European Commission EVP Henna Virkkunen on Film Funding Overhaul and Paramount-WBD Merger: It ‘Might Have to Be Reviewed Under Several EU Regulatory Frameworks’ (EXCLUSIVE)

Why It Matters

The overhaul of EU film funding and stricter AI rules could reshape financing and content creation for European audiovisual producers, while merger scrutiny signals tighter media‑ownership controls in the bloc.

Key Takeaways

• AgoraEU merges culture and media funding under Creative Europe umbrella
• Film sector fears budget dilution but Commission pledges independent support
• EU AI Act mandates labeling of AI‑generated video and deepfake content
• Paramount‑Warner merger may face EU competition, media freedom reviews
• AVMSD evaluation continues, results expected Q3 2026 for policy tweaks

Pulse Analysis

The European Commission’s AgoraEU initiative marks a strategic shift in how the bloc supports its creative industries. By folding the long‑running Creative Europe MEDIA Programme into a broader cultural‑media framework, the EU aims to streamline funding while preserving a dedicated MEDIA+ line for news outlets. Stakeholders in the film sector worry about budget erosion, yet the Commission stresses that independent production, distribution and talent development will retain robust backing. This move reflects a broader policy goal: safeguarding Europe’s linguistic and cultural diversity amid the dominance of global streaming platforms.

At the same time, the EU’s Artificial Intelligence Act introduces concrete obligations for the audiovisual sector. Generative AI tools used to create or alter video, audio or text must be clearly marked in a machine‑readable format, and AI model providers must respect copyright opt‑out requests. For filmmakers, this means new compliance workflows and potential costs for labeling and data‑usage documentation, but it also offers legal certainty that could encourage responsible AI adoption in virtual production and immersive storytelling. The accompanying Codes of Practice provide templates that can help studios integrate AI safely while protecting creators’ rights.

Finally, the potential Paramount‑Warner Bros merger underscores the EU’s increasingly layered approach to media concentration. Beyond the standard EU Merger Regulation, the deal could be scrutinised under the European Media Freedom Act, which evaluates impacts on pluralism and editorial independence, as well as the Foreign Subsidies Regulation. Such multi‑track reviews may delay the transaction and impose conditions to preserve a diverse media landscape. Collectively, these developments signal a more coordinated European strategy to balance cultural support, technological innovation, and competition policy in the digital age.