Streaming services including Netflix would be required to ensure at least 30 per cent of their content libraries are European under an update to the European Commission’s Audiovisual rules.
The Commission wants to level the playing field that currently sees European TV broadcasters invest around 20 per cent of their revenues in original content while for streamers the figure is less than 1 per cent.
Under new proposals broadcasters will continue to be obliged to broadcast at least 50% share of European works (including national content) in viewing time. Video on demand services are already required to promote European works, but the new rules brings them closer to linear channels.
The new rules give the possibility for Member States to impose financial contributions on VOD services, including to those established in a different Member State but targeted at their national audiences.
Quotas already exist in Cyprus, Hungary, Lithuania, Malta and Slovakia or part of wider measures in France, Croatia, Czech Republic, Italy, Poland, Romania, Slovenia, Spain. However, the percentage varies between 10 and 60 per cent and the Commission says some harmonisation is needed.
According to a 2015 study by the European Audiovisual Observatory, at 21 per cent both Netflix and iTunes are at 21 per cent.
