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Media: Using Press and Broadcasting Freedom as well as Diversity of Opinion to Fuel Economic Growth
The predominantly medium-sized companies in the culture and creative industries, including media companies, are indispensable for shaping opinions in a democratic market economy: the economy needs reliable information.
Transparency regarding national and international developments and events influences corporate and investment decisions. Entrepreneurs rely on unrestricted access to relevant information and the depiction of diverse perspectives to prevent misguided developments and wrong assessments. This applies to their own region, the EU's common market, and global developments. Therefore, press and broadcasting freedom with their indispensable framework conditions for both traditional and new media providers, as well as the competition of differing opinions and viewpoints, play an important role for the economy as a whole.
In order for the companies in the media, culture, and creative industries to fulfill their important functions for the overall economy, they depend on modern and agile legislation that keeps pace with technological progress and ensures fair competition.
This applies both to the possible development of pioneering innovations in the creative industries in fields such as software development, gaming industry, digital communication, or novel business models, as well as to preserving the economic basis and transformation capability of Germany's diverse media landscape.
The following guidelines should determine economic policy actions
Diverse, transparent information offering varied perspectives on national and international developments is an essential basis for corporate and investment decisions. Diversity of opinion and freedom of the press are therefore indispensable in a free, democratic economy.
Businesses should have access to economically relevant information independently of certain media and channels. Traditional and new media providers should be able to compete fairly for customers and users under equally applicable conditions. To achieve this, policymakers should include all stakeholders in regulatory initiatives, such as copyright law, and keep the potential impacts on the media system in mind for legislative efforts in adjacent areas. The European Union should also promote fair competition worldwide while taking regional particularities into account.
Companies within the cultural and creative industries require unified and fair conditions in both national and international competition against the global Big Tech platforms. These conditions are currently and prospectively no longer guaranteed. The concentration of power by digital gatekeepers in these markets should be closely monitored and, if necessary, regulated to ensure net, search engine, and platform neutrality. It is also crucial to ensure that collaboration among companies in the cultural and creative industries remains possible and should be further intensified.
The debate over access to data and effective data protection is vital for sectors within the cultural, media, and creative industries. Companies pay careful attention to dealing reliably with the data entrusted to them, especially to maintain trust in their brands. Moreover, data protection regulations significantly influence whether businesses can succeed in the digital world. Rules regarding data protection must not be excessively bureaucratic and should be practical for small and medium-sized enterprises.
Private media companies significantly fund their content, including high-quality journalistic reporting, through advertising or sponsorship. Advertising, alongside sales of content and services, is their most important source of revenue.
From the media companies' perspective, advertising opportunities should not face further restrictions. They fear economic impacts that would be difficult to offset.
From a macroeconomic perspective, it is a very fundamental aspect to enable competition in terms of information, as well as in matters of reach, content evaluation, advertising, platforms, or data usage, and other fields, while preventing monopolistic developments. The objectives formulated by the European Union to ensure an independent media system and press freedom are therefore significant, but must not jeopardise the aforementioned goals.
Without practical and comprehensive copyright and related protection rights, an important pillar of the cultural and creative industries is at risk. Therefore, legislators must keep the legal framework continuously up-to-date. This is particularly relevant for adapting to technological developments. AI services have frequently been trained with copyrighted works without obtaining the consent of rights holders or considering usage restrictions.
"Content" is the economic good of the media and creative industry. Legislators should better protect the rights of content-producing companies and appropriately regulate the use of their products and works. Any use of copyrighted products should require the producer's consent and be remunerated accordingly.
In certain circumstances, establishing a collecting society for social media platforms may be advisable. Such a society could analyze the distribution of "content" and demand remuneration to ensure content providers are appropriately involved in revenues.
Public broadcasting is a strong pillar of democracy and diversity of opinion in Germany, as are private, often medium-sized media companies. For both pillars of the media system, more intensive, fair, and cooperation-oriented collaboration can be fruitful and open up further opportunities for the future of the industry. While public broadcasters are funded by the legally mandated broadcasting fee, private providers depend on market-based revenue. However, both pillars of broadcasting fulfil a function that is important for society as a whole.
Private, forward-looking media innovations and comprehensive media coverage at the regional level should be more strongly supported if this is the only way to ensure quality standards for all users. It is important to consider that state and public media offerings should not impair the markets of private media providers more than necessary.
It is the EU’s responsibility to ensure free access to information and to promote the independent media landscape. In recent years, public communication in Europe and globally has undergone significant changes. Internet platforms have gained considerable importance and dominate data traffic and the market for digital advertising, including the technologies and data used therein, sometimes holding monopolistic positions. However, unlike traditional media operators, they are not equally held accountable for the content they distribute, which is also a cost factor in competition.
This development also has significant impacts on the overall German economy: How can high information quality and fair competition be secured both on internationally operating platforms and locally, in the regions?
Necessary guidelines for media regulation must be institutionalised; a holistic risk evaluation of all regulatory approaches for the media industry and other economic sectors is therefore crucial.