
calculate the number of films of European/American/other origin in
Europe. It is only possible to talk in terms of film releases per European
country, rather than of the number of films as such distributed in
Europe (as the same film can be released in several European
countries). Hence, the indicator Origin of films in relation to number of
releases (rather than to number of films)' is not precise enough to
inform reflection on the competitiveness of the European market.
• The indicator 'Evolution of the market share of non-national European
films in the European market' is not informed as such in the main
available source, the 2009 directory of the European Audiovisual
Observatory. I n the directory we see that the closest table to this
indicator is the following:
04/06/2010 – page 76
Table 6 0 : Market s h a r e s – S o u r c e : Excerpt of Table T.13.8 of t h e EAO directory

for 2 0 0 9
Market s h a r e according t o t h e o r i g i n of feature films - o n t h e b a s i s of a d m i s s i o n s
registered i n t h e LUMIERE d a t a b a s e ( 2 0 0 3 - 2 0 0 8 ) 8 1
In %
EUR Other
Market Year Nat. DE ES FR GB IT inc (1) EUR US Others
EUR 2 7 e 2003 _ 3.25 2.74 8.39 4.90 2.64 3.01 3.42 69.39 2.27
2004 _ 4.26 2.36 8.61 4.52 2.20 5.77 2.68 67.33 2.27
2005 _ 3.22 2.28 9.19 3.87 2.92 12.54 3.12 60.21 2.65
2006 _ 4.78 2.81 10.57 2.82 2.98 549 3.95 63.43 3.18
2007 _ 3.77 2 . 0 8 8.35 5.62 3.75 6.79 4.57 63.25 1.83

prov.
2008 3.46 1.62 11.93 2.29 3.58 6.51 4.90 63.87 1.85
This table provides interesting food for thought82:

• From 2007 to 2008, the market share of US films in Europe
remained stable, around 63-64%. The market share of films of
third countries (not US) declined in the period 2006-2007 and
stabilized in 2008 at just under 2%.
• As regards Europe, films from Group A countries had a 24%
market share in 2007, which dropped to 23% in 2008. The
decrease was primarily due to a substantial decline in the share of
British films mainly and in that of Spanish films. On the other hand, the
market share of French films increased from 8% to 12%.
The market share of European films from target countries
rose from 4.5% in 2007 to 5% in 2008.
The total market share of European films is therefore stable,
at around 28%.
1 For reading the table: The films are distributed as follows:
films of German, Spanish, French, Italian and British origin;
films “EUR inc”, that is, films produced in Europe (primarily the UK) with US
investment. Generally, these films are not considered European, by MEDIA
criteria.
films OTHER EUR, that is, films from other European countries (except the 5
countries mentioned above - Europe 32 - and the 5 countries counted separately
- countries with a large audiovisual production capacity).
US films
films of other origin.
82
Data to consider with the following precautions:
as data are not available for 2009, only 2007 and 2008 can be compared with
MEDIA 2007; data for 2008 are presented as provisional;
the market share is established on the basis of the number of admissions and not
the amount of revenue generated;
Europe includes 27 countries and not the 32 countries of the MEDIA Programme;
Island, Lichtenstein, Switzerland, Norway and Croatia are therefore excluded;
this table does not enable us to establish the market share of non-national
European films.
04/06/2010 – page 77
In terms of competitiveness, the gap between European cinema and US cinema

is therefore still wide. In Europe, most admissions are for US films.
The figures reveal a more complex situation in certain countries. If we look at
Group A countries, two categories emerge:
• the first consists of France and Germany, two countries in which the
share of national films has increased, mainly at the expense of the
market share of US films83;
• the second consists of Spain, Italy and the UK, countries in which the
market share of national films has shrunk and that of US films has
increased84.
The example of countries with a large production capacity shows that the share
of US films can be threatened by national films, but that non-national
European films do not yet have enough weight to prevail in the European
market.
A noteworthy presence of MEDIA in support for

commercially successful European films
To evaluate the contribution of MEDIA to the competitiveness of the European
audiovisual sector more accurately, a programme indicator was also applied:
„Evolution of the number of works supported by MEDIA Distribution which
achieved commercial success (admissions) outside of their country of origin�.
To this end, the table „TOP 50 European films by admissions in Europe� from
the EAO directory for 2009 was used. The data are for 2008. The table is
available in Annex 3.
Some precautions must be taken in analysing the table: Turkish and British
films with US investments were excluded from the calculation because they do
not correspond to the definition of European films accepted by MEDI A85. A
total of 38 European films (according to MEDI A criteria) are on the TOP 50
table.
A total of 2 4 films were supported by MEDIA Distribution, that is,
63% of all the films in the Top 5 0 .
8
3 I n France, the market share of national films increased between 2007 and 2008, from
32% to 44.5%. At the same time, the market share of US films declined considerably, from
53% to 44%.
In Germany, the trend is the same although less marked: national f ilms increased from
17.5% to 20.5% and US films from 62% to 61.5% (but a note in the directory indicates that
the figures for Germany must be considered as incomplete).
8
4 In I taly the market share of national films dropped from 29% to 28% whereas the share
of US films increased from 54.5% to 60%.
In Spain, the market share of national films dropped from 12.5% to 10%, while US films
increased from 70% to 74%.
In the UK (EAO figures for the UK are combined with those of I reland) the market share of
national films dropped from 11% to 4%. The share of US films increased from 75% to 80%.
European films with US investment rose from an 8% market share to an 11% share.
85
Note: one Uk inc US film was nevertheless funded by MEDI A: Martin McDonagh's film
In Bruges.
04/06/2010 – page 78
By cross-referencing the data obtained from context indicators and qualitative

data from other sources86, the following conclusions can be drawn:
MEDIA 2007 is likely to contribute to reinforcing the competitiveness of the
European audiovisual sector:
■ by supporting the phases upstream in the value chain, especially
training for professionals and the project development phase. The first
results obtained show an improvement that could lead to works which
are better-suited to the international market and therefore more
competitive;
■ by supporting the distribution of over 60% of the most commercially
successful films in Europe in 2008 (MEDIA Distribution support);
■ this work is however still not sufficient to increase the market share of
European films in Europe, where US films are generally in a dominant
position. In some countries (France, Germany), national films have
encroached on the market share of US films (comparison of data for
2007 and 2008), but the share of non-national European films is still
marginal.
Contribution to the preserving and enhancing

cultural diversity
Positive indexes in terms of impact
In the survey, answers to the question of the first effects of the programme tend
to be positive:
■ close to 90% of the beneficiary organisations questioned in the survey
considered that MEDIA 2007 would contribute to preserving and
enhancing European cultural and linguistic diversity (40% 'yes, without
a doubt' and 48% 'yes, partially');
■ almost all the respondents considered that MEDIA had contributed to
developing the potential of countries with a low audiovisual production
capacity; respondents from the countries in question were the most
positive (60% answered 'yes, without a doubt');
■ the MEDIA Desks attested to better visibility of works from countries
with a low production capacity, in so far as MEDIA enabled them to be
distributed and programmed on a scale previously unknown (beyond
the domestic market) and improved professionals' access to the
international market;
■ support for training was on the whole equitably distributed between the
various participant countries, especially when the number of trainees
was compared to the population.
86
Source: Survey on beneficiaries and interviews with the MEDIA Desks – cf. the
beginning of this section.
04/06/2010 – page 79
A large proportion of participants from Group C countries in

the supported training sessions, but a decreasing proportion
of participants from Group B countries
Over the past three years, the proportion of nationals from Group C countries
in the total ranged from 12% to 16%. Globally, the percentage of trainees from
the 5 large countries tended to increase (from 39% in 2006 to 50% in 2008), to
the detriment of Group B countries. Germany benefited most from this system
by jumping from 12% of trainees in 2006 to 21% in 2008. This country
probably takes advantage of the many training courses on its territory, as the
network analysis shows. The share of Spanish trainees declined steeply over
this period.
Table 6 1 : Distribution of p e o p l e w h o benefited f r o m training s u p p o r t e d by
MEDIA Training ( s o u r c e : Analysis of t h e MEDIA d a t a b a s e )
Number and
d i s t r i b u t i o n of
people trained
Group A countries 836 38.5% 1,159 43.6% 852 50.3%
Group B countries 1,080 49.7% 1,083 40.8% 611 36.1%
Group C countries 255 11.7% 415 15.6% 231 13.6%
Total 2,171 100% 2,657 100% 1,694 100%
A share of the MEDIA budget invested in countries with a

low audiovisual capacity raises questions
Changes in the distribution of the programme budget per country raises
questions:
since their entry into the programme, the proportion of organisations of
Group C countries has tended to increase (over 20% of the projects in
2009); the budget has however remained constant (around 8%), which
means that the average budget per organization in these countries is
gradually decreasing;
on the whole, the shares of Group A and B countries appeared to be
stable over most of the period in terms of number of organisations;
in terms of budget, however, recent years have shown a decline of the
position of Group B countries, to the benefit of Group A countries, in
particular.
04/06/2010 – page 80
Figure 6 2 : Budget granted t o o r g a n i s a t i o n s e n g a g e d i n t h e MEDIA P r o g r a m m e

by g r o u p of c o u n t r i e s
A typology that needs to be revised?

The typology currently used in the management of the programme, which
distinguishes the five large countries from those with a low audiovisual
production capacity, no longer appears to be as relevant as in the past.
The analysis of the database, confirmed by the contextual data (market),
enabled us to define a typology distinguishing the following groups:
1. France, Germany and the UK
2. Italy, Spain, Denmark, Belgium and Sweden
3. the other countries.
The territorial scale of analysis probably has to be revised, as the regional
level seems to be the most relevant. Poland, for example, seems to make only
partial use of the opportunities afforded by the programme, yet Warsaw, like
Budapest and Prague, are among the regions receiving the most MEDIA
support.
To conclude, the likely effects in terms of safeguarding cultural diversity tend to

be positive at this stage of the programme's implementation.
Yet, if preserving cultural diversity implies reducing the imbalances between
large and small audiovisual producing countries, then these prospects could be
threatened - unless the programme is revised during the period 2010-2013.
04/06/2010 – page 81
On the programme’s capacity t o generate the expected impacts:

Fg 34 Over a third of the non-national European films released are
supported annually by MEDIA. It therefore seems likely that the
expected effects in terms of circulation will be achieved.
Fg 35 The programme�s contribution to the competitiveness of the
European sector is likely but will probably not be enough to
substantially reduce the market share of US films in Europe. The
example of countries with a strong production capacity shows
that the share of US films will be threatened by national films,
but that non-national European films do not yet have sufficient
weight to predominate in the European market.
Fg 36 Prospects in terms of preserving cultural diversity are positive,
but the programme will probably have to be revised to safeguard
the place in it and in the market of organizations and works from
the small producing countries.
Fg 37 The analysis of the programme implementation over the period
2007-2009 reveals a changing audiovisual landscape. The
typologies used until now no longer seem to be the most
appropriate.
04/06/2010 – page 82
6. Efficiency of the programme

implementation
To w h a t e x t e n t d o e s t h e 1. The budget and resources of the programme are used

p r o g r a m m e p r e s e n t a g o o d cost- appropriately in relation to the expected outputs and results.
benefit ratio?
2. The modalities of participation in the programme have been
simplified.
3. The frequency and rhythm of calls match the needs and

constraints of the sector.
4. The selection process presents a good cost-benefit ratio.
On the whole the budget and resources of the

programme are used appropriately
Over the first 3 years, the programme committed approximately €296 million
of its €755 million budget allocated for the 7-year period 2007-13. This
represents 39% of its budget (just under three sevenths). The largest budget
shares were allocated to Distribution (almost half the budget) and to Support
for Producers (one third of the budget). A detailed breakdown of the budget by
action line is available in Annex 2.
Distribution accounts for the largest proportion of the contracts (62% of
approximately 5,000 contracts signed in the period 2007-2009) 87 . The Support
for Producers – Individual Projects line (541) accounts for 11% of the contracts.
A detailed breakdown of the number of contracts by action line is available in
Annex 2.
70 people manage this programme. Most of them work on Distribution (38%)
and Support for Producers (36%).
The line Support for Producers is by far the most in demand in terms of
number of applicants and organisations retained. Firms account for two thirds
of the candidate organisations. It therefore seems logical that substantial
human resources are required to process these applications. A precise
breakdown of human resources by action line is available in Annex 2.
The following table provides a synthetic and comparative overview of the
amounts involved, the number of contracts signed and the human resources
allocated.
87
Automatic Distribution and Selective Distribution respectively account for 30% and 29%
of all the projects supported.
04/06/2010 – page 83
Table 6 3 : C o m p a r i s o n of b u d g e t , r e s o u r c e s a n d contracts ( p e r i o d 2 0 0 7 - 2 0 0 9 ) 8 8
Data source: EACEA Amount (%) N° Contracts89 (%) HR (%)

Base 296,882,846 € 4,949 contracts 70 fte
Training 7% 3% 10%
Continuous Training 6% 2% 5%
Initial Training 1% 1% 5%
Support for Producers 34% 27% 36%
Individual Projects 7% 11%
Catalogues of Projects 11% 5%
26%
New Talent 2007 Interactive
Works 2008 2009 2% 2%
I2I 3% 5% 4%
TV Broadcasting 11% 4% 6%
Distribution 47% 62% 38%
Selective Support 13% 29% 17%
Automatic Support 19% 30% 16%
Sales Agents 1% 2% 2%
Network of Cinemas 90
9% 0%
VOD - DCN 6% 1% 3%
Promotion 11% 8% 14%
Access to Markets 5% 3% 6%
European Films in the World 1% 0% 91
1%
Support for Festivals 3% 5% 6%
Stands 92
2% 0% 1%
Pilot Projects 1% 0% 2%
Pilot Projects 1% 0% 93
2%
TOTAL 100% 100% 100%
88
The structure of the table is based on the logic retained in the logigram (the intervention
logic of the programme), which explains the integration of the VOD-DNC line in the
Distribution sector.
89
This table shows the number of contracts and not the number of projects. In 2007 and
2008 the number of projects and contracts supported was the same, but in 2009 the
introduction of the process of simplification/consolidation on the Automatic Distribution
and Selective Distribution lines reduced the number of contracts (production of multi-
project contracts) and increased the number of projects processed. In 2009 there were 26%
more projects than contracts.
90
0.08%
91
0.16%
92
0.24%
93
0.18%
04/06/2010 – page 84
This table shows a fairly close correspondence between the amounts and the
allocation of human resources.
Proportionally, there are slightly more human resources allocated to Support
for Producers than to Support for Distribution, but this makes sense if one
considers the types of support mechanism concerned.
However, in view of the difficulties encountered by the Automatic Distribution
and Selective Distribution lines, especially with regard to notification deadlines,
it may be worth allocating more human resources to these lines.
As regards the number of projects processed, Training, Promotion and Pilot
Projects seem to have more human resources. The specificity of the
mechanisms and procedures may justify this. However, it may be worth
allocating some of these human resources (of those allocated to Training, which
now benefits from the system of long-term partnership agreements) to
Distribution or Support for Producers.
An increase in the amounts allocated to Development should be studied. This
line, in a sense a „victim of its success�, has become extremely competitive. The
access cost is high, while the chances of obtaining support have become
slimmer, and this has discouraged many SMEs. I f the budget cannot be
increased, then stricter eligibility and/or selection criteria should be envisaged.
Efficiency reinforced by the simplification of the

modalities of participation in the programme
Clarified conditions for applications and welcome
simplification 94
The evaluations of the MEDI A Plus and MEDI A Training Programmes 95
highlighted a cost for access to the programme that was often too high for
SMEs. I ncompatibility between the administrative schedules of support
procedures and economic schedules appeared which reintroduced the risk of
tensions for the beneficiary firms.
The ex ante evaluation of the MEDI A 2007 Programme proposed
simplifications of the procedures with a view to improving the efficiency of the
programme, both for the managers and for the beneficiary organisations.
Amendments were made to the texts (guidelines), the documents (forms) and
the procedures (introduction of pluri-annual contracts, revision of deadlines,
payment schedules, eligibility criteria, etc.).
On the whole, the simplifications introduced by MEDIA 2007 were welcomed
by professionals96. Two changes appear clearly as highly relevant in relation to
the needs of the sector: (i) cancellation of the obligation to reinvest support for
producers (for the Development line, which has the highest percentage of SME
applicants and beneficiaries); and (ii) the possibility to „secure� funding for
94
An in-depth study of the administrative simplifications initiated under MEDI A 2007 is
available in the technical report.
95
First and second interim evaluation, then the final evaluation of the MEDI A Plus and
MEDIA Training programmes.
96
Sources: Survey, interviews with managers and MEDI A Desks, in-depth study.
04/06/2010 – page 85
several years via partnership framework agreements for the following lines:
Promotion (Markets/European Films in the World/Festivals) and Training
(Continuous Training). The simplification of the guidelines, the obligation to
pay within 45 days, and the introduction of more flexible eligibility criteria on
certain lines are also mentioned as welcome changes.
In the survey the respondents who had previously participated in MEDIA Plus
and MEDIA Training generally noticed the changes made to the support from
which they had benefited, and essentially those of an administrative nature (see
the graphs below on the Training and Distribution lines).
Figure 6 4 : P e r c e p t i o n of c h a n g e s t o t h e Training a n d Distribution l i n e s
Did you notice any changes in the MEDIA 2007 support to Did you notice any changes in the MEDIA Distribution support
Training programme compared to MEDIA Training (2000-2006)? scheme compared to MEDIA Plus?
70% 45%
60% 40%
50% 35%
30%
40%
25%
30%
20%
20% 15%
10% 10%
5%
0%
Yes, at the Yes, in the Yes, in the No, I did not 0%
administrative partnership inclusion of notice any Yes, at the Yes, in the Yes, regarding No, I did not
level required initial training in change administrative partnership new distribution notice any
the supported level required conditions (e,g, changes
activities digital, etc,)
Base = 19 Base = 59
In both cases in the above graphs, almost all the respondents (100% for
Training, 95% for Distribution) deemed these changes to be highly positive or
rather positive.
The situation is similar for the Festivals line, for which the change of the budget
ceiling is judged as highly satisfactory or rather satisfactory in nearly 4 out of 5
cases. However, 15% of the beneficiaries had not noticed the changes.
While efforts at simplification were appreciated, many professionals

nevertheless still frequently expressed the feeling of not understanding the
procedures and of wasting their time - to the extent that some of them had the
application forms filled in by a specialist97. This shows that further
improvements can be made.
The administrative burden has been reduced but remains a

subject of concern
In general, the administrative burden on applicants and beneficiaries has been
reduced, even if it remains a major subject of concern.
The main difficulties pertain to:
• the length of the procedures, especially between submittal of the
application and notification, and between the signing of the contract
and the payment, which is unanimously pointed out as a major
97
Source: Media Desks.
04/06/2010 – page 86
shortcoming in the programme management and a source of problems

for the applicants (e.g. precarious situation in terms of cash-flow);
most beneficiaries are still exasperated by the quantity of papers to fill
in, and inquire about the possibility of online applications;
many beneficiaries still find the guidelines difficult to understand,
especially when they are not available in their home language 98 .
These time-consuming processes tend to be dissuasive for some small
companies.
The time spent by participants on filling in the application forms for MEDIA,
for example, ranged from half a day to over 100 days, that is, an average of
close to 12.5 days99.
Time devoted to preparing an application for MEDIA support

• Previous experiences of participation in the programme help to explain these
differences: experienced applicants generally spend less than five days on this task,
as do the first-time participants in the programme, who are probably testing the
value of the support for the first time.
• Participants who have already applied for but not obtained MEDIA support are in
the majority among those who devoted more than 10 days to the application file,
probably to reduce the chances of another failure.
• The line of support applied for also has an influence on the time spent on the
application: the most time-consuming applications are for support for VOD,
Training, and Pilot Projects, while support for Distribution requires less
mobilization.
• Almost all the candidates selected consider however that this time investment was
worth it (6996, 'yes, definitely; 2996 'yes, partly) 1 0 0 .
Progress has nevertheless been made. Just over 70% of the respondents in the
survey considered that the 'administrative burden' on the participants in the
programme had been reduced.
98 Some Media Desks report that the translations are sometimes approximate and the
terminology used, including in English, is sometimes confusing and subject to
interpretation.
99 Source: Euréval/MCG survey.
10
0 Which represents an equivalent share to the previous generation of the MEDIA
programme (68% 'Yes, definitely'; 29 % 'Yes, but slightly').
04/06/2010 – page 87
Figure 6 5 : P e r c e p t i o n of t h e r e d u c t i o n of t h e ‘administrative burden’
Would you say that the burden on beneficiaries has been

effectively reduced in the MEDIA 2007 programme compared to the
MEDIA+ and MEDIA Training programmes?
2%
27%Л \ - ^
- ~ \ * ^ * Yes, definitely
Щ * m Yes, partly
j No, not really
Not at all
- - ^
54%
Base = 286
Yet close to half of them considered that these efforts to simplify the process
were partial or hardly noticeable. Therefore, further efforts need to be made to
simplify procedures and shorten deadlines.
Long-term partnerships reduce the administrative burden

and management costs, and strengthen the projects101
To meet the needs of professionals and improve the efficiency of the
programme as a whole, MEDIA 2007 has introduced the possibility of signing
long-term (3- or 4-year) partnership contracts, rather than one-year contracts,
in certain action lines (Promotion-Access to the Market, European Films in the
World, Festivals, and Continuous Training).
The procedure has been simplified102 and the advantages are multiple:
For the programme managers:
• as the administrative workload is lighter, more time can be devoted to
monitoring the supported projects;
• on certain lines such as Continuous Training103, managers can provide
answers much more quickly than in the past104.
101
An in-depth study on the subject is available in the technical report.
102
By signing a partnership framework agreement, the beneficiary produces a complete set
of documents on his/her application the first time round (i.e. the first year). For the
following years, the beneficiary has to renew the application but the procedure is simpler.
The only documents then required are the description of the work programme for the year
and the budget. Thus, administrative documents are provided once only, with the initial
application. The signing of the contract is also simplified: the applicant submits his/her
request for framework-contract support; if the application is successful, the Executive
Agency sends a notification. A specific agreement is sent and must be signed by both
parties.
103
Two thirds of the Continuous Training line budget are devoted to partnerships.
104
The Agency can answer within 5 or 6 weeks after the annual deadline for applications to
be submitted.
04/06/2010 – page 88
For the beneficiaries:

• as the administrative burden is reduced, more time can be spent
working on better quality actions than in the past;
• the application file is still flexible and takes into account any changes in
projects from one year to the next;
• beneficiaries gain a degree of 'security enabling them to work on a
more long-term basis, to have better visibility of the project's evolution,
and to plan their human resources needs better; the project is more
likely to be sustainable;
• beneficiaries earn 'confidence capital'105 which helps them to obtain
more long-term contracts with other potential partners in the public or
private sector; the project thus becomes more stable;
• the networks are reinforced: for beneficiaries working in networks, an
agreement with the Commission for several years gives all the partners
more assurance.
The frequency and timing of calls is generally

suited to the constraints of the sector
Efforts to adapt the frequency and timing of calls for projects have been made
so that they correspond better to the cycles of the sector.
Examples:
For the ‘Development’ lines, no calls are put out during the summer as that is
when most films are being shot, which means that candidates do not have the time
to prepare an application. This regular planning corresponds better to the needs of
professionals and enables them to organize themselves. It also explains the
increasing number of applications.
The schedule in the Interactive W o r k s sector is more flexible than for other
action hues because there is no 'sector calendar', except perhaps Christmas for
Video Games.
For the ‘Selective Distribution’ line, a third application deadline has been
added, just after the Cannes Festival (1 July).
The dates are inappropriate in some exceptional cases, that is, certain Festivals at
the end of the period preceding the first deadline, and that have not yet received
support but already need to submit a new application for the following year.
All of the respondents (retained and non-retained) are on the whole fairly
satisfied with the frequency and timing of the calls for projects, in relation to
their needs or the annual cycles of the audiovisual sector.
105
Obtaining a grant for several years is seen as a significant sign of trust by the European
Commission.
04/06/2010 – page 89
Figure 6 6 : C o r r e s p o n d e n ce b e t w e e n t h e frequenc y a n d t i m i n g of c alls for

projects, a n d t h e a n n u a l c yc les of t h e audiovisual s e c t o r (source: Euréval-MCG
survey)
Would you say that the frequency and timing of calls for proposals are
appropriate to the annual cycles of the audiovisual sector?
Distribution – Sales agent

I Ι ι
Promotion – Worldwide promotion of European films FZ
—
Training
I
-
Distribution – Selective support
Festivals ■
Not at all
New technologies - Pilot projects ι—c^
I ~^ ^^" No, not really
New technologies – Video On Demand and Digital …
Support to producers - Access to finance i2i ^^^"^ " ^^ ^ Yes, partly
Distribution – Automatic support

1 Yes, definitely
Support to producers – TV Broadcasting
__
Promotion – Access to markets ^r- ^
~
Support to producers – Development rn—
r—f Γ Γ
— 1
ŕ Γ J Γ r Ι
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Some reservations nevertheless appear in the TV Broadcasting line (about 25%

of the respondents) and the Automatic Distribution line (35% of the
respondents).
A globally efficient selection process but the

interval before notification is too long
In relation to the resources invested, the selection process is relatively efficient.
Without additional staff, the Agency has managed to deal with the selection of a
far greater number of applications than in the preceding generation of the
programme.
On the whole, applicants are satisfied with the relevance of the selection criteria
and, to a lesser degree, with the reasons given to justify their selection or
refusal. Many Desks nevertheless deplore the lack of feedback to applicants
whose applications are not selected, especially for the Development line, as this
does not help them to improve their future proposals.
04/06/2010 – page 90
European Commission – DG INFSO
Figure 67: Selection process
Selection process
/ , ^ β
ι
80%
70%
/J
,.'-'Ί ^
60%
50%
/'J
уЛ
II II -^_-Я
<«
40%
/Λ
/Λ
=fl Yes, definitely / Yes, partly
ΓΊ I
Jn t
No, not really / Not at all
30%
20% ущШ -^'

10%
Relevance of the
■ P I P
Reasons given for Length of time
selection criteria your selection or before
non-selection notification
On the other ha nd, nea rly 60% of the professiona ls questioned feel tha t they
still have to wait too long before notifica tion.
The ra te of dissa tisfa ction is pa rticula rly high on the following lines:
Distribution (both selective a nd a utoma tic), Promotion of Europea n Films in
the World, and Development.
Figure 6 8 : Notification time
Satisfaction des bénéficiaires vis-à-vis des délais de notification

70% π
60%
■ ■■
50%
40%
1 ■
1 I
I I
I_
30%
1 1 ■I | |
20%
10%
0%
1
1 I
IIII
I I
1 1 1
| |
■ Taux de satisfaction
There is a large amount of work prior to the a ssessment of applications (receipt

of a pplica tions a nd a pplica nts' da ta ) a nd the a ctua l a ssessment itself ta kes a
long time.
The ma na gers ha ve however envisa ged some wa ys in which the procedure
might be a ccelera ted:
• a system of online a pplica tions
• a n online evaluation tool for the experts (a lrea dy planned)
• a la rger pool of experts, especia lly on specific subjects such a s new
technologies and new forms of artistic expression like Web documents
• more informa tion for some MEDIA desks so tha t they do not ha ve to
process 'casual' applications.
04/06/2010 – page 91
Long-term partnership contracts should moreover make re-selection far

simpler and make it possible to save time on administration.
Close to 80% of the respondents retained said they were satisfied with the
payment schedule and control procedures 106 applied in the framework of their
participation in MEDIA 2007.
On the efficiency of the programme implementation:
Fg 38 On the whole the budget and resources of the programme are

deployed satisfactorily.
Fg 39 The candidate organizations welcomed the simplification of the
modalities of participation in the programme.
Fg 40 The administrative burden for the candidates has been reduced
but is still a subject of much concern.
Fg 41 Long-term partnerships alleviate the administrative burden and
management costs, and strengthen the projects.
Fg 42 The frequency and timing of calls for proposals have been
adjusted and generally correspond better to the constraints of
the sector (except for reservations with regard to Automatic
Distribution and TV Broadcasting).
Fg 43 On the whole the selection process is efficient but the interval is
still too long before notification.
106
One in five organisations nevertheless claim to be unsatisfied with the applicable control
procedures.
04/06/2010 – page 92
7. Conclusions
Conclusions on the implementation of the MEDIA 2007
Programme over the period 2007-2009
For a sound interpretation of these conclusions, it is essential to bear in mind
that the MEDIA 2007 Programme applies only within the framework of:
• the budget defined and adopted for the programme as a whole;
• the financial regulations of the European Commission, which define
the timing of payment of financial support to the selected projects;
• the rules of competition which, under the Treaty of Rome, strictly
govern direct financial support to firms;
• the joint decision-making procedure between the Parliament and the
Council of Ministers with regard to the definition of the programme
and the budget allocated, which grants Parliament the right to examine
the selected projects.
Conclusions Sources
Conclusions o n the relevance of the MEDIA 2 0 0 7 Programme
Conclusion 1: The integrated logic of the programme (covering Findings

the entire value chain, including MEDIA Training), its anchorage 1, 2, 3, 4,
on the European audiovisual scene, and the fact that it is designed 7, 10, 11,
to support change in the sector, enable MEDIA 2007, inter alia, to 12 and 42
provide and appropriate response to the needs of the sector. of the
evaluation
Conclusion 2 : The added value of the MEDIA Programme is Findings

significant in so far as it introduces a strongly European 6, 13 and
dimension into the supported projects, enabling them to be more 14
ambitious, and is complementary to existing national support.
Conclusions o n the internal coherence of the programme
Conclusion 3 : Significant adjustments have been made to Findings

MEDIA 2007 (new lines, evolution of existing lines) to enable it to 2,3 and 11
meet new needs, especially those related to digital technology.
However, the timeframe of the programme (objectives, budgets
and instrument set for 7 years) does not allow it to be reactive
enough, throughout the entire period, to the extremely rapid
changes in technology and the market.
Conclusion 4 : The steep increase in the number of applications Findings

for the various forms of support offered by the programme attests 4, 5, 19,
to the fact that it corresponds to the needs of the sector. However, 39 and 43
this entails an increasingly selective process leading to the
04/06/2010 – page 93
exclusion of primo-participants and very small businesses,

increasing management costs, and discouragement among
potential participants.
Conclusion 5 : The overall internal coherence of the programme Findings

is confirmed. However, developing the demand for European 7, 8, 10,
works by the public, cinemas and TV broadcasters is not granted 24 and
enough importance in comparison with that granted to the 26
audiovisual supply.
Conclusion 6: The system of positive discrimination set up is

Findings
suited to achieving the cultural diversity objective but is
9 and 36
insufficient to meet the objective of remedying the imbalance
between countries with a low audiovisual production capacity and
Conclusions o n the outputs of the programme during the first three

years of its implementation
Conclusion 7: Participation in the application process for Findings

MEDIA support enables applicants to significantly improve the 13, 14, 15,
design of the projects presented (consolidation of finance plans, 18 and 41
strengthening of partnerships).
Conclusion 8 : MEDIA 2007 support for Continuous Training is Findings

effective on the whole and generates a significant „quality label� 11, 16, 17,
effect. Support for initial training has not yet had time to prove 28 and
itself. 29
Conclusion 9 : MEDIA 2007 support for Development, which has Findings

been increasingly successful, is effective on the whole and allows 5, 18, 19
for the emergence of better structured projects that are more and 30
competitive in the international market. However, the
effectiveness of support for interactive works needs to be
improved.
Conclusion 10: I2i support has allowed for an effective reduction Finding
of financial costs. However, its size (marginal compared to the size 20
and needs of the market) is insufficient to generate a visible
improvement in access to funds, which is still one of the main
problems confronting professionals in the sector.
Conclusion 11: MEDIA 2007 support for Distribution is effective Findings

on the whole; it contributes significantly to improving conditions 22, 23,
of distribution (automatic support) and to strengthening 24 and
professional networks (selective support). 34
Conclusion 12: MEDIA 2007 support for Promotion (Access to Findings

the Market, and Festivals) is effective on the whole; allows for 25, 26,
greater visibility of NNE works both within Europe and beyond, 27 and
and for a widening of professional networks. 36
04/06/2010 – page 94
Conclusion 13: MEDI A 2007 support for TV Broadcasting Findings

contributes significantly to securing producers� rights but is still 2, 10 and
not attractive enough to change practices in certain countries 21
where broadcasters are unwilling to relinquish certain rights.
Conclusion 14: The modalities and scope of application of Findings

support for Pilot Projects are too complicated to allow for optimal 11 and 33
effectiveness of this line.
Conclusion 15: Support for VOD does not yet contribute Findings
sufficiently to the circulation of European works in so far as the 11 and 31
market is still weak and the pan-European approach to the
exploitation of rights is not developed enough.
Conclusions o n the capacity of the programme to ultimately

generate the expected impacts
Conclusion 16: By supporting training for professionals, the Findings

structuring of projects and the networking of actors, MEDI A 12, 13, 14,
contributes to making the European audiovisual sector more 15, 18,
competitive. 22, 25
and 35
Conclusion 17: In the continuity of MEDI A Plus, MEDIA 2007 Findings

support most probably contributes to better circulation of 12, 22,
European works. 24, 31
and 34
Conclusion 18: The programme is likely to contribute to the Findings

preservation of cultural diversity, especially if it remedies the 9, 36 and
imbalances between countries with a low production capacity and 37
Conclusions o n the efficiency of the programme implementation
Conclusion 19: On the whole the budget and resources of the Finding
programme are deployed efficiently. 38
Conclusion 2 0 : The efficiency of the programme management Findings

has been improved significantly (simplifications, adjustment of the 39, 40,
schedule, long-term partnerships) but progress can still be made 41, 42
in reducing the administrative burden. and 43
04/06/2010 – page 95
8. Recommendations
Several recommendations can be made, based on the evaluation conclusions.
These recommendations are presented below by order of strategic importance
and refer to the conclusions on which they are based.
Some recommendations (e.g. RS1 – 1, RS3 – 1) can evidently be implemented
only in the medium/long term (for legal reasons) and will be taken into
consideration in planning the next generation of the programme. The others
can be taken into account in the remaining period of the implementation of
MEDIA 2007 (2010-2013).
Some recommendations are based not only on the evaluation conclusions but
also on a broader knowledge of European policies and on independent data
obtained during the data collection. As they are more a matter of what the
evaluation team feels is best, they are marked by an asterisk [*].
Strategic Recommendation 1 : Broaden the

modes of intervention mobilised by the
programme
Sources: Conclusions 1, 3, 5 and 6 Timeline: medium/long term
Many efforts have been made to enable the MEDIA programme to meet the
sector's needs but these needs are evolving fast and the programme's
traditional modes of intervention do not always enable it to be reactive enough.
New approaches could be envisaged.
Work axis №1 [*]: Innovate in the programme’s modes of

intervention
Preamble
The audiovisual sector has evolved from an established, traditional sector to an
industry marked by innovation and change, characterized by two main features:
uncertainty and speed. As in other ICT-related content or service industries, it is
difficult to predict which scenario will materialize. The value chain that the MEDIA
Programme supports is likely to change, as are the actors comprising it (cf. for
instance the role of distributors and funders in the value chain). Moreover, a
technology or type of service can become dominant very quickly (cf. the massive
upsurge of mobile Internet in less than 2 years around a product, the iPhone, or online
television, currently taken over by Google).
This type of situation poses public policy problems for three main reasons:
o Policy-making takes time; a programme like MEDIA is designed over a period of
several years, to last for several years. Moreover, public policies are to some extent
rigid and cannot easily be amended (yet the diagnosis is likely to change radically,
at least in certain markets, in less than 5 years; a sector like VOD may seem to be
maturing and then change almost completely; a technology like 3D may very well
be replaced in two years' time by broadcasting in 48 images/sec. as the new
standard of the industry);
04/06/2010 – page 96
o They need the most objective criteria possible to be able to justify the market
distortion that they generate (but these criteria are likely to change completely at
any moment; moreover, how can the programme take into account those actors
that propose services outside of the set framework?).
o They need to identify sufficiently stable actors if they are to be supported and to
have a chance of producing medium- or long-term effects (yet new actors can
emerge very suddenly, or the role of actors can change fairly quickly; moreover, the
boundaries between the different types of content distribution are flexible and will
be even more so in the future. How can cinema, television, Internet content, and
games content be differentiated when they are all part of the same package?).
Operational suggestions
• Because it is an integrated programme that supports the value chain
and the main actors, MEDIA is still a relevant means of assisting the
sector. However, it is possible to consider alternatives to funding, which
might be chosen for theirflexibilityand their exploratory nature, as well
as their different targets, i.e. factors of competitiveness in the sector, or
firms rather than content. Bank or financial guarantees used as tools in
the development phase have the advantage of not being too costly and
of shifting the selection procedure from the work itself to the economic
project (selection on the basis of the quality of the works is costly in
terms of processing applications);
o The MEDIA Unit lacks structured tools to monitor the sector
and be attentive to all its actors' needs (companies in
production, distribution, promotion and training, as well as
local and national authorities, banks, trade unions, NGOs,
foundations, etc.). In a context of uncertainty, it is not expertise
that is needed as much as the expression of consensus or
compromise between actors on how to approach problems and
their resolution, including highly technical matters or problems
anticipated in the future. The European DGs that deal with fast-
changing sectors use thematic networks or pilot projects mostly,
bringing together actors from across Europe in response to calls
for project proposals (which may be prepared upstream with
the said actors). The idea is to answer a specific question by
means of consensus between actors that the Commission can
then support107.
o Other, so-called soft law tools such as white papers, codes of
conduct, charters, etc., devised jointly with actors in the sector,
can also be used to act flexibly on certain fast-changing fields
(e.g. VOD and digital content distribution). They can serve to
reduce the risks of becoming obsolete within a few years
because the preferred mode of distribution has changed. In this
case the expected effects primarily concern behaviours.
o It is also possible to complete the current approach with a
territorial perspective. The analysis has shown that half of the
organizations supported by MEDIA 2007 were located in just
ten European regions. Supporting cooperation between these
territories can be an effective way of developing European
7
See for example the ICT-PSP Programme of DG INFSO.
04/06/2010 – page 97
networks and supporting the least developed countries, like the

networks of clusters implemented by DG RTD108.
■ These changes must not be made at the expense of MEDIA:
o The existing tools used by MEDIA that favour networking and a
sort of interoperability (through dubbing/sub-titles, including
for handicapped persons) fall into the category of tools
impacting on factors of competitiveness rather than on
companies. They should therefore be encouraged, even if this
does not correspond to the traditional categories which are out
of phase with the way in which content is considered today
(from cinema to television to DVD via digital broadcasting,
derived products, etc.).
o Likewise, among the new action lines, VOD/DCD and I nitial
Training have not yet shown themselves to be successful and
their impacts will not be visible before the end of the
programme period. From this perspective:
- as regards I nitial Training, reflection for the new
generation of the programme should focus on a
reference framework and the definition of a corpus of
common competencies;
- as regards VOD, it would be relevant to work towards
building consensus on a common approach to rights.
Work axis №2: Revise the modalities of the imple me ntation

of positive discrimination
It would be necessary to revise the criteria of positive discrimination and to
carry out more in-depth analysis of the most appropriate targets in relation to
the main objective of this policy, around the following:
• I nitiate concerted analysis based on the following question: Would it be
more appropriate to set criteria by type of professional or by company
size, rather than by type of country?
■ For certain action lines, it would be necessary to revise the typology of
countries (strong production capacity, weak production capacity, and
limited geographical area) in order to design and apply the modalities
of positive discrimination better.
Work axis №3: Explore the possibility of intervening on the

demand
Consider levers to impact on the demand at the level of consumers, exhibitors
and TV broadcasters, and via education on the media in schools (e.g. class film
clubs).
• A study of the impacts of media education on the demand for European
films (extent, conditions of success, added value) should be envisaged;
108
See for exa mple FP7 Regions of Knowledge
04/06/2010 – page 98
by targeting educational institutions more, the screening of films can be

accompanied by educational support, which is a real advantage
compared to screening in cinemas.
A study should be envisaged on the modalities of intervention on the
intermediate demand (broadcasters, irrespective of the mode of
broadcasting), consisting of incentives for the broadcasting of NNE
works; this would make it possible to determine more accurately the
possibilities of acting on the demand.
Strategic Recommendation 2 : Strengthen the

capacities for knowing the market and
analysing the effects of the programme
Sources: Conclusions 1 and 3 Timeline: medium/long term

Knowledge of the industry and of the European audiovisual market is still
fragmented because limited by problems of availability, comparability and
reliability of statistical data. Despite 20 years of programming, there are still no
data on the weight of the audiovisual sector in European countries. Moreover,
MEDIA is a complex programme that articulates multiple forms of support,
functions by multiple logics, and caters for multiple actors. Its global evaluation
does not always make it possible to examine in detail and in depth certain
specific aspects of a type of support and/or actor.
Work axis N°1: Optimise the contributions of the European

Audiovisual Observatory
The European Audiovisual Observatory should be able to provide the
programme with reliable and useful data and analyses that enable it to improve
its knowledge of the context.
• Participate more actively in the elaboration of the annual and strategic
plans of the EAO in order to ensure that its activities, research and
choices of indicators, data and statistics are more in line with the needs
and objectives of the programme.
■ Work with the EAO on data comparisons, especially in terms of groups
of countries109, and undertake joint analysis of the possible evolution of
prevailing typologies.
■ I n a cooperative framework to be set up with Eurostat, commission a
study on Category J59-1110 of the NACE REV2.
109
For exa mple, a ccording to MEDIA there a re currently 5 countries with a high
production ca pa city wherea s the EAO shows 4, excluding Spa in a nd depending on how the
data a re sorted.
110
Motion picture, video a nd television progra mme a ctivities.
04/06/2010 – page 99
Work axis N°2: Undertake studies to enhance the

programme’s capacity to anticipate
Studies on the European audiovisual scene should be undertaken to equip the
programme with the means to monitor the sector. This would enhance its
capacity to anticipate changes and enable it to adapt the modalities of
intervention accordingly.
• Undertake specific econometric/sectoral studies on the European and
international audiovisual markets.
■ Envisage a cohort study that shows the impact of the programme�s
interventions on the sector more clearly. This kind of study could be
performed for the Training line, for example, to monitor the career of
professionals trained by MEDIA, or on the Development sector, to see
what has happened to projects that received support for development.
Work axis N°3: Carry out specific evaluations focused on

precise aspects of the programme
For a more precise view of the effects that the modalities of the programme�s
intervention have had, it would be necessary to carry out evaluations limited to
smaller fields.
• Carry out evaluations by action line: Development, Training,
Promotion, Festivals, and Distribution.
Strategic Recommendation 3 : Maintain efforts

to adapt to the market
Sources: Conclusions 4, 9, 11, 13 Timeline: medium/long term
In response to the limits highlighted in the evaluation, improvements can be

proposed, notably with regard to TV Broadcasting, Distribution and Exhibition.
Work axis N° 1: Optimise the effectiveness of the TV

Broadcasting line
• Propose direct support to the TV distributor (seller) by authorising
his/her eligibility:
o either directly for the automatic fund as it is today, by funding a
part of the selling and distribution costs (excluding the
minimum guarantee (MG) which is not supposed to be
subsidised);
o or in a specific TV sales agent fund.
04/06/2010 – page 100

A specific TV sales a gent fund

This new fund, which would be intended entirely for sales agents who represent the rights
of independent producers (along the lines of Eurimages), would make it possible to help:
^ the TV works that are selected for Producer support, as distributors take a very real
commercial risk when they decide to support a work with a MG; this part would be
quasi-automatic;
^ sales agents who accept non-supported works (insufficient number of points) but
that show real commercial potential (free territories, channels in third countries,
etc.) and on the basis of an estimation of sales and expenditures.
■ Support broadcasters engaged in promoting non-national European

(NNE) works ('Europa cinemas for television'):
o I t would be necessary to support channels that make a real
effort to promote European works and those that create
'Europe' slots, like SVT (Sweden), YLE (Finland), NRK
(Norway) and soon TVE (Spain). European obligations
concerning non-national works would be a strong incentive
because they would create opportunities for visibility on all
European channels.
o This system could be made appealing by a financial bonus for
those channels that created 'Best of Europe' slots as a real
encouragement for the circulation of works and to boost the
audiovisual rights market. This financial bonus could cover
eligible expenses such as dubbing/sub-titling of channels,
marketing and advertising the programmes concerned, and
promotion costs. It would be paid at the end of the first year,
subject to statements (on the number of NNE programmes
bought and broadcast, audiences, and promotion costs). 50% of
these amounts would then be available for the selected channels
(varying criteria, depending on the size of the channel, the
country group, etc.) as a drawing right for the following year,
either in new purchases of NNE or in P&A, or in pre-acquisition
(or co-production) rights, such as automatic support in the
Distribution line.
■ Support the dubbing of series into English (or French), as dubbing is
the only way that European fiction and animation can be sold today on
the US market or in small territories (or to small operators).
■ Promote projects that are also destined for the Web (or two media, one
of which is online like the Web, personal mobile TV, or new media), as
well as the eligibility of projects that are opening up to new media.
Work axis N°2: Improve the effectiveness of support for

distribution and exhibition
• As regards support for distribution and exhibition, additional points
could be granted for the implementation of linguistic versions (for
Distribution) and screening (for Exhibition) for people with visual or
hearing impairments.
04/06/2010 – page 101

Strategie Recommendation 4: Optimise the

programme manage me nt
Sources: Conclusions 4, 19 and 20 Timeline: short term
Work axis №1: Optimise the programme manage me nt

• The comitology procedure, along with the European Parliament's right
to inspection, prolongs the time it takes before beneficiaries are notified
that their project has been successful, and especially before their
contracts are signed.
In line with what has been set up for other programmes of DG EAC and
for the MEDIA Mundus Programme, a threshold should be determined
in relation to the amount of Community funds allocated, and below
which the comitology procedure no longer applies.
A simple notification on the selections, to the European Parliament and
the media committee, could be provided for.
■ To limit the growing number of applications on the Development line
and enhance the quality of the project proposals received, it would be
necessary to envisage stricter eligibility and/or selection criteria. This
would ensure more efficient management of this line and favour quality
projects, thus having a dissuasive effect on 'casual' applications.
Work axis №2: Maintain efforts to reduce the administrative

burden
Operational suggestions:
• The data required in the applications should be saved in a file that could
be retrieved and used in a subsequent, new application. For this
purpose, the creation of a system of online applications that directly
informs the MEDIA database should be favoured.
■ Likewise, a single identification number would make it easier to
monitor beneficiaries' trajectories and/or their projects, as well as the
storing of administrative data.
Work axis №3: Extend and diversify the expertise

Operational suggestions:
• A larger pool of experts, especially for specific fields such as new
technologies and new forms of artistic expression, could improve the
programme management in the selection procedure and favour
selection more in phase with market developments.
04/06/2010 – page 102

Strategie recommendation 5: Maintain efforts in

communication and data sharing
Sources: Conclusion 9, 10, 14 and 20 Timeline: short term
Certain initiatives are likely to enhance the programme's legibility and remove
obstacles to its effectiveness.
Work axis №1: Communicate clearly

• Referring to the 'MEDI A Programme' rather than 'MEDI A 2007' (or
any other name referring to a new generation programme) would
provide clarity, avoid confusion among media professionals, and give
the MEDIA programme a brand image. The logo could also be changed
so that the actors of the programme can identify with it better.
■ Changing the name of the i2i line, which lacks clarity, should allow for
better communication on the mechanism of this line.
■ Confusion among professionals concerning the type of works eligible for
the I nteractive Works line would warrant the term 'interactive' being
replaced by 'cross media'. The latter term corresponds more to current
jargon used in the sector to refer to this type of work favouring
multiplatform content.
Work axis №2 [*]: Exploit the potential of the network of

MEDIA desks and antennae more fully
• This should involve the creation of a collaborative platform where the
MEDIA Desks and antennae share the knowledge of their national and
local markets (the main actors, trends and recent developments) and
the lists of projects supported on their territory. The creation of such a
collaborative platform would improve the flow of information up to the
Commission.
■ Likewise, via this platform the Commission could improve its
communication to the MEDIA desks and antennae by notifying them of
various changes and of amendments to the guidelines, as well as
information on the selection process (lists of the applicants selected or
refused, reasons for refusals, European overview of training offers,
etc.).
04/06/2010 – page 103

9. Annexes
Annex 1 – Programme intervention logic

One of the objectives in the terms of reference was to review the intervention logic of the MEDIA 2007 Programme.
To that end, the evaluation team used a tool called a logigram or logical diagram of the expected impacts (LDI). This tool shows the action theory of
a programme or policy, by bringing together all the hypotheses put forward by the funders and managers to explain how the public intervention will
produce its effects and achieve its goal. It is drawn u p on the basis of official documents.
The logigrams presented in the following pages are based on the following documents:
- Text of the Decision of the European Parliament and the Council of 15/11/2006 the implementation of a programme to support the European
audiovisual sector (MEDIA 2007) ;
- Texts presenting the programme, available on the MEDIA website of the European Commission;
- Texts presenting the programme, available on the Mediadesk France website;
- Extended impact assessment of MEDIA 2007;
- Guidelines of calls for projects;
- Logigrams of MEDIA Plus and MEDIA Training drawn up for the final evaluation of these two programmes.
As far as possible, the original terms of the text of the Decision have been used.
The action theory consists of the relations of cause and effect between the outputs, results and impacts of the programme. I t is often at least
partially implicit. The evaluation helps to clarify it. The logigram is a diagram of the steps in the causal relations between the programme�s outputs,
on the left, and its specific impacts u p to the global impact(s), on the right.
Output: what is financed and accomplished with the funds granted to the intervention.
Result: the advantage (or disadvantage) that the immediate recipients obtain at the end of their participation in the public intervention or upon completion of a
public infrastructure. The results can be seen when the operators complete their action or report on the use of the funds under their management.
Interim impact (Outcome): consequence for the direct recipients after the end of their participation in the intervention (in the medium or long term).
Overall impact: indirect consequence for all recipients, whether they are winners or losers.
04/06/2010 – page 104

In the framework of the MEDIA 2007 Programme evaluation, the logigrams served to identify all t h e i n t e r v e n t i o n s of t h e p r o g r a m m e a s a
w h o l e , to clarify t h e objectives, and to bring together the first data collected on the internal c o h e r e n c e of the programme. They thus
facilitated the formulation of priority evaluation questions and of the evaluation criteria.
The logigrams presented below (logigrams by intervention theme 111 and a global logigram) are the result of 'in-house' work by the evaluation team.
They were discussed with the steering committee and the members of the Media Unit and the Agency during a workshop specifically designed for
this purpose.
The asterisks characterise the MEDIA 2007 lines which did not exist in the preceding generation of the programme (MEDIA Plus and MEDIA
Training) or, in the case of the Festival line, in which the support was altered substantially.
NNE works = non-national European works.
'" The TV Broadcasting action is under both the 'Distribution' and 'Support for Independent Producers' hues. It is shown here in the 'Support for Producers'
logigram. 'Festivals' is presented on the MEDIA site as a hne in its own right. However, the guidehnes suggest that it should be positioned under the 'Promotion' hne
because the objectives are so similar.
04/06/2010 - page 105
Training
Support for training on
scriptwriting techniques
Knowledge and employability of

future professionals improved
economic, financial and
commercial management
Networking and mobility of
European students and trainers
facilitated
new technologies European audiovisual
professionals’
Audiovisual professionals’ capacity competencies enhanced
to integrate the European
dimension into their work enhanced
Support for trainers’
training Networking and
cooperation between
professionals in the
Support for training on Networking and cooperation audiovisual sector
scriptwriting techniques strengthened between training strengthened
organisations and industry

eocnomic, financial and
commercial management Training offer strengthened and
adapted
Support for ta king digital outputs
technologies into account
new action of MEDIA 2007
04/06/2010 – page 106

Support for producers
Better conditions of
production
The works are more suited

Increasing volume of to the international market
activity
Better commercial
potential of European
works on the European and
international market
Better capa city to take
risks The works are more
diversified
Audiovisual professionals’
Better networking and
internationalisation of collaboration enhanced
works
Better knowledge of the
international market and
actors
Better structuring and

professionalisation
04/06/2010 – page 107

Media
Eurěval © Consulting
Group
Distribution and broadcasting

Support for distributors’
investment in Relations between the
coproduction, in the production and distribution
acquisition of exhibition sectors strengthened
rights, and in the
promotion of NNE rights
Cooperation between
European distributors Networking and cooperation
enhanced between professionals in the
audiovisual sector enhanced
Support for investments
by interest groupings of Better conditions for release
distributors in the of ENN works on the
promotion and European market
distribution of NNE Distribution channels for
works
J Better European films exports
European works strengthened
Distribution and broadcasting

of ENN works on the Transnational
Support for sales agents’
European market eased diffusion/circulation of
investments in the
acquisition and European audiovisual works
promotion of NNE works improved
Cooperation between
European exhibitors
strengthened
Support for the

Development of the demand
coordination of a Dissemination of digitised
for NNE works
network of cinemas works developed
Support for VOD, DCD and Education and raising

pilot projects awareness of young audiences
(see zoom on following
page)
04/06/2010 – page 108

Zoom on new technologies
Support for the creation and

online exhibition of catalogues of
European works Public’s access to European
audiovisual works improved
Distribution channels of
European works strengthened
Support for the creation and

exhibition of catalogues of
Digitisation of European
European works deliverable in
audiovisual works boosted
cinemas in digital form Transnational
dissemination/circulation of
European audiovisual works
improved
Distribution and exhibition of
NNE works on the European
market facilitated
Support for new means of Better commercial potential
creation and and distribution of of European works on the
content via non-linear services
J New products and modes of
European and international
market
production and distribution
developed for greater
Support for the development of accessibility
new tools in open media
Competencies of European
environment
audiovisual professionals
improved
Sharing of professional
Support for the development of
knowledge facilitated
cinematographic Web
communities
04/06/2010 – page 109

Promotion
Support for initiatives in
coproduction and joint funding of
works
Access to European and

Technical and financial assistance
international professional
in favour of access to markets
markets facilitated
Relations between European Networking and cooperation

Support for online databanks and of professionals in the
audiovisual professionals
for film and professional audiovisual sector
enhanced
community portals strengthened
Expansion of the offer of

Support for the implementation of European works Transnational
European joint actions in dissemination/circulation of
promotion European audiovisual works
improved
Visibility of European
audiovisual works improved
Support for the promotion of

Development of the demand
European audiovisual works
for N NE works
outside of MEDIA countries Media literacy and raising
public’s awareness of
European works boosted
European audiovisual heritage

Support for festivals that promote promoted
the broadcasting of European
audiovisual works
04/06/2010 – page 110

MEDIA 2007
The competencies of European

audiovisual professionals are
Offer
enhanced
Development of a
varied and attractive
Better commercial potential of
European audiovisual
European works on the European
offer
and international market
European cultural and
linguistic diversity
Networking and joint work of preserved and enhanced
professionals in the audiovisual Sector
sector strengthened
Reinforced and Strengthenin
balanced structurin Better circulation and of the
of the European larger audience for European
Distribution channels of European
audiovisual sector works audiovisual
works strengthened
sector
Transnational Competitiveness of the

dissemination/circulation of European audiovisual
European audiovisual works sector strengthened
Audience of European
improved
audiovisual works
increased
Development of the demand for NNE
works
Reminder of the cross-cutting priorities:
- Encourage creation and knowledge of the heritage
- Strengthen the structure of the sector (SMEs)
- Reduce the imbalances of the market
- Support digitisation
The text in italics in the red boxes is from the Decision.
04/06/2010 – page 111
tin9
Eurěval Q g S MEDIA 2007 interim evaluation
Annex 2 – Distribution of programme resources
Table 6 9 : Distribution of t h e budget
2009
Data source: EACEA 2007 2008 (estimate) Total (€) Share
Training 21,534,148 7%
Continuous Training 4,952,272 5,648,875 6,748,407 17,349,554 6%
Initial Training 1,200,695 1,177,817 1,806,082 4,184,594 1%
Support for Producers 100,143,076 34%
Individual Projects 5,910,000 7,712,066 7,405,546 21,027,612 7%
Catalogues of Projects 8,455,000 11,235,058 11,989,066 31,679,124 11%
New Talent 2007 Interactive Works
2008 2009 800,000 2,025,140 2,499,549 5,324,689 2%
I2I 2,570,630 2,697,132 3,049,889 8,317,651 3%
TV Broadcasting 9,500,000 12,267,000 12,027,000 33,794,000 11%
Distribution 140,263,463 47%
Selective Support 11,819,500 13,067,831 13,051,295 37,938,626 13%
Automatic Support 16,200,801 18,914,274 20,602,807 55,717,882 19%
Sales Agents 417,151 1,263,436 956,896 2,637,483 1%
Network of Cinemas 7,109,880 9,900,000 9,350,000 26,359,880 9%
VOD – DCN 4,932,382 6,259,139 6,418,071 17,609,592 6%
Promotion 32,481,915 11%
Access to Markets 4,405,449 4,860,979 5,281,761 14,548,189 5%
European Films in the World 1,124,000 1,150,400 1,481,000 3,755,400 1%
Support for Festivals 1,933,370 2,520,212 3,507,671 7,961,253 3%
Stands 2,240,927 1,833,202 112
2,142,944 6,217,073 2%
Pilot Projects 2,460,245 1%
2,460
Pilot Projects
1,083,495 701,750 675,000 ,245 1%
84,655,552 103,234,310 108,992,984 296,882,846 100%
Figure to be validated; may be an under-estimation.
04/06/2010 – page 112

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Table 7 0 : Distribution of t h e n u m b e r of c o n t r a c t s s u p p o r t e d
In 2007 and 2008 the numbers of projects and contracts supported were identical, but in 2009
the introduction of the process of simplification/consolidation on the Automatic and Selective
Distribution lines made it possible to reduce the number of contracts submitted (production of
multi-project contracts) and to increase the number of projects processed. A total of 2,014
projects were supported in 2009.
2009
Data source: EACEA 2007 2008 (estimate) Total Share
Training 153 3%
Continuous Training 35 36 49 120 2%
Initial Training 10 10 13 33 1%
Support for Producers 1,297 26%
Individual Projects 162 191 188 541 11%
Catalogues of Projects 76 76 79 231 5%
New Talent 2007 Interactive
Works 2008 2009 24 32 31 87 2%
I2I 70 66 89 225 5%
TV Broadcasting 49 81 83 213 4%
Distribution 3,079 62%
Selective Support 565 502 387 1,454 29%
Automatic Support 485 527 488 1,500 30%
Sales Agents 13 37 25 75 2%
Network of Cinemas 1 2 1 4 0 % 113
VOD – DCN 12 18 16 46 1%
Promotion 411 8%
Access to Markets 44 46 43 133 3%
European Films in the World 3 3 2 8 0 % 114
Support for Festivals 76 88 94 258 5%

Stands 4 4 4 12 0 % 115
Pilot Projects 9 0%
Pilot Projects 4 3 2 9 0 % 116
1,633 1,722 1,594 4,949 100%
113
0.08%
11
4 0.16%
11
5 0.24%
116
0.18%
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Table 71: Distribution of h u m a n r e s o u r c e s

Staff Management Finance Total
Data source: EACEA (FTE) % (FTE) (FTE) (FTE) %
Training 7 10%
Continuous Training 2.5 5% 0.2 0.8 3.5 5%
Initial Training 2.5 5% 0.2 0.8 3.5 5%
Support for Producers 25.2 36%
Individual Projects
Catalogues of Projects
13 26% 1.04 4.16 18.2 26%
New Talent 2007 Interactive Works
2008 2009
I2I 2 4% 0.16 0.64 2.8 4%
TV Broadcasting 3 6% 0.24 0.96 4.2 6%
Distribution 26.25 38%
Selective Support 8.5 17% 0.68 2.72 11.9 17%
Automatic Support 8 16% 0.64 2.56 11.2 16%
Sales Agents 1 2% 0.08 0.32 1.4 2%
Network of Cinemas
VOD - DCN 1.25 3% 0.1 0.4 1.75 3%
Promotion 9.8 14%
Access to Markets 3 6% 0.24 0.96 4.2 6%
European Films in the World 0.5 1% 0.04 0.16 0.7 1%
Support for Festivals 3 6% 0.24 0.96 4.2 6%
Stands 0.5 1% 0.04 0.16 0.7 1%
Pilot Projects 175 2%
Pilot Projects 1.25 3% 0.1 0.4 1.75 3%
50 100% 4 16 70 100%
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Annex 3 – Number of works supported by MEDIA

Distribution that were commercially successful
(admissions) outside of their coun try of origin
Table 7 2 : N u m b e r of w o r k s s u p p o r t e d by MEDIA D i s t r i b u t i o n t h a t w e r e c o m m e r c i a l l y s u c c e s s f u l
( a d m i s s i o n s ) o u t s i d e t h e i r c o u n t r y of origi
The top 50 European films by admissions in Europe (2008) 1

Based on an analysis of around 84% of admissions in the Member States of the European Audiovisual Observatory
Rank Original title funded by MEDIA Country of origin (1)
1 Quantum of Solace non GB INC / US

2 Bienvenue chez les Ch'tis oui FR
3 Astérix aux jeux olympiques oui FR / DE / ES / IT
4 The Chronicles of Narnia: Prince Caspian non GB INC / US
5 Sweeney Todd: The Demon Barber of Fleet Street non GB INC / US
6 Keinohrhasen (5) non DE
7 Recep Ivedik non TR
8 Earth (6) oui GB / DE
9 A.R.O.G non TR
10 Taken oui FR
11 Gomorra oui IT
12 Die Welle oui DE
13 Babylon A.D. non FR / US
14 The Boy in the Striped Pyjamas non GB INC / US
15 Natale a Rio non IT
16 Der Baader Meinhof Komplex oui DE / FR / CZ
17 Disco non FR
18 Lejdis non PL
19 Enfin veuve oui FR
20 Muro: Nalet olsun içimdeki insan sevgisine non TR
21 Mesrine, l'instinct de mort oui FR / CA / IT
22 Paris oui FR
23 Atonement (7) oui GB / FR / US
24 Grande, grosso e Verdone non IT
25 Entre les murs oui FR
26 Scusa ma ti chiamo amore non IT
27 In Bruges oui GB INC / US
28 Transporter 3 oui FR
29 Issiz adam non TR
30 Die Wilden Kerle 5 non DE
31 The Oxford Murders oui ES / GB / FR / RU
32 The Duchess oui GB / FR / IT
33 Il y a longtemps que je t'aime oui FR / DE
34 L' Ennemi public n° 1 oui FR
35 El Orfanato (8) oui ES
36 Osmanli Cumhuriyeti non TR
37 Il Cosmo sul comò non IT
38 Krabat oui DE
39 Happy-Go-Lucky non GB
40 Faubourg 36 oui FR / DE / CZ
41 Nie klam, kochanie non PL
42 Love in the Time of Cholera (9) non GB INC / US
43 Mortadelo Y Filemon Mision:Salvar La Tierra non ES
44 Angus, Thongs and Full-Frontal Snogging non GB INC / US
1 Les films surlignés en jaune sont ceux qui ont été exclus du calcul.
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45 Bathory non CZ / SK / GB / HU
46 Winx club - Il segreto del regno perduto (10) oui IT
47 Rec (11) oui ES
48 L' Allenatore nel pallone 2 non IT
49 Fly Me to the Moon oui BE / US
50 Definitely, Maybe non GB / US / FR / DE
Sources:
(1) Inc refers to films produced in Europe with US investment.

(2) AT, BE, BG, C H , CZ, D E , DK, EE, ES, FI, FR, GB/IE, HR, H U , IT, LT, LV, NL, NO, PL, PT, RO, SE, S I , SK, TR
(3) Incomplete data.
(4) GB/IE admissions are estimated using an average ticket price.
(5) 2007: 1 485 043
(6) 2007: 1 905 458
(7) 2007: 3 203 158
(8) 2007: 4 344 369
(9) 2007: 389 431
(10) 2007: 824 148
(11) 2007: 1 341 951
1
Source : OBS / LUMIERE (http://lumiere.obs.coe.int)
© European Audiovisual Observatory / Observatoire européen de l'audiovisuel / Europäische Audiovisuelle Informationsstelle
Yearbook Online Premium Service 2009 / Premium Service en ligne de l'Annuaire 2009 / Jahrbuch Online Premium Service 2009
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Description of the programme

What is new about MEDIA 2007

Key figures on the programme

Scope and objectives of the evaluation

The steering committee gave priority to Questions 1, 2 and 3, respectively

Conclusion 1: The integrated logic of the programme (i.e. covering Findings 1,

Conclusion 2 : The added value of the MEDIA Programme is Findings 6,

Conclusion 3 : Significant adjustments have been made to MEDIA Findings

the entire period, to the extremely rapid changes in technology and

Conclusion 4 : The steep increase in the number of applications Findings 4,

Conclusion 5 : The overall internal coherence of the programme is Findings 7,

Conclusion 7: Participation in the application process for MEDIA Findings

Conclusion 8: MEDIA 2007 support for Continuous Training is Findings

Conclusion 9: MEDIA 2007 support for Development, which has Findings

Conclusion 11: MEDIA 2007 support for Distribution is effective on Findings

Conclusion 13: MEDIA 2007 support for TV Broadcasting Findings

contributes significantly to securing producers� rights but is still not 2, 10 and

Conclusion 1 4 : The modalities and scope of application of support Findings

Conclusion 1 6 : By supporting training for professionals, the Findings

Conclusion 17: I n the continuity of MEDI A Plus, MEDI A 2007 Findings

Conclusion 1 8 : The programme is likely to contribute to the Findings

Conclusion 1 9 : On the whole the budget and resources of the Finding

Conclusion 2 0 : The efficiency of the programme management has Findings

Strategic Recommendation (SR) 1: Broaden the modes of

SR 2: Strengthen the capacities for knowing the market and

SR 3: Maintain efforts to adapt to the market

SR 4: Optimise the programme m anagem ent

SR 5: Maintain efforts in communication and data sharing

2. Adaptation of the MEDIA programme to the

3. Internal coherence of the MEDIA programme 45

4. First effects of the MEDIA Programme 51

5. Capacity of the programme to ultimately

6. Efficiency of the programme implementation 83

Table 25: Distribution of people who benefited from training supported by

A fast-changing audiovisual sector

In terms of distribution platforms, cinema, traditionally linked to a geographic

the system of pre-financing makes commercial funding increasingly necessary

Presentation of the MEDIA 2007 Programme

In accordance with the principles of subsidiarity and complementarity,

The types of support implemented in the framework of the MEDI A 2007

What is new about MEDIA 2007

Key figures on the programme8

N° of projects 1631 1,719

84,655,551.87 102,234,310.45 108,992,983.80 295,882,846.12

As regards the applicant organisations 9 :

Figure 3 8 : ( m a p ) N u m b e r of o r g a n i s a t i o n s r e t a i n e d p e r participant country,

Figure 4 0 : Budget s h a r e granted t o t h e o r g a n i s a t i o n s e n g a g e d i n t h e MEDIA

overall, the average annual budget received per organisation remained

Figure 4 2 : ( m a p ) B u d g e t t r e n d s p e r r e g i o n b e t w e e n MEDIA P l u s a n d MEDIA

Objectives of the study

Proposing adjustments (prospective approach)

Updating the data and concepts used in the preceding

More in-depth analysis of new subjects

Answering the evaluation questions

Q1. To what extent is the MEDIA 2 0 0 7 Programme still suited to the

The Steering Committee gave priority to Questions 1, 2 and 3, respectively

These lines are distributed as follows:

Support for continuous training Support for initial

Support for Support for the development of Support for the

Distribution of Automatic support Support for video-on-

P r o m o t i o n of Access to the market

Horizontal Pilot projects, including support Recent introduction of