Changes to the European Union’s broadcasting rules could force Netflix to devote a fifth of its streaming catalog to European content in an attempt to create “a more level playing field” for works from the region, according to a draft of the proposal obtained by the Daily Mail.
The body is reportedly getting ready to unveil a new plan on May 25 that would impose quotas to ”ensure adequate prominence” of European shows and movies on streaming services like those from Netflix and Amazon.
Though the Computer and Communications Industry Association, of which Netflix is a member, is against imposing cultural quotas, it might not have a major impact on Netflix’s catalog. A European Commission study found that European movies make up 27% of films on streaming services overall and 21% on Netflix.
However, another stipulation from the proposed rules could have wider implications. According to the draft, member states could mandate streaming services based outside their countries to “contribute financially to the production of European works, including via direct investment in content and national funds.” Currently, European broadcasters spend about 20% of their revenue on European content versus 1% for streaming services.