Technology

Netflix & Amazon Prime will have to face EU quota on European works

The news about online video streaming services Netflix and Amazon Prime have been issued proposals regarding the announcement of devoting at least a fifth of their catalogues to European content. In this connection, European Commission has decided to re-analyze and evaluate European Union’s broadcasting rules. For, EU’s available quota is to speed up the roaming of European films and TV shows with appropriate funding. The limitations will ultimately hamper the performance of their services.

As study-case brought about by the Commission, shows that European films are already responsible for showing 27% films on streaming services and 21% of films on Netflix. However, Audiovisual Media Services Directive seen by Reuters is the view that on-demand services will have to make it sure that they devoted 20 percent share of EU’s works in their catalogue.

The member states of EU will have an option of getting streaming services, which may not be based in the country with targeted audience to ensure financial contribution to the European’s production. They can have a choice in payment, by investing directly or by adding the money to national funds. Another option is that under the present rules, member states can acquire on-demand services in their jurisdiction.

Guenther Oettinger, the EU’s digital Commissioner, in Cannes on the sidelines of Europe’s leading film festival, said, “It is clear that the current film financing system is being challenged by quick changes in production, distribution, and consumption, triggered by digital technologies”. The Commission due to light financial responsibilities wants to stop forum-shipping in countries like Luxembourg and Netherlands and to set up companies where the less financial risk involved. The Commission added, when it comes to share TV broadcaster investment, it is 20 percent of their revenue in European content while the share drops by 1 percent in the market for those who urged for on-demand service.

It has been reported that some critics shows concerns over the situation and suggested that EU leaders should set the market free in order to make sure the good quality content. Daniel Dalton is one of them who is a member of the European Parliament for Britain’s ruling Conservative party, presented the idea of “digital protectionism” that would further result in film-making not to be so good. In his words, “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”.

The quotas not specified yet in current broadcasting rules. Current rules for broadcasting needs on-demand services to facilitate the production and access to European works. Nevertheless, in this regard, national quotas have been introduced by EU’s 28 member states. The Traditional broadcasters relatively required to reserve half of their transmission time to European works. At the same time, in France, Netflix is already compelled to reserve 60 percent of their catalogue for European content. It is not clear yet, whether consideration of these tough measures may force the decision makers to review it.

Observing the situation with this proposal, YouTube will also take a step to impose a strict age restriction for minors so that to protect any harmful consequence. However, the Commission is ready to announce a proposal on 25th of this May. It is reportedly said that this will take place with a law which banning the so-called geo-blocking, a practice by which customers are dealt differently by websites as per residency, sometimes, even by banning their access.

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Munawar Gul

An Author at Tapscape that keeps you updated with the latest Technology news.

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