This book examines the alleged tension between free trade and cultural diversity in the film industry. It highlights the importance of a precise definition of cultural diversity for assessing the effectiveness of any cultural policy. While there is an economic rationale for supporting film industries through subsidies and other cultural policies, most current policies on audiovisual services fail the test of promoting a multi-dimensional concept of cultural diversity along the three dimensions of variety, balance and disparity. Indeed, they appear to be aimed more at protecting domestic industries than at promoting diversity; they also are unaffordable for many countries. Solutions to solve the issue outside the WTO framework aimed at compensating for the economic characteristics of the film industry include the development of regional film funds and marketing taxes.