Established in December 1922, the observatory's membership in 2002 included 35 European States and the European Community (represented by the European Commission). With its headquarters in Strasbourg, France, The Observatory was created under the auspices of Audiovisual Eureka and functions within the framework of the Council of Europe.

A unique European public service organization, the observatory provides information services to the European television, cinema, video, and new media industries. In particular, the observatory serves the information needs of the decision makers of production, broadcasting, and distribution. Public administrators, consultants, lawyers, researchers, and journalists needing information on the audio visual sector are all target user groups of its services.

The observatory provides market, economic, legal, and practical information relevant to the audiovisual production and distribution. In particular, it aims to direct those requesting information to the best information available, and it coordinates pan-European work to collect and analyze data in ways that foster insightful comparisons across national boundaries.

The observatory has several core services. These services provide rapid response to daily information needs as well as to long-term development needs for better data collection methods. The information service desk handles individual requests for information. It is designed to answer questions quickly and accurately and covers all three information areas of the observatory: market, legal, and practical information.

In addition, the observatory disseminates several publications, including an annual  Statistical Yearbook: Cinema, Television, Video, and New Media in Europe; a monthly journal, IRIS–Legal Observations of the European Audiovisual Observatory; and studies such as Public Aid Mechanisms for the Film and Audiovisual Industry in Europe, which offers comparative information about sources of government funding for production in various European nations. Available from the observatory’s online publications department are numerous documents on such topics as industrial taxes, copyright law, television-film co-production contracts, advertising aimed at children, digital television’s development, licensing laws in specific nations, and supply and demand in European internet usage. The observatory’s website further provides copies of its press releases and many links to additional sources of information and to directories of industry contacts. 

To fulfill its objective to coordinate the establishment of transparent European data, the observatory advises on questions relating to data collection and the accessibility of information sources, and it organizes expert workshops seeking improved and more comparable European data in the audiovisual sector. Furthermore, as part of its 2000-02 “action plan,” the observatory has placed high priority on creating online databases providing integrated data to researchers.

The information services of the observatory are based on its network of partners and correspondence. Covering greater Europe, this cooperative network currently includes hundreds of information providers: public and private research and information organizations, universities, consultants, individual experts, ministries and administrations, and regional network organizations in the media field. By centrally coordinating this multitude of sources, the observatory gives access to the most reliable and updated information on the European audiovisual industry. 

Partners are information or research organizations that have an established track record of providing reliable information to the audiovisual field on the European or global level. Each partner has a specific responsibility or thematic area regarding information collection and provision. Partners help the observatory perform its services and to play an essential role in assisting the observatory in its work toward harmonization of European audiovisual information.

Correspondent organizations are professional information organizations, and they complement and assist the observatory and its partners in collecting information from the member states. Correspondent organizations also advise on data collection and on the accuracy and relevance of the information from their specific country. In each member state, there are different correspondence for legal, market and economic, and practical information.

European professional organizations are widely represented in the observatory's advisory committee. Some of these organizations collect and maintain databases from their own areas of Interest in the audiovisual sector. These organizations have also agreed to collaborate with the observatory in collecting and providing the most reliable data in their field of specialty.