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
- Data from Ampere Analysis, a London-based analyst firm, suggests that Netflix needs more than 3,000 additional hours of European content in France to meet the planned EU quota while Amazon needs more than 1,800 additional hours in the UK.
- Netflix believes that they will be able to meet the planned quota for European content by "evolving" their content offering.
- In April 2018, Netflix announced that they are investing US$1 billion into producing more European content. It has been reported that this investment will lead to double the amount of Netflix's European productions.
- Netflix is opening an office in Paris to be able to conduct business easier around France and produce more French content for its streaming platform.
- They are also opening an office in Madrid to produce more Spanish content.
- In 2018, Netflix produced 81 original European projects and hosted 60 co-produced and licensed European content for their website. In 2019, this number has risen to 153 and 68 respectively.
- Amazon has been recruiting on-the-ground executives in Spain, Italy, France, and Germany to help them develop and produce local-language content from those regions. They have recently appointed two senior development executives in their creative hub in London.
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.