Netflix and Amazon Prime might be forced to have 20% European content by the EU

Netflix says 'rigid numerical quotas risk suffocating the market'

The EU’s European Commission is reportedly mulling a quota for streaming services like Netflix and Amazon Prime that would see them forced to consist of at least 20% European TV and movies.

The quota would form part of the EU’s redrafted broadcasting rules, according to the Financial Times, and extend to VOD services.

Draft proposals set to be unveiled next week are also expected to impose a rule that streaming services “ensure prominence” of European content on their homepages.

If the quota only requires the shows or movies to have been partially produced in Europe then it would have little to no effect on Netflix currently, according to Ampere Analysis, but if the main country of origin must be in Europe then a slight increase would be required.

Netflix has rejected similar proposals before, telling the European Commission: “Rigid numerical quotas risk suffocating the market for on-demand audiovisual media services. An obligation to carry content to meet a numerical quota may cause new players to struggle to achieve a sustainable business model.

“The focus of European audiovisual media policy should be on incentivizing the production of European content and not imposing quotas on broadcasters or other … providers who would struggle to meet the supply.”