Online services such as Netflix, HBO and Amazon Prime face the prospect of having to allocate 5% of the income they generate in Spain to finance European films and series.
El Economista reports the measure is included the first draft of the General Audiovisual Communication law being prepared by the government to transpose the European directive that seeks to apply the same treatment to online platforms as to other electronic communication. services.
The law would see all video platforms that earn above €50 million a year required to allocate 5% of their income. Of this, 70% would be used to finance audiovisual works by independent producers and a minimum of 40% cinematographic films by independent producers of any genre in any of the official languages of Spain. Meanwhile, companies with a turnover of less than €50 million may be limited to acquiring existing audiovisual works, while those earning less than €10 million a year would be exempt. Significantly, income does not refer to that which is declared in Spain, but rather that obtained from the provision of services.
The regulator CNMC will be charged with ensuring compliance with the draft law once it comes into effect.
