Prof. Roberto Mastroianni (Università degli Studi di Napoli “Federico II”)

1. Seminar EUROPEAN COMMUNITY REGULATION OF COMMERCIAL COMMUNICATIONS IN AUDIOVISUAL SERVICES IN THE AGE OF CONVERGENCE • Prof. Roberto Mastroianni • (Università degli Studi di Napoli “Federico II”) • WARSAW – 8th December 2005

2. Purpose and importance of qualitative and quantitative advertising rules envisaged in the Television Without Frontieres Directive

3. Advertising Rules in the TWFD • TWFD actual text – Chapter IV • Rules on recognition and separation (art. 10) • Rules on insertions (art. 11) • Rules on particular products and protection of minors (artt. 13-16) • Rules on sponsorship (art. 17) • Rules on the amount of advertising and teleshopping (artt. 18-19a)

4. Need of Clarifications of Existing Provisions: examples • Isolated spots. When exceptional? • Programs consisting of autonomous parts. Notion of “interval”. • Insertion of advertising and “Matrioska” programs (audiovisual works) • Product placement and surreptitious advertising • Calculation of hourly duration for “other forms of advertising”. Telepromotions

5. The Procedure for Revision • 1997 Revision: • Only few changes (teleshopping, quantitative rules) • Current Revision Procedure • Rules on advertising are discussed at the Commission’s initiative (focus group 2 – Issue paper n. 4) • Partially anticipated by the Interpretative communications of April 2004 (e.g. product placement) • Text circulating in November 2005: distinction between linear and non-linear services

6. Which new rules? European Commission Issue paper n. 4 and new Proposal • In favour of more flexibility • No different rules for public broadcasters • MS still may choose deeper or stricter rules for domestic broadcasters • Two tiers • Rules common to all audiovisual commercial communications • Rules applicable only to linear services

7. The new framework: non-linear services Horizontal rules for all media services providers (new art. 3g): lighter approach • Principle of identification • General principles on h.r. protection • Basic principles on alcohol and minors • No provisions on pharmaceutical products or tobacco (other legislative instruments) Proper choices for non-linear services?

8. The new framework: “traditional” broadcasting • Basic question: do qualitative and quantitative rules for the “linear” transmission of advertising need amending? • Which interests are involved? (fair distribution of revenues, press, integrity of programs, protection of viewers) • Reasons given by the Commission in favor of flexibility : • New opportunities created by new advertising techniques – flexibility in applying the principle of separation • Increased choice for viewers – no need of detailed rules for the protection of viewers • Only some categories of programs which require specific protection against excessive interruptions

9. The new framework: A - Separation and identification of advertising (new art. 10) • Separation and Recognition rules remain unchanged • Rule of separation: derogated by legitimate product placement? Preamble • Repealing of the rule imposing exceptional use of isolated spots (art. 10, par. 2)

10. The new framework: B - Insertion of advertising (new art. 11) • Repealing of the general rule on the insertion between programs (par. 1, first part). • Repealing of the autonomous parts and intervals rule (par. 2) • Modification of the rule for audiovisual works (par. 3) • Repealing of the 20 minutes rule (par. 4): not envisaged by the Focus group • Repealing of the 30 minutes rule for children’s programs and news programs (par. 5)

11. The new framework C - “Qualitative” restrictions - Articles 13 to 16 • Are we satisfied with the existing rules? (minors, advs for food) • Proposal of the Commission: Extension of the basic rules to any audiovisual commercial communications. Existing rules for linear programs (but product placement!).

12. The new frameworkE - Hourly and daily advertising limits for linear services (new Art. 18) • Abolition of the daily limits (no added value – very high limits) • Maintaining hourly limits (20%) for any forms of advertising and teleshopping spots. No definition of teleshopping spots • Other forms of teleshopping (windows) meet no temporal limitations

13. Monitoring and sanctioning • Necessity of strict observance of the rules in the MS (distorsions of the advertising market) • Effective system of monitoring and sanctioning at the national level. Necessity of more detailed rules on sanctions

14. Virtual, interactive and split-screen advertising: examples of national legislations • Split screen and virtual advertising not permitted in Portugal and France. • Split screen allowed in Germany and UK • Virtual advertising allowed in Greece and Spain

15. Virtual, interactive and split-screen advertising • Split-screen • Simultaneous transmission of advertising and editorial content • Doubts on conformity with TWFD – Art. 10 (principle of separation) and 11 (interruption of programs for any insertions during programmes) • Council of Europe Standing Committee: covered by the European Convention but submitted to rules on separation, insertion and duration of advertising • Interpretative Communication of the European Commission (April 2004): compatible with the Directive. All the qualitative and quantitative rules are applicable in full.

16. Virtual, interactive and split-screen advertising • Virtual advertising • Use of virtual techniques for inserting advertising during broadcasts of sporting events, by replacing existing advertising boards on the field or by super-imposing new images • Interpretative Communication: compatible with the Directive (as sponsorship) if viewers are informed and with the permission of the organizers of the event • Only on sites normally assigned for advertising messages

17. New advertisingtechniques • Virtual advertising

18. Virtual advertising

19. Thanks for your attention! • roberto.mastroianni@unina.it