EU Proposes Legal Changes to Increase Regulation for On-Demand Video Platforms

By Natalia Drozdiak and Sam Schechner

BRUSSELS--The European Union's executive body on Wednesday proposed legal changes that could force Netflix Inc. (NFLX) and other online-video providers to help finance European-made films, a first step by the bloc to update its digital rules to account for rapidly growing Internet platforms.

In its proposal updating the region's audiovisual media and TV rules, the European Commission said member states can require on-demand services established in a different European country to fork up cash to finance production of its domestic film and TV content. The financial contributions would only be based on the revenue generated in the imposing country, the EU said.

"The way we watch TV or videos may have changed, but our values don't," said EU Digital Commissioner Guenther Oettinger. "We also want to ensure a level-playing field, responsible behavior, trust and fairness in the online platforms environment."

The changes have a potentially significant financial impact for companies such as Netflix, whose European headquarters are in the Netherlands, but which may now have to contribute between about 15% and 26% of its French revenue to France's government-enforced system to support film and television production.

Write to Natalia Drozdiak at natalia.drozdiak and Sam Schechner at [e-mail]

(END) Dow Jones Newswires

May 25, 2016 06:17 ET (10:17 GMT)

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