business news in context, analysis with attitude

• The Guardian reports that the European Commission has unveiled new rules designed to maker sure that digital on-demand and digital services play by the same rules as traditional broadcasters, saying that companies such as Amazon and Netflix "will have to guarantee to that at least 20% of video content in their catalogue is from Europe."

"Currently, European TV broadcasters invest around 20% of their revenues in original content and on-demand providers less than 1%,” the European Commission said in its statement. “The Commission wants TV broadcasters to continue to dedicate at least half of viewing time to European works and will oblige on-demand providers to ensure that at least 20% share of European content in their catalogues.”

According to the story, "Netflix disagreed with the Commission’s ruling, arguing that a quota system, as well as forced investment in European productions, will not necessarily lead to quality shows being made." The company, which said it has already committed “hundreds of millions” of euros to European productions, said that the new rule could require it to make or acquire "filler" that won't serve the audience and only will serve to fulfill a quota.
KC's View:
This highlights to me why I tend to be anti-protectionism ... it creates artificial barriers in a global economic climate, as well as creating the illusion that a country is being competitive when what they're really in is denial.