Independent Film & Music Seek Changes to Convention

EU -- On 7 Feb 2005 European independent business leaders from the film, audiovisual and music sectors asked intergovernmental experts working on the draft UNESCO Convention on cultural diversity to introduce key changes to the text to promote independent cultural industries.

The proposal highlights the role of the independents in guaranteeing innovation and investment in local creators and talent. Represented by the two trade associations IMPALA (Independent Music Companies Association) and EFCA (European Film Companies Alliance), the request of the European independent cultural industries is that the Convention sustains independent cultural operators and creators. This is essential to ensure that the independents do not fall victim to globalisation and business concentration and can continue to play their key role in local cultural and economic empowerment.

The independents point out to the experts that existing market structures simply do not ensure a level playing field, thereby marginalising the independents, endangering the plurality of cultural operators, reducing investment in new and diverse talent and undermining local cultures and creators.

Intergovernmental experts are currently meeting at UNESCO in Paris to work on the draft text for the Convention on the Protection of Cultural Contents and Artistic Expressions. The current meetings continue until 14th February 2005. The Convention represents an unprecedented attempt to create an international legal instrument to safeguard and promote cultural diversity.

The independents emphasise the fact that they are the innovators and the guarantors of diversity yet they face increasingly complex barriers to trade and severe market access problems. Being 99.9% medium, small and micro operators operating mainly on national scale, they are dwarfed by their major competitors.

The problems the independents face include market concentration, collective dominance, lack of fair competition, restricted access to distribution channels (offline and online) and spiralling investment and marketing costs. In the film market 7 majors account for 80% of the global market. The music market is dominated by 4 majors holding 80% globally, with the Pepsi/Coke type scenario of two majors controlling 70% of new releases and best sellers. This seemingly unstoppable globalisation undermines creativity and competitivity and has forced independent music companies in Europe to seek judicial redress against the EU's approval of the merger of Sony/BMG.

The independents see the UNESCO Convention as key to ensuring that market structures facilitate a level playing field to the benefit of all the stakeholders that are engaged in the creation, dissemination and distribution of cultural goods and services.

For further information on IMPALA please see www.impalasite.org.
For further information on EFCA, please see www.efcasite.org.

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