European Union approves content quota for streaming services

NelsonG · October 4, 2018

The European Parliament has voted in favor of a new quota for content on streaming services. Services, such as Netflix and Amazon Prime Video, will have to make sure that at least 30 percent of their catalogs in Europe come from European countries.

Many European countries already have quotas for movie theaters and TV networks. Quotas foster cultural diversity and ensure that movies with smaller budgets get a chance to compete with blockbuster franchises.

Other countries thought it was better to let the market decide and now it’s just Fantastic Four and The Emoji Movie on repeat because local production got crushed by Hollywood’s dollars.

Some European countries also set a tax on sales ticket to finance local movie production. With today’s new European agreement, streaming platforms will also have to contribute to local productions. They’ll be able to invest directly in local content or finance national funds. Netflix has already announced plans to open offices in Paris and Madrid to produce more content in those countries.

Streaming services will have to contribute proportionally to their revenues in each country. It’ll be a bit tough to calculate for Amazon as Amazon Prime Video is mixed with a bunch of services as part of the Prime subscription plan.

In other news, online video platforms at large (including YouTube, Facebook, Twitch…) will have to go further when it comes to taking down dangerous content. This time, the Parliament wants to protect minors from violence, hatred, terrorism and harmful advertising in particular.

Platforms will need to be transparent when it comes to their flagging and moderation mechanisms. And there are new rules on children content. Platforms can’t capture personal data of children for targeted advertising purposes.