European Entertainment Industry Unites Against Proposed Geo-Blocking Ban

 

 

More than 600 film and television companies spanning Europe, along with representatives from Hollywood studios, sports leagues, film festivals, and film and TV markets, have collectively voiced their opposition to impending legislation aiming to prohibit geo-blocking across the European Union. Set to undergo a vote on December 13, the European Parliament will decide on a proposal that seeks to integrate audio-visual content, ranging from Hollywood movies to French TV series to English soccer matches, into EU regulations that currently restrict the use of geo-blocking technology.

Back in 2018, the EU initiated a ban on geo-blocking for most services as part of extensive legislation, asserting that constructing online barriers for cross-border trade violated the EU's digital single market principle.

However, audio-visual content was initially excluded from this ban. Media companies have consistently argued that maintaining territorial exclusivity is fundamental to their business models, emphasizing that eliminating it could endanger the creative and economic sustainability of Europe's film and TV sectors.

On December 7, major studios such as Warner Bros. Discovery, NBCUniversal, Sony Pictures, and Paramount, collaborated with European giants like Canal+, RTL, TF1, Sky, ProSiebenSat.1, Wildbunch, and Leonine, as well as representatives from prominent sports leagues and distributor and exhibitor groups.

Together, they issued a joint letter urging the EU to reject the proposal and uphold territorial exclusivity.

Noteworthy signatories included representatives from Cannes and Berlin film markets, the Venice Film Festival, the European Film Academy, and the international television festival Series Mania.

The letter emphasized that banning geo-blocking for film and TV content would lead to a decline in the number and variety of produced content, significantly reduce distribution and circulation, and result in higher prices for consumers.

In 2018, Europe's film and audiovisual sector held a value of €121.7 billion ($131 billion), just over half of North America's $257 billion market. However, Europe remains a patchwork market of individual nation states or linguistic regions, with small and mid-sized companies dominating employment in the sector.

U.S.-owned streaming services like Netflix, Amazon, and Disney+ operate across the entire EU, but the majority of financing, production, and distribution of film and TV occurs locally.

The industry relies on licensing contracts for exclusive regional or linguistic rights, forming the foundation of the sector, with pricing varying based on demand. Geo-blocking technology is used to prevent cross-border comparison shopping, preventing potential price dumping and maintaining distinct licensing fees for different territories. Industry representatives argue that banning geo-blocking would significantly reduce the value of most European content, diminishing incentives to invest in local languages or less widely spoken content.