Netflix and Disney+ Clash Over France’s Streaming Quotas

Battle brews in France as Netflix faces regulatory challenges over local content quotas enforced by the European Union.

On today’s episode of “Daily Variety” podcast, Variety’s Elsa Keslassy discusses the emerging confrontation between Netflix and other streamers regarding programming quotas in France. The conflict centers around legislation introduced in 2022 by the European Union, mandating that 20% of content provided by streaming services like Netflix, Disney+, and Amazon Prime Video in the country must be locally produced.

Keslassy highlights France’s complex relationship with Netflix, noting that while the streaming platform has invested heavily in local content, it is dissatisfied with new regulations. “We have a love-hate relationship with Netflix in France. They are the number one streaming service. Everyone now has Netflix in France. But the issue is that we also want them to invest a lot of money in French content, because they’re popular here,” she explains.

She elaborates that the French industry believes Netflix should contribute significantly to the production of local films and series, similar to Canal+, which is heavily invested in local content. The regulations specify that Netflix cannot fulfill its quota with just a few high-budget titles; there must be diverse investments across different genres, from animation to documentaries.

Keslassy explains that these stipulations are seen as restrictive by Netflix, which argues that they impede editorial freedom. “They’ve set up new quotas for Netflix, which requires them to invest in animation and documentaries within the 20 percent that they have to invest. So they’re not even free to invest everything they want within those percentages,” she states.

The podcast also touches on the competitive dynamics between Canal+ and major streaming services. Canal+ has a unique advantage with a six-month exclusivity window for films released in theaters, compared to the significant wait time faced by streamers. “Canal+ actually has a six-month window after theatrical release. And they have that window in exchange for a greater investment in local production. They’re investing 230 million Euros per year on French movies,” Keslassy notes.

To balance this competition, Canal+ has indicated that if Netflix secures similar terms regarding theatrical windows, it could jeopardize Canal+’s investment in local productions. The tension between these media entities reflects the broader challenges faced by streaming services operating under stringent regulations in France.