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| Netflix and Amazon face quota on EU-made content | Netflix and Amazon face quota on EU-made content |
| (35 minutes later) | |
| On-demand video streaming services face a call that at least 20% of the catalogues they offer to EU subscribers should be made locally. | On-demand video streaming services face a call that at least 20% of the catalogues they offer to EU subscribers should be made locally. |
| The European Commission has also proposed that the programming must be given "good visibility". | The European Commission has also proposed that the programming must be given "good visibility". |
| The move would affect US-based services including Netflix and Amazon Prime Video. | The move would affect US-based services including Netflix and Amazon Prime Video. |
| However, one expert suggested the new rules might not have as much impact as intended. | However, one expert suggested the new rules might not have as much impact as intended. |
| The call is part of a proposed update to the 28-nation bloc's Audiovisual Media Services directive. | The call is part of a proposed update to the 28-nation bloc's Audiovisual Media Services directive. |
| Other measures include: | Other measures include: |
| One industry watcher said that many of the online platforms already meet the proposed quota requirement because they carry so much BBC and other British-made material. | |
| But even if the UK leaves the EU, and its programmes no longer counted, it would not necessarily mean lots of additional content from other countries would have to be commissioned as a result. | |
| "This is driven by the core problem that the EU identified 40 years ago, that the Hollywood studios and other US producers dominate global box office and broadcasting because they have scale that cannot be achieved in a fragmented EU," commented Alice Enders from the media consultancy Enders Analysis. | "This is driven by the core problem that the EU identified 40 years ago, that the Hollywood studios and other US producers dominate global box office and broadcasting because they have scale that cannot be achieved in a fragmented EU," commented Alice Enders from the media consultancy Enders Analysis. |
| "It does send out an important signal to Netflix and others. | "It does send out an important signal to Netflix and others. |
| "But let's face it, the online services could meet the 20% quota by loading up themselves with lots of rubbish French, Italian, Spanish and whatever content. | "But let's face it, the online services could meet the 20% quota by loading up themselves with lots of rubbish French, Italian, Spanish and whatever content. |
| "Or they could simply remove some of their lesser-watched non-EU material." | "Or they could simply remove some of their lesser-watched non-EU material." |
| Why does the European Commission say it wants the quota? | Why does the European Commission say it wants the quota? |
| EU rules already oblige TV broadcasters to invest about 20% of their revenues into making or commissioning original content, and to spend at least 50% of their time showing European works, including material made in their own country. | EU rules already oblige TV broadcasters to invest about 20% of their revenues into making or commissioning original content, and to spend at least 50% of their time showing European works, including material made in their own country. |
| But since audiences are spending increasing amounts of their time watching on-demand services, the EU civil service thinks the new measure is required. | But since audiences are spending increasing amounts of their time watching on-demand services, the EU civil service thinks the new measure is required. |
| "This will have a positive impact on cultural diversity and bring more opportunities for European creators," it says. | "This will have a positive impact on cultural diversity and bring more opportunities for European creators," it says. |
| How would a quota system work? | How would a quota system work? |
| On-demand platforms would have to ensure at least a 20% of the catalogue they offered to EU subscribers be made up of "European works" and that this content be given prominence on viewers' screens. | On-demand platforms would have to ensure at least a 20% of the catalogue they offered to EU subscribers be made up of "European works" and that this content be given prominence on viewers' screens. |
| This would not be enforced centrally from Brussels. | This would not be enforced centrally from Brussels. |
| Rather, individual countries would have the right to demand the likes of Netflix and Amazon invest in local productions and/or buy the rights to EU-made shows and films. | Rather, individual countries would have the right to demand the likes of Netflix and Amazon invest in local productions and/or buy the rights to EU-made shows and films. |
| It is suggested that the firms could either be given the option of either making the investments themselves or paying a levy into a fund that would then be shared out. | It is suggested that the firms could either be given the option of either making the investments themselves or paying a levy into a fund that would then be shared out. |
| The Commission says the platforms could make sure the content was visible by making it easy for users to search for European-made productions, ensuring it appeared on their front pages and streaming trailers. | |
| Wouldn't that make it hard for niche services to offer rival platforms? | Wouldn't that make it hard for niche services to offer rival platforms? |
| The European Commission acknowledges there could be a problem for smaller providers. | The European Commission acknowledges there could be a problem for smaller providers. |
| For example, it would be hard for Crunchyroll, a service that specialises in Japanese anime, or KorTV, which streams South Korean content, to meet the requirement. | For example, it would be hard for Crunchyroll, a service that specialises in Japanese anime, or KorTV, which streams South Korean content, to meet the requirement. |
| As a result, it is proposed that a mandatory exception be made for companies with "a low turnover and low audiences as well as small and micro-enterprises". | As a result, it is proposed that a mandatory exception be made for companies with "a low turnover and low audiences as well as small and micro-enterprises". |
| What do Netflix and Amazon make of this? | |
| Netflix says it is already investing in local content. | |
| "Our members around the world love European programming, that's why our investment in European programming, including Netflix original titles created in Europe, is growing," said a spokesman for the firm. | |
| The company recently started streaming Marseille, its first European-produced "original" TV series. | |
| And in November, it will premiere The Crown, a series about Queen Elizabeth II, which was filmed in the UK. It has also formed partnerships with European broadcasters to co-produce other shows. | |
| It is also worth noting that the Commission acknowledges 21% of the films offered by Netflix are currently classed as being from the EU. | |
| Amazon has yet to comment. | |
| The company would potentially be less affected as it only offers its Prime Video streaming service in the UK and Germany at present. | |
| But it already making local shows, including the drama series Ripper Street, the forthcoming The Grand Tour - a car-themed show featuring the ex-hosts of Top Gear - and Wanted, a German-language thriller. | |
| What happens next? | What happens next? |
| The revised directive still needs to go before the European Parliament and the Council of Ministers. | The revised directive still needs to go before the European Parliament and the Council of Ministers. |
| And even if it is adopted, local regulators would still have to enforce it. | And even if it is adopted, local regulators would still have to enforce it. |
| Existing requirements affecting broadcasters are not always strictly adhered to. | Existing requirements affecting broadcasters are not always strictly adhered to. |