Internationalization of the video industry: Unresolved policy and regulatory issues

The development of new technologies and the resulting restructuring of the international entertainment industry have accentuated the uniqueness of some mass media products, in particular film and television products. While the recently approved GATT agreement still lumps most forms of video products together as standard goods, the growing intangible/service aspect and the heightened concern for the cultural influence of video products call for nonstandard treatment. This article explores the industry's unique features and discusses characteristics that may justify a proposal for a specific sector agreement under GATT. The central question is whether video should be considered part of the larger mass media industry that includes cable, VCR, printed products/services, broadcasting and film. The authors call for the adoption of a real value perspective, whereby video products can be both goods and services, and explain the international trade implications of such a perspective.