During the recent Uruguay Round film and television software was a major field of conflict between the United States and the European Community, and it is easy to predict that this will continue for the rest of the decade. Are the markets for film and television software really dominated by American productions? What are the key factors in international trade and competitiveness? Which elements explain American success in audiovisual production? Are the European trade barriers, such as television quotas and subsidies, effective with respect to cultural or economic objectives?