Scalper1 News
European regulators on Wednesday proposed a new set of rules that would force Netflix ( NFLX ), Amazon ( AMZN ) and other streaming video services to offer more local content in individual countries as well as finance local productions. The proposed regulations are seen as a way to level the playing field for national broadcasters, which already are required to financially support local content production. France and other European companies also want to ensure that their local movies and TV shows aren’t drowned out by Hollywood blockbusters and other imports. Netflix has objected to the measures, saying that such quotas would harm consumer choice. Netflix is already producing local language content to attract subscribers in Europe. Earlier this month, it debuted the French political drama “Marseille,” starring Gerard Depardieu. And soon it will stream an Italian crime drama series, “Suburra.” The European Commission’s proposals must be approved by the European Parliament and individual member states, a lengthy process that could result in significant changes to the proposals. In a written statement to the European Commission, Netflix said the proposed rules are “potentially detrimental to the sustainability of existing and new business models.” Local content quotas and demands that local content be prominently displayed would hurt the personalization of online services, Netflix said. Netflix investors shrugged off the European proposals. Netflix stock was up 2%, near 100, in afternoon trading on the stock market today. Netflix shares have been up since Monday when it announced that its exclusive deal to stream new Walt Disney ( DIS ) movies in the pay-TV window in the U.S. will begin in September. Under the pact, signed three and a half years ago, Netflix will become the exclusive U.S. pay-TV home of the latest films from Disney, Marvel, Lucasfilm and Pixar. The agreement starts with 2016 theatrical releases, which include “Zootopia,” “The Jungle Book,” “Captain America: Civil War,” “Finding Dory” and “Rogue One: A Star Wars Story.” RELATED: Netflix Gaining In Europe, But Faces Regulatory Mandates Scalper1 News
Scalper1 News