Netflix has hit out at the EU over its incoming rules on content quotas.
Under the new rules, streaming services will have to produce at least 30 per cent of their original content in the country or region in which they’re operating. So UK Netflix’s original content portfolio would have to be at least 30 per cent British.
In its recent quarterly earnings report, Netflix said that enforcing quotas could have negative side effects.
“We’d prefer to focus on making our service great for our members, which would include producing local content, rather than on satisfying quotas, but we anticipate that a regional content quota which approximates the region’s share of our global membership will only marginally reduce member satisfaction,” the report reads.
“Nonetheless, quotas, regardless of market size, can negatively impact both the customer experience and creativity. We believe a more effective way for a country to support strong local content is to directly incentivize local content creators, independent of distribution channel.”
However, the report did note that catering to a specific audience encouraged more regional programming that could also be enjoyed by international audiences.
Netflix already makes plenty of original content outside the US. Its view is that ramping this up in order to satisfy quotas would be an exercise in box ticking, rather than commissioning the shows on their own merit.