Spain, platforms like Netflix will have to give 5 percent for local cinema

In Spain, the government has unveiled the new Ley del Audiovisual (“Audiovisual Law”), which implements a 2018 European directive that obliges U.S. streaming platforms such as Netflix, HBO, Amazon Prime, Disney Plus, and others to make their contribution to European cinema by broadcasting at least 30 percent of European-produced content and subsidizing national film funds. At present, besides Spain, only Germany, Sweden and Denmark have transposed the directive. Spain does so with this law, which requires platforms to allocate 5 percent of revenues generated in Spain to finance European films or TV series or to subsidize the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA)’s Fondo de Protección de la Cinematografía.

Seventy percent of these proceeds will be used to fund projects by independent producers (there is currently a debate in Spain about what definition to give to the term “independent producers”) and at least 40 percent must fund films or series in Spanish or in an official language of the Autonomous Communities of Spain. The law also accommodates the other measure established by Brussels, namely the obligation for American platforms to devote at least 30 percent of their catalog to European works. The Spanish film world is lobbying the authorities for the text to enter into force as soon as possible because the future of local cinema will also depend on these measures. Moreover, the European directive states that individual countries can maintain the minimums set by the European Union, or expand them. The next steps in theprocess will be parliamentary discussions, and final approval is expected by early December.

In Spain, Netflix has a subscriber base of about 4 million (in the Iberian country, the basic cost to have access to the platform is €7.99 per month, but there are also subscription forms of €11.99 and €15.99 per month). And the law would thus guarantee a very important revenue to finance national cinema.

Spain, platforms like Netflix will have to give 5 percent for local cinema

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