EU Proposes Legal Changes to Increase Regulation for On-Demand Video Platforms
May 25 2016 - 6:32AM
Dow Jones News
By Natalia Drozdiak and Sam Schechner
BRUSSELS--The European Union's executive body on Wednesday
proposed legal changes that could force Netflix Inc. (NFLX) and
other online-video providers to help finance European-made films, a
first step by the bloc to update its digital rules to account for
rapidly growing Internet platforms.
In its proposal updating the region's audiovisual media and TV
rules, the European Commission said member states can require
on-demand services established in a different European country to
fork up cash to finance production of its domestic film and TV
content. The financial contributions would only be based on the
revenue generated in the imposing country, the EU said.
"The way we watch TV or videos may have changed, but our values
don't," said EU Digital Commissioner Guenther Oettinger. "We also
want to ensure a level-playing field, responsible behavior, trust
and fairness in the online platforms environment."
The changes have a potentially significant financial impact for
companies such as Netflix, whose European headquarters are in the
Netherlands, but which may now have to contribute between about 15%
and 26% of its French revenue to France's government-enforced
system to support film and television production.
Write to Natalia Drozdiak at natalia.drozdiak and Sam Schechner
at sam.schechner@wsj.com
(END) Dow Jones Newswires
May 25, 2016 06:17 ET (10:17 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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