Upcoming Industry Conferences
Streaming Forum CONNECT [19 August 2020]
Content Delivery Summit [5 October 2020]
Streaming Media West CONNECT [6-7 October 2020]
Past Conferences
Streaming Media East CONNECT [2-3 June 2020]
Content Delivery Summit [1 June 2020]
Streaming Media West [19-20 Nov 2019]
Esport & Sports Streaming Summit [19-20 Nov 2019]
OTT Leadership Summit [19-20 Nov 2019]
Video Engineering Summit [19-20 Nov 2019]
Live Streaming Summit [19 Nov 2019]

Netflix and Amazon Prime Face European Commission Content Quota
Under new rules from the European Commission, the SVOD services must ensure that at least 20 percent of their catalogs are of European origin.

Yesterday, the European Commission ruled that American subscription video-on-demand services Netflix and Amazon Prime will need to meet similar content quotas as other broadcasters, with no less than 20 percent of their catalogs made up of European offerings.

At the moment, the Commission noted, on-demand services invest less than one percent of their revenues in original content.

Simply having one-fifth of their catalogs of European origin isn't enough, however. Netflix and Amazon also need to surface that content and provide "good visibility." There could be more demands to comes from individual countries, as the Commission said member states are allowed to demand that SVODs make a financial contribution to creating new shows and movies in Europe.

Netflix said that it has already committed hundreds of millions of euros to European original works, and took issue with the requirement. Netflix argues that imposing a quota system won't automatically lead to quality programs getting produced, but more likely to the purchasing of cheap filler content.

“We appreciate the Commission’s objective to have European production flourish, however the proposed measures won’t actually achieve that," said a Netflix spokesperson as quoted in The Guardian.

But perhaps this won't be a major shakeup for the SVODs: The Commission offered a study showing that 21 percent of Netflix and Apple iTunes film catalogs are already from the European Union.

Related Articles
Chelsea Handler, Will Arnett, Krysten Ritter, and Wagner Moura join Reed Hastings and Ted Sarandos to celebrate the SVOD's future
While some pay TV operators have seen increased customer satisfaction with Netflix integration, others will likely face lower average revenues.
The debut of Netflix streaming leads to rapid decreases in spending for physical media. The U.S. and U.K. have both seen DVD sales erode.
Just as Netflix's domestic growth is tapering, its international investment is paying off. Netflix will have more international than domestic subs by 2018.
The largest online networks are moving away from licensed Hollywood movies and toward premium original series, rapidly changing the TV industry.
Streaming customers can customize their video options by choosing only the channels they want, with no long-term commitment.
Subscription services such as Netflix will need to invest directly in European productions or pay into a group fund that promotes local works.