Hollywood Sees No Drama in ‘Green Paper’

Hollywood’s response on Thursday to the long-awaited release of the European Union “Green Paper” on audiovisual policy was dramatically undramatic by community standards. There was little gnashing of teeth or doomsday prognosticating . . . even from the industry’s former Chicken Little, Motion Picture Assn. of America President Jack Valenti.

That may reflect a new cautiousness in dealing with the sensitive trade issue, especially in public. Or it may reflect the belief that the long-range significance of the report will be minimal--because its proposals are expected to be vigorously debated before action is taken.

The Green Paper was formally presented at a Brussels press conference Thursday, after leaking out late Wednesday. It contained many of the expected anti-American recommendations, with the EU commissioners calling for tougher quotas and subsidies on Hollywood-based productions as a way to help stimulate Europe’s troubled entertainment industries.

Among the specific recommendations: stricter enforcement of rules requiring that 50% of all television broadcasts in Europe be of European origin and “parafiscal” levies on items such as cinema tickets, television advertising revenues and video rentals as a way to raise money for indigenous production. Speaking at the press conference, EU Commission President Jacques Delors said the issue goes to the heart of Europe’s self-image.

“Cultural goods are the expression of the identity of each people, the vehicle for their language, of their history, of their heritage and their artistic patrimony,” he said.

Audiovisual Commissioner Joao de Deus Pinheiro, who also was on hand, called for “urgent action” to help Europeans prepare for the digital revolution that will create demand for new programs. According to wire service accounts of the event, Pinheiro criticized the current trade imbalance, in which European audiovisual exports to the United States equal $200 million, compared with more than $4 billion in imports from the United States.

That imbalance has been magnified in importance since entertainment was excluded from the General Agreement on Tariffs and Trade last year, and it threatens to spill over to next month’s Cannes Film Festival, where there’s a suspicious lack of American commitment so far.

At the time of the GATT defeat, Valenti predicted dire consequences for Hollywood. But Thursday he was more optimistic. The longtime movie industry lobbyist, who has been meeting with European leaders over ways to resolve their differences, said the Green Paper actually omits some earlier “Draconian suggestions.”

“It’s saying, ‘How does the EU go into the future and nourish thriving film and TV industries?’ ” Valenti said. “And that’s what we are about now. We’re trying to put (GATT) behind us and see how can we help build healthy industries in Europe, because a healthy industry is good for us, too.”

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Not everyone shared Valenti’s sunny assessment of the report. Privately, some Hollywood executives said they fear that the recommendations could significantly reduce the flow of American entertainment to European shores.

That’s a serious issue, since Hollywood has come to rely on overseas markets for roughly 50% of its theatrical revenue alone.

Others charged that the commission’s recommendations are ill-conceived, and destined to fail in reviving interest in European film and TV productions.

“The suggestion of higher levies on the business to support (unpopular European movies) is neither healthy nor useful,” said George Vradenburg, executive vice president of Fox Inc. “The efforts to harden the quotas is particularly troubling.”

Jonas Rosenfield, president of the American Film Marketing Assn., said he was expecting a more substantive evaluation of the European entertainment industry’s current policies and problems.

“They’re saying time is running out, and that they only have 10 years to reverse the situation,” Rosenfield said. “But there’s no real input on why they’re in such dire circumstances.”

The Green Paper is supposed to form the basis for discussion of specific commission proposals due this fall. The EU’s 12 member states will then approve a specific set of rules.

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Remembering Wells: A ceremony honoring the late Walt Disney Co. President Frank G. Wells will be held at the company’s Burbank headquarters at 4 p.m. Monday, and will be broadcast live to employees at Disneyland and Disney World. In addition, Disney’s Burbank-Glendale offices will be closed Monday in memory of Wells, who was killed in a helicopter accident Sunday.

In a prepared statement, Disney Chairman Michael D. Eisner said: “Frank’s death was a shock to us all. We will never forget his wisdom, his awesome intelligence, his fiery competitiveness, his zest for life and the many lessons he left as a legacy to us all.”

The Wells family has requested that all donations in his memory be made to Environment Now, which is dedicated to environmental restoration and protection. The address of Environment Now is 450 Newport Center Drive, Suite 450, Newport Beach, CA 92660.