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Europe Seeks To Regulate Content On Netflix, Other Streamers

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

Activision Blizzard Ready To Rack Up Points From E-Sports

Video game publisher Activision Blizzard ( ATVI ) is taking steps to capitalize on the growing e-sports trend. On Thursday, Activision announced the launch of its e-sports broadcast network, as part of the recently acquired Major League Gaming platform. It also revealed new content and broadcast experiences, as well as a distribution partnership with Facebook ( FB ). “This marks an important step given Activision’s broader ambitions as a media/entertainment company, and is a natural evolution of the Major League Gaming assets acquired early this year,” Baird analyst Colin Sebastian said in a research report Thursday. “E-sports is still in its infancy (think fantasy football 20 years ago) and represents significant near- and long-term incremental monetization opportunities given Activision Blizzard’s portfolio of owned-IP.” Sebastian rates Activision stock as outperform, with a price target of 42. Activision stock rose 1% to 38.29 on the stock market today , more than 9% extended from a 34.76 buy point, touched April 13, out of a cup-with-handle base. The Santa Monica, Calif.-based company presented its Activision Blizzard Media Network plan for advertisers at the IAB Digital Content NewFronts 2016 conference in New York. ABMN will launch the new content and broadcast experiences during the MLG Anaheim Open, a two-day “Call of Duty: Black Ops 3” tournament beginning on June 10. It will be available for live streaming through Facebook. “E-sports could become a meaningful revenue and profit contributor to Activision within 2-3 years, as the company monetizes its IP (intellectual property) and product portfolio across alternative distribution channels,” Sebastian said. Baird predicts the e-sports industry will grow from $200 million last year to $1 billion in 2018 and $1.8 billion in 2020. “We see a significant opportunity with tournaments, advertising/sponsorship, broadcasting, and fantasy/wagering, contributing incrementally to game publisher revenues and earnings,” Sebastian said. Other companies pursuing e-sports initiatives include Time Warner ’s ( TWX ) Turner Sports and talent management agency WME-IMG, which have partnered on E-League, a “Counter-Strike: Global Offensive” league. On Wednesday, Turner and WME-IMG announced the first group of brands to join E-League as official marketing partners. They include Arby’s, Credit Karma and Buffalo Wild Wings ( BWLD ). The inaugural season of E-League starts on May 24. Meanwhile, Walt Disney ( DIS )-owned ESPN has teamed with Activision on “Heroes of the Dorm,” a tournament for the game “Heroes of the Storm.” RELATED: Disney’s Exit From Toys-To-Life Video Games Could Boost Activision

Disney’s Exit From Toys-To-Life Video Games Could Boost Activision

Walt Disney ‘s ( DIS ) decision to end its Infinity interactive toy and video game product line could provide a lift to rivals in the toys-to-life business, namely Activision Blizzard ( ATVI ) and Warner Bros. Interactive Entertainment, a unit of Time Warner ( TWX ). Disney announced Tuesday that it is getting out of the self-published video game business and canceling its Infinity game series. Disney took a $147 million charge to its fiscal-second-quarter results to close the division. Disney’s Infinity exit leaves Activision’s Skylanders, Warner’s Lego Dimensions and Nintendo ‘s ( NTDOY ) Amiibo in the toys-to-life games segment. The toys-to-life genre involves the use of figurines or action figures that are placed on a small platform to interact with on-screen play for game consoles. “Disney’s announcement that they are exiting the toys-to-life category in a production capacity creates some interesting opportunities,” Cowen analyst Doug Creutz said in a report Thursday. “First, we think it paves the way for a significant bounce back in Skylanders sales this year; second, we suspect the Disney IP (intellectual property) will eventually wind up as part of WB’s Lego Dimensions franchise.” Toys-to-life video game sales, excluding sales of stand-alone toys, peaked in 2013 with the launch of Infinity, Creutz said. The category declined 20% in 2014 and was flat in 2015, he said. Nintendo launched Amiibo toys in 2014, but it doesn’t have a stand-alone game like Infinity, Skylanders and Lego Dimensions. Amiibo toys are integrated into existing Nintendo games. “With Activision now the only player planning to launch a toys-to-life game in 2016 (there will be some Dimensions playsets but no new game), if the category remains flat, Skylanders could grow by as much as 300%,” Creutz said. “This would be a source of surprise upside to Activision’s guidance. “In any case, the elimination of a competitor can only be a positive for both Activision and WB’s profitability from the category.” Cowen rates Activision stock outperform, with a price target of 44. Activision stock was up a fraction, above 37, in afternoon trading on the stock market today . The shares broke out of a cup-with-handle base at a 34.76 buy point on April 13. Cowen rates Disney and Time Warner stocks as market perform. Disney stock was down a fraction Thursday afternoon, while Time Warner was down more than 1%. RELATED: EA Stock Soars Like ‘Star Wars’ Millennium Falcon After Q4 Beat .