Netflix and other video-on-demand services in the E.U. may soon be required to meet European content quotas and contribute financially to European productions.

The European Commission presented a proposed update of E.U. audiovisual rules Wednesday in Brussels, with the changes designed to create a more equal environment for traditional and online broadcasters.

The proposed changes mandate that VOD services must reserve 20% of their catalogues for European content and “ensure prominence of these works.”

The changes would also allow E.U. member states to require VOD services to contribute financially to the production of European content. “Member States may require providers of on-demand audiovisual media services under their jurisdiction to contribute financially to the production of European works, including via direct investment in content and contributions to national funds,” the proposal states.

The changes still need to be approved by the European Parliament as well as individual member states, which could prove to be a lengthy process. That said, the mere fact that these proposals have been made should catch the interest of the Canadian film and television industry, given that members have long argued that Netflix and other VOD services should be required to contribute a so-called “Netflix tax” to fund Canadian productions.

The Canadian Radio-television and Telecommunications Commission (CRTC) has held firm on its position that VOD services, such as Netflix, remain under the New Media Exemption Order and need not contribute to Canadian content production funds.

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