Proposed law will force Apple, Amazon, Netflix to produce 30% of streamed video in the EU
Video streaming services from Netflix and Amazon operating in the European Union will be forced to dedicate a portion of their content catalog to local TV shows and films under proposals said to be close to becoming law, one that could also affect Apple's rumored video content efforts.
The proposal would require services such as Amazon Instant Video and Netflix, among others, to ensure at least 30 percent of their on-demand catalogs are produced within Europe, reports Variety, though this could be raised to a minimum of 40 percent by individual countries.
Roberto Viola, in charge of the European Commission's department that regulates communications networks, content, and technology, advised to the report the new rules are on the path to be approved by December. "We just need the final vote, but it's a mere formality," claimed Viola.
Under the rules, streaming services would be required to fund content produced in Europe, including commissioning its own content, acquiring existing series from regional producers, or by contributing to national film funds. The latter is already occurring in Germany by way of an additional surcharge to the subscription fee, which Netflix failed to stop in court.
Once in force, the 28 EU member states would have 20 months to integrate the rules into their laws.
The European Union will be publishing figures in October advising what percentage of European-derived content appears on each service, which Viola advises is just to "help national regulators apply the rules" when they come into force. While 30 percent seems difficult to achieve, Viola also notes that Netflix is already quite close to achieving that figure.
While the proposals could cause issues for smaller services, such as Crunchyroll's catalog of primarily Japanese content, it also impacts services that have yet to arrive.
Apple is reportedly in the process of producing a large swathe of original video content, one that could form part of a bundle alongside Apple Music, News, and other content-based services it operates. While it is unknown how much of the estimated $1 billion Apple will spend on the effort is being used on projects sourced from Europe, the proposals could force Apple to consider increasing its overseas investment in content.
The proposal would require services such as Amazon Instant Video and Netflix, among others, to ensure at least 30 percent of their on-demand catalogs are produced within Europe, reports Variety, though this could be raised to a minimum of 40 percent by individual countries.
Roberto Viola, in charge of the European Commission's department that regulates communications networks, content, and technology, advised to the report the new rules are on the path to be approved by December. "We just need the final vote, but it's a mere formality," claimed Viola.
Under the rules, streaming services would be required to fund content produced in Europe, including commissioning its own content, acquiring existing series from regional producers, or by contributing to national film funds. The latter is already occurring in Germany by way of an additional surcharge to the subscription fee, which Netflix failed to stop in court.
Once in force, the 28 EU member states would have 20 months to integrate the rules into their laws.
The European Union will be publishing figures in October advising what percentage of European-derived content appears on each service, which Viola advises is just to "help national regulators apply the rules" when they come into force. While 30 percent seems difficult to achieve, Viola also notes that Netflix is already quite close to achieving that figure.
While the proposals could cause issues for smaller services, such as Crunchyroll's catalog of primarily Japanese content, it also impacts services that have yet to arrive.
Apple is reportedly in the process of producing a large swathe of original video content, one that could form part of a bundle alongside Apple Music, News, and other content-based services it operates. While it is unknown how much of the estimated $1 billion Apple will spend on the effort is being used on projects sourced from Europe, the proposals could force Apple to consider increasing its overseas investment in content.
Comments
Just make it also apply to Sky as well. Their plethora of channels is AFAIK, mostly US made programmes.
Makes no sense! And 30% is way too much!
That being said, there asian content offen only have subtitles. They should add audio tracks too.
France already has laws in place demanding that at least 60% of content on VoD and Broadcast must be of EU origin and I'm sure I heard that Macron is calling for a quota on French language programming vs subtitled english. I believe a few other states have existing quotas in place too.
This is difficult for me to wrap my head around the effects. When government starts telling business what to do, there is a problem coming down the road. Government rarely solves a problem, but usually creates problems instead. "Follow the Money" is what works. Not profitable - don't do it.
If I work all day at a project (for example) and at the end of the project , I break even or make little money, it was not worth my effort. i.e., I do something else next time.
If is is profitable to produce 30% of content in the EU, people will do it. If it is not, they will not do it - and should not do it.
I currently live in a small town with a chicken processing plant - we probably all buy poultry. Some do not buy pork, etc. But it came to light that the Muslims want the industry to say a "Mou-La" over the chickens being processed. I don't have the spelling correct, but is sounds to me just like I wrote it: Mou-La" or $ to the Muslim priests who do this. The company allows this. It is a $1k payment to the priests for doing this. I don't know if it is $1k per shift or $1k per / 24 hours, but they do it is the point. Here is an example of what is not cost efficient. The Muslims demand a payment and prayer over the chickens - to be eaten by them. They don't yet demand that the chickens be labeled "Moo-La" chicken, but they will do it one day. Being a Christian, I asked our lower paid Methodist Minister if he would be willing to say a prayer over the Chickens on behalf of Christians, and we both decided it would be a good bonus for him - certainly more than he makes now.
The point is, when special interests start getting involved in business decisions and dictate the outcomes, it is not good.
The Chinese might not want to eat these chickens since they think Muslims are not a religion , but people who have a mental type illness (or so that is what I just read). So, if the Chinese do not want to eat Moo-La Chickens, I might not want to eat them either - I think Muslims are for world domination .
The EU should stay out of this business and let the producers make the decisions and the people will vote with their $'s or pocketbooks.
EU , US , etc. need to stick to government needs & not tell business what to do - they cannot handle their own problems, much less someone else's business. Government only has the powers we the people give them - they need to stick to the basics, National Defense, etc. Not Welfare, not Medical Care for Free, Not anything that is beyond the basics. Government needs to shrink , not grow.
The EU needs to concentrate on what they do best . . . now what was it they do well ?
And we don't want some idiots in Silicon Valley to monopolize our content with their BS.
Just like we don't let our cops shoot us randomly just because they felt like it.
Here we're the home of the actually free.