Streaming platforms that do not reinvest their local revenue are not allowed to license films that have recently been released.
We missed that earlier: Last month, France completed the EU-led Audiovisual Media Services Directive, which requires streaming services like Netflix and Amazon Prime Video to channel 25% of their income from the country into local content. This makes France one of the first to implement the directive, as countries with better access to streaming fear that local creators will be penalized by foreign content production giants. The concern is real – French media giants TF1 and M6 announced a. at Merger in May, which partially justifies the move to battle global giants like Netflix.
The French Minister of Culture Roselyne Bachelot told Le Monde explains that while the French authorities would ensure the deal is solid from an antitrust standpoint, “France needs strong players to withstand the dominance of global media and technology giants. The crisis [that led to the merger] highlighted the weakness of the French media market, which needs to be consolidated. “
Interestingly, the local investment requirement is applied: Streaming services that want to license films that appeared in theaters less than a year ago must invest 25% of their annual sales; Services that wish to license films released more than a year ago must invest at least 20%, and services that do not commit to reinvesting their local revenues are only allowed to license films that are at least three years old.
Why such a directive is unlikely in India
Hollywood dominates most of the world’s international markets, at least when it comes to movies. However, India is one of a small number of countries – including Japan – where the domestic film and entertainment industries far outperform Hollywood. But especially European countries, where subtitled and dubbed Hollywood films are widespread and popular, are exposed. The film industry in most European countries earns most of its money from the domestic market.
In India, services like Netflix and Amazon Prime Video are losing subscribers local OTT players. Additionally, the general preference of Indian viewers for local content means that these companies’ strategies are already heavily geared towards local content production. Therefore, the biggest concern with streaming wasn’t the loss of revenue for traditional television – which continues to be far more dominant – or revenue sharing, but rather that of content regulation.