With U.S. streamers still driving local market growth, TV producers in continental Europe are juggling between the Hollywood studio business model — under which Netflix and the likes get all rights in return for full-financing plus a fee — and the pre-existing European model based on co-productions that leave indie producers with backend and give them more creative control.
But that is starting to change.
Thanks to the E.U.’s Audiovisual Media Services Directive (AVMS) — currently in various stages of implementation across Europe — there are early indications that giant platforms are slowly becoming more open to flexibly structured deals. Or, at least, that’s the hope going forward.
At its core, the directive simply states that streamers must offer a 30% quota of European content to European subscribers. But on top of that, E.U. countries are introducing nationally tailored legislation to make streamers directly re-invest a percentage of their revenues in each European country where they operate. And some countries — such as France and Italy — are in the process of enshrining into law new rules that will also force Netflix, Amazon Prime, Disney Plus and other streaming services to invest locally through independent producers and ensure that producers will retain a portion of the rights.
“First of all we welcome all the investments by the streamers in every country in Europe,” says Martin Moszkowicz, chairman of the executive board of German powerhouse Constantin Film. He notes that platforms such as Netflix, Amazon Prime Video and Disney Plus “are already investing a lot of money all over Europe in local-language Netflix, Amazon, Other Streamers Shake Up European TV Business Model. … VIP+ Report: Connected TV > · Subscribe |. Log in. Account … and also in international English-language shows.”
A recent report by London-based Enders Analysis says many European producers “have come to prioritize streaming platforms when pitching their best projects.” It also points out that Netflix is considered the biggest commissioner of scripted European…