Speech by Roch-Olivier Maistre at the opening of the Grand Debate of the Festival de la drama, Thursday, September 17, 2020

Speech by Roch-Olivier Maistre at the opening of the great debate of the Festival de la drama

Les Folies Bergère - Paris - September 17, 2020

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Good morning everyone,

Thank you Marjorie PAILLON, thank you Stéphane STRANO, thank you for your invitation to introduce this great debate of the Festival, which has - momentarily! - away from La Rochelle. At the same time, I'd like to thank the entire team behind this year's Festival: it's an important signal for the industry.

From authors to broadcasters, via producers, a large number of industry stakeholders are indeed gathered here this morning. To discuss the crisis and its consequences, but also the way forward. So it's a real pleasure for me to open this debate - all the more so as it's the first time I've had the opportunity to take part in the Festival!

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1. You wanted to start this morning with an initial assessment of the crisis. A first assessment of this shock of rare violence that we have experienced over the last few months, from which we are still far from having emerged.

In audiovisuel production, the upturn in filming seen since mid-May was confirmed this summer, but remains fragile. This is due to the fear of further interruptions, following the hundred or so postponements or cancellations in the spring[1], but also to higher production costs[2]. And, in any case, the recovery will not compensate for first-half losses.

A similar scenario is in store for broadcasters. After the sudden collapse of the advertising market - which reached as much as 60% during the confinement period - advertisers are starting to invest again. The summer has been rather encouraging: this is one of the main findings of the latest edition of our Barometer of the effects of the crisis, published today. The fact remains, however, that the 15% drop anticipated for this year[3] has already led to major efforts on the grid costs[4].

In reality - and I won't go into further detail - our entire sector is being hit hard, in the short and medium term. And, with the many uncertainties that remain, it's not just "the world after" that we need to conceive, it's also "the world with[5] ". For the health mortgage is likely to continue.

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2. In this difficult context, the French Superior Audiovisual Council remains, more than ever, in constant contact with the entire audiovisual industry, particularly within the framework of the working group led by Jean-François MARY and Nathalie SONNAC.

We immediately sent a clear message of support to all players. And where necessary, we have demonstrated our pragmatism and flexibility in applying the rules, while maintaining the ecosystem's overall balance.

As the new season gets underway, we are keeping a close eye on developments, particularly with regard to channels' production contribution obligations. Our concern is to preserve our creative and productive fabric, and more broadly to avoid any further weakening of the industry's various components.

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3. Since the beginning of the crisis, we have also relayed the sector's concerns and difficulties to the authorities. This has led us to put forward a number of proposals for both short-term and structural support.

In this respect, we can only welcome the mobilization of the authorities. Important and long-awaited measures have been announced, such as the "creation" tax credit, or the exceptional funding for audiovisuel, which plays a key role in creation. The sector has not been forgotten by the stimulus plan, the much-needed stimulus that you have put on the agenda for the second part of this debate. The Minister will probably have the opportunity to tell us more about this later.

The cornerstone of these measures is, of course, the transposition by the end of the year of the 2018 "SMA" directive, to which the Head of State has committed himself. As you know, this directive enables the major international video-on-demand platforms to contribute to financing the creation and production in France, even if they are not established in the country. It also introduces quotas for the composition of catalogs. Competitive disparities between incumbent operators and new entrants, which had become untenable, will finally be lifted. It's a promise to breathe new life into the creative sector, to open up new levers for growth.

Adopting the various texts, so that we can actually implement them on schedule: this is undoubtedly the major challenge for this autumn. The draft legislation currently under discussion in the French National Assembly is the subject of a broad consensus among parliamentarians, which is naturally very positive.

For its part, the French Superior Audiovisual Council intends to play its part to the full, and contribute to the successful outcome of the process. It will be summoned to issue an opinion on the draft ordinance submitted to it by the Government, as well as on the resulting regulatory texts. Fully mobilized to meet deadlines, it will also maintain dialogue with the various industry stakeholders. With this in mind, I've often said that regulation is preferable to regulation. To ensure that the rules are as operational as possible and promote the financing of audiovisual creation, it is in everyone's interest to give space to regulation, notably through the agreements that the French Superior Audiovisual Council will have to negotiate with the platforms.

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4. Implementing the directive will represent a major, long-awaited step forward. But - and I'll end here - we're not yet at the end of the road.

Over the past few years, we have witnessed a growing consensus, particularly in Parliament, that our legislation is inadequate. And, beyond the measures already in the pipeline, other legislative developments are still necessary. They have been made all the more necessary by the crisis, which is accentuating and accelerating certain transformations in the sector.

I'm thinking in particular of modernising the fight against piracy. Without tools targeting illegal streaming, the fight against audiovisuel piracy risks becoming devitalized. This is why the plan to bring together the French Superior Audiovisual Council and Hadopi, to create a competent regulator covering the entire creative chain, remains so relevant.

I'm also thinking of other updates to our regulations, to make them more flexible and simpler. These developments may be less visible, but they are just as necessary.

I'm also thinking of projects that are bound to appear on the agenda, such as the future of the public audiovisuel contribution (CAP), with the scheduled end of the taxe d'habitation. In this respect, the French Superior Audiovisual Council has regularly reiterated its commitment to dedicated, survival funding for public audiovisual services.

I hope that these various initiatives will find their way into law in the coming months. You may have the opportunity to discuss them this morning, but let's not lose sight of them!

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Let's get on with the debate! Thank you for your attention!

[1] Source: USPA quoted by Les Echos, April 14, 2020
[2] Source: Les Echos, Sep. 7, 2020 (+10% quoted)
[3] Source: Le Figaro, Sept. 7, 2020
[4] The TF1 and M6 groups saw their revenues fall by €250m and €175m respectively in H1 2020, and both groups reduced their grid costs by around €100m each.
[5] Cf. not. A. Filipetti, "Le monde d'avec", Le Grand Continent, April 22, 2020