The regulator integrates the main international SMADs into the French creative financing scheme
Pursuant to the decree of June 22, 2021 on "on-demand audiovisual media services" (SMAD), adopted following the transposition of the European directive on audiovisual media services, the French Superior Audiovisual Council has proceeded to the agreement and notification of the obligations of the main SMADs established in other European Union Member States and offering their cinema and audiovisual supplies on the French market: Netflix, Disney +, Amazon Prime Video, for its on-demand service, and Apple TV app - iTunes Store.
Until now, only national publishers have been obliged to contribute to the scheme for financing creation. Against a backdrop of profound changes in the audiovisual supply and growing access to works on demand and via non-linear channels, these agreements and notifications confirm the concrete involvement of major international players in the audiovisual and film industry. This is a remarkable step forward for the French and European cultural model. The French Superior Audiovisual Council is delighted with the quality of the dialogue that has led to this result, and with the commitment of these new entrants to actively contribute to the vitality and influence of French creation.
The scheme makes provision for the SMADs concerned to contribute up to 20% of their sales in France for subscription services, of which 80% will be devoted to audiovisual production and 20% to cinematic production.
Pending the forthcoming conclusion of a new agreement on release chronology, which will further integrate these new entrants into the financing of French and European cinema, the French Superior Audiovisual Council has opted for a notification procedure for obligations relating to investments in cinematic production. This choice leaves open the possibility of a convention in the future. For the film industry, as for the audiovisual sector, the options chosen leave plenty of room for negotiation and the conclusion of inter-professional agreements, the stipulations of which will naturally be taken into account by the regulator.
Before the end of 2021, five other services affected by the regulations will also have to sign agreements with the French Superior Audiovisual Council, or, where appropriate, be notified of their obligations. The total amount of contributions to audiovisuel and cinematic production is expected to be in the range of 250 to 300 million euros in a full year.
Just a few days before the birth of Arcom, which will succeed the French Superior Audiovisual Council on January 1, 2022, this new step underlines the regulator's adaptation to the profound transformations of the audiovisuel and digital landscape. Arcom will take great care to ensure compliance with the obligations arising from the agreements and notifications it has signed.
Browse agreements and notifications of SMAD obligations
Press release
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