Netflix, HBO and other video-on-demand platforms will have to finance European cinema by contributing part of its income generated in Spain. This is stated in the Draft General Law on Audiovisual Communication presented today by the Secretary of State for Telecommunications and Digital Infrastructures. The draft will be published shortly and the public hearing will be open until Thursday, December 3.
Through this draft law, the Government seeks match obligations Regarding the promotion of European cinema on VOD platforms with which they already weigh on television channels. This mainly includes offer 30% of European audiovisual works in the catalog and contribute part of their income to the financing of said works or to the protection of the filmography fund.
The preliminary project does not contemplate the financing of RTVE
As explained by the Secretary of State for Telecommunications and Digital Infrastructures, the catalog of video on demand platforms will have to have at least 30% of European works. Of that 30%, 50%, that is, half, must be in Spanish languages. The law will apply to all audiovisual communication service providers operating in Spain as it already applies to national televisions.
Regarding the financing of European cinema, the platforms will have to contribute a certain percentage of your income generated in Spain. That is a controversial issue. Netflix, for example, has two companies in Spain, Los Gatos Servicios de Transporte España and Los Gatos Entertainment (both founded in 2018). They published some revenues of 540,000 euros in 2019, while Netflix entered 5.5 billion euros in the Netherlands. In order to verify the income generated in Spain, the platforms will not only have to be registered, but the CNMC may request information from them.
Platforms that bill less than 10 million euros per year are exempt
The contribution will depend on the income generated in Spain: if it is greater than 50 million euros, the platform will have to allocate 5% of income to finance European audiovisual work to the protection of filmography background. Of that 5%, 70% will have to be allocated to independent works, and of that 70%, 40% to independent works in any of the official languages of Spain.
Those platforms with a turnover less than 50 million They will have to allocate 5% to the financing of European works, to the purchase of rights to European works or the preservation of the filmography collection. Of that 5%, 70% will have to be used to finance works by independent producers. Those platforms that invoice less than 10 million euros per year are exempt.
This draft law somehow equates the obligations of VOD platforms with those of television networks, but not completely. It had been a long time debating whether Netflix, HBO and company would also have to contribute part of their income to finance RTVE, as Vodafone and other operators already do, but no. This bill does not touch the financing law of RTVE, so at least for now Netflix and other platforms will not have to pay.
Source : Engadget