The proposals will are to be announced on May 25.
In what could be a strategic game changer for Amazon Prime and Netflix, under a new set of proposals for the European Union, scheduled to be released sometime next week, the online video streaming services, will be required to devote 1/5th of the offering to European content.
In a bid to boost the circulation of European TV series and movies, the European Commission is planning an overhaul of the EU’s broadcasting rules so as to bring an EU-wide minimum quotas.
Under the new to-be proposed rules, on-demand streaming services will have to ensure to include at least a 20% share of European works in their catalog. Furthermore, according to the draft proposal of the Audiovisual Media Services Directive, streaming services, will also have to ensure that the European contents are duly “prominence”.
As per a study undertaken by the Commission, European movies account for only 27% on streaming services. On Netflix, this percentage is only 21%.
Currently, member states can only make on-demand services based in their jurisdiction pay into European content.
As per the new draft proposals, member states of EU could independently require streaming services, which are not based in that country but are targeting their audiences, to financially contribute to European works, either directly or by channelling it through a national fund.
This is so because the Commission wants to avoid the practice of forum-shopping wherein companies set up their operations in countries which demand light financial obligations, such as Netherlands and Luxembourg.
“It is clear that the current film financing system is being challenged by quick changes in production, distribution and consumption, triggered by digital technologies,” said Guenther Oettinger, the EU’s digital Commissioner.
Critics have however come down heavily on these draft proposals, saying market forces should ensure good quality content and not rules. Terming these measures as “digital protectionism”, Daniel Dalton, a member of the European Parliament for Britain’s ruling Conservative party, said if the draft proposals were to become law, it would not foster good film making.
“The European Commission has yet again failed to understand how the digital world works. Subscription services like Netflix and Amazon should consider only one thing when placing content on their platforms: what their viewers want to watch.”
Additionally, the new proposals also want to ensure compliance from video-sharing platforms such as YouTube and impose stricter age restrictions so as to protect minors from adult content.
The new draft proposals are scheduled to be announced on May 25 along with a law which bans the practice of geo-blocking wherein websites treat customers depending on the location of their residents.
Categories: Creativity, Geopolitics, Regulations & Legal, Strategy
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