Production Companies Call for Investment in Local Content
Published: January 18, 2024
Global Production Companies Call for Investment in Local Content
By Movieguide® Contributor
Twenty worldwide entertainment bodies have joined together to ask governments worldwide to introduce new regulations requiring global streaming giants to invest in local content.
“Together we represent thousands of screen industry businesses and share a commitment to securing regulation from our respective governments that will ensure that our industry continues to both be sustainable and maintains our nation’s cultural sovereignty,” the joint statement reads, per Variety.
The proposed regulations would expand rules already in place in the European Union that force large streamers to reinvest a portion of their profit into local production companies. The regulation would also keep the IPs developed under these investments within the local companies.
The weight of these requirements would remain controlled by individual governments, following the model set by the current EU rules. France, for example, requires streaming services to reinvest 20%-25% of its French revenue into new French content.
While local content has never been a huge focus for streamers, regulations like these have become necessary within the past year as streaming services look toward profitability. Streaming services have already scaled down the acquisition of local content while they’ve explored new business strategies.
These regulations would increase content created for people outside of the American audience as local production companies would look to create projects for their own country first. The entertainment organizations asking for these regulations see this as a healthy change for the entertainment industry.
Furthermore, keeping more IPs out of the hands of the streaming giants would combat the creation of content monopolies that stifle or acquire competing content.
Inspired by the current rules within the European Union, this newly proposed worldwide regulation has received support from organizations operating in North and South America, Europe, Asia and Australia.
“This isn’t just about regulations; it’s about safeguarding the heart and soul of our cultural narratives,” they said, per the Irish Times.
Movieguide® previously reported on worldwide regulation:
The European Union just made history as the first legislative body to pass legislation regulating the use of AI technology.
“Europe has positioned itself as a pioneer, understanding the importance of its role as a global standard setter,” said Thierry Breton, the European commissioner who helped negotiate the deal to approve the AI Act, per The Hollywood Reporter.
Breton called the legislation “historic,” saying they set “clear rules for the use of AI.”
“[It’s] much more than a rulebook — it’s a launch pad for EU start-ups and researchers to lead the global AI race,” he said, per the BBC.
The AI Act was passed by the European Commission, the European Council and the European Parliament after a 36-hour negotiation.
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