Audiovisual media policy in Finland. Elina Thorström, tel , August 25 th 2015
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1 Audiovisual media policy in Finland Elina Thorström, tel , August 25 th 2015
2 Content 1. Media in transition 2. EU audiovisual policy and Finnish views 3. National actions (examples) Public service broadcasting Licence policy New initiatives 2
3 The media in transition In Finland the operating environment for the media is strong and of high quality. The Internet and digitalisation have changed the business models, money flows and media consumption. Finland's media markets: Conventional operators (television, newspapers, radio) continue to dominate a majority of the media markets. The electronic media has been able to manage the transition considerably better than the printed media. Changes are expected: For example the number of international IPTV platforms is growing rapidly in Finland and they account for a substantial part of the business activities in the sector. 3
4 Changing consumer habits Using internet and online services is high in Finland For example, the proportion of people who access news online is already higher than the proportion who watch news on TV. Internet access is among the highest in Finland, 89 % of population have internet access and 80 % use internet daily. Until now the pace of change has been relatively low in Finland, but the situation is changing fast. The media sector must actively seek new ways of producing high quality content online. 4
5 Broadband take-up and coverage Digital Agenda Scoreboard key indicators
6 Broadband take-up and coverage 6
7 Challenges in media sector Small market area Finland is sparsely populated area and the market for Finnish-speaking media users is small. Digital development New technological ways of producing media content Traditional revenue models do not offer enough income any longer, as e.g. advertising is moving to online world. Increasing global competition Increasing competition with global media companies Language and culture do not provide sufficient advantage for the media sector any longer 7
8 Impacts Impacts of the media transition (e.g. concentration and entry of international operators into the market): Reduces availability of domestic and Finnish-language contents. Affects employment and exports in the creative industries, and more widely the Finnish audiovisual culture. Affects freedom of expression and function of democracy, and reduces people's access to reliable information. Reform potential and innovation activity of the Finnish media sector play the key role. Competitive edge can be generated by making use of the expertise in the digital and creative sectors. 8
9 The role of the authorities The authorities provide a framework for content development amidst the digital revolution. Concrete measures to help the Finnish media sector: Deregulation: lighter regulation (e.g. in advertising and in licences). Consistent application of the regulation in every distribution channel. Lower value-added tax for digital media contents. Promotion of innovations in the digital media sector, e.g. media innovation support (EUR 30 million in ). 9
10 EU initiatives on audiovisual policy The Digital Single Market strategy (May 2015) is made up of three policy areas or 'pillars 1. Better online access to digital goods and services 2. An environment where digital networks and services can prosper 3. Digital as a driver for growth The Commission's strategy announces a review of the Audiovisual Media Services Directive (AVMSD) in The Commission will examine functioning of the Directive with a focus on its scope and on the nature of the rules applicable to all market players; measures for the promotion of European works, and the rules on protection of minors and advertising rules. 10
11 Finnish views on EU AVMSD reform Excessive, detailed regulation no longer required. New regulatory initiatives should concentrate on removing legislative barriers. Similar regulation should apply to all content and services (irrespective of the device they are consumed). No regulatory differentiation between linear and nonlinear services Co- and self-regulation should be emphasized. Specific views: Advertising regulation somewhat outdated. Flexibility on the ways to promote the creation, distribution of European works. 11
12 Finnish Broadcasting Company, YLE In Finland, public service broadcasting is, by law, the responsibility of the Finnish Broadcasting Company Ltd. (Yleisradio Oy, YLE). Public service broadcasting differs in many respects from commercial broadcasting. The central government contributes to the funding of YLE. YLE is supervised by Parliament directly. The purpose of broad-based parliamentary guidance is to ensure the company's independence. There are special requirements for YLE's broadcasting (public service duty).
13 Public service of the Finnish Broadcasting Company YLE 2013 Finance model changes Payer (television user) television fee 2013 Payer (tax payer) public service tax State Budget transfer State Television and Radio Fund State Television and Radio Fund utilisation plan utilisation plan Finnish Broadcasting Company Ltd Finnish Broadcasting Company Ltd 13
14 Funding of the Finnish Broadcasting Company The funding of YLE was reformed as a result of broad-based parliamentary cooperation. The level of funding is determined by law: EUR 500 million per year + annual index adjustment. In 2015 a total of EUR million will be transferred to YLE. No index increase in Financing of YLE will be covered by revenue from the public broadcasting tax. The public broadcasting tax is EUR depending on the person's income. People on the lowest incomes and those under 18 do not have to pay public broadcasting tax. The public broadcasting tax for organisations etc. is EUR 140 3,000 depending on the taxable income. 14
15 Public service of the Finnish Broadcasting Company YLE 2013 Guidance and supervision changes 2013 Parliament appoints the Administrative Council processes the report by the Administrative Council on public service Independent assessor prepares prior evaluation for the Administrative Council Administrative Council guides and supervises the operations of YLE Ltd and the implementation of public service elects the company's Board of Directors issues a prior evaluation of significant new services Finnish Communications Regulatory Authority supervises the legality of YLE's operations supervises, in a more efficient manner than previously, the use of public service funds State Television and Radio Fund Board of Directors of YLE Ltd takes care of the company's operative functioning carries out the duties prescribed for Boards of Directors in the Companies Act Public service of YLE: defined in the Act on Yleisradio Oy 15
16 Duties of the Finnish Broadcasting Company, YLE Public service duty of YLE A substantial role in the Finnish television and radio broadcasting and in content production. The principles of equal provision for all and consideration of commercially marginal groups are of particular significance. In the transition of the media, YLE's importance as an independent operator and content provider of Finnish programmes is emphasised. 16
17 Licensing system latest amendments Granted by the Government Granted by FICORA Network licences Section 5 Programme licences Section 25 Programme licences Others Comparative procedure (Section 9) Auctioning (Section 10) - if capacity not sufficient - if granting a licence significantly impacts the development of communicatio ns market Dig. television or radio broadcasting (Section 24) Analogue radio broadcasting (Section 35) TV broadcasting serving the public interest (Section 25) Short-term network licence (Section 8) Short-term prog. licence for dig. TV or radio (Section 27) Short-term licence for analogue radio (Section 38) 17
18 Terrestrial TV licences 'Super' year all licenses in the terrestrial television networks expire Network licences for terrestrial TV to be issued this autumn. Programme licences to be issued next year. The licences aim to ensure: high-quality and diverse provision of contents throughout the country with reasonable prices and to foster competition in antenna television broadcast markets. promote the provision of HDTV broadcasts in digital mass communications network. The HDTV technology switchover will be carried out flexibly according to interim evaluations and receiver readiness. In switching over to a new transmission technology, the process must be implemented in a timely, efficient and coordinated way as soon as the necessary preparations for it have been completed. 18
19 New initiatives Based on the strategic programme of Juha Sipilä's Government. A working group to review and assess the operating conditions of the Finnish media markets as well as the barriers and competitive positions in the markets. The group was appointed by Minister Berner on 3 August A parliamentary working group will assess YLE's duties and funding: The aim is to assess the role and importance of YLE in the Finnish media markets as well as its importance for democracy, freedom of expression, and versatility and independence of communications. 19
20 Thank You! lvm.fi 20
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