Berlin Declaration on the Future of the Digital Press

The Berlin Declaration is a 5 point appeal to policy and decision makers to support the appropriate business environment for the press sector in the 21

st century.

Berlin, 17 March 2011 – Publishers play a valuable role in today’s digital ecosystem. Dedicated to providing readers with reliable and quality journalism not just in print but also on all types of devices, they are investing hundreds of millions of Euros in developing digital content offerings thus fostering the role of the technologically neutral press in a democratic society. A ubiquitous press is a prerequisite to building viable business models and address new audiences1. The return on these investments is, however, at risk from both onerous business conditions and legislative threats. The current reality is that the many publishers now initiating new paid-for solutions are faced with technological giants that may want to control the various dimensions of content distribution. The result could be publishers losing some core competencies, such as price setting, as well as their valued, direct relationships with readers (notably via subscription management). These threats are coupled with the ongoing problem that advertising revenue vital for online editions still only accounts for a mere fraction of the revenue generated by advertising in print publications, as prices are much lower. This means that for the time being print revenues continue to subsidise digital innovations. This is clearly not a sustainable solution as the consumer shift towards digital continues unabated. In order to be able to properly adapt to their readers’ shifting consumption habits, press publishers need to be able to rely on the most appropriate business environment. European Publishers call for support for the following 5 key conditions for success: 1. Maintenance of existing press freedoms is the minimum prerequisite for any

reasonable media policy. There should be no further legal obstacles to the press performing its important role in society. Any additional restrictions in the fields of advertising, distribution or other areas affecting the digital or printed press would result in reducing the ability to invest in quality editorial output and restricting diversity of media content.

2. Freedom to experiment and manage innovative business models.

Publishers must not be discouraged from investing in digital developments. In order to meet their digital challenges publishers must be able to choose the best models for the monetization of their content, via sales or advertising. The press is presently at a disadvantage when it comes to commercial negotiations with digital key players. In the case of paid-for solutions (e.g. through tablets), the margins publishers derive from online

1 That is why almost all press publications in Europe, totalling tens of thousands, are already technology-neutral,

i.e., available in print from retailers and through subscriptions, as well as digitally via the web and mobile devices, such as e-readers.

offers may even in some cases be reduced compared to the margins in print. A close analysis by authorities is therefore needed in order to ensure a level playing field for all the stakeholders in the digital value chain.

3. A strong copyright protection is essential for a vibrant press.

It is recognition of copyright which fundamentally underpins investment in editorial content. It enables publishers to make quality works available, whilst providing a framework to secure remuneration for their investment and the sustainable delivery of creative content. Providing new exceptions in this field would therefore represent a direct threat to publishers’ economic sustainability and their ability to respond adequately to digital challenges. Digitization has not reduced but increased the need for the protection of copyright. The different possibilities to utilize content on the internet and via tablets make it very easy for third parties, like aggregators, search engines and pirate sites, to use publishing houses’ creative content for free, without authorization and remuneration of the publisher. It is thereby one of the most important tasks of copyright to draw the line between the widely permitted reference to content of third parties and the unauthorized re-use of such content, which is prohibited.

4. Reduced VAT rates for digital as well as printed press. The future of the European press strongly depends on the ability of publishers to monetize their digital editions. Therefore the EU should allow Member States to extend their reduced - including the possibility of zero % - VAT rates to the digital press.

5. Fair competition and transparency in the digital world.

Non discriminatory and fair access of digital publishers to mobile platforms (e.g. tablets) as well as transparent and fair search engines are prerequisites for the development of attractive and sustainable content offers. They can hopefully be realized by market practices and the intervention of competition authorities where necessary. If not, legislators are asked to act where necessary in order to prevent gatekeeping or bottleneck effects that could hamper the development of content offers online.

Ahead of the “Internet G8” to take place in France in May 2011, European publishers call on politicians to find the right balance of rights and obligations between the various players of the digital value chain, taking full account of the very important and unique contribution of the press to the digital ecosystem. This Berlin Declaration on the Future of the Digital Press was first launched by the Periodical Press on 16 March 2011 in Berlin. It is now open for signature. All Publishers and any interested stakeholders that share the views expressed in this Berlin Declaration are invited to add their signatures here: www.berlindeclaration.eu

You can find more information on the website: www.berlindeclaration.eu