LFTVD: Regulation and Long Form TV Drama - Fact-finding

Learner Resource 3

Regulation and Long Form TV Drama: Fact-finding

Regulation topic

Relevant information

Topic 1 - The regulation of global practices of production, distribution and circulation  1.)    https://www.marketwatch.com/story/what-netflix-comcast-and-others-are-saying-about-the-fccs-plan-to-end-net-neutrality-2017-11-22       2.)    https://www.forbes.com/sites/nelsongranados/2017/01/25/only-top-video-streaming-services-are-likely-to-survive-in-the-trump-era/#1cdb8af13319 3.)    https://www.reuters.com/article/us-netflix-asia/in-asia-netflix-trips-on-regulation-content-and-competition-idUSKCN0XJ0BZ

1.) The Federal Communications Commission wants to end “open internet” protections, referred to as net neutrality, as it says there were unnecessarily heavy-handed regulations. Those opposed to the reversal say getting rid of the protections will allow internet service providers (ISPs) to throttle the connection of some sites, giving preferential treatment to others at a price. The majority of those major ISPs are in favour of the FCC returning to, what the commission is calling, a “light-touch” approach to internet regulation. 2.) In 2015, the launch of HBO Now opened the floodgates for all major players in media and entertainment to launch their own stand-alone video streaming service that is not linked to a cable subscription. Since then, video streaming services are popping up so often it is hard to keep up. The top video streaming aggregators so far are proving that it pays off to have a critical mass of content and customers. Netflix, Amazon, YouTube and Hulu continue to consolidate their position in digital video distribution. Some are even competing aggressively with exclusive and original content. Netflix continues to amass global subscribers to consolidate itself as a market share leader. Last week it announced that it garnered 7 million net new members in the fourth quarter of 2016. Hulu continues its inroads to become the top service jointly owned by major studios. In 2016 Time Warner joined Disney, NBC Universal and Fox with a $538 million investment to get a 10% stake in Hulu. And this year Hulu will introduce streaming of live TV to sustain its strong position in TV distribution.       3.)    Complaints that programming libraries offered in many countries are far smaller than in the United States, the U.S. video streaming giant’s January launch into 130 new markets worldwide, including a slew in Asia. When it launched in Indonesia, Netflix ran into difficulty with the film censorship board for carrying content deemed inappropriately violent or sexual. mState telecoms company PT Telekomunikasi Indonesia Tbk (Telkom) (TLKM.JK) will block Netflix until it adheres to regulations, however, Netflix is still available in Indonesia via wifi connections and other carriers. The cost of dealing with these kinds of issues are reflected in its results, which show that Netflix suffered a first-quarter operating loss of $104.2 million for streaming video outside the U.S., partly because of higher marketing costs, and also showed that it is earning less per subscriber overseas than at home. Netflix had 34.5 million international subscribers against 47 million in the U.S. at the end of the quarter. It is unclear how many of its customers are in Asia. In South Korea, Netflix site offers fewer than 20 local TV shows or movies. Netflix Australia offered just 443 TV shows, compared with 1,157 in the United States, and had 1,585 movies, compared with 4,593 fewer than those available in Iraq, Haiti, Cuba and many other countries. Netflix has yet to win permission to enter the coveted but highly restricted China market.

Regulation topic	Relevant information
Topic 2 - The regulation of media and long form drama in the UK 1.)    https://www.theguardian.com/media/2015/oct/14/video-on-demand-ofcom-atvod 2.)    https://www.ofcom.org.uk/tv-radio-and-on-demand/advice-for-consumers/television/video-on-demand 3.)    https://www.theguardian.com/media/2016/may/25/netflix-and-amazon-must-guarantee-20-of-content-is-european 4.)    http://www.chillglobal.com/blog/posts/netflix-and-the-eu-content-regulation	1.)    Currently TV-like services delivered over the internet are regulated by a separate body authorised by Ofcom, the Authority for Television On Demand (ATVOD), which follows similar rules. However, taking on ATVOD’s responsibilities is unlikely to mean a significantly increased workload for Ofcom, as ATVOD only covers TV-like services based in the UK, such as those run by UK broadcasters and smaller niche services. TV services delivered over the internet from outside the UK, such as Netflix, are not covered by ATVOD, and YouTube, even when used to post content by UK broadcasters, also falls outside its remit. However, Amazon Prime Instant Video, which is delivered via the company’s UK subsidiary, is covered. 2.)    Video-on-demand services include TV catch-up and online film services. The platform on which these on-demand services are delivered does not matter, so services on connected TVs, apps on mobile phones and programmes you view through set-top boxes may all be regulated. Protecting the under-18s: "specially restricted material" (which has been or would be classified in the R18 category by the British Board of Film Classification (BBFC), or material which might seriously impair the physical, mental or moral development of under-18s, is made available in a way which secures that under-18s will not normally see or hear it; "prohibited material" (which would be refused a classification by the BBFC) does not appear; Incitement to hatred: they do not contain any material likely to incite hatred based on race, sex, religion or nationality; and Commercial references in programmes they comply with rules about product placement and sponsorship. There are also rules about what advertising you can see when you view a video-on-demand programme. This kind of advertising: must be readily recognisable, and cannot contain any surreptitious advertising or use subliminal advertising techniques; must not encourage behaviour that risks the health or safety of people; and must not advertise tobacco products, prescription-only medicines or medical treatments. 3.)    Netflix and Amazon’s European operations will have to guarantee to that at least 20% of video content in their catalogue is from Europe. European regulators are introducing the new rules to make the new wave of digital on-demand and streaming services adhere to the same, or similar, commitments that traditional TV broadcasters are forced to follow in Europe. In addition, platforms such as Netflix and Amazon will have to ensure that their services provide “good visibility” and prominence to European content in their digital catalogues. Netflix recently premiered its first French language series, the political drama Marseilles starring Gérard Depardieu, and British period drama The Crown, which will launch later this year.
Topic 3 - The impact of new media technologies on regulation 1.)    https://9to5mac.com/2017/02/08/new-eu-rules-will-remove-geoblocking-so-customers-can-use-online-subscription-services-like-netflix-abroad/ 2.)    http://www.telegraph.co.uk/business/2016/05/26/the-eus-plans-to-regulate-content-on-streaming-services-are-a-mi/	1.)    The European Union is laying out plans to enforce new laws that breakdown geographical barriers for online subscription services like Netflix, Amazon Prime Video and Apple Music. Online services must provide a service to its customers regardless of their current location, as long as they stay within the EU. For example, this means that a person from the UK (pre-Brexit) could buy a Netflix subscription in their resident country, and then go abroad to Spain for holiday. Netflix would then have to allow the customer to use their same subscription in Spain with access to the same content that they get in the UK. It gives customers more flexible about when and where they can use music and video subscription services. It does not mean that Netflix would have to offer the same library of content across all EU countries, just that if a customer signs up in one country, that same library can be accessed from any other member country. 2.)    Under proposals from the EU unveiled this week, streaming services, of which the massively successful Netflix and Amazon Prime are the two most prominent examples, will have to make sure that at least 20pc of their content is locally produced. They will also have to make sure that it is given “good visibility” on the platform, which means you are likely to see it on the home page, and not tucked away somewhere behind Finnish wildlife documentaries. And the streaming services will be given the option of either making that drama themselves, or else paying a levy into a centrally controlled fund that will then pay for the programmes.  First, streaming is a new industry and a rapidly growing one. Netflix already has 86 million paying subscribers, more than the population of Germany, Europe’s largest country. Of those, 35 million are outside America. By 2020, Germany, Britain and France are all forecast to be among its top five markets, with 28 million subscribers between them. In the US, 46pc of households now have Amazon Prime membership – 54 million in total.