The British movie industry and European art-house cinema are at risk of being decimated by EU plans to shake up the online distribution of films, leading producers have warned.

There was consternation when Günther Oettinger, the EU Commissioner for Digital Commission and Society, announced today that he would like internet movie services to be made available across the whole continent, so that someone in UK would not be blocked from buying or streaming films from another European country.

“On iTunes, for example, the vast majority of hit films are available in the European Union but only in a certain number of country stores,” said Mr Oettinger.

But Andy Paterson, producer of The Railway Man, starring Colin Firth, told The Independent: “The proposal being mooted would destroy the European film business completely. This is not about consumer access, it’s about the way that films are made.

“None of the films that were at the BAFTAs last night would have been made if it becomes impossible to make individual territory sales around the world.”

Recent British hits, Mr. Turner, The Railway Man and Salmon Fishing in The Yemen have all relied on sales made to other European countries to get made.

Deals typically involve an advance being given on films in exchange for exclusive rights to market them within a given territory. But if they are made available online across Europe, it’s argued the market would collapse.

Baftas 2015: The winners in pictures Show all 18 1 /18 Baftas 2015: The winners in pictures Baftas 2015: The winners in pictures Best Actress Moore played an academic suffering from Alzheimers disease in the film Dominic Lipinski/PA Wire Baftas 2015: The winners in pictures Best Actor Stephen Hawking and his family supported Redmayne's portrayal of the physicist by attending the awards ceremony Dave J Hogan/Getty Images Baftas 2015: The winners in pictures Best Supporting Actress Patricia Arquette collected a gong for Best Supporting Actress in Boyhood EPA/ANDY RAIN Baftas 2015: The winners in pictures Best Supporting Actor JK Simmons celebrates after winning best supporting actor for Whiplash at the BAFTA awards ceremony REUTERS/Suzanne Plunkett Baftas 2015: The winners in pictures Best Actress Julianne Moore with the Award for Leading Actress for Still Alice, poses alongside presenters Henry Cavill (Man of Steel) and Chris Evans (Captain America) Dominic Lipinski/PA Wire Baftas 2015: The winners in pictures Best Actor Redmayne and Stephen Hawking attend the Baftas after show party at the Grosvenor House Hotel Daniel Leal-Olivas/PA Wire Baftas 2015: The winners in pictures Best Supporting Actor JK Simmons poses with Reese Witherspoon, who presented him with the award for Best Supporting Actor Stuart C. Wilson/Getty Images Baftas 2015: The winners in pictures Rising Star British actor Jack O'Connell poses with his Rising Star award EPA/ANDY RAIN Baftas 2015: The winners in pictures Outstanding British Film Lisa Bruce, Anthony McCarten, Steven Noble, Krystyan Mallet, James Marsh, Tim Devan, Eric Fellner, Eddie Redmayne and Felicity Jones alongside presenter David Beckham with the Outstanding British Film Award for The Theory of Everything Dominic Lipinski/PA Wire Baftas 2015: The winners in pictures Best Director Foxcatcher actor Steve Carell, left, and Boyhood actor Ethan Hawke, collecting the award on behalf of Richard Linklater, winner of Best Director for Boyhood Jonathan Short/Invision/AP Baftas 2015: The winners in pictures Best Film (Left to right) Jonathan Sehring, Cathleen Sutherland, Ellar Coltrane, Ethan Hawke, Patricia Arquette and John Sloss with the Best Film Award for Boyhood Dominic Lipinski/PA Wire Baftas 2015: The winners in pictures Bafta Fellowship Sally Hawkins (left) and Imelda Staunton pose for photographers with winner Mike Leigh Jonathan Short/Invision/AP Baftas 2015: The winners in pictures Best Adapted Screenplay New Zealand-born novelist Anthony McCarten after winning the Best Adapted Screenplay for 'The Theory Of Everything' EPA/ANDY RAIN Baftas 2015: The winners in pictures Best Sound Sound engineers Craig Mann (second left), Ben Wilkins (centre) and Thomas Curley (second right), pose with the award for sound for their work on the film Whiplash with presenters British actress Phoebe Fox (right) and British actor Dougray Scott (left) AFP PHOTO / BEN STANSALLBEN STANSALL/AFP/Getty Images Baftas 2015: The winners in pictures Bafta Fellowship Hawkins and Staunton laugh with winner Mike Leigh EPA/ANDY RAIN Baftas 2015: The winners in pictures Best Film not in the English Language (Left to right) Pawel Pawlikowski, Eric Abraham, Piotr Dzieciol and Ewa Puszczynska, winners of Best Film not in the English Language for Ida David M. Benett/Getty Images Baftas 2015: The winners in pictures Best Animated Film Phil Lord and Christopher Miller (right), winners of the Best Animated Film award for the movie Lego Movie Dominic Lipinski/PA Wire Baftas 2015: The winners in pictures Bafta winners Winners clutch their awards on the stage at the Royal Opera House in London Jonathan Short/Invision/AP

“The only films that could be sold on this basis are huge blockbusters and sequels,” said Paterson. “So far as giving people increased choice, you would decimate the business. What it means for the British Film Industry is that there wouldn’t be one.”

Speaking about a Single Digital Connected Market at the European Film Market event in Berlin today, Mr Oettinger said: “I want more choice for consumers. They should also benefit from the advantages of digitalisation and be able to shop for more films across borders.”

Consumers would benefit from the plans in the short term because when they sign up to the likes of Netflix or Sky on-demand, as they will no longer be blocked from using the service when they travel to countries within the European market.

But Jean Prewitt, CEO and President of the Independent Film and Television Alliance argued: “The Commission’s proposal would seriously damage the ability of independent producers to finance their films, which depends on exclusive licenses to local distributors. Ultimately, it would not benefit consumers.

“If the only issue is getting large blockbusters delivered to them on multi-territorial online platforms, maybe that will happen. But the vast majority of independent films, including European art house films, will not prosper in this environment.”

The Commissioner said consultation for the new process will start in the spring, to be put before committees in the autumn, and he hopes it will be put before the European Parliament next summer.