EU Streaming Content Quota

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EU Streaming Content Quota

Netflix and Amazon have been opening new offices and hiring people in the European region to produce more European content to meet the planned EU content quota. It has also been found that Netflix is currently producing more European content than in 2018. Below are the findings for this research.

PLANS OF STREAMING COMPANIES TO MEET PLANNED EU CONTENT QUOTA

Research Strategy:

We leveraged articles from credible sites such as TechCrunch, Variety, and CNet; annual reports and shareholder letters from streaming companies; and public databases such as Statista to compile evidence and hard data for this research. We were able to find evidence pointing to the preparation of streaming companies for the EU content quota, however, hard data, such as the number of European content that they are intending to produce, is limited. We were able to find the number of European production projects that Netflix had in 2018 and is planning to produce in 2019 from articles, however, no other similar data was found for other streaming companies. Databases such as Statista have information on the number of original content titles of streaming companies, however, no relevant data could be found from them. The annual reports of streaming companies cited the content quota as a risk for their company, however, no data relevant to this research could be found inside them. This is likely due to the fact that the executives of streaming companies have admitted that planning for the EU content quota is tough as they have stated it is unclear whether it will be enforced by the number of hours, number of episodes or other metrics.

Screenshots of graphs referenced in this research are available in an attached Google document.
Sources
Sources

Quotes
  • "The European Union is currently rewriting its audio visual rules, which will eventually require subscription streaming services to devote a minimum of 30% of their catalog to European works. In addition, some member states are looking to require services like ours to invest some portion of local revenues into European works. We anticipate being able to meet these requirements by evolving our content offering."
Quotes
  • "The streaming video service that on Monday reported hitting 125 million members plans to spend about $1 billion on original and co-produced content in Europe this year, according to someone familiar with the company's plans."
  • "That's more than twice last year's Europe budget and will nearly double the number of European productions, according to the Financial Times, which reported the story earlier Monday."
Quotes
  • "Netflix is also aiming to ramp up its original French movies. But, unlike with their series, Netflix will not be involved in developing films, and is positioning itself instead as a co-producer. It plans to work alongside traditional partners and TV networks to access locally-made content."
Quotes
  • "The plan will see some of Netflix’s existing Amsterdam-based employees relocating to the Spanish capital. Hastings’ announcement of a Paris bureau last week was accompanied by the unveiling of seven new French series and movie projects as well as the news that the company had agreed to pay a 2% levy on annual revenues in France."
  • "The launch of an office in Spain will spark inevitable speculation that Netflix might be ready to cut a similar deal with film authorities in Spain, one of the few countries in Europe which obliges its TV operators not only to screen a majority of European programs but invest part of their income in local or other European movies and TV production."
  • "The decision to establish a production hub outside Madrid, which was announced in July, rolls off the phenomenal success of “Money Heist” (“La Casa de Papel”), created by Spain’s Alex Pina and Esther Martínez Lobato, which Netflix declared in its first-quarter results to be its most-watched non English-language series ever. The U.S streaming giant has since then struck an exclusive production deal with Pjna and Martínez Lobato’s Vancouver Media production house."
Quotes
  • "Now, spurred on by the success of programmes such as The Crown and The Grand Tour in attracting new subscribers, the streamers are commissioning more original programming from leading European drama and factual producers. Amazon spends a notable proportion of its $4.5bn original content budget in Europe and has drama productions up and running in France, Germany and the UK."
  • "Amazon has just launched the second series of its hit German-language drama You Are Wanted, produced by Berlin-based Pantaleon Films and Warner Bros Germany, and is now shooting its first French-language original, Germanized (Deutsch-Les-Landes) - a comedy about a German business relocating to a small village outside Bordeaux, produced by Germany’s Bavaria Fiction and France’s Newen."
  • "Amazon is also co-producing a swathe of UK dramas with local producers and broadcasters, including The Widow, starring Kate Beckinsale and produced by Harry and Jack Williams’ Two Brothers Productions; period adaptation Vanity Fair, produced by Mammoth Screen (both with ITV); dystopian thriller The Feed produced by Studio Lambert with UK-based European pay-TV giant Liberty Global, streaming via the latter’s Virgin Media; and the BBC’s terrorism drama Informer, starring Paddy Considine, Bel Powley and Nabhaan Rizwan with Neal Street Productions."
Quotes
  • "European expansion plans are ramping up with Salke on board and Brown recruiting for on-the-ground development executives in Spain, Italy, France and Germany. These hires will source, develop and produce local-language content, both scripted and unscripted, for the SVoD’s local audiences. Brown recently appointed two senior development executives in London, which will act as the primary creative hub."
  • "“The important thing, and the reason I came here, is Amazon want to do it locally,” says Brown, patching into the conversation via a wall-mounted videoscreen from Amazon’s new London headquarters near Liverpool Street. “We are not interested in having a team here but actually everything having to go back to the US. The autonomy lies in the territories."
  • "“We are commissioning through a local lens, we want local shows,” she adds. “My worst pitch is when someone comes in and goes, ‘I’ve got a great pan-European show, and it could be a French lead or it could be a German lead, or if you want it in Spain we could do that too.’ My answer is, ‘I don’t want it.’ What I want is people to come in and say specifically, ‘This is a Spanish show, and these are the reasons it will work so well there for you.’ I don’t need it to work in America — it’s great when they travel but I don’t need that, I need it for that audience.”"
Quotes
  • "Georgia Brown, Amazon’s European content chief, told the Royal Television Society last summer that Amazon does not want to tread on local players’ toes, but rather offer audiences something they might not be getting elsewhere. “We’re looking at the white space,” she said. “We’re not here to take over.” She assured listeners that Amazon would “continue to invest heavily in the co-production side,” but added: “I can’t comment [about] five years in the future.”"