The draft shall cover both service distributors making one or more broadcasting services available to the public in a linear or non-linear manner, as well as to private broadcasters providing non-linear television services and to video platform service providers.
Decree amending the Decree of 27 March 2009 on radio broadcasting and television, as regards to the promotion of the audiovisual sector with financial contributions to the production of audiovisual works
The present decree concerns a new unified regulation to stimulate the production of audiovisual works and regulates the scope, the form, the exclusion thresholds, the tax bases and the specific contributions to be paid.
The new decree replaces the current incentive scheme and extends it in two respects. On the one hand, the scope of application is extended by also making video platform service providers included in the suggested Article 8 - inserting Article 188/1, §1, 3° - subject to the incentive scheme. On the other hand, the form is extended. In the current incentive scheme, there is an option of choice in principle between paying a direct financial contribution to the co-production of audiovisual works or paying an equivalent financial contribution to the Flemish Audiovisual Fund. This option of choice also exists in the new incentive scheme, but a direct financial contribution will now also include contributions paid by investors for the acquisition of broadcasting rights to the works of which investors contribute to finance the production (as set out in the proposed Article 8 — inserting Article 188/1 §2, 3°).
The current exclusion thresholds are replaced by the items included under the proposed Article 8 — inserting Article 188/1 §5. They firstly pertain to thresholds applicable to private broadcasters providing non-linear television services and meeting at least one of the following conditions: a) being a micro-enterprise; b) having a reach of less than 0.5 % of all inhabitants in the Dutch language area; c) provide fewer than ten audiovisual works per year; d) their range consists mainly of programs based on Broadcaster Video-On-Demand rights.
When introducing these exceptions, the guidelines published on 7 July 2020 by the European Commission retaining the definitions of the concepts of ‘small public’ and ‘low turnover’ were taken into account to the largest possible extent. Secondly, service distributors and video platform service providers that represent a micro-enterprise are also excluded from the investment obligation.
The current lump sum or the amount to be paid per subscriber by the service distributors shall be increased to a lump sum of EUR 6 million and EUR 3 per subscriber respectively. The lump sum or percentage of turnover to pay by private broadcasters providing non-linear television services or providers of video platform services in order to comply with the incentive scheme shall be set at a flat-rate amount of EUR 6 million and an amount equal to 2 % of the turnover if its amount is between EUR 0 and EUR 15 million, 3 % of the turnover if its amount is between EUR 15 and 30 million and 4 % of the turnover if its amount exceeds EUR 30 million.
As included under the Article 8, §3, the further modalities and conditions for the operationalisation of the incentive scheme are included in a decree of the Flemish Government (separate notification).